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UK Delays Audit Reform

UK Delays Audit Reform

by Starling Insights

Starling Insights Editorial Board

Oct 10, 2023

Observations

The UK is set to exclude a long-awaited overhaul of the country's audit and corporate governance regulations from its legislative priorities for the coming year. This expected omission from the King's Speech in November, which outlines the government's agenda for 2023-24, suggests that the reforms may be delayed until after the next general election.

The changes in legislation were initially promised after several large companies collapsed due to widespread accounting fraud that went undetected by auditors. However, the reforms have faced numerous delays. "There are some measures we can take using secondary legislation to implement some of the reforms," one government insider said. "We are still keen to do it — the government isn't backing off — but it's the usual question of parliamentary time."

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