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The government鈥檚 case for reform received a positive response, confirming our belief that changes are needed to rebuild trust in audit and corporate reporting, ensure the UK reputation for high standards of corporate governance is maintained, and lay the foundations for a stronger, healthier audit market.

The government response sets out our intentions to proceed with reforms that include:聽

• establishing a new regulator, the Audit, Reporting and Governance Authority (ARGA), with the overarching objective to protect and promote the interests of investors, other users of corporate reporting and the wider public interest
• recognising the public interest in large private companies, by ensuring they meet the same high standards of reporting and accountability as are expected from large listed companies
• making large companies鈥� reporting more useful, with better information about the risks they face and what information has been assured, and strengthened review powers for the regulator
• strengthening reporting about companies鈥� internal controls which underpin true and fair accounts, through the Corporate Governance Code
• improving the quality of audit and making it more informative, driven by the regulator鈥檚 responsibilities for standards, inspection and approving registration of auditors for the most significant companies
• boosting resilience, competition and choice in the audit market, through the introduction of a 鈥榤anaged shared audit鈥� requirement for FTSE 350 companies, and requiring an operational separation of audit and non-audit practices
• making directors of the country鈥檚 biggest companies more accountable for significant failures in their corporate reporting and audit related duties
• strengthening oversight of the accountancy and actuarial professions to build confidence in the professions and in the UK