Proposed revisions to corporate governance of government-owned businesses mark a welcome step up in sustainability, economic security and resilience, ICAEW says.

A letter with more than 50 senior business signatories stresses the need for corporate governance reform amid concerns that a legislative overhaul may be shelved.

The government has outlined its corporate governance and audit reforms, including the formation of ARGA, a redefinition of PIE and the need for ‘challenger firms’.

While the Section 172 statement is almost three years old, a lot of work remains to ensure it provides decision-useful information for stakeholders and guarantee its original aim of enhancing trust is met.

Responding to a Financial Reporting Council consultation on proposed revisions to the Audit Firm Governance Code, ICAEW has warned the changes lack clarity, are excessively prescriptive and extend beyond the Code’s original purpose.

At a recent CAW and Edelman event, accountancy leaders laid out the steps the profession needs to take to keep building trust, and how it can play a critical role in addressing the big issues of the future.

Jon Thompson, chief executive of the FRC, told delegates at ICAEW’s Financial Reporting, Audit and Assurance Conference to expect some form of SOX in the UK and voiced support for market caps for FTSE350 audits.

ICAEW’s response to the BEIS consultation on restoring trust in audit and corporate governance did not conclude work on reform - it launched a mass of activity around numerous topics involving a multitude of stakeholders.

ICAEW has written to HMT stating that there is a need to consider the public sector implications of the proposed audit reforms and recommending a separate review of how they can be adapted for the public sector.

With the public consultation on its audit and corporate governance reforms now closed, the government hopes to publish its response by mid-October. But the process which follows, of driving reform and delivering results, might take a decade or more and could easily not have the intended impact, writes ICAEW Chief Executive Michael Izza.

ICAEW has issued its response to the BEIS white paper Restoring Trust in Audit and Corporate Governance, setting out what it believes are the strengths, weaknesses and concerns within the proposals.

As Sir John Kingman recommended, replacing the FRC is necessary for more effective regulation of Public Interest Entity audit and corporate governance. But the vision for ARGA set out in the BEIS whitepaper needs more focus.

Plans to establish a separate professional body for corporate audit have been strongly opposed by ICAEW, as part of its response to the BEIS consultation on restoring trust in audit and corporate governance.

Strengthening rather than rebuilding the corporate reporting system should be the government’s focus in upcoming reforms, with fraud and unexpected failure in Britain’s most important companies a key priority, ICAEW argues.

The BEIS whitepaper is right to look at what classifies as a public interest entity. But its suggestions could stretch the capacity of the audit market to breaking point.

Following stakeholder engagement on proposals for governance and audit reform, Sir Jon Thompson provided an update at Virtually Live 2021 on the key issues, challenges and questions that have emerged.

Ahead of an appearance at ICAEW’s Virtually Live conference, Sir Jon Thompson, CEO of the Financial Reporting Council, answers questions on the UK’s proposals for governance and audit reform.

The Internal Controls over Financial Reporting assessment and attestation requirements of Sarbanes-Oxley are relevant for any company with securities listed in the US, including many large UK companies.

Radical reforms proposed by the UK Government could see thousands more companies brought under new, more stringent, audit and corporate reporting rules previously aimed at the UK’s largest businesses.

A key purpose of the BEIS White Paper on restoring trust in audit and corporate governance is simply to get companies to become really transparent in supplying more accessible information.

Corporate culture is often forgotten in the rush to determine internal rules. If we are to understand the big questions around trust in business, shouldn’t culture metrics be in place?

Chartered accountants have an opportunity to respond to the package of reforms relating to fraud, as recommended by the Brydon Review. What do you think of the government’s proposals?

Existing rules around viability reporting are not achieving what they need to. The government has proposed a new annual resilience statement by public interest entities to fix the problem.

One of the central planks of the Sarbanes-Oxley regime in the US is that directors will go to prison if they fall short. If a version is implemented in the UK and there is no such penalty in scope, how will the regime work?

The Netherlands accountancy and audit profession faced a public backlash after high profile failures. Through collaboration and iterative improvements, it has steadily restored trust.

What steps can and should audit committees, audit regulators, investors and auditors in the UK take now to improve audit quality?

"A significant package of reform” is how Sir Jon Thompson, CEO of the FRC, framed the BEIS White Paper ‘Restoring trust in audit and corporate governance’ in virtual conversation with Michael Izza, CEO of ICAEW.

ICAEW has set out key recommendations for developing a meaningful Audit and Assurance Policy that helps better inform their stakeholders.