The UK Government announced the revamp of its corporate reporting and audit regime through a new regulator, greater accountability for big business and by addressing the dominance of the main audit firms.
The Financial Reporting Council (FRC) will be replaced by a new, stronger regulator – the Audit, Reporting and Governance Authority (ARGA) – with tougher enforcement powers and funded by a levy on industry. Work on this has already begun, with the Business Secretary acting to enable the regulator to ban failing auditors from reviewing large companies’ accounts.
For the first time, the largest private companies – not just those listed on the stock exchange – will come under the scope of the regulator, reflecting the impact they have on the wider economy.
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