• Register
Return to: Home > News > Regulation > EC proposals have merit say FTSE100 audit committee chairs

EC proposals have merit say FTSE100 audit committee chairs

FTSE100 audit committee chairs have questioned the reasons behind the European Commissions (EC) audit reform proposals, but agree some have merit, according to a research by the Institute of Chartered Accountants in England and Wales (ICAEW) and Brunswick Research.

The research of 25 FTSE100 audit committee chairs found that there is no support in presumption that audits helped accelerate or lead to the financial crisis.

An audit committee chair quoted anonymously thinks the Green Paper is trying to “correct a wrong that doesn't exist”.

“I think that's the bottom line here. We – certainly in the UK – have a broadly sound system which occasionally doesn’t perform quite as well as it should,” they said.

Audit Committee chairs have however expressed concern over the level of competition in the market and highlighted the continuing focus and reassurance on auditor independence and greater use of third party and peer review of audit practices as some of the areas needing improvement.
ICAEW chief executive Michael Izza said when considering their proposals, the EC cannot ignore the voice of business.

“As this research shows there is scepticism over the rationale for these proposals but recognition that change is needed in a number of areas to ensure UK audit quality remains world leading,” Izza said.

The Audit committee chairs also called for more transparency around audit but warned it should be balanced with the requirement to protect commercial sensitivities.

Top Content

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    FASB: a quest for simpler standards

    FASB chair Russell Golden addressed the IMA 2019 Annual Conference and Expo at the Sheraton San Diego Hotel and Marina, California, on 18 June. IMA immediate former chair-emeritus Alex Eng acted as moderator. Joe Pickard reports.

    read more

    The future of audit, and how to get there

    Two recent reports peer into the future of the audit profession. One analyses what an audit should offer, while the other looks at how the audit process will be carried out. Robin Amlôt takes a closer look at both.

    read more

    EFAA elects new president, focuses on digital future

    EFAA’s new president, Salvador Marin, outlined his key priorities for the next two years at the organisation’s 2019 annual general meeting, while outgoing president Bodo Richardt offered advice. Robin Amlôt reports.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.