UK: FRC publishes revised codes and auditing standards

The Financial Reporting Council has today published updated editions of the UK Corporate Governance Code and the UK Stewardship Code, following a consultation on proposed changes earlier this year: see, respectively, here (pdf) and here (pdf). The revised codes will apply from 1 October 2012. A summary of the changes that have been made is available here. The FRC has also published revised audit committee guidance reflecting the changes made to the UK Corporate Governance Code: see here (pdf). One of the changes to the Corporate Governance Code is the inclusion of a new provision, C.3.7., stating that FTSE350 companies should put the external audit contract out to tender at least every ten years.

The FRC has also published several revised International Standards on Auditing (UK and Ireland), in order to support the changes made to the UK Corporate Governance Code and audit committee guidance: see here. These revised standards include (in pdf):

• 260 Communication with those charged with governance.
• 700 The auditor's report on financial statements.
• 705 Modifications to the opinion in the independent auditor's report.
• 706 Emphasis of matter paragraphs and other matter paragraphs in the independent auditor's report.
• 720A The auditor's responsibilities relating to other information in documents containing audited financial statements.