The Department for Business, Energy and Industrial Strategy (BEIS) published its long-awaited white paper on audit reform entitled ‘Restoring trust in audit and corporate governance’ on 18 March 2021. We are committed to respond to the consultation on behalf of the internal audit profession and we are keen to hear your views around some of the key proposals. Read on for details of how to have your say.
There is much in the white paper that closely reflects and aligns with what we have been advocating for in recent years on audit reform. We view its publication as a once in a generation opportunity to restore trust in audit and corporate governance and make the case for internal audit to have an enhanced and strengthened role as a cornerstone of good corporate governance. Positioning internal audit as a vital source of independent assurance and insight.
Whilst a lot of the proposals are focused on delivering more effective statutory/external audit, along with establishing a new audit regulator, there are a number of proposals that will impact on the future of the internal audit profession. In particular, the new Audit and Assurance Policy, along with the SOX-style proposals for a strengthened internal control framework for financial reporting. Both of which have the potential to enhance and strengthen internal audit’s position.
Other proposals such as the proposed new widened scope for statutory/external audit, as well as a new corporate auditing profession both pose challenges, as well as possible opportunities for our profession, depending on if and how they are implemented in practice.
We are now seeking the views of our members and key stakeholders on how the Institute should respond to the white paper consultation. That is why we have published a position paper on the key proposals in the white paper, which outlines our provisional view, subject to consultation with our members.
Keen to share your view? You have until Friday 11 June 2021 to respond to our position paper and to contribute to our white paper response. Don’t delay!
Members may also respond to the white paper consultation themselves, either individually or on behalf of their organisations. Please send responses to email@example.com