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Government urged to take swift action on audit reform following Brydon Review

The Chartered Institute of Internal Auditors (Chartered IIA) has today called on the government to take swift action on audit reform following the publication of the final report of Sir Donald Brydon’s independent review into the quality and effectiveness of audit.

In particular, the Chartered IIA supports the proposals that strengthen the requirements on company directors in relation to the risk, internal control and governance framework, this is something that we called for in our response to the review.

The report also welcomes the work of the Chartered IIA in developing an Internal Audit Code of Practice which will be published in January 2020. The code makes 38 recommendations to increase the effectiveness of internal audit functions.

Dr Ian Peters MBE, Chief Executive of the Chartered IIA said:

“Following a series of corporate collapses linked to audit and governance deficiencies, including Carillion, radical reform of the audit and corporate governance framework is long overdue. The government must now get on and act swiftly on the recommendations made by Sir Donald Brydon.

“We believe the Brydon recommendations strengthening the requirements on company directors in relation to governance, risk and internal controls should help to raise corporate governance standards. Strong, effective and well-resourced internal audit functions have a central role to play in supporting boards to step up to the plate and meet these enhanced responsibilities.

“Now Brydon has reported, we would also like to see the government accelerate reform of the audit regulator, speeding up the legislation required to establish and put the new Audit, Reporting and Governance Authority on a statutory footing, with the powers and authority it needs to do its job properly.”

Notes to editors:

1. The Chartered IIA is the only professional body dedicated exclusively to training, supporting and representing internal auditors in the UK and Ireland. We have 10,000 members in all sectors of the economy. First established in 1948, we obtained our Royal Charter in 2010. Over 2,000 members are Chartered Internal Auditors and have earned the designation CMIIA. About 1,000 of our members hold the position of head of internal audit and the majority of FTSE 100 companies are represented among our membership. Members are part of a global network of 200,000.