Sir Bryan Nicholson, head of the revamped Financial Reporting Council, told a City audience on Monday that he would establish a committee to review the report by Nigel Turnbull.
The review is widely expected to result in a new obligation for auditors to examine a company’s internal controls and risk management. Such a move would represent a fundamental shift for UK auditors and bring them into line with the Sarbanes-Oxley Act.
The Turnbull report, published at the end of 1999 and still widely respected, is now deemed to be out-of-date due to recent far-reaching changes to management responsibilities in the UK, Europe and the US.
Peter Wyman, former ICAEW president and partner at PricewaterhouseCoopers, said: ‘ The UK simply cannot get left behind on such an important issue as internal controls. It’s quite a radical next step.’
Any changes are likely to result in a mixed reaction from business, particularly among smaller listed companies. But for others, namely those with a US listing, the amendments are not expected to cause significant volumes of extra work.
ICAEW president David Illingworth welcomed the initiative – but said the UK did not need ‘a knee-jerk reaction’.
Harrison Beale & Owen will (HB&O) have a new chairman and managing director at the helm for 2017
Satvir Bungar promoted to managing director in the mergers and acquisitions team
Carolyn Brown appointed as the first head of client legal services practice RSM Legal
UK senior partner Phil Verity has been elected for a second term at Mazars