FRC is a regulator as well as a facilitator to achieve high quality reporting of financial and non-financial information by public interest entities that will promote confidence in corporate reporting and ensure governance.
As a governmental arm FRC will make use of its powers to achieve the ultimate objective which is enhancing the credibility of financial reporting by improving the quality of accountancy and audit services. Such endeavour will produce a healthy corporate society which serves various stakeholders such as business community, investors, employees and other interested parties.
Quality corporate reporting and governance will no doubt enhance the Mauritian Economic strength in the international market which is becoming more and more complex and competitive. FRC committed towards the nation through ensuring consistency and transparency in corporate reporting and governance.
FRC will adopt a consultative approach with all relevant parties, such as, the Public Interest Entities which include the State Owned Enterprises, the preparers of accounts and the licensed auditors.
We will also work in close collaborations with other regulatory bodies namely the Bank of Mauritius, the Financial Services Commission, the Stock Exchange of Mauritius, the Registrar of Companies. The need for the various regulatory bodies concerned with different aspects of financial reporting to improve the coordination of their activities, all within a coherent and consistent legislative framework.
Not all companies successfully manage the interface between the general purpose and the regulatory reporting. There is a need to minimize the differences between them. This minimizes the incremental costs of multiple reporting and also leverages the enforcement role of regulatory bodies with respect to the general purpose of financial reposrting.
Existing regulatory institutions, including banking and securities regulators lack the mandate, resources and methodologies required to monitor and enforce accounting and auditing requirements. Where such regulators are concerned primarily with the respect of their own special-purpose requirements, the contribution of their activities to the quality of the general purpose financial statements made publicly available is constrained.
Additional problems arise in the case of public interest entities that do not operate in regulated activities.
We trust the professional Accountants/Auditors/ Consultants to support the public interest entities and the business community at large in achieving quality in corporate reporting and governance. It is practically impossible to achieve a system where there is a no corporate failure in reporting and governance. However, FRC will use all its powers and influence in order to achieve at a zero-failure system.