To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions he has had with the Financial Reporting Council on the potential scope of a UK equivalent to the US Sarbanes-Oxley Act 2002; and if he will publish his strategy for audit reform.
21 October 2020
The Independent Review of the Financial Reporting Council (FRC) recommended that consideration be given to the case for a strengthened internal control framework, learning any relevant lessons from operation of the Sarbanes-Oxley regime in the US. Sir Donald Brydon’s review of the quality and effectiveness of audit also made suggestions for enhancing the role of the board and the auditor in a strengthened internal control system.
The Government will publish and seek views on its proposals on audit reform in due course, including in response to these particular recommendations. The Government has been working closely with the FRC in developing these proposals.