A change in governance for the audit and accountancy sector
In 2020, the Financial Reporting Council outlined their plans to change the governance of the audit and accountancy sector by transitioning to a new governing body titled Audit, Reporting and Governance Authority (ARGA). Following a consultation, it has now been confirmed that the change will go ahead.
Over the last year the sector, in particular Audit services; have come under increased scrutiny with heavy fines levied as a result of insufficient auditing and reporting. The reputational damage as a result of such failings has been felt across all levels of the profession from small to large auditors.
The transition is not expected to be completed until April 2023, and the full impact of what the change will mean for sector is yet to be determined, however the regulator has set aside a large sum of £2 million to fund new oversight powers over audit firms.
For further information on our Audit Services, please contact Gary Brown on 023 8046 1240.