Accountancy firms have called for further regulatory power against high-flying bosses.

Influential figures have been lobbying for the Financial Reporting Council (FRC), the body which regulates accountants, to gain real power over top executives and to maintain a sense of accountability.

Responding to a wholescale government review of the FRC, it is understood that various accountancy firms such as Grant Thornton, BDO and Mazars have been pushing the government to allow regulators to punish misleading or irresponsible company bosses.

They are arguing that chief executives and finance directors play a central role in company auditing, and should therefore face heavy penalties and sanctions for incorrect or untruthful audits.

The FRC in its current form has been criticised for having no real authority over the majority of companies.

In its submission to the so-called Kingman review, accountancy firm BDO said the FRC had no authority over the majority of those responsible for good governance and financial reporting.

"In this, the FRC is like the director of a play with only a small number of the full cast of actors on the stage, taking directions from them," BDO said.

"Currently, those actors taking direction comprise the corporate's audit firm, accountants within that firm, and any individuals at the corporate who are accountants.”

The accountancy firm suggested handing the FRC powers over directors of listed companies and firms which are of interest to the wider public.

These demands have come in the wake of the collapse of engineering giant Carillion and BHS – insolvencies which have sparked serious consideration and scrutiny over the role of auditors in companies.