1 March, 2021

Evidence builds for introduction of new audit committee standards

Financial Reporting Council says new report “lends weight to proposals for reforms in the audit sector”, including new standards for committees.

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Audit committees should brace themselves for significant change after a new report prompted the UK audit watchdog to suggest it provides support for the introduction of new audit standards. According to the Financial Reporting Council, the research supports a case for standards that would promote audit quality after audit committee chairs told interviewers they need to improve their understanding of what makes a “good audit”. It seems the understanding of audit quality may differ from one committee to another. There is also a concern that audit committees—or auditcos—challenge auditors when their work is in the planning stages b

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audit, Audit committees, audit reform, Competition & Markets Authority, Financial Reporting Council, Regulation