Business Committee publish written evidence submissions
21 October 2020
The Business, Energy and Industrial Strategy (BEIS) Committee has today published the written evidence submissions for its inquiry on Delivering Audit Reform.
Darren Jones, Chair of the Business, Energy and Industrial Strategy Committee has also written to Alok Sharma, Secretary of State for DBEIS, to request an update on the Government’s progress on delivering audit reform.
Darren Jones, Chair of the BEIS Committee said:
“It’s vitally important that investors and other stakeholders have confidence in audits. Confidence has been shaken in recent years by a series of audit scandals. More recently, the Financial Reporting Council reported that the number of audits not meeting the required standard rose from a quarter to a third. The Government and the regulator now need to step up and help improve corporate governance, boost audit quality and tackle competition in the audit market by pressing ahead with the practical measures recommended by a series of reviews.
“The BEIS Committee will keep an eye on the outcome of the Government’s consultations on audit reform. We look forward to the Secretary of State providing us with an update on the Government’s plans and a timetable for bringing forward the legislation needed on audit reform”.
The BEIS Committee has today published written evidence submissions from the ‘Big Four’ audit firms (Deloitte, Ernst & Young, KPMG, PwC), ‘challenger firms’ including Mazars and Grant Thornton, the Financial Reporting Council, and organisations including the CBI, Investment Association, ICAEW, and GC100 (the association for the general counsel and company secretaries of companies in the UK FTSE 100).
A submission from the Competition and Markets Authority (CMA) will be published at a later date.
Delivering Audit Reform inquiry
Written evidence submissions
- The Association of Practicing Accountants (DAR0004) [Ctrl+click to follow link direct to submissions on Parliament website].
- The Investment Association (DAR0008)
- Pensions and Investment Research Consultants (DAR0009)
- The Local Authority Fund Forum (DAR0010)
- The Association of Investment Companies (DAR0011)
- UK Shareholders’ Association and ShareSoc (DAR0012)
- Chartered Institute of Internal Auditors (DAR0013)
- KPMG (DAR0014)
- Chartered Institute of Management Accountants (DAR0015)
- GC100 (DAR0016)
- ICAEW (DAR0017)
- Periculum Associates Limited (DAR0018)
- PwC (DAR0019)
- Grant Thornton UK LLP (DAR0020)
- Group A (DAR0021)
- ShareAction (DAR0022)
- Ernst & Young LLP (DAR0023)
- Alliance Manchester Business School (DAR0024)
- Mazars LLP (DAR0025)
- Association of Chartered Certified Accountants (DAR0026)
- National Employment Savings Trust (DAR0027)
- Deloitte (DAR0028)
- Chartered Accountants (DAR0029)
- Clyde & Co LLP (DAR0030)
- RSM International (DAR0031)
- Financial Reporting Council (DAR0032)
- Impact Investing Institute (DAR0033)
- CBI (DAR0034)
In July, the FRC published results of its latest audit inspection results.
Over the last two years there have been three independent reviews of the UK’s audit industry and a ‘Future of Audit’ report published in April 2019 by the BEIS Committee. This activity was brought about by the shortcomings of audit, exemplified by several high-profile corporate collapses, such as Carillion and BHS, and scandals, such as Patisserie Valerie, where auditors missed a major fraud. This activity has focused on several aspects of audit including: the nature of audit itself (Brydon Review); the regulation of the audit industry (Kingman Review); competition, conflicts of interest, oversight and resilience in the audit market (Competition and Markets Authority (CMA). The BEIS Committee’s Future of Audit Report examined many of these aspects of the audit industry.