A quarter of the UK's larger companies do not provide proper reports to shareholders on audit practices, a leading pension fund group has claimed.

In its response to the Financial Reporting Council's (FRC) recent consultation on the Combined Code on corporate governance, the Local Authority Pension Fund Forum (LAPFF) says that its research has established that 23% of the FTSE 350 do not adequately report on the activities of their audit committees. LAPFF says that in these cases, companies' disclosures amount to little more than a summary of their audit committees' terms of reference.