Authors: Lucy Fergusson, Judy Pink, Wilma Rix

Directors to face stronger enforcement of corporate reporting and audit duties

The government is consulting on plans to impose new reporting requirements on directors in relation to internal controls, dividends, resilience and assurance. It also intends to give a new regulator, the Audit, Reporting and Governance Authority (ARGA), stronger powers to set standards and impose sanctions on directors of public interest entities for breaches of corporate reporting duties. The proposals aim to improve choice and quality in the audit market, as well as restoring trust in audit and corporate governance in the UK following recent corporate failures.