Why has promised audit reform been delayed? MPs to question minister
MPs on the Business and Trade Committee take evidence from auditors, stakeholders and question Minister Kevin Hollinrake on the need for audit and corporate and governance reform and the lack of progress on it.
Meeting details
Following a number of high-profile company collapses in recent years – most notably Carillion in 2018 - questions were raised over the quality of audit and failures in corporate governance designed to hold companies to account. These concerns prompted proposed reforms, designed to strengthen the protections against future corporate collapses, widen competition in the market and restore trust within financial markets.
Despite warnings that reform was needed in 2020, legislation that would’ve enabled it was pulled in October 2023 while legislative plans to create a new and stronger regulator were omitted in the King’s speech.
In the six years since Carillion, signs of progress are visible despite a lack of legislative clarity, but the sector continues to face significant challenges, including in areas of recruitment and competition. MPs are likely to ask why audit reform has stalled and what should be done to put it back on track.