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Companies (Audit, Investigation and Community) Enterprise Bill

The Companies (Audit, Investigation and Community) Enterprise Bill is the Uks response to the recent corporate scandals (Enron and WorldCom etc) bringing back some confidence and stability to the markets and financial sectors, bringing with it the idea of a "community interest company". These ideas break down into the following;

Strengthening audit regulation independence will assist in increasing market confidence in the financial reporting process as well as improving reliability and integrity of the reports. The supervision of the audit profession is critical to the financial reporting process making it impartial and effective, where this was previously a concern.

Having the right to obtain all information needed to undertake a thorough audit is essential in maintaining reliable and stable reporting therefore improving confidence in the process.

A review panel created to report on audits will be given more powers to strengthen the enforcement regime that should support the accuracy of financial reporting. This helps capital markets function where lack of confidence previously hindered there operation.

Developing effective ways of discovering fraud is part of the company investigations regime. This entailed with uncovering misconduct and unlawful activity aid the strengthening of investors, consumers and suppliers confidence in the markets.

Not only must audit regulatory bodies be independent but also the auditing bodies themselves, independent from the companies they are auditing or any other interested party. Becoming objective and independent will help ensure the reliability and accuracy of the report.