The Department of Business, Energy and Industrial Strategy (BEIS) has released its response to the consultation on audit reform, bringing the introduction of key proposals closer. While the government’s proposals related to the anticipated internal controls over financial reporting (ICFR) UK-Sarbanes Oxley inspired regime have been scaled back, boards are still being focussed on internal control matters through inclusion of a requirement in the UK Corporate Governance Code.
All organisations should already have a framework of internal controls in place, but we know from experience, however, that these can vary widely. The quality of disclosures on the effectiveness of internal controls in the FTSE 350 also remains low.
Depending on your current situation, it's understandable that complying with emerging requirements may feel like a daunting prospect. Our hub explains what you need to know about UK SOX compliance.
Business risk services are already helping clients and contacts to prepare for these reforms. Explore our proposals and recommendations on how to approach these different requirements and make the most of the opportunities to enhance confidence, performance, and efficiency that UK SOX could bring.
Where should I start?
The BEIS response to audit and governance reform has been released.
With a UK version of the Sarbanes-Oxley (SOX) act looming, what do business leaders need to consider when it comes to the culture of their organisation?
You need to prepare for UK SOX: our guide explains what you need to know about the BEIS consultation.
Robust control and assurance
UK SOX is likely to increase demand for third party risk assurance.
UK SOX requires reporting on your internal control framework.
Information technology controls are vital for efficient UK SOX compliance.
Leveraging technology and innovation
Automation is key to driving efficiency in SOX internal control testing.
SOX compliance can be time and resource intensive.
Public interest entities will be redefined under new government plans.
The BEIS consultation will see an increase in the accountability of directors across several areas, as part of a move by the government to increase public trust in audit and corporate governance.