An exploration of what restoring trust means to companies and auditors
Ensuring the Section 172 statement is actually used
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.
ICAEW calls for FRC to rethink changes to Audit Firm Governance
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.
Rebuilding trust: the role of accountants in shaping the future
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.
UK likely to adopt SOX style reforms says FRC CEO
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.
Busy behind the scenes after the BEIS white paper response
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 highlights public sector implications of proposed audit reforms
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.
The long and complicated road to reform
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.
BEIS white paper: five steps crucial to deliver reform
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.
Do the BEIS plans for ARGA give us the regulator we need?
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.
New corporate audit body would be a costly distraction
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.
Spreading corporate governance reform too thinly risks losing focus
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.
Audit reform: this definition of PIE is hard to swallow
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.
Virtually Live 2021: Governance and audit reform
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.
FRC chief: accountability and responsibility must be assigned to the right people
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.
Sarbanes-Oxley: like learning a new language
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.
Potential PIE extension casts the regulatory net wide
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.
Audit and assurance: building trust through better information
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.
A culture assessment can only be useful
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?
Finding fraud is at the heart of audit reform
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?
Can resilience statements restore trust in viability reporting?
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.
Is the UK ready for Sarbanes-Oxley?
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?
How the profession won back trust in the Netherlands
The Netherlands accountancy and audit profession faced a public backlash after high profile failures. Through collaboration and iterative improvements, it has steadily restored trust.
Audit quality: how to raise the bar
What steps can and should audit committees, audit regulators, investors and auditors in the UK take now to improve audit quality?
Audit and governance: a ‘whole system’ approach to reform
"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.
Further information on the reform agenda
FRC good audit guide a helpful benchmark, says ICAEW
FRC guidance aimed at beefing up audit quality has been welcomed as offering useful clarity after the watchdog warned that almost a third of audits this year do not meet acceptable standards.
EU launches public consultation on statutory audit, corporate governance and supervision
The European Commission has initiated a broad review on the three core pillars of corporate reporting for large companies, paving the way for further EU legislative intervention.
Disclosure of distributable reserves: a welcome but complex challenge
The government’s reform of the UK’s corporate governance regime includes potential new requirements for large companies to disclose information on distributable reserves - a proposal that comes with a unique set of challenges.
ARGA powers strengthened on local government audit
The Audit, Reporting and Governance Authority will be reinforced with new powers over local government audit, protecting public funds and ensuring councils are best serving taxpayers.
Proposed strengthened corporate governance regime
This chart reflects ARGA’s significant new powers and the expanded director and auditor duties being proposed in the BEIS White Paper.
5 key areas of the BEIS White Paper
This chart shows at a glance the main areas the White Paper addresses, from establishing ARGA to improving the reliability of audits.
What does the BEIS White Paper mean for company directors?
A key dimension of the reform package is the wider impact it will have on boards and company directors.