Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if he will take steps to require the largest (a) public and (b) private companies to have (i) an Audit Committee and (ii) an internal audit function, in the context of the collapse of ISG.

Companies whose securities are traded on the main market of the London Stock Exchange and banks, building societies and insurers are required to have an audit committee. Other private companies are not required to have an audit committee, but may choose to have one. Outside of the regulated financial sector, companies are not required to have an internal audit function. The Government plans to extend the scrutiny of the largest private companies’ external audits through the draft Audit and Corporate Governance bill and will set out full details of what that will include in due course.