BEIS White Paper: our response to the consultation
Mazars has shared its response to the BEIS consultation: ‘Restoring trust in audit and corporate governance’.
A once in a generation opportunity for audit and corporate governance transformation
Insights
Audit & Governance Reform
The release of the BEIS White Paper in March 2021 signalled a once in a generation opportunity to transform audit and strengthen corporate governance in the UK. A consultation followed and the themes were echoed in the transcript of the Queen’s Speech in May 2022. We now await a draft Bill, expected in 2023/4.
There is widespread consensus that the audit sector is not reaching its potential, and that previous attempts at reform have been ineffective. And the impact of audit is wide-ranging. Trust in the quality of audit underpins confidence in UK business, the money invested in listed firms by private and institutional investors, and the livelihoods of the people who work in the audited companies.
In these pages we examine the recommendations of the BEIS report, discuss the key areas highlighted for reform and consider the wider implications.
There is widespread consensus that the audit sector is not reaching its potential, and that previous attempts at reform have been ineffective. And the impact of audit is wide-ranging. Trust in the quality of audit underpins confidence in UK business, the money invested in listed firms by private and institutional investors, and the livelihoods of the people who work in the audited companies.
In these pages we examine the recommendations of the BEIS report, discuss the key areas highlighted for reform and consider the wider implications.
Practical guides to the BEIS White Paper
The government published its long-awaited White Paper 'Restoring trust in audit and corporate governance' in March 2021. The extensive document proposes a number of reforms that will have a substantial impact on larger businesses. We have created three practical guides, to support audit committees and boards in their understanding of the potential impact of these reforms. Whether you are a FTSE...
BEIS White Paper: reforms to internal controls
The recent White Paper outlined a number of proposed reforms to corporate governance – including changes to internal control frameworks. These videos and articles are designed to help you navigate the reforms, explore what the proposals could mean for your business and outline what you should be doing to strengthen your control environments in preparation.
BEIS White Paper: dividends & corporate reporting
What are the implications of the proposed reforms for directors? Here we explore the proposed disclosures around dividends and distributable reserves, and some new elements of corporate reporting – and consider what businesses should be doing now in preparation for the prospective changes.
Insight for Boards: BEIS audit & governance reform
The reforms will place renewed scrutiny on boards, audit committees and their work—and it’s essential that boards review the key issues.
At Mazars we are committed to making the requisite investment to participate in a reformed market, as well as working with other firms, boards and audit committees, professional bodies, regulators and broader stakeholders to achieve meaningful and long-lasting reform in a number of key areas, including:
- The Big 4 and challenger firms working together on FTSE350 audits
- Renewing the scope of audit, to cover areas such as sustainability and regulation
- Enhancing audit regulation with a focus on prevention and improvement
- Support for a proportionate strengthening of reporting on controls
- A measured approach to extending the scope of PIEs to large private companies
A series of insights, videos and full details of our response to the consultation can be found above.
Our Head of Audit, David Herbinet, comments:
"We now have a once in a generation opportunity to transform audit and renew the broader corporate governance system in order to strengthen resilience within our leading companies and on our capital markets. We must seize it. The UK’s post-pandemic recovery, and the ability for our companies to flourish on the global stage, hinge on the effectiveness with which we support UK businesses to achieve their full potential and to report on their progress a fair and balanced way. Promoting the right balance between entrepreneurship and accountability, which is the essence of good governance, should be the Government’s primary focus as it determines the way ahead."
For more information
If you would like to discuss any aspect of audit and governance reform with a member of our team, do not hesitate to contact us.
National contact
Anthony Carey Senior Adviser, Board Practice and Public Policy
David Herbinet Head of Audit & Assurance - UK and Global
Restoring trust in audit and governance
David Herbinet, Mazars Head of Audit, comments on the release of the BEIS consultation on the future of audit: