Audit firms will need to do more to review whether there is evidence of accounting fraud under new proposals by the U.K.’s corporate governance watchdog.

The Financial Reporting Council (FRC) has released a consultation on the proposed revision of its standard on audit responsibilities relating to fraud in financial statements (ISA 240) in the hopes it can clarify what an audit firm’s duties should be with regard to looking for, and reporting, potential fraud.

Neil Hodge is a freelance business journalist and photographer based in Nottingham, United Kingdom. He writes on insurance and risk management, corporate governance, internal audit, compliance, and legal...