Audit reform needs long-term answers, not rushed measures

Audit reform is an issue that impacts just about every business in the UK. It’s one of the fundamental mechanisms to maintaining trust in a business for investors, shareholders and, indeed, the wider public.

When we see high-profile corporate collapses, such as Carillion and Patisserie Valerie, it rightly prompts searching questions given the fallout for those investing in a business, its employees, suppliers and sometimes the taxpayer. 

Businesses are aware there are problems and the industry is open to change.

But this week’s report from the Business, Energy and Industrial Strategy Committee, which includes a call to break up the ‘Big 4’, jumps the gun. It’s a particularly heavy-handed suggestion considering the ongoing Byrdon Review is investigating how audit can be made more effective, now and in the future.

Let’s not forget that despite the recent headline-grabbing failings of some individual businesses, the UK is well-regarded, with a leading reputation on corporate governance around th