‘Priority’ BEIS audit reform report now over a month late
The keenly awaited BEIS report on audit reform is now more than a month late to be published, despite business secretary Kwasi Kwarteng insisting audit reform was a “priority” for his department.
CityAM understands that the report, which is thought to be extensive, was due out on 8 February, but a month later is yet to materialise.
The long-awaited reforms included in the report are rumoured to place new burdens on bosses in an effort to improve audit standards.
Directors, rather than boards, will be held personally responsible for financial reporting, facing fines or temporary bans if they are found to have fallen short of their duties.
When contacted by CityAM about the delay, a spokesperson for the Department for Business, Energy and Industrial Strategy (BEIS) declined to share any specific details on the hold-up.
Instead, BEIS pointed to a statement already given by the department that said: “Strengthening our corporate governance and audit regime will help to ensure that the UK remains a world leader in corporate transparency and advance its status as a place of the highest standards in audit.
“The government has accepted the findings of three independent reviews into audit and corporate reporting, and is committed to acting on their recommendations.
“The business secretary has been clear that audit reform is a priority for the department and we will publish comprehensive proposals shortly.”
Mazars global head of audit David Herbinet said audit and wider governance reform should not be delayed any longer.
“There have now been four Secretaries of State since the reform process began, yet we are still faced with the reality that one of the existing dominant firms leaving the market would seriously destabilise capital markets, as Arthur Andersen did less than 20 years ago. This must be addressed at the soonest opportunity,” Herbinet said.
“We are soon to be presented with a once in a generation opportunity to finally implement an audit and corporate governance regime which encourages resilience and good decision making, while promoting enterprise.”