Auditing and Assurance Standards and Guidance

FRC Bulletins

APB Bulletin 2006/05 The combined code on corporate governance: Requirement of auditors under the listing rules of the FSA and the Irish stock exchange

Specific procedures

Internal control

Failure to conduct a review

The Listing Rules²⁴ require the company to disclose if the board has failed to conduct a review of the effectiveness of internal control. The Turnbull Guidance²⁵ recommends that where it has not made the required disclosures the board should state that fact and provide an explanation. The auditor considers whether this recommendation is met and whether the explanation is consistent with the auditor's understanding.

²⁴ FSA LR 9.8.6R (6)(b); ISE LR 6.8.6(7)(b)

²⁵ Paragraph 37 of the Turnbull Guidance

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