May’s Resignation Threatens U.K. Audit Reform (1)

Political chaos erupting in the wake of Prime Minister Theresa May’s resignation could derail U.K. audit reform despite a promise by the accounting regulator to press ahead with changes in advance of needed Parliamentary endorsement.

The Financial Reporting Council said in budget plans published May 23 it will inaugurate regulatory reforms, including hiking the level of audit scrutiny and corporate reporting standards to prepare for the transition to a new, more powerful regulator.

May’s departure June 7 throws into doubt the FRC’s promise to install the reforms that don’t require a Parliamentary vote.

“This is the way reforms are stymied ...