While the creation of ARGA is confirmed, details about other proposed changes are scant and uncertainty over timing remains.
The prospective FRC chair acknowledged that the watchdog’s own governance needs reform, and that audit scandals have damaged its reputation.
Organisations of all types can be divided on their mission, vision and strategy. A combination of compliance and stewardship is the solution.
Research suggests implementing the government’s proposed internal controls reforms alone could cost between £10m and £20m per company.
There are fears that the Audit, Reporting and Governance Authority (ARGA) will foster a formulaic and legalistic interpretation of the UK Corporate Governance Code.
The government has launched a consultation on creating a new governance and audit watchdog with more powers, to replace the Financial Reporting Council (FRC).