The UK government said that it will replace the sector’s regulator, the Financial Reporting Council, with a new watchdog that will be given tougher enforcement powers and be funded by an industry levy.
The widely awaited reforms come after the government and industry promised to improve audit quality following a series of past scandals such as the collapse of Carillion in 2018 and the BHS failure in 2016. All the major auditors accepted the need to change auditing since then and restructured their audit practices.
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