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ICAS: The UK government’s lack of auditing and corporate governance reform is inexcusable
Bruce Cartwright – CEO of ICAS
The Institute of Chartered Accountants of Scotland (ICAS) has urged the next UK government to prioritize auditing and corporate governance reform to rebuild trust in businesses and safeguard livelihoods.
The call forms part of ICAS’s five key calls for the next government that aims to build a more sustainable, ethical and stronger finance profession to not only support the UK’s growth agenda but also ensure that a positive legacy is left for future generations. .
Bruce Cartwright, CEO of ICAS, said: “We have seen an inexcusable lack of action from the UK government when it comes to auditing and corporate governance reform, and we urge the next government to bring forward the necessary legislation to tackle this issue of front. It is too important to wait and incur even greater delays on this crucial issue of public trust.
“It’s been six years since the collapse of Carillion, followed by another major failure at Patisserie Valerie. And despite agreement among political parties, businesses and the accounting profession that reform is needed, we have yet to see any real effort to address these issues.
“Corporate failures affect everyone, from shareholders and employees to suppliers and people’s pensions. And while they cannot be avoided, mechanisms can be created to ensure that when things go wrong, contingency planning is improved and the opportunity to learn valuable lessons increases.
“The public, as well as investors, need to be assured that auditing and corporate governance mechanisms are fit for purpose.”
In addition to audit and corporate governance reform, ICAS calls on the next UK government to:
- Invest in our tax system and HMRC: ICAS wants the next government to fund HMRC to a level that means they can provide a fit-for-purpose service, help customers and close the tax gap.
- Making UK businesses more focused on sustainability: ICAS calls on the next government to be bolder and adopt comprehensive sustainability reporting standards that reflect the full impact that business has on the environment and society. This means quickly implementing legal mechanisms to enforce high-quality, mandatory international sustainability reporting standards in the UK. Because the planet won’t wait.
- Invest in skills and prepare the accounting profession for the future: ICAS calls on the next government to support and expand access to the profession through a better apprenticeship system, which is integrated across the UK. They also want to see more investment in finance and accounting courses at colleges and universities, where funding has been cut. And they want politicians to support more conversations about doing the right thing, money and budgeting at a much earlier stage in schools.
- Create clear, consistent and proportionate regulation: ICAS wants the next government to focus on realistic, proportionate, fair and objective regulation, which works to protect and enhance the UK’s global position and reputation as a place to do business. Regulation can support and improve our economic growth, but it needs to be developed in partnership with professional and business bodies.
The full list of ICAS orders for the next UK government is available here.