Written question asked by Lord Field of Birkenhead (Crossbench) on Thursday, 18 January 2024, in the House of Lords. It was due for an answer on Thursday, 1 February 2024. It was answered by Lord Johnson of Lainston (Conservative) on Thursday, 1 February 2024 on behalf of the Department for Business and Trade.

Accountancy: Software

Question: To ask His Majesty's Government what steps they are taking to ensure that accounting software used in the UK is free of flaws and defects, such as those experienced with the Horizon system.

Answer: Like business software in general, accounting software is not directly regulated in the UK. The directors of a UK company must prepare accounts that give a true and fair view of its assets, liabilities, financial position and profit or loss. This builds on requirements that the company keeps adequate records for preparation of accounts. It is for the company to ensure software supporting these requirements does not cause them to fail to be met. Where accounting software is not fit for purpose, a company may have contractual remedies for breach of quality by the supplier, depending on the contract terms.

Secondary information