Audit Regime in the United Kingdom to be Transformed with New Regulator

The UK’s Business Secretary recently announced a new enhanced regulator intended to transform the audit and accounting sector in response to recent independent reviews of the profession performed in the UK. The Financial Reporting Council (FRC) will be replaced with this new regulator to be called the Audit, Reporting and Governance Authority. This new regulator will be for the first time:

• A statutory body with powers such as those to direct changes to accounts to be made;
• Have strategic direction and duties to protect the interests of customers and the public;
• Regulate the biggest audit firms directly; and
• Have a new, diverse board and strong leadership.

The publication can be viewed here.