Watchdog wrecked public trust, says auditing giant BDO
Ben Laurance
August 19 2018, 12:01am, The Sunday Times
The regulator was heavily criticised after the collapse of outsourcer CarillionDANIEL SORABJI/AFP/GETTY
The accounting watchdog has not been an effective regulator and has "done much to undermine public confidence and trust" in the industry, according to a highly critical document drawn up by Britain's fifth-biggest audit firm.
BDO says the Financial Reporting Council (FRC) needs "to radically overhaul its procedures" and should be split into two bodies focused, separately, on standard setting and regulation.
BDO's recommendations are made in its submission to an inquiry into the FRC's future led by Sir John Kingman, chairman of Legal & General. The FRC has been heavily criticised for its handling of several scandals, including the collapse of the outsourcer Carillion. MPs said the regulator had been "wholly ineffective" in taking Carillion's auditors to task.
BDO says the FRC's role as…