The UK government’s audit reform proposals aim to restore trust and corporate governance, but questions remain on how the proposed changes will be implemented and the full extent of their impact on accountants and businesses alike.
The UK government’s recent consultation on the audit reform proposals is much more than simply audit reform. It aims to restore trust in audit and corporate governance and it is unprecedented in its breadth. In addition to reform of the audit profession and scope of the audit, it spans corporate governance, greater regulatory powers over audit committees and company directors, fraud prevention measures and the introduction of internal control reporting and assurance.
Undoubtedly, the greater emphasis being put on the role of company directors and boards, along with enhanced requirements on auditors and the introduction of internal control reporting and assurance have the potential to bring about real change.
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