Although the government cancelled the requirement, resilience disclosures ‘cannot be wasted effort’, says senior auditco chair.
Government legislative agenda sees FRC reduce governance code revisions, but declaration on controls survives the cull.
The government’s bonfire of the regulations expected for audit reform creates a source of uncertainty for business.
Investors react to the government’s U-turn on proposed measures prompted by the collapse of Carillion in 2018.
In all, the auditing giant has now been fined £30m for its failures at Carillion, reduced to £21.5m for co-operation.
Responses to the FRC’s consultation on its proposals highlight practical concerns about implementation and compliance.
Investors who quiz the audit committee get a more rounded – albeit sometimes less comfortable – picture of the company.
UK watchdog’s proposals include giving audit committees greater reporting responsibilities and addressing ‘overboarding’.
Auditco chairs will have their work cut out if the role increases to become more ‘outward facing’ and encompass investor relations.
New government requirements mean boards will need to disclose planned responses to risks—leading to tough choices, a recent briefing heard.