Audit committee report, reference to interactions with UK FRC

United Utilities Group PLC – Annual report – 31 March 2017

Industry: utilities

Corporate governance report (extract)

Audit committee (extract)

Interactions with the Financial Reporting Council (FRC)

During the year, the FRC undertook a review of the United Utilities Group PLC annual report and accounts for the year ended 31 March 2016, which resulted principally in queries relating to disclosures. These queries were all resolved to the FRC’s satisfaction. To provide greater clarity the group has provided enhanced, voluntary disclosures on these and other matters in this year’s financial statements. The review has subsequently been closed. The FRC noted that their review did not provide assurance that the 2016 annual report and accounts is materially correct as their role is not to verify the information included therein but rather to consider compliance with reporting requirements and stimulate improvements in the quality of corporate reporting.

During the year, the FRC also undertook a review of certain aspects of KPMG’s audit of United Utilities Group PLC for the year ended 31 March 2016. We have discussed the review findings with the FRC, enabling the Committee to challenge KPMG robustly in relation to the points raised, and satisfy itself that KPMG had taken appropriate action to enhance the quality of their audit process for the 2017 financial year.