Reforms to restore trust in audit and corporate governance are primarily aimed at the private sector, but there is a potential that some public sector organisations might come within the scope of the proposals.
The Department for Business, Energy and Industrial Strategy (BEIS) published its long awaited consultation document Restoring trust in audit and corporate governance in March 2021. The proposed reforms include new reporting on controls and resilience, new duties for auditors, additional requirements for audit committees and a strengthened regulator – the Audit, Risk and Governance Authority (ARGA) - with greater enforcement powers against directors.
The government proposes that the majority of the reforms, at least initially, will apply only to public interest entities (PIEs). Currently PIEs are defined as entities whose transferable securities are admitted to trading on a regulated market, credit institutions or insurance undertakings.