January 2026 · Audit · Governance

Audit Reform Without the Bill: What Actually Changes

By N. Naina · DeccanBridge

The long-promised statutory audit reform has stalled. But the direction of travel — stronger internal controls, a more assertive regulator and higher reporting expectations — has not.

The Stalled Statutory Route

Successive governments signalled a major Audit Reform and Corporate Governance Bill to create the Audit, Reporting and Governance Authority (ARGA) to replace the Financial Reporting Council, address audit-market concentration and extend oversight of large private companies. With that legislation repeatedly deferred, the statutory architecture remains unbuilt.

Reform Through Other Means

In the absence of primary legislation, change is arriving through the UK Corporate Governance Code, FRC guidance and the regulator’s supervisory activity. Provision 29’s internal-controls declaration is the clearest example — a Code-driven reform delivering much of what the Bill intended, without waiting for Parliament.

What Boards Should Do

Audit committees should not read the delay as a reprieve. The expectations on internal controls, audit quality and the resilience of corporate reporting are already live through the Code and investor pressure. Building the controls and assurance evidence now is the low-regret path whatever the legislative timetable does.

Evidence Pack

  • 01 Internal-controls and assurance roadmap aligned to the 2024 Code.
  • 02 Audit-committee effectiveness and audit-quality review.
  • 03 Corporate-reporting resilience and viability-statement evidence.
  • 04 Horizon-scan of FRC/ARGA developments mapped to board actions.