Following the Business, Energy and Industrial Skills ministry’s announcement it will publically consult on proposed changes to the audit sector, Maggie McGhee, ACCA executive director – governance, said:
‘ACCA welcomes the opportunity for further scrutiny on the proposed changes to the audit sector, in order to give an informed and balanced understanding of their viability.
‘Following publication of the Competition and Markets Authority’s report, ACCA expressed significant concerns on the recommendations and therefore welcome the further consultation announced.
‘We questioned whether the simultaneous introduction of wide-ranging proposals could improve audit quality – in particular, far-reaching regulation over audit committee activity, joint audits and for the separation of audit and non-audit activity within firms. ACCA believes there is insufficient evidence to support these proposals and there is some evidence to suggest that these could be damaging to audit quality.
‘Our recently published research into the expectation gap in audit suggests high levels of misconception, and that the public are telling us they see audit is part of the solution, a robust sector exercising the right levels of professional scepticism. The government needs to ensure reforms undertaken will support both audit quality and market competitiveness.'
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Notes to Editors
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants, offering business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
ACCA supports its 219,000 members and 503,000 students in 179 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 104 offices and centres and more than 7,300 Approved Employers worldwide, who provide high standards of employee learning and development. Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence.
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