In the second report in a series, The Remaking Audit report, IPPR said that a complete culture shift is needed in the UK’s audit industry if public trust in audit is to be restored. IPPR has highlighted a series of key changes that the audit profession needs to focus on as the Financial Reporting Council (FRC) prepares to move to its new statutory basis as the Auditing, Reporting and Governance Authority (ARGA) and a series of internal changes within the industry itself, including a stronger ethical culture.

IPPR says that ARGA needs to be given statutory powers to scrutinise all aspects of an audit firm including issues beyond statutory audit as this will allow them to provide the regulatory framework for the industry as a whole.