KPMG UK comments on BEIS audit reform report

Jon Holt, Chief Executive of KPMG in the UK said:

“We welcome reform but there are some areas where we had hoped to see this package go further.

"The challenges we face in sustaining and developing the UK’s leading position as a place to do business are complex and need all of us to play our part – company boards, executive management, the regulator, auditors and investors. Giving ARGA powers to investigate and sanction directors will help to make UK business governance and oversight world-class.

"However, the apparent decision not to include a UK version of Sarbanes-Oxley in primary legislation leaves corporate Britain with no clearly defined framework for internal controls, and risks a pick’n’mix approach to reporting and measurement. It will result in investors and stakeholders receiving inconsistent information across different companies unless ARGA provides clear guidance going forward.

“We are committed to increasing choice in the audit market. There is work to do to make shared audits function well in practice, and we will play our part to find solutions to these challenges, including by offering to pilot managed shared audits.

“We look forward to seeing the draft Bill as soon as possible. It is important not to lose momentum, and we will continue to work with the government and regulator to progress these reforms.”  

 

ENDS.

 

Media contact:

For further information please contact:

KPMG Media Relations

Rory Brown

Rory.brown@kpmg.co.uk

M: +44 (0) 751 0374 794

 

About KPMG:

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.