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Prediction: Accountants: Accounting regulation will come to encompass directors

Regulation
Professional Liability
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Prediction

The jurisdiction of the Financial Reporting Council (FRC) is currently restricted to those who audit accounts (the auditors) and does not extend to those who prepare them (the directors). The FRC has long argued for this to be rectified but political lethargy has prevented the necessary legislation being passed. With the change in government, 2025 may see a move to change this situation, with directors being brought within the remit of the body replacing the FRC, namely the Audit, Reporting and Governance Authority (ARGA). The impact this would have on accounting investigations and corporate governance more generally cannot be overstated, and will play out in profound ways over the coming years.

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