From The Bulletin Volume 2 Issue 11
The financial reporting risk profile (FRRP) is a proactive approach to identifying financial reporting issues and managing them to head off financial statement restatements before they occur, thereby enabling management to better focus efforts on more important matters and reduce reputation risk to an acceptable level. This questionnaire focuses on topics board members and management should consider when discussing FRRP.
Sample questions include: Has the audit committee endeavored to understand the most sensitive financial reporting risk areas? Is a FRRP documented in a manner to identify significant risk areas?