ICAEW takes action to shape the future of audit
Wednesday 2 December 2020: Chartered accountancy body ICAEW has today set out its vision for the future of audit in a Manifesto based on extensive research among the profession and beyond.
The Audit Manifesto proposes five principles for the future of audit, which ICAEW said should be at the heart of reform.
ICAEW said the Manifesto was an opportunity for auditors to take full and appropriate responsibility for modernizing their profession, re-affirming the centrality of acting in the public interest and enhancing trust in the audit process and in business generally.
The success of any wider changes to markets and regulation depend on the establishment of a clear and common understanding of the role and purpose of audit, ICAEW added.
The five principles are:
- Purpose: to articulate, uphold and communicate the profession’s social and economic purpose
- Identity: to develop and promote the distinctive identity of the audit professional
- Community: to foster a collaborative learning community for the professional practice of audit
- Education: to support holistic professional formation and education
- Mindset: to adopt a design mindset to think and work differently
Michael Izza, ICAEW Chief Executive, said:
“It’s vital that audit evolves to meet the needs of the future, and we all have a responsibility to reshape and rebuild the modern profession.
“Now is the time for action, with the five principles our research has identified – of purpose, identity, community, education and mindset – at the core.
“By taking the initiative, auditors can enhance trust in business – and in the audit product itself.”
The Manifesto is the result of extensive discussions held as part of ICAEW’s AuditFutures initiative, which was started to promote collaboration and to consider challenges facing the profession. More than 1,000 people from inside and outside the profession were involved in the research.
Publication of the Manifesto follows the reports into audit, by Sir John Kingman, the Competition and Markets Authority and Sir Donald Brydon. A number of Sir John’s recommendations have already been taken forward by the FRC, but making audit fit for the future will require action from the regulator, government and the profession, ICAEW said.
Next year, ICAEW will seek input and participation from business, civil society, policymakers and from other professions as part of an engagement campaign based on the manifesto.
Notes to editors:
1.The full Audit Manifesto is available on request
Please direct all media enquiries to:
Ruth Pott-NegrineSenior Media Relations Manager, ICAEW
T: +44 (0)207 920 8612