What Do The UK Audit Reforms Mean For You?

Following on from a previous post about the UK’s audit reforms, the Financial Reporting Council (FRC) published its proposed approach to address these reforms. 

Key Highlights Of The UK Audit Reforms

The Position Paper highlights some key areas for focus, including the following:

  • Revising existing Codes, Standards, and Guidance to reflect the reforms
  • Developing new standards to allow voluntary adoption ahead of legislation, e.g., Minimum Standards for Audit Committees
  • Setting expectations to drive behavioral changes ahead of statutory powers
  • Developing guidance to address issues set out in the Government Response relating to how ARGA is to operate, and
  • Setting high-level expectations around the future supervision and monitoring activities based on the revised standards to be drafted

One action includes revising the FRC’s Codes, Standards, and Guidance. Of course, this includes the UK’s Corporate Governance Code. The Code was established some time ago and has set the benchmark for similar codes worldwide.

So what’s new?

The revisions will address the need for a framework of prudent and effective controls.  This enables more robust reporting to evidence the effectiveness of controls. 

Reporting will also include information relating to companies’ ESG data as well as providing assurance with companies’ policies and procedures.

To continue reading about these changes and impacts, visit our blog.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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