The Professional Oversight Board ('the Oversight Board'), part of the Financial Reporting Council, today announced the scope of the work of its independent Audit Inspection Unit (AIU) for 2008/9. The Board has determined that the small number of very large entities constituted as industrial and provident societies should be brought within scope but that no other changes of substance should be made at this time.

Sir John Bourn, Chairman of the Oversight Board, said:

“The Board remains willing to consider proposals from other parties for making further changes to the scope of the AIU’s work. In assessing any such proposals, the Board has regard to the level of public interest involved and the need for proportionate and cost-effective regulation. The Board will review the matter again in a year’s time prior to announcing the scope for 2009/10.”

1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance. Its functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy and Actuarial Discipline Board) and by the Committee on Corporate Governance.
2. The Professional Oversight Board contributes to the achievement of the Financial Reporting Council’s own fundamental aim of promoting confidence in corporate reporting and governance. It has four main responsibilities:
   1. a statutory obligation to oversee the regulation of auditors by the recognised accountancy bodies;
   2. the monitoring of the quality of the auditing function in relation to economically significant entities;
   3. independent oversight of the regulation of the accountancy profession by the professional accountancy bodies;
   4. independent oversight of the regulation of the actuarial profession by the professional actuarial bodies. 
3.  The Professional Oversight Board is independent of the accountancy and actuarial professions. Its members have wide experience of business and the professions, the public sector, accountancy, auditing and actuarial work.
4. ‘The Audit Inspection Unit: Scope of Independent Inspection 2008/9’ is available on the FRC website at http://www.frc.org.uk/pob/audit/publications/.
5. Press enquiries should be directed to Andrew Jones, AIU Director, on 020 7492 2360 .