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<p>The Government has no plans to legislate in these areas.</p><p> </p><p>a) As outlined
in the Dear Accounting Officer letter of 17 January 2008 it is the expectation of
HMT that the Comptroller and Auditor General is appointed the auditor for Government-controlled
Companies. If they do not appoint the C&AG as auditor, departments will need to
be able to account for their reasons for preferring another auditor.</p><p><a href="http://webarchive.nationalarchives.gov.uk/20080727043654/http:/www.hm-treasury.gov.uk/media/8/1/dao0108.pdf"
target="_blank">http://webarchive.nationalarchives.gov.uk/20080727043654/http:/www.hm-treasury.gov.uk/media/8/1/dao0108.pdf</a></p><p>
</p><p>b) The accounts of non-profit making companies included within the Government
Resources and Accounts Act 2000 (Audit of non-profit making companies) Order 2009
(SI 2009/476) and as amended by subsequent Orders must be examined and certified by
the Comptroller and Audit General. Companies must comply with applicable requirements
in the Companies Act 2006 and follow the financial reporting principles of the HM
Treasury Financial Reporting Manual (except for public corporations that are not trading
funds). Companies that have charitable status should comply with applicable charities
legislation and where relevant, the Statement of Recommended Practice (SORP) Accounting
for Charities, issued by the Charity Commission. The HM Treasury Financial Reporting
Manual is updated on a yearly basis in December by HM Treasury and the Companies Act
2006 is updated on an on-going basis by the Department for Business, Energy and Industrial
Strategy.</p><p> </p><p>c) Public spending is scrutinised through the Committee system
and further examined by the scrutiny of Parliament as a whole. In addition the routine
publication of Annual Reports and Accounts as well as numerous other transparency
publications facilitate scrutiny by the public and the media. The published Annual
Reports and Accounts must comply with applicable requirements in the Companies Act
2006 and follow the financial reporting principles of the HM Treasury Financial Reporting
Manual (except for public corporations that are not trading funds). HM Treasury are
currently undertaking a review of the Annual Reports and Accounts including looking
at the recommendations set out in the ‘Accounting for democracy: making sure Parliament,
the people and ministers know how and why public money is spent’ report written by
the Public Administration and Constitutional Affairs Committee.</p>
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