An updated version of the Turnbull Guidance on Internal Control was published by the Financial Reporting Council on 13 October 2005 and will apply to financial years beginning on or after 1 January 2006. The amendments are limited as the Turnbull Review Group concluded that no significant changes to the guidance were required.
Amendments include:-
- a revised preface and introduction;
- various amendments reflecting recent changes to the Listing Rules and Combined Code and proposed changes in the Company Law Reform Bill;
- removing the section relating to internal audit (which should be incorporated in the Smith guidance on audit committees); and
- requiring the inclusion in annual reports of information to allow shareholders to understand the principal features of a company's internal control procedures and risk management system.
Continuing with the theme of Corporate Governance, in our next ebulletin we will look at the FRC's consultation on possible amendments to the Combined Code which is due to be launched in mid January.