Enforcing compliance with accounting standards: The role of the Financial Reporting Review Panel in the UK regulatory framework
| Pages | 323-330 |
| DOI | https://doi.org/10.1108/eb025019 |
| Published date | 01 April 1999 |
| Date | 01 April 1999 |
| Author | Robert E. Jupe |
| Subject Matter | Accounting & finance |
Journal of Financial Regulation and Compliance Volume 7 Number 4
Enforcing compliance with accounting
standards: The role of the Financial
Reporting Review Panel in the UK regulatory
framework
Robert E. Jupe
Received (in revised form): 26th March, 1999
Canterbury Business School, University of Kent at Canterbury, Canterbury, Kent, CT2 7PE;
tel:
+44 (0) 1227 823 347; fax: +44 (0) 1227
761
187
Robert Jupe worked as an accountant for
three years in the public sector and is a
CIPFA member. He has taught accounting
for eight years and is a lecturer at the
Uni-
versity of Kent at Canterbury. His major
research interests are in auditing and
financial reporting, and he has a number
of publications in these areas.
ABSTRACT
A new regulatory regime for issuing, and enfor-
cing compliance with, accounting standards has
been
established
in the UK. It
includes
an enfor-
cement body, the Financial Reporting Review
Panel (FRRP), which is
responsible
for exam-
ining alleged
departures
from the Companies
Act and
accounting standards
by
companies.
The
FRRP has secured revisions in company
accounts which were
regarded
as defective, and
has issued press notices summarising the defects
and the remedial action taken. The FRRP was
intended to strengthen auditors in their negotia-
tions with
directors,
but there are tensions in the
relationship as the majority of
companies
receiv-
ing a press notice had unqualified audit reports.
The FRRP has
reported auditors
to
their
profes-
sional body, but no
action
has
been
taken against
any
auditors
to date.
INTRODUCTION
A key issue in the financial reporting pro-
cess is the attempt to enforce corporate
compliance with accounting standards.
This paper presents a perspective on the
attempt to secure compliance with
accounting standards by focusing on the
role of a new enforcement body, the
Financial Reporting Review Panel
(FRRP), in the UK regulatory framework.
The focus of the paper is the relationship
between companies, auditors and the
FRRP. The paper presents an analysis of
the FRRP's role by examining the cases
which were dealt with between 1991 and
1998.
The paper is organised as follows: the
next section examines the background to
the introduction of a new regulatory
framework in the UK in 1990. The third
section explains this new regulatory frame-
work and discusses the role of the FRRP.
The next two sections analyse the cases
dealt with by the FRRP, and the press
notices issued, while the sixth section
examines the relationship between auditors
and the FRRP. The final section provides
conclusions.
Journal of Financial Regulation
and Compliance, Vol. 7, No. 4,
1999.
pp. 323-330
© Henry Stewart Publications.
1358-1988
Page 323
To continue reading
Request your trial