Audit regime in the UK to be transformed with new regulator
Mar 11, 2019
On March 11, 2019, the Business Secretary Greg Clark announced a new enhanced regulator to transform the audit and accounting sector in response to the comprehensive Independent Review led by Sir John Kingman. As per the review’s recommendations, the Financial Reporting Council (FRC) will be replaced with a new regulator called the Audit, Reporting and Governance Authority.
The new regulator will for the first time:
- be a statutory body with powers such as those to make direct changes to accounts rather than apply to court to do so, and more comprehensive, visible reviews for greater transparency
- have strategic direction and duties to protect the interests of customers and the public by setting high standards of statutory audit, corporate reporting and corporate governance, and by holding companies and professional advisors to account
- regulate the biggest audit firms directly (rather than those being delegated)
- have a new, diverse board and strong leadership to change the culture and rebuild respect of those it regulates
There will also be greater sanctions available in cases of corporate failure, including new powers to require rapid explanations from companies and in the most serious cases publish a report about the company’s conduct and management.
Review the press release on the UK Government's website.