19 April, 2021

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.

Image: ZGPhotography/Shutterstock

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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