The Financial Reporting Council (FRC) is responsible for monitoring the financial; and non-financial reports of Public Interest Entities (PIEs) for compliance with accounting and financial reporting standards and the Code of Corporate Governance for Mauritius,
The Financial Reporting Act 2004 (FRA / the Act) prescribes the establishment of a monitoring of financial statements and report function within the FRC and Financial Reporting Monitoring Panel (FRMP), which will assist in the undertaking of this function, refer non-compliance and deficiencies and report the results of the monitoring activity to the Financial Reporting Council (FRC).
The FRMP will also develop an active programme to ensure quality financial and non-financial reporting in Mauritius, in line with international best practices.
The programme will include proactive collaboration on accounting and reporting issues with reporting entities and developing and delivering workshops as appropriate to further advance its objectives.
2.0 Adoption of the Charter
This charter is adopted by the Financial Reporting Monitoring Panel (FRMP) of the FRC on behalf of the Council of the FRC (the “Council”) ..
3.0 Objects of Council
The objects of the Council shall be to:
a) promote the provision of high quality reporting of financial and non-financial information by public interest entities;
b) promote the highest standards among licensed auditors;
c) enhance the credibility of financial reporting; and
d) improve the quality of accountancy and audit services.
4.0 Functions of the FRC in relation to the FRMP
In order to meet the objective set-forth in (3) above, The FRMP shall perform the following functions:
a) Assist the Financial Reporting Monitoring Unit in monitoring the truth and fairness of financial reporting, review financial statements ad reports of the PIEs;
b) Monitor compliance with the reporting requirements specified in the Code of Corporate Governance for Mauritius and other guidelines issued by the National Committee on Corporate Governance (NCCG);
c) Encourage and, where appropriate, finance research into any matter affecting financial reporting, accounting and corporate governance;
d) Establish and administer such systems and schemes as the Council may consider necessary for the discharge of its functions;
e) Advise the Council on any matter relating to financial and non-financial reporting and accounting;
f) Participate in, and initiate the organization of activities which promote education and training in the fields of accounting and financial reporting;
g) Provide advisory, consultancy and information services on matters relating to its functions;
h) Engage in any activity, either alone or in conjunction with any other panel, organization or agency, whether local or international, that is connected with or that is conducive to the discharge for its functions; and
i) Provide such other functions as the Council may deem necessary.
5.0 Powers of Council
The following are the powers of the FRC related to financial reporting monitoring.
(a) The Council shall have powers to do all things necessary or convenient to be done, for or in connection with the performance of its functions.
(b) Without prejudice to the generality of subsection (a) but subject to the Act, the powers of the Council shall include the power to:
(i) advise and assist in the review of the financial statements and reports of a public interest entity filed with the government department or authority to determine whether the financial statements and reports are in compliance with this Act.
(ii) seek further information or clarification from –
(a) any director of a public interest entity;
(b) any employee of a public interest entity responsible for preparing the financial statements and reports; and
(c) any auditor responsible for the audit of the financial statements of that public interest entity.
6.0 Panel of Experts
The Council shall, for the purposes of this Act, establish two panels of experts , the Financial Reporting Monitoring Panel and the Audit Practice Review Panel
The panels shall consist of such employees of the Council, and such other persons not being members of the Council, that the Chief Executive Officer determines are necessary.
7.0 Financial Reporting Monitoring Panel
a. The FRMP shall be responsible for reviewing, analysing and identifying any failure on the part of any public interest entity (PIE) to comply with any financial reporting and accounting standard, code or guideline issued under this Act, and with such other financial reporting and accounting standards as may be specified under the relevant enactments.
b. FRMP will further ensure that policies and systems are developed to communicate issues of importance, as appropriate, to the other FRC panels
c. The powers of the FRMP will consist of such powers that have been delegated to it by the Council FRC to perform its functions which will include:
i. The power to require that PIEs submit to it financial and non-financial reports at such time and in such form as set forth in the FRPM procedures; and
ii. The power to engage in discussions with PIEs regarding accounting and reporting issues noted by it in connection with the FRMP’s monitoring process.
d. The FRMP is accountable to the Council for the conduct of its functions and the achievement of its objectives.
8.0 Effective Date
This Charter is adopted by the FRC and is effective on January 2008