8 February 2019

Update

CBI President says don't put the cart before the horse on audit reform

John Allan calls for long term answers for future of audit.

CBI President says don't put the cart before the horse on audit reform

As the UK faces uncertain geo-political and economic conditions, politicians are looking at how to reform the way companies are audited. High profile failures like the collapse of Carillion, have rightly prompted searching questions given the fallout for those investing in the business, its employees, suppliers, and sometimes the taxpayer. However, with multiple reviews into the audit sector being conducted, the CBI’s President, John Allan warned about putting the cart before the horse and urged those involved to focus on delivering long term answers for the future of audit.

Read John’s op-ed in The Telegraph

The Business Secretary, Greg Clark, is currently overseeing three strands of audit reform incorporating how the current audit marketplace is operating, the role of the regulator, and finally the effectiveness of audit as a product. To help members navigate these overlapping changes, the CBI has sought to set out business-friendly approach which aims to join up the different stands of reform behind a common goal – delivering an audit which is fit for the future.

In John’s Op-Ed, he called for the findings of the newly announced Brydon Review into the effectiveness of audit to be put at the centre of the reform agenda. John went on to argue that once the regulator knows what a good audit looks like, it will be much easier to reform the market place so that each participant can play their role in delivering this. Sir Donald Brydon’s review is likely to run throughout 2019 will look at the effectiveness of audit as a product and will suggest how the UK’s rules for auditing need to change.

Going forward, the CBI will continue to actively work on shaping the Government’s plans for audit reform – engaging directly to support the Brydon Review as it gets under way.

To find out more or share your views please contact Lois.Robson@CBI.org.uk