Kwarteng warned audit rules threaten UK recovery Business

Tim Martin, Chairman of JD Wetherspoon, said: “There is little indication in the proposals that whoever drafted them is concerned with promoting an attractive corporate culture. Directors should of course be honest, but more corporate bureaucracy will not do it. “

Defending the plan as only targeting the biggest companies and the most serious transgressions, a Whitehall source said: “It’s not like you forget to put a zero in your accounts and get fined. “

In his 232-page article, Mr Kwarteng also revealed plans to force auditors to inspect companies for carbon emissions as the UK seeks to meet a legal obligation to eliminate its contribution to climate change d ‘by 2050.

The consultation also confirms that auditors from the Big Four KPMG, EY, Deloitte and PwC should close their audit and advisory services to reduce conflicts of interest and could face a cap on their market share from FTSE 350 audits. if competition in the sector does not improve.

The changes will be overseen by the UK’s new strengthened watchdog, the Audit, Reporting and Governance Authority, which will replace the Financial Reporting Council and could exercise power over large unlisted companies as well as those in the stock market.

Mr Kwarteng argued that restoring confidence in business is essential to repairing the economy and rebuilding it after the pandemic.

“When big companies go bankrupt, the effects are felt overwhelmingly with job losses and the UK taxpayer takes note,” he said.