Audit and Regulatory Reform – Implications for the Profession | Original Thinking Podcast

Original Thinking Podcast

Audit in the UK is in transition, with major reform and increased regulation being planned by the Government and the Financial Reporting Council.

This episode with ICEAW Manchester and Alliance MBS will give the business community the opportunity to feedback to the government and to comment on the proposed reforms. This episode will also look to highlight the areas where practising and business accountants and Directors can start to understand how to deal with the changes. There will be ample opportunity for the audience, both present and online, to question the panel and make constructive comments on the proposals.

Background

In July 2022, the Financial Reporting Council (FRC) published a Position Paper setting out the next steps to reform the UK’s audit and corporate governance framework.

The paper follows the Government Response to the consultation on strengthening the UK’s Corporate Governance, Corporate Reporting and Audit systems, including the creation of the Audit, Reporting and Governance Authority (ARGA), to replace the FRC.

The document builds on the areas of the Government Response that fall within the FRC’s remit, providing advanced clarity for stakeholders on how the work of reform will be delivered ahead of government legislation.

That work includes revising existing codes, strengthening auditing and accounting standards, setting expectations to drive behavioural change ahead of statutory powers, and the development of guidance to address issues set out in the Government Response.

In particular, the Position Paper sets out proposed changes to the UK Corporate Governance Code. This will provide a stronger framework for reporting on the effectiveness of internal controls and Board responsibilities for expanded sustainability and ESG reporting, and new guidance on enhanced resilience statements and fraud reporting by directors.

Speakers

Lord Callanan, Under Secretary of State for Business, Energy and Corporate Responsibility

Lord Callanan was appointed Parliamentary Under Secretary of State at the Department for Business, Energy and Industrial Strategy on 14 February 2020. He was Minister of State at the Department for Exiting the European Union from 27 October 2017 to 31 January 2020.

Callanan was a Conservative Councillor on Tyne and Wear County Council between 1983 and 1986 and Gateshead Metropolitan Borough Council between 1987 and 1996, and a Member of the European Parliament for the North East England constituency from 1999, re-elected in 2004 and 2009.

Callanan was created a Life Peer on 24 September 2014 taking the title Baron Callanan, of Low Fell in the County of Tyne and Wear. He was Parliamentary Under Secretary of State for the Department for Transport between June and October 2017.

Julia Penny (President, ICAEW)

Julia qualified as an ICAEW Chartered Accountant in 1989 having first completed an honours degree in Accountancy and Finance at Brighton Polytechnic. Soon after qualifying she moved into a training role, initially teaching students and later moving into CPD training and technical roles. She specialises in audit, financial reporting and anti-money laundering and has worked for diverse organisations including Wolters Kluwer, Wilmington plc, Chantrey Vellacott and Baker Tilly (now RSM).

Julia became involved with Thames Valley Society of Chartered Accountants early in her career and served first as treasurer and then as the Society President in 2001-2. Later she became chair of the ICAEW Technical Advisory Committee and a member of both the Technical Strategy and Financial Reporting Faculty Boards. Julia has been a Council member since 2013 and an ICAEW Board member since 2017.

Julia was Vice-President for the year June 2020 to June 2021. She became ICAEW President and will hold this office from June 2022 to June 2023.