• Register
Return to: Home > News > UK Gov. launches new review into audit profession

UK Gov. launches new review into audit profession

Donald Brydon, the outgoing chair of the London Stock Exchange Group, has been appointed to lead a new independent review of the quality and effectiveness of the UK audit market, the so-called ‘Brydon Review’.

The independent review was launched the same day the Kingman Review published its findings that the Financial Reporting Council should be replaced with a new regulator, and the Competition & Markets Authority (CMA) released an update on its study into auditing, which including (among other things) a proposal to break up audit and advisory practises.

According to the Government, the new review will build on the findings of these two reports.

Initially the review will consider audits as a product and what the future, standards and requirements should be for audits in the future. This will include a look at the expectation gap, something auditors have long pointed to when discussing corporate failures.

Specifically, it will look at:

  • How far audit can and should evolve to meet the needs of investors and other stakeholders, putting the UK at the forefront;
  • How auditors verify information they are signing off;
  • How to manage any residual gap between what audit can and should deliver; and
  • What are the public’s expectations from audit.

Business secretary Greg Clark said:  “The UK is rightly recognised internationally for our outstanding business environment and responsible business practices, both of which are fundamental reasons why we are one of the best places in the world to work, invest and do business.

“I’m delighted that Donald Brydon will be leading this review, following the important work of Sir John Kingman and the CMA, and his work should help us improve and restore confidence in the quality and rigour of audit companies.

“Audit companies need to learn the recent lessons from high profile audit failures and reform to regain public confidence, or they will be forced to do it.”

A detailed terms of reference and project plan will be published in the new year.

 

Top Content

    2018 Digital Accountancy forum and awards: Digital transformation

    The Accountant presents highlights from The Digital Accountancy Forum & Awards 2018 panel discussions

    read more

    2018 Digital Accountancy Forum and Awards: Tech deep dive

    The second panel session of the day saw experts discuss how new technologies should not just be seen as a threat, and could be used to improve accounting.

    read more

    Digital Accountancy Forum and Awards: The power of data

    The third panel discussion of the day saw panellists discuss some of the worries their clients have had, how to overcome them, and how data and technology are providing real business opportunities.

    read more

    Digital Accountancy Forum and Awards: The next generation

    With young people more mobile, and technology changing the industry rapidly, the final panel session of the Digital Accountancy Forum looked at how firms would need to adapt to the new reality

    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.