This legislation introduces a system whereby company directors will be required to draw up a compliance statement which will cover a company's policies and procedures concerning its compliance with its statutory obligations – including its obligations under company and tax law – and which will be reviewed by auditors. It is important that this matter, which will affect small companies, is dealt with quickly. Given that compliance applies to small companies, very few accountancy firms will sign off the accounts on the basis that they must also be audited. It will be a restriction and could be detrimental to the continued viability of some companies.