Audit white paper proposes new powers for regulator to sanction directors

Observers warn that proposals to increase the accountability of directors for audit and internal controls could deter candidates.

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The working landscape for boards is about to be transformed after the government published a white paper with wide-ranging proposals giving regulators new powers to investigate and sanction directors for failings in corporate reporting, internal controls and audit committees.
A white paper issued by the Department for Business, Energy and Industrial Strategy includes proposals that would create new responsibilities for directors to report on internal controls; new standards and sanctions for audit committees; and new powers to order an expert review of company reports and potentially impose amendments.
The white paper says the financial
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