ICAS ICAS logo

Quicklinks

  1. About Us

    Find out about who we are and what we do here at ICAS.

  2. Find a CA

    Search our directory of individual CAs and Member organisations by name, location and professional criteria.

  3. CA Magazine

    View the latest issues of the dedicated magazine for ICAS Chartered Accountants.

  4. Contact Us

    Get in touch with ICAS by phone, email or post, with dedicated contacts for Members, Students and firms.

Login
  • Annual renewal
  • About us
  • Contact us
  • Find a CA
  1. About us
    1. Governance
  2. Members
    1. Become a member
    2. Newly qualified
    3. Manage my membership
    4. Benefits of membership
    5. Careers support
    6. Mentoring
    7. CA Wellbeing
    8. More for Members
    9. Area networks
    10. International communities
    11. Get involved
    12. Top Young CAs
    13. Career breaks
    14. ICAS podcast
    15. Newly admitted members 2022
    16. Newly admitted members 2023
  3. CA Students
    1. Student information
    2. Student resources
    3. Learning requirements
    4. Learning updates
    5. Learning blog
    6. Totum Pro | Student discount card
    7. CA Student wellbeing
  4. Become a CA
    1. How to become a CA
    2. Routes to becoming a CA
    3. CA Stories
    4. Find a training agreement
    5. Why become a CA
    6. Qualification information
    7. University exemptions
  5. Employers
    1. Become an Authorised Training Office
    2. Resources for Authorised Training Offices
    3. Professional entry
    4. Apprenticeships
  6. Find a CA
  7. ICAS events
    1. CA Summit
  8. CA magazine
  9. Insight
    1. Finance + Trust
    2. Finance + Technology
    3. Finance + EDI
    4. Finance + Mental Fitness
    5. Finance + Leadership
    6. Finance + Sustainability
  10. Professional resources
    1. Anti-money laundering
    2. Audit and assurance
    3. Brexit
    4. Business and governance
    5. Charities
    6. Coronavirus
    7. Corporate and financial reporting
    8. Cyber security
    9. Ethics
    10. Insolvency
    11. ICAS Research
    12. Pensions
    13. Practice
    14. Public sector
    15. Sustainability
    16. Tax
  11. CPD - professional development
    1. CPD courses and qualifications
    2. CPD news and updates
    3. CPD support and advice
  12. Regulation
    1. Complaints and sanctions
    2. Regulatory authorisations
    3. Guidance and help sheets
    4. Regulatory monitoring
  13. CA jobs
    1. CA jobs partner: Rutherford Cross
    2. Resources for your job search
    3. Advertise with CA jobs
    4. Hays | A Trusted ICAS CA Jobs Partner
    5. Azets | What's your ambition?
  14. Work at ICAS
    1. Business centres
    2. Meet our team
    3. Benefits
    4. Vacancies
    5. Imagine your career at ICAS
  15. Contact us
    1. Technical and regulation queries
    2. ICAS logo request

Policy: Fit for the future

  • LinkedIn (opens new window)
  • Twitter (opens new window)
Michelle Mullen By Michelle Mullen, ICAS Executive Director of Standards

31 March 2021

Michelle Mullen, ICAS Executive Director of Standards, on why a broad tapestry of reform is needed to rebuild trust in audit and business.

Read April's CA magazine now

Trust is hard earned, and can be easily lost. Of late the audit profession and the surrounding regulatory arrangements have been under intense scrutiny in the UK, and elsewhere. In the wake of a corporate collapse, the immediate reaction is often one of blame (“where were the auditors?”). Today the conversation in the UK has matured, and the recent BEIS consultation recognises that the corporate ecosystem doesn’t start with audit. Each component plays an important role, but audit is not the primary element of this complex system.

From the outset ICAS called for a holistic review of the corporate ecosystem – governance, corporate reporting and audit. External audit does not operate in a vacuum, but as part of the wider framework that oversees large corporate entities. Government reviews undertaken by Sir John Kingman, Sir Donald Brydon and the CMA Audit Market Study presented a suite of recommendations that are now out for consultation. There is hope that the UK can now finally move forward. This is a rare opportunity to deliver a holistic package of reforms that will make the ecosystem fit for the future.

ICAS’ recent “Recalibration of the Corporate Ecosystem” paper explored the future role of the Audit Governance and Reporting Authority (ARGA) and how the reviews’ various recommendations could be combined to deliver a tapestry of reform that will support the transformation of the corporate ecosystem of UK public interest entity companies (PIEs). Various stakeholders have a vested interest; this is not just about audit but also the governance and reporting of companies deemed systemically important to the UK and global economies.

The BEIS consultation makes it clear the balance of reform will rest with PIE companies and directors, and sets out a roadmap to recalibrate the corporate ecosystem. The proposals focus on three broad themes – responsibility, accountability and transparency. To deliver lasting reform, they will need the co-ordinated support of business, investors and the profession. It is an ambitious package. After months of speculation, it is clear ARGA will play a key role in encouraging higher standards. It has the potential to be a regulatory powerhouse.

The timing and choreography will present a challenge for government, regulators, business and the profession. For now, the FRC has a key role to play in preparing the business environment, and the public, for a very different regulatory framework.

This new regime is now being established against a backdrop of an economic and health crisis, which no one could have envisaged when the initial reviews were instructed. Arguably the current environment reinforces the need for some of the proposed reforms, such as the introduction of a new resilience statement to combine the going concern and viability statements. The proposal to amend the definition of a PIE will bring at least another 1,000 entities into scope, and PIEs (old and new), their directors, investors and auditors will need the support of the regulator to navigate this landscape.

Closing the gaps

With a focus on the reform of corporate governance and reporting, there is a recognition that auditors do not own, control or manage PIEs. Audit’s purpose is to provide independent assurance that management has presented a “true and fair” view of a company’s financial performance and position, albeit that might in future be revised to “present fairly in all material respects”. Audit underpins the trust and obligation of stewardship between managers, shareholders and a wider stakeholder group. The profession recognises the need for change and, despite their significant investment in audit quality in recent years, most accept more should be done. But they cannot do it alone. Ultimately, boards run companies, and investors hold them to account. This is reflected in the reform agenda.

Government may need to balance stakeholder concerns in coming months, and it seems many of the proposed reforms will need primary legislation. Only once we have a corporate ecosystem that recognises the respective roles and responsibilities of directors, investors and auditors will we be best placed to command trust.

To read Recalibrating the corporate ecosystem click here.

CA magazine: April 2021

By Sarah Speirs, ICAS Executive Director of Member Engagement and Communications

31 March 2021

FRC Chief Executive outlines wide ranging reforms

By Michelle Mullen, ICAS Executive Director of Standards

29 March 2021

2023-03-MarksElectrical 2023-03-MarksElectrical
ICAS logo

Footer links

  • Contact us
  • Terms and conditions
  • Modern slavery statement
  • Privacy notice
  • CA magazine

Connect with ICAS

  • Facebook (opens new window) Facebook Icon
  • Twitter (opens new window) Twitter Icon
  • LinkedIn (opens new window) LinkedIn Icon
  • Instagram (opens new window) Instagram Icon

ICAS is a member of the following bodies

  • Consultative Committee of Accountancy Bodies (opens new window) Consultative Committee of Accountancy Bodies logo
  • Chartered Accountants Worldwide (opens new window) Chartered Accountants Worldwide logo
  • Global Accounting Alliance (opens new window) Global Accounting Alliance
  • International Federation of Accountants (opens new window) IFAC
  • Access Accountancy (opens new window) Access Acountancy

Charities

  • ICAS Foundation (opens new window) ICAS Foundation
  • SCABA (opens new window) scaba

Accreditations

  • ISO 9001 - RGB (opens new window)
© ICAS 2022

The mark and designation “CA” is a registered trade mark of The Institute of Chartered Accountants of Scotland (ICAS), and is available for use in the UK and EU only to members of ICAS. If you are not a member of ICAS, you should not use the “CA” mark and designation in the UK or EU in relation to accountancy, tax or insolvency services. The mark and designation “Chartered Accountant” is a registered trade mark of ICAS, the Institute of Chartered Accountants of England and Wales and Chartered Accountants Ireland. If you are not a member of one of these organisations, you should not use the “Chartered Accountant” mark and designation in the UK or EU in relation to these services. Further restrictions on the use of these marks also apply where you are a member.

ICAS logo

Our cookie policy

ICAS.com uses cookies which are essential for our website to work. We would also like to use analytical cookies to help us improve our website and your user experience. Any data collected is anonymised. Please have a look at the further information in our cookie policy and confirm if you are happy for us to use analytical cookies: