ICAS frustrated by scrapping of UK Audit and Corporate Governance Reform Bill

MEDIA STATEMENT - ICAS has responded to news that the UK Government has scrapped the UK Audit and Corporate Governance Reform Bill.

Gail Boag, CEO at ICAS, said:

“This morning’s announcement that the UK Audit and Corporate Governance Reform Bill has been scrapped is deeply frustrating. The whole accountancy sector and even governments themselves have agreed for years on the need for audit and corporate governance reform.

"There was recognition that better corporate governance could not only support investor confidence and therefore business growth, but also that more must be done to protect the wider impacts of corporate collapse on the public. Failures such as Carillion, BHS, Patisserie Valerie and others saw job losses and pensions massively reduced in value, demonstrating why this bill is much needed. 

“There is no doubt that recent improvements and work across the sector and by the FRC have moved us on from where we were, and that the quality of audit and of corporate governance has improved. However, the issue of director accountability remains far from resolved, and there is an urgent need to clarify the scope of the FRC’s role and powers. 

“Through our advocacy and regulatory work, we will continue our efforts to increase business confidence and growth, whilst also protecting consumers and the public.”