Page 185 - F1 - AB Integrated Workbook STUDENT 2018-19

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
predominantly applies 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 Conduct Authority
well as (FCA), Charities
individuals must Commission and
prepare tax
returns each year OFGEM in the UK

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

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