The UK government will be omitting its overhaul of the UK’s audit and corporate governance regimes from November’s King’s Speech.
This effectively means the government’s proposed audit reform, which was to have included new reporting regulations introducing resilience reporting to companies, as well as the production of an audit and assurance policy every three years, would likely take place only after the next general election.
The audit reform process was triggered by the collapse of the construction company Carillion back in 2018. Since then, proposals for audit reform in the UK have also included replacing the Financial Reporting Council (FRC) with a more powerful regulator called the Audit, Reporting and Governance Authority (ARGA).
“Airmic has been supporting the Chartered Institute of Internal Auditors (CIIA) in advocating for quicker progress on audit and corporate governance reform,” said Hoe-Yeong Loke, Head of Research at Airmic.
“The reforms are critical for restoring trust in audit in the UK, and thereby the competitiveness of UK plc. We will continue working together with fellow associations such as the CIIA towards this end.”