ICAS ‘frustrated’ by further delays to audit reform bill

The Institute of Chartered Accountants of Scotland (ICAS) has said it is “frustrated” by the government’s decision to not bring forward the “already delayed and long promised” audit reform and corporate governance bill in the current Parliamentary session. 

 In a letter to the House of Commons Business and Trade committee this week, business minister Justin Madders MP attributed the delay to the heavy parliamentary legislative schedule. 

Following this, committee chair Liam Byrne MP asked the minister which reforms he now considers “burdensome” to business about the proposed audit and corporate governance reform, and what lines it has taken from businesses on this. 

He also asked him to clarify a timescale for when the government will put forward draft legislation and whether the government will allow time for proper pre-legislative scrutiny. 

ICAS said it “welcomes” the questions posed in the chair’s letter and awaits the minister’s reply. 

Bruce Cartwright CA, CEO of ICAS, said: “We are frustrated by yet another delay in the progress of this bill, especially when so much of the work needed to bring it forward has already been done. 

“Since 2018, the whole accountancy sector has got behind audit reform and corporate governance, as well as the need for greater accountability for decision making by boards and directors. There is also cross-party support in Westminster.”  

He added: “We know the government has a number of priorities, and it’s reassuring that it recognises the important work that has been done by the sector and the FRC since 2018. 

“But a bill introducing legislative changes to reform audit and corporate governance is still very much needed and will play a vital role in achieving greater transparency and trust in the UK’s business landscape.”