Controls advisory: preparing for compliance

On 22nd January the Financial Reporting Council (FRC) published revisions to the UK Corporate Governance Code, following their 2023 consultation on how risk and internal control reporting could be more effectively included in the Code. This follows the Government announcements last October to withdraw secondary legislation and pursue options to streamline and simplify existing corporate reporting.

Boards are more alert to risk and their responsibilities than ever, seeking greater assurance over the control environment. Although premium listed businesses should already have a framework of internal controls in place, these can vary widely. Companies are starting to take internal control disclosures seriously, however 52% provide only basic or general explanation of their internal control effectiveness with limited transparency on the how (Corporate Governance review 2023).

What does this mean for you, your Internal Controls framework and your annual report?