FRC publishes conversation starters to boost Investor-Audit Committee engagement
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Published: 19 April 2023
The Financial Reporting Council (FRC) is excited to announce the launch of a new web page providing conversation starters aimed at promoting better engagement between investors and audit committees to facilitate better understanding of companies and their approach to financial reporting and internal control.
The Audit committee report is a valuable source of information for investors. However, direct conversations with audit committee chairs could act as an additional resource, providing insights into the company's approach to regulatory focus and areas of interest to market participants.
To encourage such conversations, the FRC has developed a series of conversation starters structured by topic, with an initial broad question followed by several more detailed follow-up questions. These are aimed at investors wishing to engage with audit committees and companies on assurance-related topics.
Philip Fitz-Gerald, Director of the FRC Lab said: "We recognise the value of direct engagement between investors and audit committees in promoting a deeper understanding of companies and their approach to financial reporting and internal control. These conversation starters provide a starting point for constructive discussions, which we hope will lead to greater transparency and investor confidence."
The conversation starters have been developed in consultation with stakeholders, including investors, audit committees, and other interested parties, and the FRC will continue to work with these stakeholders to ensure that they remain relevant and useful.