Raymond Doherty 18 Sep 2019 02:55pm

FRC advises audit chairs ahead of Brexit

The Financial Reporting Council (FRC) has written to the UK’s audit committee chairs and finance directors with advice on how to prepare for Brexit, with just six weeks to go

The audit regulator said that although plenty of businesses have put in place contingency plans, this “may not be the case for all businesses, nor will it be the case for all of your suppliers, customers and employees”.

The advice that FRC offers includes asking employees to check if they need to apply to the EU Settlement Scheme. Resident EU citizens have until at least 31 December 2020 to apply.

It asks chairs and FDs to check whether their business will face additional legal, regulatory and administrative barriers as a result of the UK becoming a “third country’” in the event of a no-deal Brexit.

It asks them to ensure suppliers and customers are fully prepared, engage with a local Chambers of Commerce or business advisor, and to attend a Brexit Business Readiness event.
Finally it requests they consider corporate reporting and the risks created by Brexit, as “it will be for companies to decide whether exiting-the-EU uncertainties impact their statements on viability and even their ability to continue as a going concern”.