The Chartered Institute of Internal Auditors (Chartered IIA), the professional body for internal auditors in the UK and Ireland, has responded to the BEIS Select Committee’s consultation on delivering audit reform, calling on the government to move faster in bringing forward a comprehensive reform package.
“The government made a pledge to act swiftly on audit reform in March 2019 and we agree with the urgent need to now take action to resolve these issues.
"Front and centre of any reform package should be the establishment of an effective audit regulator with the authority to do its job properly. Strengthening the FRC by putting it on a statutory footing and renewing its powers – including the ability to sanction directors for misconduct - will signal the UK means business when it comes to effective audit.
"Our Internal Audit Code of Practice in raising the bar of the internal audit profession is both important and timely, given recent high-profile corporate collapses linked to governance deficiencies. But we now need the government to deliver comprehensive audit reform following the compelling cases made by the Brydon, Kingman and CMA reviews.”
Key policy asks within the Chartered IIA’s response include:
The full consultation response is available here.