Governance in brief — FRC issues 2016 UK Corporate Governance Code, Guidance on audit committees and changes to auditor independence rules – Part One
The Financial Reporting Council (FRC) has now completed its 2016 updates to the UK Corporate Governance Code and to standards for auditors, which finalises its implementation of the EU Audit Regulation and Directive. It has also issued updated Guidance on Audit Committees. These take effect for financial years commencing on or after 17 June 2016.
Although the changes in the 2016 UK Corporate Governance Code are limited, relating to audit committee composition and to disclosure of planned external audit tenders, the changes to the Guidance on Audit Committees are more substantive, with changes to both activities and extensive additions to recommended audit committee reporting.
In this Governance in brief we identify and explore these key changes and highlight areas for directors to consider when approaching their first year of reporting under the 2016 UK Corporate Governance Code.
