The Professional Oversight Board (‘the Oversight Board’), part of the Financial Reporting Council, today publishes the updated operating procedures of its Audit Inspection Unit (AIU) for maintaining the confidentiality of information it obtains from audit firms for the purposes of its inspections.

The AIU’s operating procedures for maintaining confidentiality have been updated to reflect changes to legal and regulatory requirements under the Companies Act 2006 and the Audit Regulations of the Institutes of Chartered Accountants in the UK and Ireland and the changes to the AIU’s reporting arrangements announced by the Board in December 2007 after extensive consultation with stakeholders. The updated procedures apply with immediate effect.

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

“The Board has approved the updated confidentiality procedures for issue in final form on the basis that there are no changes of substance to the November 2006 version requiring further consultation with stakeholders. Any comments received from interested parties will, however, be taken into account when the procedures are next reviewed by the Board.”

1. The FRC’s 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 FRC Board. The Committee on Corporate Governance assists the Board in its work 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:
3. • a statutory obligation to oversee the regulation of auditors by the recognised accountancy bodies;
   • the monitoring of the quality of the auditing function in relation to economically significant entities;
   • independent oversight of the regulation of the accountancy profession by the professional accountancy bodies;
   • independent oversight of the regulation of the actuarial profession by the professional actuarial bodies.
4. 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.
5. ‘The Audit Inspection Unit: Operating Procedures for Maintaining Confidentiality’ is available on the FRC website at POB Publications.
6. Press enquiries should be directed to Andrew Jones, AIU Director, on 020 7492 2360.