Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What does the Financial Reporting Review Panel (FRRP) primarily focus on?

1. Preparing financial statements

2. Auditing small businesses

3. Examining compliance with accounting standards

4. Educating accountants

The correct answer is: Examining compliance with accounting standards

The Financial Reporting Review Panel (FRRP) primarily focuses on examining compliance with accounting standards. This role involves reviewing the financial statements of companies to ensure they adhere to applicable accounting regulations and frameworks. The FRRP plays a crucial part in maintaining the integrity and transparency of financial reporting, which is essential for the trust and confidence of stakeholders, including investors, regulators, and the general public. While preparing financial statements is certainly a vital activity within accounting, the FRRP does not engage in this process directly. Instead, its role is more about oversight rather than the active preparation of financial documents. Similarly, while educating accountants is important for the profession to promote adherence to standards and continuous professional development, this is not the primary objective of the FRRP. The auditing of small businesses, although a relevant field within accounting, does not fall within the specific focus of the FRRP, which is more aligned with the review and compliance aspects rather than direct auditing. Thus, the emphasis on ensuring compliance with accounting standards distinctly defines the primary mission of the FRRP.