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ICAEW calls for early and urgent action on audit reform

Wednesday 10 July 2019. The latest Audit Quality Review (AQR) inspection reports published today by the Financial Reporting Council (FRC) underline the need for urgent and early action on audit reform, according to ICAEW.

Vernon Soare, ICAEW’s Chief Operating Officer commented:

“It is disappointing that the FRC's overall assessment of the quality of 2017 year-end audits shows little improvement over the previous year, and we cannot be satisfied with these results. ICAEW feels strongly that early and urgent action to address public concerns regarding audit - alongside wider issues of corporate governance and management accountability - is vital to maintaining confidence in business. As a profession, chartered accountants acknowledge that we face a watershed moment and we are ready to be willing partners in change.

"Audit is undergoing an unprecedented level of scrutiny, and in coming months the challenge will be to integrate the outcomes of the three current major reviews - and the recent select committee inquiry - into a coherent, comprehensive and proportionate programme of reform. ICAEW has already welcomed Sir John Kingman's vision for a strong and credible new regulator - the Audit, Reporting and Governance Authority (ARGA) - and today's reports reinforce the case for the government to implement this without delay. Once established on a firm statutory basis, ARGA should apply fresh thinking to how we improve quality in the audit market and must not be constrained by targets and methods bequeathed to it by the FRC.''

Media enquiries

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Jude Obi

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E: jude.obi@icaew.com