Controls advisory: preparing for compliance

In January 2024, the Financial Reporting Council (FRC) published revisions to the Code following their 2023 consultation on how risk and internal control reporting could be included more effectively. This followed the Government announcements in late 2023 withdrawing secondary legislation and pursuing 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. Though Provision 29 isn't effective until 1 January 2026, our latest corporate governance research found that only 2% of the FTSE 350 disclosed all of the recommended information. 

While there's still time to finesse practices and systems, without these in place, the majority of companies could miss early warning signs of deteriorating business performance.

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