Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what discussions his Department had with ISG on its internal audit functions prior to that company going into administration; and what steps he is taking to ensure the adequacy of (a) audit and (b) governance legislation.

The Government announced that it would publish a draft audit reform and corporate governance bill in the King’s Speech, which is expected to include extending enhanced Public Interest Entity audit requirements to very large private companies.

The Government is currently undertaking a review of non-financial reporting and aims to consult later in 2025 on reforms to simplify the UK’s corporate reporting framework. This will provide an opportunity to consider the potential merits of additional reporting requirements like an Audit and Assurance Policy statement.

The financial resilience of major suppliers to government, including firms working on infrastructure projects, is monitored on an ongoing basis by the Crown Commercial Service.