Auditors are supposed to keep businesses honest, but how much regulation is the optimum for the auditors – and how onerous and punitive should the enforcement regime be? A new consultation by the U.K. regulator, the Financial Reporting Council (FRC), opened on Oct. 1 and has put the vexed question of audit regulation back in the spotlight.
The consultation on the future of the Audit Enforcement Procedure includes plans for three new routes to resolving regulatory responses. This will increase the regulator’s choice of potential approaches to regulatory breaches to five and will give it more flexibility to respond proportionately and, it says, speed up processes.
