ICAEW: embrace change in the audit market

 Following the audit related announcements by the Competition & Markets Authority, Sir John Kingman and the government in December, Michael Izza, ICAEW Chief Executive, says chartered accountants accept the need for change.

The proposals from Sir John Kingman and the CMA tackle the underlying issues of regulation, quality and competition in the audit market, and taken together they amount to the kind of bold intervention that we have been calling for. We will now need to study them in detail, and of course they will be subject to further consultation and debate, not least during the forthcoming parliamentary select committee inquiry.

We have argued for some time that the natural follow-on to this work should be a fundamental and independent examination of the role of audit itself. The expectations of investors and wider society have increased in recent years, and we need to ensure that audit keeps pace.

We therefore welcome the news that Sir Donald Brydon has been asked by the Secretary of State to conduct just such a review. Sir Donald is a very distinguished and experienced business leader, and an excellent choice for this vital project. ICAEW is ready to support him in any way.

Chartered accountants accept the need for change. We look forward to working with all parties to produce effective recommendations for regulation and legislation which will improve quality and increase choice in the market, while ensuring that audit meets the future needs of British business and wider society.

What are your views on the proposed changes? Let us know at londonaccountant@icaew.com.

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