Inquiry into audit timeline

The Government announces in the Queen’s Speech that audit reform will be part of a forthcoming Employment Bill. 

Sir Donald Brydon publishes his report on improving audit quality and effectiveness.

Greg Clark MP gives a speech on competition in which he announces a consultation on the CMA’s recommendations, and that Sir Jonathan Thompson will be the next CEO of the Financial Reporting Council’. The BEIS Select Committee endorsed Simon Dingemans to be Chair of the FRC in their report on the pre-appointment hearing.

The BEIS Select Committee publishes a response from Greg Clark MP, the Secretary of State, to Rachel Reeves MP, Chair of the BEIS Select Committee, about the forthcoming consultation on the CMA’s final recommendations, and on work being undertaken between BEIS and ICAEW on capital maintenance regimes.

June 2019

ICAEW responded to the Brydon call for views and the BEIS consultation on Kingman’s recommendations.

The Government responds to the BEIS Select Committee’s report on the future of audit. Rachel Reeves MP, Chair of the BEIS Select Committee, writes to Greg Clark MP, the Secretary of State, seeking more information on the planned consultation of CMA recommendations, and on work being undertaken by BEIS and ICAEW on capital maintenance regimes.

April
2019

The BEIS Select Committee issued its Future of Audit report on 2 April 2019. Rachel Reeves MP, BEIS Select Committee Chair gave a keynote speech at ICAEW discussing the report and its recommendations.

Sir Donald issued his call for evidence on 10 April 2019, responses are requested by 7 June. The CMA published their final report into the statutory audit market on 18 April 2019.

Labour welcomed the two reports by Prem Sikka on reforming the auditing and corporate governance regulatory system. On 11 March 2019, BEIS issued a consultation on the recommendations made by the Kingman review. The BEIS Select Committee session on the Future of Audit inquiry held a hearing on 13 March 2019 with the Rt Hon Greg Clark MP, Secretary of State, BEIS, Debbie Gillatt, Director of Business Frameworks, BEIS and Alex Chisholm, Permanent Secretary, BEIS.

BEIS Select Committee hears oral evidence from Michael Izza and Stephen Haddrill, and from Sir Donald Brydon. Sir Donald Brydon announces the Terms of Reference for his work, as well as the members of his two advisory groups who will contribute in a personal capacity. Michael Izza named as a member for the Auditors’ Advisory Group. 

ICAEW submits written evidence to the BEIS Select Committee’s Future of Audit inquiry and responds to the CMA’s Market Study update paper. The BEIS Select Committee hears oral evidence from audit firms, investors and Sir John Kingman.

Professor Prem Sikka publishes his report on Reforming the Auditing Industry. Sir John Kingman publishes his review on the Financial Reporting Council and auditor procurement and remuneration. The CMA publishes an update paper on their Market Study and invites comments. Greg Clark MP announces a review into the Future of Audit to be led by Sir Donald Brydon.

ICAEW submits written evidence to Sir John Kingman’s review on auditor procurement and remuneration. Rachel Reeves MP, Chair of the BEIS Select Committee, gives a keynote speech in Chartered Accountants’ Hall announcing a parliamentary inquiry on "The Future of Audit".

The Competition and Markets Authority (CMA) announces a formal Market Study into the statutory audit sector and launches an invitation to comment. Alongside this, Greg Clark MP asks Sir John Kingman to extend his review to look at auditor procurement and remuneration. ICAEW submits written evidence to the CMA’s Market Study.

ICAEW arranges a meeting between BEIS Select Committee and mid-tier accountancy firms to discuss the future of audit.

ICAEW submits written evidence to Sir John Kingman’s review into the Financial Reporting Council.

ICAEW responds to the joint inquiry’s invitation to comment on their report on the collapse of Carillion.

Sir John Kingman launches a call for evidence as part of his review into the Financial Reporting Council.

The BEIS Select Committee publishes their joint report alongside the Work and Pensions Select Committee into the collapse of Carillion, and ICAEW is invited to comment as an interested party. The Labour Party commission a review on "Reforming the Auditing Industry" to be led by Professor Prem Sikka.

The Department for Business, Energy and Industrial Strategy launches an independent review into the Financial Reporting Council which will be led by Sir John Kingman, Chairman of Legal & General PLC and former Second Permanent Secretary to HM Treasury.

The joint inquiry takes oral evidence from investors and from Greg Clark MP, the Secretary of State for Business, Energy and Industrial Strategy. As part of his evidence, Clark announces that he believes there is a strong case for reviewing the operations of the Financial Reporting Council.

The joint inquiry takes oral evidence from the board of Carillion and from Carillion’s external auditors, KPMG, and internal auditors, Deloitte.

Carillion collapses. BEIS Select Committee launches joint inquiry alongside the Work and Pensions Select Committee. The joint inquiry takes oral evidence from the Financial Reporting Council and the Insolvency Service.