Over the last year, three key reports have been published on the
future of the audit and accountancy professions. These reports
together propose significant reforms to audit and the manner in
which it is regulated, including the replacement of the Financial
Reporting Council (the "FRC") with a new
regulator with enhanced powers. While the reviews have
focussed on audit, many of the recommendations similarly affect
accountants who are not providing audit services. Similarly, one of
the most eye catching recommendations, and one with a potentially
enormous impact beyond the audit profession, is the proposal to
extend the new regulator's disciplinary powers to company
directors who are not accountants (and so not currently subject to
the FRC's enforcement jurisdiction).
