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⍰ ASK what is the role of the Companies Act in financial reporting for UK companies?

The 2006 Companies Act sets rules for companies to be open, accountable, and safeguard stakeholders.

It insists on specific things in yearly financial statements---like income, balance, and cash flow. This ensures companies share true and clear financial info.

The Act demands auditors each year to check financial statements. These outside check makes sure the financial info is accurate, making reports believable for shareholders and others.
 

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