The collapse of Carillion in January 2018 prompted a flurry of high level consultations including the BEIS inquiry into the Future of Audit and Sir John Kingman’s Review of the FRC. These have now been followed by a review of the Quality and Effectiveness of Audit by Sir Donald Brydon.
Since Carillion there have been other failures in which audit performance appears to have been lacking – for example, Patisserie Valerie and Conviviality. So what needs to change? Are there serious problems which are leading to a lack of trust in audit or are the concerns exaggerated? Would more detailed feedback in the Annual report on the work carried out by the auditors help to reassure investors. We think more fundamental changes are needed. Our response to Sir Donald describes the changes we would like to see. You can read our response here.