PracticeAuditScicluna: Smith report needs more work

Scicluna: Smith report needs more work

Clarifications are still needed to the Smith report on company audit committees before it becomes part of the combined code on corporate governance, one of the UK's most senior accountants has said.

Link: Smith report strikes at the heart of corporate governance

Deloitte & Touche chairman Martin Scicluna has said the report is ‘sensible and is a good template for the interaction between audit committees and auditors’. But he added that it had been linked to the combined code in ‘some haste’.

Writing in today’s Financial Times Scicluna said the Higgs report was missing a provision ’emphasising the responsibility of institutional investors’. a point made recently by George Cox, director general of the Institute of Directors.

Higgs has come under scathing criticism in recent weeks amid calls for its integration into the combined code, due on 1 July, to be delayed while amendments and clarifications are made.

The Smith report on audit committees was published at the same time as Higgs and recommends that committees should be made up of no less than three independent directors with at least one of them possessing recent and relevant financial experience. It also states that audit committees should have the principle responsibility of appointing an auditor.

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

3d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

1w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

1w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor