EY’s legal provisions balloon 300 per cent as audit battles mount March 27, 2026 Big Four giant EY has reported a surge of over 300 per cent in its legal provisions, as the firm grapples with the fallout of high-profile audit failures and regulatory crackdowns. According to the firm’s latest results on Companies House, EY didn’t just add a small buffer; it added £188m in new claims-related charges in [...]
Regulator unveils major overhaul to its audit supervision March 25, 2026 The Financial Reporting Council (FRC) is introducing a major overhaul of its audit supervisory model, aiming to replace the current system with one designed to enhance audit quality. The accountancy watchdog is moving its primary focus to a system of quality management (SoQM), placing firm-wide quality controls at the heart of its new supervisory activity. [...]
AI will not replace auditors’ judgment, says regulator chief March 19, 2026 The rise of AI presents a critical moment for the accountancy profession to prove that its “value-add” goes beyond tasks that can be automated, according to the industry’s watchdog boss. Speaking to City AM, Richard Moriarty, chief executive of the Financial Reporting Council (FRC), said that with every technological shift, the accountancy sector loses low-level [...]
Regulator mulls audit changes to attract Chinese listings February 16, 2026 The audit regulator is considering a temporary change in its accounting rules which would make it easier for Chinese firms to list in London. The proposal is the latest regulatory reform designed to make the UK a more attractive place for international companies to list. In a statement, the Financial Reporting Council (FRC) said it [...]
Financial Reporting Council chair Sir Jan du Plessis to retire February 11, 2026 The chair of the audit watchdog, Sir Jan du Plessis, has announced his intention to step down from the role at the end of September, when he will retire from corporate and public life. Over his career, the businessman has served as non-executive chairman of BT Group, non-executive chairman of Rio Tinto Group, and as [...]
IoD boss joins criticism of Peter Kyle’s U-turn on Audit reform January 23, 2026 The bosses of the Institute of Directors (IoD) and the Chartered Institute of Internal Auditors are among some City leaders hitting back against the government’s U-turn on the Audit Bill. In a scathing open letter to the Business Secretary, Peter Kyle, the leaders called the move “a significant step backwards, particularly after the commitment made [...]
Labour scraps Audit Reform Bill to ‘avoid’ costs on firms January 20, 2026 The Audit Reform and Corporate Governance Bill, added into Labour’s first King Speech, is now being scrapped to “avoid significant new costs to firms”. The reform was first raised in 2018 following the collapse of Carillon, but has been on and off the table ever since. The Bill was shelved by the previous government in November 2023 [...]
AI-enhanced deception: The audit industry’s next big test January 19, 2026 The audit industry has been under the microscope over the past few years following a number of high-profile corporate collapses, prompting stricter measures to restore public trust. And with the rise of AI-driven fraud, auditors will be under more pressure than ever to adapt to an evolving risk environment. The Financial Reporting Council (FRC), the [...]
FRC chief urges audit reform before next corporate scandal January 13, 2026 The boss of the accountancy regulator has issued a direct warning to the government, urging them to pass audit reform legislation during “peacetime” rather than waiting for a major corporate collapse or scandal. Speaking on the latest episode of the Following the Rules podcast, Financial Reporting Council (FRC) CEO Richard Moriarty, said: “Given the thinking that’s gone [...]
Watchdog launches new probe into EY over ‘unauthorised’ audit reports December 10, 2025 The accountancy watchdog has commenced a new investigation into the Big Four firm EY and two of its members. In an announcement on Wednesday morning, the Financial Reporting Council (FRC) revealed that it has commenced an investigation into “unauthorised issuance of auditor’s reports to audited entities”. This comes after the Big Four firm informed the [...]