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The Authorities is to overtake the company reporting and audit regime by launching a brand new regulator.
The Audit, Reporting and Governance Authority (AGRA) launch was introduced by enterprise secretary Kwasi Kwarteng yesterday.
AGRA will change the Monetary Reporting Council because the UK’s audit regulator.
A date for the swap has but to be introduced.
AGRA will cowl unlisted corporations with over 750 staff and over £750m in annual turnover.
The brand new regulator may even be given new powers to make massive audit corporations preserve their audit and non-audit capabilities separate.
The Authorities mentioned the reforms purpose to sort out the dominance of the massive 4 audit corporations and assist struggle in opposition to sudden massive firm failures such because the collapse of BHS.
It mentioned it should additionally act in opposition to firm administrators who take bonuses regardless of the failure of the businesses they run.
The launch of the brand new regulator is just not a shock, with references to a brand new audit regulator first referenced in The Queen’s Speech in December 2019, and a important overview into the standard and effectiveness of the UK’s audit course of which was revealed the identical month.
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