The concepts of Better Regulation should be adopted.

The package of actions, which includes Sir Donald

Brydon's independent audit review and the CMA's market study, must be examined for their effectiveness. This
is suggested by the government's Better Regulation Framework. Due to the entire cost of the package to
enterprises, it is vital to examine the anticipated benefits. After agreeing on the specifics of the measures and the
results of impact assessments, it is essential to engage with stakeholders to ensure that the final reform package
is effective and accomplishes its intended aims. During audits, complaints concerning behavior or quality are
most often expressed, according to our findings. The response must be immediate and decisive, concentrating on
governance, reporting, and auditing while avoiding actions of secondary impact. Audit companies and board
members need a tighter level of control. Due to the intricacy of the suggested modifications and the time and
effort needed to develop and assess them, careful prioritization is important. Without it, legislators and
regulators will be impotent, and the public should not anticipate any significant policy or practice reforms.
Specifically, we recommend the following objectives for auditors and board members: The Institute of
Chartered Accountants in England and Wales (ICAEW) believes that the current system may be improved by
prioritizing stability over turmoil, rethinking fraud, improving audit reporting, and arguing for proportionality
(ICAEW representative, 64/19). Regarding director responsibility and requirements under the Companies Act,
the ICAEW believes the new regulator should be given additional authority. Directors are required by the
Companies Act to maintain accurate financial records at all times (section 386). According to REP 64/19, this
might form the basis of a new framework in the United Kingdom that imposes higher internal control criteria on
both directors and auditors. In addition, we advocate stricter implementation of Section 501 of the Companies
Act, which renders misleading auditors a criminal. If this were highlighted more, it would hammer home the
message that executives and directors are responsible for providing auditors with all pertinent information. The
Court of Appeals ruled that as stated, the statute does not apply to enterprises. For ARGA to take action against
companies, the legislation must be amended.