PracticeAccounting FirmsDTI report: FRC replaces the Foundation

DTI report: FRC replaces the Foundation

Patricia Hewitt's review of the accountancy profession today creates a independent super watchdog with powers to regulate the profession, judge auditor objectivity, and punish inappropriate practice.

Link: Read the full report on Hewitt’s speech

The Financial Reporting Council will take over the function of the Accountancy Foundation, founded no more than two years ago. The restructuring will also result in ‘consequential changes’ to the responsibilities of the boards of the Foundation’.

‘We recognise that this would represent a further change early in the life of the Foundation. However, we think that our proposals would promote public confidence in the regulation of accountancy in the UK and would maintain the UK system’s leading international reputation in the light of wider reforms,’ Hewitt wrote in her report.

The ‘new’ FRC takes on the functions of the Accountancy Foundation to create a unified and authoritative structure. It will have three responsibilities: setting of accounting and audit standards, enforcement and oversight of major accountancy bodies.

In its structure, the FRC council oversees five bodies: The Auditing Practices Board, the Accounting Standards Board, the Financial Reporting and Review Panel, the Investigation and Descipline Board and the Professional Oversight Board.

The super watchdog should be paid for by government, the profession and companies, Hewitt told parliament today. ‘The FRC will need more investments. The government will pay its share,’ she said.

Related Articles

Productive accountancy firms lead the way

Accounting Firms Productive accountancy firms lead the way

2h Simon Adcock, HSBC
LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

Accounting Firms LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

1d Fergus Payne, Lewis Silkin
BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

1w Alia Shoaib, Reporter
Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

Accounting Firms Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

1w Philip Smith, Reporter
Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

Accounting Firms Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

2w Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

2w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

2w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

2w Emma Smith, Managing Editor