As discussed in our last corporate update, BEIS has published its long-awaited consultation paper on audit and governance reform, Restoring trust in audit and corporate governance. It proposes fundamental reforms to the audit process, product and market.
If implemented, the proposals would lead to considerable changes to the way that companies approach their financial statements and financial reporting, requiring additional processes and procedures to be put in place and additional reporting on the company’s resilience. Directors of companies will be particularly interested in the proposals to strengthen directors’ accountability, with proposals to give the new regulator greater powers to sanction directors for failures in connection with financial reporting.
We have published two briefings in which we discuss the proposals in more detail:
- To read more about the impact of the proposals on UK listed companies, click here; and
- To read more about the impact of the proposals on large AIM and UK private companies, click here.