What we know about the newly-formed Centre for Public Interest Audit
The CPIA is already gearing up for the release of its inaugural research later this year, which will assess the state and future of PIE audits in the UK
The Centre for Public Interest Audit (CPIA) officially marked its debut on 27 June 2024, with its incorporation as a not-for-profit company, limited by guarantee. Based in the heart of London, the CPIA is set to become a pivotal institution in the UK’s auditing landscape, and aims to influence and elevate the standards of public interest entity (PIE) audits across the country.
The CPIA’s formation comes at a crucial time when the quality of audit practices is under intense scrutiny. With a mission to act as an independent voice for PIE auditors, the Centre aims to offer a comprehensive perspective on the current and future practices within the profession. The organisation plans to provide clear recommendations for improving and developing audit standards, ensuring that the UK’s capital markets remain robust and trustworthy.
By bringing together auditors from across the profession – alongside key stakeholders such as The Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS) – the CPIA aspires to create a unified platform. This platform will not only shape best practices but will also “facilitate dialogue and collaboration within the industry”.
The CPIA is already gearing up for the release of its inaugural research later this year, which will assess the state and future of PIE audits in the UK.
In a significant development, the CPIA has announced the appointment of Baroness Margaret Ford of Cunninghame, OBE, as its chair, effective from 22 July 2024. With over 25 years of experience as a non-executive director and chair across various sectors, Baroness Ford brings a wealth of knowledge and leadership to the role.
Her recent positions include serving as the independent non-executive chair for the Deloitte Audit Governance Board, chair of Newriver REIT, and chair of STV Group plc. Currently, she holds the position of chair at London Gatwick Airport and is a crossbench peer in the UK House of Lords.
Baroness Ford’s extensive experience in both private and public sectors – particularly in roles that demand a strong commitment to the public interest – makes her “an ideal leader”, according to the CPIA. Her stewardship is expected to guide the Centre in its mission to enhance the quality of PIE audits and bolster trust in the UK’s financial markets.
Commenting on her appointment, Baroness Ford emphasised the critical role that audit and assurance play in maintaining the integrity of the UK’s capital markets. She highlighted the CPIA’s ambition to proactively address both shortcomings and best practices in public interest entity audits, ultimately contributing to a more resilient and forward-looking profession.
“Our mission aligns with the UK government’s aim to strengthen regulatory powers and improve public entity audit quality via its upcoming Audit Reform and Corporate Governance Bill,” said Baroness Ford. “The CPIA will look to be a supportive and constructive partner to the Financial Reporting Council (FRC) as their remit transitions. I look forward to working closely with the CPIA’s Board and members to advance its goal of driving quality and trust in UK public interest entity audits, in turn helping to build confidence in the UK as a centre of financial excellence.”
The launch of the CPIA has been warmly received by industry leaders. Alan Vallance, ICAEW’s chief executive, underscored the importance of financial reporting in fostering investment and growth. He expressed optimism about the CPIA’s potential to drive best practices and resilience in the PIE audit market.
“We are delighted that the Centre has now launched and we warmly welcome the appointment of Baroness Margaret Ford as its first chair,” said Vallance. He also noted the CPIA’s future collaboration with the newly established Audit, Reporting and Governance Authority (ARGA), which was confirmed in the recent King’s Speech.
As the CPIA embarks on its journey, the organisation is set to play a crucial role in shaping the future of public interest audits in the UK. With a clear mandate and strong leadership, the Centre has plans to enhance audit quality and foster greater trust in financial reporting that underpins the UK’s capital markets.
