New Corporate Governance Code Controls Requirements — A Paradigm Shift for Boards and Auditors?

From 2026, boards of UK-listed companies will be required to publicly declare whether their material controls are effective. The new requirements under Provision 29 of the UK Corporate Governance Code fundamentally change the visibility of the assessment of internal control effectiveness, with significant implications for corporate liability and the role of audit in the process.

In June 2026 the Financial Reporting Council (FRC) published revisions to three audit standards, revising requirements in respect of audit reports and auditor responsibilities in terms of the Provision 29 statements.

We discuss below the key aspects of the new requirements, the impact on external audit and wider implications, including risks under the Economic Crime and Corporate Transparency Act 2023 (ECCTA).