19th Report - The Future of Audit
- HC No.
- HC 1718
- Published
- 2 Apr 2019
- Items
- 0
- Government response
- Government response published 7 June 2019. Read the government's response ↗
Select committee: Business, Innovation, Science and Trade Committee
Future of audit inquiry
Closed
Opened 8 Nov 2018
Closed 8 Nov 2018
Business, Innovation, Science and Trade Committee Inquiry on parliament.uk ↗
Inquiry scope (the committee's words)
This inquiry will focus on the likely impact of the CMA market study and the review of the FRC (by Sir John Kingman) in improving quality and competition in the audit market and reducing conflicts of interest. The Committee intends to feed into the CMA study and ensure audit reform is linked to coherent reform of the wider corporate governance agenda.
Where it stands
The inquiry is closed, opened 8 November 2018.
The committee has published 1 report, most recently 19th Report - The Future of Audit on 2 April 2019.
The government's response
Published 7 June 2019.
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government welcomes the Committee's inquiry and says it is "determined to act" on audit, but defers most of the Committee's recommendations to the Brydon Review and to its consultations on the Kingman and CMA proposals.
- On the audit market, including operational split, joint audit and audit rotation, it states that it "will be consulting on the CMA's recommendations" and will consider the Committee's recommendations in that light.
- On graduated findings, it says that, in the light of further evidence, it "will consider making graduated findings for audit mandatory". It does not commit to doing so.
- On disclosure of distributable reserves, it is "considering whether to go further and to make this a legal requirement" and has "taken careful note" of the recommendation. It will reach conclusions after considering Sir Donald Brydon's recommendations.
- It agrees with Sir John Kingman that the new regulator needs a new Board. It expects a new Chair, Deputy Chair and CEO for the FRC to be appointed "this summer", and says the preferred Chair candidate will appear before the Committee for pre-appointment scrutiny.
Reports
- 19th Report - The Future of Audit2 April 2019
Evidence
- 6 oral evidence sessionsLatest 13 March 2019
Recent activity
- Letter from the Secretary of State to the Chair on the Small Business Commissioner, 15 October 201915 October 2019, Correspondence
- Letter from Secretary of State to Chair, regarding the Government's programme of audit reform - dated 7 October 201915 October 2019, Correspondence
- Letter from Sir John Kingman to the Chair on the reform of the Financial Reporting Council, 15 October 201915 October 2019, Correspondence
Reports
Oral evidence sessions
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| Date | Session and witnesses | Source |
|---|---|---|
| 13 Mar 2019 |
Oral evidence session
No witnesses recorded
|
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| 5 Feb 2019 |
Oral evidence session
No witnesses recorded
|
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| 4 Feb 2019 |
Oral evidence session
No witnesses recorded
|
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| 30 Jan 2019 |
Oral evidence session
No witnesses recorded
|
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| 23 Jan 2019 |
Oral evidence session
No witnesses recorded
|
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| 15 Jan 2019 |
Oral evidence session
No witnesses recorded
|
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Correspondence
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