U.K. Audit Watchdog to Review Industry, Considers Consulting Ban

U.K. regulators are considering banning auditors from doing consulting work for the companies they assess, stung by criticism that the industry’s independence has been compromised.

The Financial Reporting Council said it will test the rules on auditor independence after finding that recent improvements in quality had gone into reverse. The review is the latest sign that the watchdog is starting to respond to criticism that it has failed to hold to account the auditors of companies that have run into trouble since the global crisis.