FRC issues principles for separation of audit from other services
The UK financial watchdog has announced that the operational separation of audit must take place by the end of June 2024.
Image: Hobbit/Shutterstock
A landmark in the reform of the UK audit market has been reached with the Big Four firms put on notice that the “operational separation” of audit from other services must take place by the end of June 2024.
Audit firms have been warned that new arrangements must ensure auditors are “not accountable” to the executives at client companies; they are not considered consultants; and their cultures must “support audit quality and the public interest”.
The Financial Reporting Council, the UK’s governance and audit regulator, said firms would need to demonstrate they had achieved objectives outlined by the watchdog.
Diverse objec
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
Related Stories
-
France orders banks to keep extra capital buffer
France's Financial Stability Council orders banks to keep aside an additional capital buffer to cover potential risk related to growing private sector borrowing.
-
Three cognitive biases perpetuating racism at work—and how to overcome them
While many companies are doing more to tackle racial inequality, unconscious biases can undermine these efforts.
-
The post-Covid recovery demands ‘context-conscious’ leadership
A leader who is highly effective in one organisation may face quite different demands in another—especially in the post-Covid era.
