Draft Audit Reform Bill Announced in King's Speech

As detailed in last week’s King’s Speech, new legislation was announced to strengthen audit and corporate governance.  This long-awaited legislation includes:

• The Financial Reporting Council will be replaced by the Audit, Reporting and Governance Authority which will have greater powers.
• Public Interest Entity status will be extended to large private companies, with more rigorous audit requirements. Unnecessary rules on smaller PIEs will be removed, lessening their administrative burden.
• Building resilience in the sector and protecting against conflict of interest through the introduction of a new regime.

The Financial Reporting Council has welcomed this and will work with the Department for Business and Trade as it brings forward this draft legislation. We await publication of the Draft Audit Reform and Corporate Governance Bill and welcome these developments which should increase confidence, encourage investment and contribute to economic growth. To talk about this in more detail please get in touch with Eimear Brown, Head of Audit E: eimearbrown@bakertillymm.co.uk T: 028 9032 3466