Addressing Corporate Failure: The Future of the Audit Industry | IPT
Chair: Nigel Mills MP, Select Committee on Work and Pensions
Speaker: James Barbour, Director of Policy Leadership, Institute of Chartered Accountants of Scotland (ICAS)
Speaker: Dr Rasha Kassem, Assistant Professor, School of Economics, Finance and Accounts, Coventry University
Virtual Event

Date:

Wednesday 28 October 2020

Venue:

This is an online event

Start Time:

08:30

End Time:

09:30

According to the industry regulator, in 2018 27% of audits were below standard. With several large, high-profile companies going into liquidation in recent years, there have been calls for reform in the sector, including an inquiry by the Business, Energy and Industrial Strategy Select Committee. The Financial Reporting Council has given the Big Four accounting firms until 2024 to separate their audit practices, with the businesses required to outline the principles of the separation by October 2020. The regulator will also require that firms pay auditors in line with the profits of the audit, ringfence the finances of the audit division with a separate profit and loss account and introduce an independent audit board to oversee practice. With the requirements designed to improve audit quality and market resilience, what does the future of the audit sector look like?

This event will:

  • Discuss the possibility of a more diverse market and how the Competition and Markets Authority could shape this.
  • Consider how audits could become a more forward-looking product benefitting investors, employees, pension holders and suppliers.
  • Examine the process of formally separating audit from non-audit services and how this will affect both the auditing firm and its clients.