Audit, Reporting and Governance Authority

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The Audit, Reporting and Governance Authority is a proposed audit regulator intended to be established in the United Kingdom during 2019 to replace the Financial Reporting Council.[1][2] The government launched a consultation on the new regulator in March 2019.[3][4]

Kingman Review[edit]

Following accounting irregularities at companies such as Carillion, Patisserie Valerie and BHS, the UK government ordered a review of the current supervisory environment by the Financial Reporting Council (FRC). The review was led by former Legal & General Chairman Sir John Kingman.[5]

The review recommended the urgent introduction of a new regulator, the Audit, Reporting and Governance Authority, which should be accountable to Parliament, with the intention to provide more effective oversight and address a concentration in the industry - the Big Four audit firms' market share with FTSE350 firms being 98% at the time of the report.[6][7][8]

In March 2019 Business Secretary Greg Clark announced he would implement the recommendation from the Kingman Review in 2019.[1]

References[edit]

  1. ^ a b "UK audit watchdog to be replaced by new governing body". bbc.co.uk.
  2. ^ "Audit regime in the UK to be transformed with new regulator". www.gov.uk.
  3. ^ "UK audit watchdog to be replaced by new governing body". bbc.co.uk.
  4. ^ "Independent review of the Financial Reporting Council: initial consultation on recommendations". www.gov.uk.
  5. ^ "Kingman review | Institute and Faculty of Actuaries". www.actuaries.org.uk. Retrieved 2019-03-17.
  6. ^ "Kingman Review says FRC should be replaced 'as soon as possible'". www.consultancy.uk. Retrieved 2019-03-17.
  7. ^ "Subscribe to read". Financial Times. Retrieved 2019-03-17.
  8. ^ "Government and profession back Kingman review". economia.icaew.com. Retrieved 2019-03-17.

External links[edit]