The recent news that audit and corporate governance reform will be dropped from next week’s Queen’s Speech is deeply disappointing (“Accounting groups hit at drop of audit bill”, Report, April 29).
We hope that will not be the case, because audit quality and confidence in it are essential for capital markets and economies to thrive and develop. Given the uncertain state of the current economy, with rising inflation, this trust in the system is more important than ever.
It will be one year, on July 8, that the white paper of the government consultation “Restoring confidence in auditing and corporate governance: proposals for reform” closed. This has proposed important areas of corporate reform that need to be treated with immense care, and while audit reform cannot be rushed, it certainly needs to be accelerated in 2022.
And it was in December 2018 that the first of many reviews that led to this point, the Financial Reporting Council’s Kingman Review, was published.
What we are currently witnessing is political drift, which is unacceptable for something so important.
The omission of audit and corporate governance reform from next week’s announcement will send all the wrong signals to companies and auditors.
Director, Career Opportunities
Association of Chartered Certified Accountants, London WC2, UK