It was revealed today, as part of the King’s Speach, that the creation of the new audit watchdog has been put on hold. Instead, the government said it would move full steam ahead on reforming the Financial Reporting Council (FRC) into the Audit, Reporting and Governance Authority (ARGA).
In addition, the Audit Reform and Corporate Governance Draft Bill outlined additional powers, including extending Public Interest Entity (PIE) status to the largest private companies, ensuring the high-quality audits of those businesses and early warning of financial problems.
City figures have praised the moves.
Hywel Ball, EY UK Chair said: “EY has consistently advocated for a stronger regulator and enhanced director accountabilities,” noting “we are pleased to see audit and corporate governance reform return to the legislative agenda.”
Cath Burnet, head of audit, KPMG UK noted that “reform of the whole corporate ecosystem is important for driving trust and confidence in the financial reporting of UK businesses.”
Agreeing, Paul Stephenson, UK managing partner for audit and assurance at Deloitte, stated that “inclusion of audit and corporate governance reform” today “is encouraging for our industry and UK business as a whole, and must push ahead at pace.”
Ball also noted that the “UK’s attractiveness as an investment destination, international competitiveness and economic growth depend on the implementation of smart, considered regulation.”
“Initial proposals were drafted several years ago and will need to be updated to reflect the current UK market, so we look forward to seeing further details once they are released,” Ball added....
more at City AM
© City A.M.
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article