The reputation of auditors has been tarnished by “muppets and miscreants”, according to the boss of the sector’s watchdog, as he looks to boost the reputation of the industry.

Richard Moriarty, CEO of the Financial Reporting Council, said a “small number” of bad actors shouldn’t tar the sector, which has made strides forward after a host of audit scandals ranging from BHS and Carillion, to Patisserie Valerie and Wirecard.