UK Groups Warn Axing Audit Reform Risks More Corporate Collapses

The cancellation of long-promised UK audit reform raises the odds of more company collapses without adequate warning, leading shareholder and business bodies told the country’s business minister Friday.

The groups’ letter to Secretary of State for Business and Trade Peter Kyle responds to the government’s announcement earlier this week that it won’t pass audit reforms promised since the 2018 implosion of Carillion plc because the changes would be too expensive for companies to implement.

The business and investor leaders pointed to several additional corporate downfalls since Carillion that were “linked to weaknesses in audit and governance,” including those ...