Guide to help smaller companies improve financial reporting
Monday 13th May 2019, A new guide designed to help smaller listed and AIM quoted companies improve their financial reporting has been published by ICAEW and the FRC. Addressing issues raised by the FRC about the quality of financial reporting in this size sector, the guide provides practical tips and questions for audit committees to consider, with a view to driving up the quality of smaller quoted company reporting.
High quality financial reporting can contribute to a strong and efficient economy by improving transparency and giving investors the ability to assess the financial integrity of a company and hold management to account. However, for many smaller listed and AIM quoted companies, financial reporting is not always seen as a top tier issue.
The new publication, Smaller Listed and AIM Quoted Companies – A Practical Guide for Audit Committees on Improving Financial Reporting, offers practical, cost-effective suggestions on how smaller quoted companies can improve the quality of their financial reporting and suggested questions for audit committees to ask themselves and those associated with the financial reporting process, including the Board, Chief Financial Officer, finance team and external auditors. These questions are designed to encourage smaller quoted companies to reflect on current practices and consider areas for improvement.
Dr. Nigel Sleigh-Johnson, Head of the ICAEW Financial Reporting Faculty, said: “With responsibility for monitoring the integrity of the financial statements, the audit committee is well positioned to drive up the quality of financial reporting. By asking the right questions at the right time, audit committees can help bring about a step change in the quality of financial reporting.”
Paul George, The FRC’s Executive Director of Corporate Governance & Reporting said: “Smaller quoted companies are critical to generating future jobs and growth in the economy and need access to capital to invest and grow. The availability of capital though can be affected by the quality of reporting, so audit committees have a vital role to play in ensuring that the quality of reporting meets the needs of stakeholders and those companies’ growth aspirations.”
Please direct all media inquiries related to this article to:
Caroline Florence - ICAEW press office
Tel: +44 (0) 207 920 8564