Writing in The Times today, Lord Sharman said it was no longer acceptable for the key regulatory body to be funded by the very firms it seeks to regulate.
‘The big firms and the profession’s institute must insist that the Government funds and oversees regulation,’ the former KPMG senior partner said.
‘We must move to eradicate any notion that he who pays the piper calls the tune,’ he added.
Sharman also called for the compulsory rotation of audit partners every five years, though refused to back rotation of audit firms.
And he demanded all firms that audit publicly quoted companies should publish full accounts and reveal the total fees earned from their top five clients plus list any client that provides more than five percent of total income.
Sharman even went as far as to say these figures should apply to individual offices to avoid the Enron-Houston effect.
Simon Wright of CareersinAudit.com discusses how an effective cyber defence force is critical to businesses worldwide and how internal auditors can make the transition to a new career in cyber security
The FRC has said that the investigation will 'consider, but not be restricted to, issues regarding misstated accounting balances'
Craig Maxwell joins the audit and assurance team in Scotland
Stephen Grayson to join the audit department in Manchester