Companies: Fraud

Question

Last month, the Government published its response to consultation on Restoring Trust in Audit and Corporate Governance.

As part of this balanced, targeted, and proportionate package of reforms, we intend to require directors of large companies to produce a fraud statement as part of their annual report. Directors will be expected to set out the steps taken to prevent and detect material fraud; and their assessment of the risk of material fraud in the entity, highlighting the areas of the business most susceptible to material fraud.