The Financial Reporting Council’s (FRC) latest review into the quality of corporate reporting shows that the regulator found issue with approximately one in three sets of accounts reviewed in the last year.

The headline finding that most accounts are compliant disguises the fact that the FRC’s review team raised queries with nearly a third of company accounts reviewed.

For investors in AIM quoted companies, the annual report is the main source of their financial information and the quality of the annual report can influence their investment decisions. However, the FRC’s survey data shows that investors have significantly less confidence in the quality of financial reporting than either auditors or directors.