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At-A-Glance
In the July 2022 issue of the Audit &Accounting Alert, the newly proposed audit legislation in the United Kingdom was described. While some felt that the proposed Audit, Reporting and Governance Authority (ARGA) would be inadequate, especially compared to the robust Sarbanes-Oxley Act in the United States, at least it was a start to addressing the issues and concerns. Now after several years of debate and delay, ARGA has been rejected by the UK legislature, leaving the future uncertain. This issue covers the details.
Also, our Worldwide Update covers news from organizations across the globe.
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Audit Reform in the UK?
Anticipated legislation is dropped before becoming law
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While the United States is not known for acting hastily, after the Enron accounting scandal in 2001, the Sarbanes- Oxley Act was enacted in less than a year, by mid-2002. By contrast, the United Kingdom’s response to the 2018 Carillion collapse, has not yet produced results. In fact, the legislation finally drafted to create the Audit, Reporting and Governance Authority (ARGA), has now been dropped. ARGA was to replace the Financial Reporting Council, providing a much stronger platform for overseeing the audit profession.
Key areas the proposed comprehensive legislation was to address were:
- Recognising the public interest in large private companies' reporting
- Changes to reporting requirements
- Supervision of corporate reporting
- Enforcement of directors’ corporate reporting and audit-related duties by ARGA
- Improving the informativeness and quality of audit
- Boosting resilience, competition and choice in the audit market
- Other legislative proposals
That eight years have passed since the Carillion failure does not help the situation. The financial sting from that incident has largely worn off. In the United States, the rapid response in tightening up auditor procedures and corporate governance proved effective in producing more dependable financial reports and improved public trust. Apparently, British lawmakers were more concerned with economic growth and not wanting to burden companies were more costly oversight. Time will tell what the impact will be.
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Worldwide Update
Periodic roundup of recent and upcoming actions and activities by auditing and accounting organizations throughout the world.
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International
IASB – International Accounting Standards Board (www.ifrs.org)
IFAC – International Federation of Accountants (www.ifac.org)
IFR4NPO - International Financial Reporting for Non-Profit Organisations (www.ifr4npo.org)
IOSCO – International Organization of Securities Commissions (www.iosco.org)
ACCA – Association of Chartered Certified Accountants (www.accaglobal.com)
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Africa, Europe, India and the Middle East (AEIME)
FRC – Financial Reporting Council of the UK (www.frc.org.uk)
- Technical Actuarial Guidance, published January 23, 2026, “to help pension scheme actuaries provide retrospective confirmation to validate historic changes to pension scheme rules.”
ICAEW - Institute of Chartered Accountants in England and Wales (https://www.icaew.com/)
- Solicitors Regulation Authority (SRA) Accounts Rules, consultation published January 22, 2026, describes changes to the accountant’s report which “is a key component of how the SRA monitors the compliance of law firms with the Accounts Rules and identifies those firms placing client money at risk.” Comments are due by February 20, 2026.
EC – European Commission (https://ec.europa.eu/)
EFRAG – European Financial Reporting Advisory Group (www.efrag.org)
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Americas, Asia, Australia and New Zealand (AAANZ)
AICPA & CIMA – American Institute of Certified Public Accountants (www.aicpa.org)
- AICPA Updates Criteria for Stablecoin Reporting to Address Controls Over Stablecoin Operations, issued January 11, 2026, “update of the 2025 Criteria for Stablecoin Reporting: Specific to Asset-Backed Fiat-Pegged Tokens to include the addition of Part II: 2025 Criteria for Controls Supporting Token Operations.”
FASB – Financial Accounting Standards Board (www.fasb.org)
GASB – Governmental Accounting Standards Board (www.gasb.org)
COSO - The Committee of Sponsoring Organizations of the Treadway Commission (www.coso.org)
PCAOB – Public Company Accounting Oversight Board (www.pcaob.org)
SASB – Sustainability Accounting Standards Board (www.sasb.org)
SEC – Securities and Exchange Commission (www.sec.gov)
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Audit & Accounting Alert is a publication of Integra International intended to highlight emerging issues in the profession. The goal is to give Integra members an awareness of developments impacting the practice of Audit & Accounting enabling them to stay on the forefront of industry trends.This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.
Editor Gerald E. Herter
www.Integra-International.net
© 2021 Integra International. All Rights Reserved.
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