Company Accounts

Department for Business, Energy and Industrial Strategy written question – answered on 20th July 2020.

Alert me about debates like this

Photo of Lord Myners Lord Myners Non-affiliated

To ask Her Majesty's Government what plans they have to introduce an equivalent of the US Sarbanes-Oxley Act 2002 in the UK; and what assessment they have made of whether any such legislation would (1) increase confidence in company accounts, and (2) reduce fraud.

Photo of Lord Callanan Lord Callanan Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

The Independent Review of the Financial Reporting Council recommended that government should consider the case for adopting a strengthened framework around internal controls on a similar basis to the Sarbanes-Oxley regime in the US. In response, the Government is exploring options in this area and will bring forward a detailed consultation in due course.

The Review heard that the Sarbanes-Oxley Act, passed in 2002, has led to better financial reporting, with a lower incidence of significant accounting re-statements, but also recognised the higher costs for companies. Any strengthening of the UK regime would need to take account of the UK’s well-established internal control framework comprising interlocking company law requirements, Listing Rules, UK Corporate Governance Code provisions and auditor responsibilities.

Does this answer the above question?

Yes1 person thinks so

No1 person thinks not

Would you like to ask a question like this yourself? Use our Freedom of Information site.