Page 191 - Microsoft Word - 00 ACCA F1 Notes Prelims.docx

Law and regulation governing accounting

Authorities to whom companies are

accountable

1.1 Introduction

Many countries have enacted legislation controlling the retention and
submission of proper accounting records and financial statements. This
predominatly aplies to companies, as governments attempt to ensure that
they are accountable for their actions.

There are usually several bodies that companies find themselves accountable to.

Regulatory
bodies e.g.
Companies
House in the UK

Authorities

Other authorities
Tax authorities – e.g. Financial
companies as
well as Conduct Authority
individuals must (FCA), Charities
prepare tax Commission and
returns each year OFGEM in the UK

In order to satisfy the relevant authorities, most organisations have to retain their
acconting records for a minimum period (usually seven years) in case the authorities
wish to verify information at a future date.

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