Download This PaperStrengthening Internal Controls of Listed Companies in the United Kingdom: Lessons and Experiences From the United States
Common Law World Review, Autumn 2020 Forthcoming
39 Pages Posted: 5 Jun 2020
Date Written: April 24, 2020
Abstract
In April 2018, Sir John Kingman was asked by the Secretary of State for Business, Energy and Industrial Strategy (BEIS) of the United Kingdom (UK) to undertake an independent review of the Financial Reporting Council (FRC). The Kingman review which was published in December 2018 made recommendations for a major overhaul of the UK corporate financial reporting and audit regulations. A key recommendation made in the Kingman review is that the UK should consider introducing tougher regulation in respect of listed companies’ internal controls, similar to that applying in the United States (US) under the Sarbanes-Oxley Act (SOX). This article is written against such background and examines what lessons and experiences can regulators and companies in the UK learn from the other side of the Atlantic in strengthening internal controls. It seeks to recommend what measures UK regulators and companies can adopt to prepare themselves should a SOX-style regime of internal controls is to be implemented...
Keywords: Corporate Governance; Financial Reporting; Internal Controls; Sarbanes-Oxley; United States; United Kingdom
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Kong Shan Ho (Contact Author)
City University of Hong Kong (CityU) - School of Law ( email )
6/F, Lee Shau Kee Building
Hong Kong, Shatin, New Territories
Hong Kong