Financial Reporting Council CEO Stephen Haddrill, in a letter to U.K. Business Secretary Greg Clark, confirmed that during the transition to the new statutory regulator, the Audit, Reporting and Governance Authority (ARGA), the FRC will remain committed not only to tackling “deficiencies in audit and reporting quality vigorously,” but more importantly to encouraging auditors “to address the risk of fraud.”
Haddrill was responding to a letter from Clark in which the secretary outlined the FRC’s priorities transitioning to ARGA. Clark also made reference to Grant Thornton chief executive David Dunckley’s controversial assertion in evidence to the Business, Energy and Industrial Strategy Committee (BEIS) in January that auditors do not look for fraud.
