In its 2011 consultation with UK market participants on the issues of corporate reporting and auditing, the FrC confirmed this, reporting that: ‘some institutional investors said that they placed more importance on the assurance they received from discussions with boards and management than on the words in the annual report.
This was
particularly the case when it came to assessing the quality of risk management and internal control, for which their main source of assurance was the quality of the board2.