Corporate governance and audit reform are key areas that will lead to a change in assurance approaches. “A significant package of reform” is how Sir Jon Thompson, CEO of the FRC (Financial Reporting Council) described the important ‘Restoring trust in audit and corporate governance’.
These amends are to be shared by all involved and not just the auditor and assurance service provider:
The consultation by the UK Gov closes on 8 July 2021 and seeks views on proposals to strengthen the UK’s framework for major companies and the way they are audited.
The proposals set out how:
The objectives of these reforms are to:
The proposals respond to recommendations made by 3 independent reviews commissioned by the government in 2018:
The UK government has said it is in favour of companies reporting on the effectiveness of internal controls for the 800 largest companies in the UK. Other revised reports and statements may be coming that will set out the company’s views about risk up to five years ahead, new audit and assurance policy, payment practices, distributable profits; and dividends. However, this does not mean in itself other companies/pension schemes will follow this.
If you want to find out more about developing audit and assurance good practices, please contact Andrew.Riley@assureuk.co.uk, Gareth.Burton@assureuk.co.uk, Bhavesh.Patel@assureuk.co.uk , Emma.Jones@assureuk.co.uk or Jade.Brooker@assureuk.co.uk