IFAC welcomes the opportunity to comment on the Department of Business, Energy & Industrial Strategy Consultation on the Government’s proposal for Restoring trust in audit and corporate governance. The Government has put forth a very comprehensive assessment of issues that are relevant to restoring trust in both audit and corporate governance. We firmly support such an approach that addresses the credibility of directors’ accountability and reporting as well as the statutory audit.
IFAC, the International Federation of Accountants, which comprises 180 member and associate organizations and represents over 3 million professional accountants globally, continues its work in support of high-quality audits and effective corporate governance.
In its response to the UK Department for Business, Energy & Industrial Strategy (BEIS) consultation on restoring trust in audit and corporate governance, IFAC emphasized high-level themes that should govern any future reforms, including the importance of a well-functioning ecosystem, a clear focus on audit quality, and an appreciation for the global context.
IFAC’s response draws on its previously published framework for Achieving High-Quality Audits—based on the right process, the right people, the right governance, the right regulation, and the right measurement.
IFAC CEO Kevin Dancy said, “We urge policymakers in the UK and elsewhere to pursue reforms with an unwavering view to enhancing audit quality above all else. As the UK is a leader in audit and corporate governance, any changes enacted there are likely to have an impact beyond its borders. The success of a company, the quality of its reporting, and the quality of its audit all depend on a functioning ecosystem of participants. This is why the holistic approach taken in the Consultation is so important."
About IFAC IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.
Focus on Broader Reporting Ecosystem Necessary for Achieving High-Quality Audits
