Letter: Good progress made, but still more to do
Carillion’s collapse in 2018 marked a watershed moment since when regulators, the audit profession and others have delivered substantial and significant improvements (“A prescription to curb corporate failures”, FT View, May 28). The Financial Reporting Council’s own quality reports show the proportion of good audits increasing in inspection cycles since 2018, which contrasts with research by Sheffield University’s Audit Reform Lab, which you cite, that there is an “appearance of declining quality”.
We agree there is more to do to reform audit and corporate governance. We have long called for legislative reform to underpin efforts to improve trust and accountability by reducing the risk of disorderly corporate failure and enhancing governance at major UK companies. At the core of this should be a strong statutory regulator and greater director accountability, alongside enhanced assessment of reliance and fraud risk. Such changes would reinforce the UK as a trusted location for foreign direct investment.
We call on the next government to bring forward the necessary primary legislation as a priority.
Alan Vallance
Chief Executive, ICAEW (Institute of Chartered Accountants in England and Wales), London EC2, UK
Comments