Critics See U.K. Audit Overhaul Plan as Too Soft on Big Four

The U.K.’s much-heralded reform of the audit market could actually make life easier for audit firms, critics of the government plan said Thursday.

The proposals contain many of the measures suggested by a series of reports the government commissioned after the 2018 collapse of Carillion Plc, but “they have been watered down—this shows the lobbying power of the Big Four” accounting firms, said Sheffield University accounting professor Richard Murphy.

The U.K. government published proposals Thursday to overhaul the nation’s audit and corporate governance regime, introducing penalties for company directors who sign off on dodgy accounts. But audit reform ...