Government Announces Draft Audit Reform Bill in King's Speech

The Government has announced today (17 July 2024) a Draft Audit Reform Bill within the King's Speech and will press ahead with reforms of company audits and corporate governance with plans for a more powerful regulator under long-awaited legislation. 

The Draft Audit Reform and Corporate Governance Bill will put the FRC on a statutory footing through the establishment of the Audit, Reporting and Governance Authority (ARGA), building on the FRC’s transformation in recent years and its remit to support the UK’s economic growth and international competitiveness.

David Potts, AIA Director of Policy & Regulation, said "AIA welcomes the inclusion of a Draft Audit Reform and Corporate Governance Bill within today's King's Speech and looks forward to working with the government to strengthen the transparency and integrity of regulation of the UK’s corporate governance, financial reporting and audit framework."

AIA wrote to new Prime Minister Sir Keir Starmer following the General Election earlier this month setting out its priorities for action, including moving ahead with reform to the UK's corporate governance, financing reporting and audit regulatory framework.

In that letter AIA argued that the ongoing delay in implementation of audit and corporate governance reform should be ended to remove uncertainty and unlock growth and investment. Furthermore, taking early action in this area should reduce the risk of unexpected business failure and deliver on existing commitments to reinforce the UK as a trusted destination for investment.

AIA recommended that the government should commit to audit and corporate governance reform as a key priority, including by establishing the Audit, Reporting and Governance Authority (ARGA) as a new statutory regulator and granting significant powers to take effective enforcement action. As a Recognised Qualifying Body under the Companies Act 2006, AIA also continues to recognise its own responsibilities in offering a recognised professional qualification for audit and are committed to working with stakeholders to develop and improve the profession in which it operates.

AIA is ready to work with the new government to drive forward necessary reforms to strengthen the UK economy and ensure the financial and related professional services industry continues its vital role in securing the UK's future success. By focusing on key areas such as audit reform, SME support, and green finance, we can build a resilient and thriving accounting sector.

Kings Speech 2024