Smith Report
The Smith Report was UK guidance published in 2003 on the role of audit committees. It helped develop expectations for their oversight of financial reporting, audit and related controls. Later FRC guidance has replaced or developed the historical material. The name does not describe a standard requiring auditors to calculate a company’s going-concern period.
Worked example
An audit committee challenges management’s reporting judgments and discusses audit findings with the external auditor. These activities illustrate its oversight role; management still prepares the accounts and the auditor remains responsible for the audit opinion.
Common mistake
Confusing Smith guidance with going-concern auditing requirements, as the old dictionary did, or making the committee responsible for preparing the financial statements.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Supporting | September 2026–June 2027 |