The government’s new audit regulator must play a leading role in preventing future Carillions

11 March 2019

The Chartered IIA has welcomed today’s announcement by government that the Financial Reporting Council (FRC) will be abolished and replaced by the new Audit, Reporting and Governance Authority.

The announcement follows an Independent Review of the FRC led by Sir John Kingman, which published its final report in December 2018.

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

“I welcome the government’s creation of a new Audit, Reporting and Governance Authority. We called for radical change to the audit regulator last year, following the devastating collapse of Carillion, and we are pleased that the government has acted quickly.

This new body must play a leading role in preventing future Carillions. We will support the new Audit, Reporting and Governance Authority’s vital work to raise corporate governance standards in the UK.”

Notes to editors:

• The Chartered Institute of Internal Auditors 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 200,000 members in 170 countries, all working to the same International Standards and Code of Ethics.