Chartered IIA backs calls for the Financial Reporting Council to be replaced by new body

18 December 2018

The Chartered IIA has backed calls for the Financial Reporting Council (FRC) to be abolished and replaced by an entirely new regulator, as recommended by the Independent Review of the FRC led by Sir John Kingman, which published its final report earlier today.

Dr Ian Peters MBE, Chief Executive of the Chartered Institute of Internal Auditors said:

“We welcome the proposals put forward by Sir John Kingman calling for fundamental reform of the audit regulator, we believe radical change is now urgently required.

“We therefore fully support the key recommendation of the review that the Financial Reporting Council should be abolished and replaced by an entirely new body, putting it on a statutory footing, with enhanced powers and the authority to do its job properly. Following the collapse of Carillion earlier this year the government was right to establish the independent review, but it is now vital that Ministers act swiftly to implement its recommendations.

“At the same time we also welcome the CMA’s announcement to consult on a series of recommendations to address issues in the audit sector.”

Notes to editors:

The Chartered IIA is the only professional body dedicated exclusively to training, supporting and representing internal auditors in the UK and Ireland. We have 10,000 members in all sectors of the economy.

First established in 1948, we obtained our Royal Charter in 2010. Over 2,000 members are Chartered Internal Auditors and have earned the designation CMIIA. About 1,000 of our members hold the position of head of internal audit and the majority of FTSE 100 companies are represented among our membership.

Members are part of a global network of 180,000 members in 170 countries, all working to the same International Standards and Code of Ethics.