Preliminary to the meeting of the Financial Reporting Council which will discuss a successor body to the CFACG.
The paper sets out possible terms of reference and the issues the successor body could address.
Comments on and seeks discussions with the Committee on the draft guidance on paragraph 4.5 of the Cadbury Code i.e. Reportable weakness and effectiveness of internal financial control systems.
The paper sets out the case for publication of the survey into compliance with the Code.
The paper seeks to establish whether clarification or exemption is required on Paragraph 3.1 statement of compliance about debt-listed companies.
Arlen plc made a statement about compliance with the Code which auditors reported as inadequate. As a result it was requested that Sir Adrian Cadbury write to the institutional directors requesting they should contact the company. See press cutting file for 3-page extract.
The letter opines that encouragement to to express opinions about the effectiveness of internal control would be premature.
Deals with internal control systems, issues for the successor body, monitoring compliance [with the Code] and various aspects handled by the Monitoring Sub-committee. Also includes letter from DTI on length of directors' service contracts, disclosure of no-audit fees paid to firms, protection for auditors reporting fraud. A note sets out proposed amendment to minutes of meeting held on 14 September, 1994.
This is a file number and no individual papers are extant. It comprises several items.
Issues raised include expressing an opinion on the effectiveness of internal control systems, successor body and its remit.
Foreword to the ICAEW's guidance on internal control and financial reporting which appeared in Accountancy, February 1995.
The article should refer to draft proposals from the Working Group on Internal Control.