On 29 September 2015, FRC published a consultation paper seeking views on its proposed amendments to auditing standards, ethical standards for auditors, the UK Corporate Governance Code and its guidance for audit committees.
Minor changes have been proposed to the UK Corporate Governance Code as a result of the changes brought by the amendments to the Statutory Audit Directive, in particular, to Section C of the code which relates to accountability. C.3.1 would now require the audit committee as a whole to have competence in relation to the sector in which the company operates. Additionally, the audit committee members would be required to have auditing and accounting competence. Lastly, C.3.8 would require shareholders to be informed about future audit tendering plans.
The proposed changes are explored further in the FCA quarterly consultation extract below.
A copy of the consultation paper is available here:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
