On the 16th October 2023 the Government has announced it has withdrawn the proposed secondary legislation laid in July (covering the audit and assurance policy, resilience statement, fraud statement and distributable reserves) and will instead pursue options to streamline and simplify existing corporate reporting.
Separately the Financial Reporting Council (FRC) have consulted during the summer on how risk and internal control reporting could be more effectively included in the UK Corporate Governance code. It remains to be seen how this latest announcement will influence the FRC as it finalises revisions to the Code.
This is a rapidly changing area. For now a focus on ‘no regret’ activities until the FRC publishes the final Code changes is a pragmatic step to take.
Boards are more alert to risk and their responsibilities than ever, seeking greater assurance over the control environment. Although premium listed businesses should already have a framework of internal controls in place, these can vary widely. Companies are starting to take internal control disclosures seriously, however 52% provide only basic or general explanation of their internal control effectiveness with limited transparency on the how (Corporate Governance review 2022).
You can take key steps now to set yourself up for success in ICFR compliance, even while the outcome of the FRC consultation on changes to the Corporate Governance code are awaited. Originally, changes are proposed to come into force on 1 January 2025 – what do you need to do to get ready?
Paul Young looks at the key changes and what this means for listed companies.
Where stakeholders should focus and how their input could help shape outcomes.
As UK SOX is likely to increase demand for third party risk assurance, we look at the options and key considerations.
You need to prepare for UK SOX: our guide explains what you need to know about the BEIS consultation
Digital innovation and automation can generate valuable insights that help you monitor financial risks and controls in a complex and changing world. Wondering how you can get started?
Automation is key to driving efficiency in SOX internal control testing. Which solution is right for your organisation?
Controls automation can deliver quick wins and long term value to your SOX compliance capabilities. If you get it right.