Accounting Watchdog Will Be Replaced
The Financial Reporting Council (FRC) is set to be replaced with the Audit, Reporting and Governance Authority (ARGA) – a stronger regulator with powers to issue harsher penalties.
This attempt from the government to restore trust in the audit market will ensure that regulators can also investigate company directors – with the FRC this was only possible if the directors were also registered with an accounting body.
Business secretary Greg Clark has made claimed that he would follow the recommendations of a damning review last year at the FRC by allowing the new watchdog a significantly greater oversight over the Big Four accounting firms.
The new authority will have greatly advanced powers, with the ability to make direct changes to accounts rather than going through the court application process.
The government supports the introduction of a tough and robust regulator, and an audit sector with the highest standards, as detrimental to attracting investors, jobs and growth to the UK.
Find out more from the Department of Business, Energy and Industrial Strategy (BEIS)