Podcast
Where next for audit and governance reform?
In this Insights In Focus episode, we discuss the future of audit and corporate governance reform.
Informing policy
We need audit reform from our next government
ICAEW has given evidence to the Business and Trade Committee on the challenges of audit and corporate governance reform. Iain Wright, ICAEW’s Managing Director, Reputation and Influence, explains what’s needed.
Insights
FRC slashes UK Corporate Governance Code revisions
More than half of the proposals outlined in its consultation will not be taken forward in the interests of reducing burdens, regulator says.
Insights
ICAEW: King’s Speech audit reform omission “very disappointing”
The absence of primary legislation for proposed audit reforms increases the risk of reduced capacity to respond to the next Carillion, ICAEW warns.
Resources
Audit and technology
Digital tools are helping audit to evolve in a data-heavy, fast-moving corporate world. Innovative analytical and artificial intelligence tools are transforming audit, enabling auditors to be more collaborative and provide greater insights in real time.
Latest news and insights
Why the resilience statement hasn’t gone away
- Article
- 18 Apr 2024
Despite the government dropping a requirement for UK plc to produce a resilience statement, some businesses still see the benefits of adopting its principles.
Sustainability: the most-needed knowledge for boards
- Article
- 16 Apr 2024
Every NED – not just ‘the ESG person’ – must have a basic grasp of sustainability issues for a board to function effectively, says Jeannette Lichner.
How the ‘thinking board’ boosts corporate resilience
- Article
- 11 Apr 2024
Boards that prioritise transparency and risk awareness will have the correct mindset to help their companies withstand shocks.
We need audit reform from our next government
- Article
- 28 Mar 2024
ICAEW has given evidence to the Business and Trade Committee on the challenges of audit and corporate governance reform. Iain Wright, ICAEW’s Managing Director, Reputation and Influence, explains what’s needed.
Lessons from a Cypriot corporate governance crisis
- Article
- 26 Mar 2024
A governance code for state-owned enterprises in Cyprus that emerged following the republic’s economic crisis has much to teach all organisations, says one of its leading authors.
Updated internal audit code to boost corporate governance
- Article
- 26 Mar 2024
Revised Internal Audit Code of Practice aims to empower internal audit by acting as a practical guide to supporting board disclosure on risk management and internal control frameworks.
New Bill scores for football governance
- Article
- 21 Mar 2024
The Football Governance Bill unveils an Independent Football Regulator to combat financial mismanagement, preserve clubs’ links with their communities and protect the national game.
UK company size thresholds to rise
- Article
- 19 Mar 2024
The monetary thresholds that determine company size are being raised by 50% as part of a drive to cut complexity and burden from legislative reporting requirements.
Exploring the headline reforms
Developing a meaningful Audit and Assurance Policy
- Report
- 15 Jun 2023
ICAEW recommendations in this report and the extensive outreach and evidence gathering process on which they are based, suggest that introducing an “Audit and Assurance Policy“ could render corporate information more informative.
Sharpening the focus on corporate fraud: an audit committee perspective
- Thought leadership report
- 04 May 2023
This report from ICAEW's Audit and Assurance Faculty considers audit committee perspectives on the nature and extent of corporate fraud and what the corporate sector is doing to improve the chances of preventing and detecting it.
Audit manifesto
- Article
- 23 Nov 2020
This manifesto for audit distils knowledge and insights from ICAEW’s AuditFutures initiative into five principles for building a modern audit profession.
Sharpening the Focus on Corporate Fraud
- Report
- 26 Jul 2022
What steps are audit firms taking now to better facilitate fraud deterrence and detection and what more can be done by all players in the financial reporting ecosystem?
Driving more informative auditor resignation statements
- Helpsheets and support
- 07 Apr 2022
Are auditors providing meaningful information in their resignation statements, and if not, why not? This article looks at the requirements and what stakeholders have been saying.
Standard setting
Exclusive
The future of less complex entity audits
- Article
- 04 Apr 2022
The proposed new standard for audits of less complex entities is not perfect, but it is progress – and it is needed as there are fewer firms performing small audits.
Why LCE audits matter
- Article
- 31 Jan 2022
As the consultation on a proposed international auditing standard for the audit of ‘less complex entities’ (ISA for LCE) draws to a close, it’s time to make the case for why it’s needed.
Less complex entity audits
- 12 Nov 2021
IAASB has issued a draft proposal for a new auditing standard for less complex entities (LCEs). While based on the concepts and principles of the International Standards of Auditing (ISAs), it would follow a simplified, risk-based approach. Join Tom Seidenstein, IAASB Chair, as he discusses the proposals, including their background and development.
Exclusive
Auditing Less Complex Entities
- Article
- 04 Oct 2021
ICAEW welcomes IAASB’s initiative and the timely development of a new standard for auditing less complex entities, hopefully reducing the risk of jurisdictional divergence.
Less complex entities: ICAEW salutes IAASB’s initiative
- Article
- 29 Jul 2021
ICAEW welcomes the issue of a draft standard for the audit of less complex entities by the International Auditing and Assurance Standards Board as a move in the right direction.
Audit quality: the role of standard-setting
- Thought leadership report
- 12 Oct 2020
What role do auditing standards play on audit quality? This essay from the Audit and Assurance Faculty examines how audit standards affect audit quality, and what changes could be made both to international standards and local UK standards to improve audits.
Support SME audits with new standard for less complex entities
- Article
- 15 Jun 2020
ICAEW has added its voice to renewed calls for a separate auditing standard for ‘less complex’ entities ahead of a crucial meeting of the International Auditing and Assurance Standards Board to decide on the issue.
Inquiry into audit background
Audit reform timeline
- Article
- 07 Dec 2020
Following the collapse of Carillion in January 2018, four main reviews were launched on audit reform, each looking at different aspects of the debate.
Restoring trust in audit and corporate governance
- Hub page
- 13 May 2021
'Restoring trust in audit and corporate governance’ is the BEIS white paper that sets out proposals on strengthening the UK’s corporate governance framework and the way companies are audited. This is where we share with you ICAEW’s views on the consultation, explore what restoring trust means, and share information on the reform agenda.
Thought Leadership: the future of audit
Audit quality: how to raise the bar
- Thought leadership report
- 10 Mar 2021
What steps can and should audit committees, audit regulators, investors and auditors in the UK take to improve audit quality? This essay from the Audit and Assurance Faculty examines audit quality in terms of ownership, behavioural aspects, and structural drivers.
Fraudulent financial reporting: fresh thinking
- Report
- 05 Feb 2020
In this essay we focus on ways in which the skills and insights of auditors can be brought to bear to maximise the likelihood of identifying fraudulent financial reporting.
Shared and joint audits: are two auditors better than one?
- Article
- 10 Sep 2019
Governments and regulators are considering whether to mandate shared or joint audits in an attempt to increase audit quality, competition and choice.
User-driven assurance: fresh thinking
- Thought leadership report
- 12 Dec 2019
With calls for better engagement between auditors and users, we recommend the application of a three "pillar" model of what we call "User-Driven Assurance"; a new way of thinking about assurance, directed in its first phase by the needs of the primary user – the shareholders.
Internal control effectiveness: who needs to know?
- Thought leadership report
- 29 Aug 2019
Reporting on the effectiveness of controls over financial reporting features prominently in the current reviews of UK audit and regulation. This essay explores the current position in the UK, compares it with what happens in the USA and elsewhere in the world, and sets out the case for change and potential options.
Internal controls reporting: sketching out the options
- Thought leadership report
- 08 Jun 2020
What might a future framework for reporting on internal control over financial reporting (ICFR) look like? This essay from the Audit and Assurance Faculty examines various reporting frameworks, including COSO and the UK Code, as well as how these fit in with Sir Donald Brydon’s recommendations.
What auditors do: the scope of audit
- Thought leadership report
- 16 May 2019
Recent corporate failures have increased public concern about the value of audit and the role of auditors. To help inform debate on the scope of audit, this second supporting paper to our Future of Audit thought leadership essays explains what auditors do, why audits are necessary, the limitations of audit, and what gets audited and what doesn’t.
Financial reporting: who does what?
- Thought leadership report
- 28 Mar 2019
This overview explains in simple terms who does what in the financial reporting system for UK companies with full main market listings.
Quality management
With new quality management standards for audit on the horizon, there is an opportunity for firms of all sizes to supercharge their audits and reap significant knock-on benefits that go beyond ticking the regulatory box