The UK financial watchdog has announced that the operational separation of audit must take place by the end of June 2024.
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.
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