UK revamps audit rules for accounting sector

Wednesday 1 June 2022 11:46 CET | News

The UK has announced sweeping reforms aimed at the faltering audit regime in an attempt to clean up the sector following a string of high-profile scandals.

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. 

The Audit, Reporting and Governance Authority will also have the ability to designate large private companies as ‘public interest entities’ to ensure they are more transparent with investors. FTSE 350 firms will also need to conduct some of their audits with a challenger firm to PricewaterhouseCoopers, KPMG, Deloitte and Ernst & Young, to help nurture more competition. 

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Keywords: regulation, central bank, challenger bank, banks, fraud management
Categories: Fraud & Financial Crime
Countries: United Kingdom
This article is part of category

Fraud & Financial Crime

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