ICAEW president Peter Wyman said the report sets out a ‘comprehensive and sensible package of measures’, which build on more than a decade of corporate governance and financial reporting reforms here in the UK.
‘I welcome the new role for the audit committee as the primary interface between the auditor and the company. This will do much to reinforce the auditor’s independence. Independence will be strengthened by more closely aligning the auditors with the audit committee, which itself comprises independent directors acting on behalf of shareholders,’ he said.
Wyman further pledged support to the DTI’s approach on the provision of non-audit services to audit clients. He was pleased the government had recognised that there are benefits to shareholders from non-audit services, such as tax advice.
And he reiterated his support for the role of the audit committee as recommended by the Higgs and Smith reviews published last week, and backed by Hewitt today.
‘By switching the key audit relationship from executive directors to the independent audit committee, Sir Robert Smith will have done more to enhance auditor independence than any rules-based approach could ever have achieved,’ Wyman said.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
Investment in people, tech and businesses impacts on EY's profit per partner figure
If businesses do not take cyber security seriously in their business planning regulators may do it for them, the ICAEW has warned