BAA | July 2021 | White Paper audit reform
Nigel Sleigh-Johnson explores the proposals of the BEIS White Paper 'Restoring trust in audit and corporate governance' and their impact on reporting.
There was relief at ICAEW when the BEIS consultation on corporate governance and audit reform was finally issued back in March. ICAEW has been a strong supporter of reform and there were concerns that it might never see the light of day. But among the first reactions to the White Paper were concerns expressed by the Institute of Directors and the Confederation of British Industry about the “unnecessary burden” on directors that the proposals represent, and about the risk that they will discourage entrepreneurship and drive investment away from the UK.
Kwasi Kwarteng, Secretary of State for BEIS, responded. He emphasised the focus of the consultation on large, publicly traded companies whose collapse sometimes requires huge taxpayer-funded bailouts, and his belief that the proposals will not stifle entrepreneurship.