A model for Financial Reporting?
A recent paper by Mike Power, professor of accounting at London School of Economics (LSE), argues that the UK needs to address fundamental weaknesses within its financial reporting system.
As the UK works to replace the FRC with the new Audit Reporting and Governance Authority (ARGA) following a number of high-profile audit scandals, Power argues that the current system does not properly take interdependencies between standard setters, audit firms and regulators into account. He calls for a model of the intersections between these various entities, and believes this increased transparency would make points of regulatory weakness apparent.
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