Audit Tendering: The Requirements of the Revised Code and Guidance on Audit Committees

In September 2012, the Financial Reporting Council (“FRC”) published revisions to the UK Corporate Governance Code (“the Code”) and revised Guidance on Audit Committees (“the Guidance”). The Guidance is designed to assist company boards in making suitable arrangements for their audit committees, and to assist directors serving on audit committees in carrying out their role. While boards are not required to follow this guidance, it is intended to assist them when implementing the relevant provisions of the Code. This technical note looks at the key issues that the FRC will shortly discuss with audit committee chairs, finance directors, audit partners and investors.