The UK government’s decision to put its reform of audit and corporate governance on hold has been seen as a setback to transparency and better accounting.
In a letter to the House of Commons Business and Trade Committee, UK business minister Justin Madders said the delay was a result of a heavy parliamentary legislative schedule.
Committee chair, Liam Byrne has asked the Minister to clarify a timescale for when the government will put forward draft legislation and whether the government will allow time for proper pre-legislative scrutiny.
The Institute of Chartered Accountants of Scotland (ICAS) has welcomed the questions posed in the chair’s letter and has expressed its concern at the already delayed and long promised delivery of the bill. which appeared in draft form over a year ago.
Bruce Cartwright, CEO of ICAS said: “We are frustrated by yet another delay in the progress of this bill, especially when so much of the work needed to bring it forward has already been done.
“Since 2018, the whole accountancy sector has got behind audit reform and corporate governance, as well as the need for greater accountability for decision making by boards and directors. There is also cross-party support in Westminster.
“We know the government has a number of priorities, and it’s reassuring that it recognises the important work that has been done by the sector and the FRC since 2018.
“But a bill introducing legislative changes to reform audit and corporate governance is still very much needed and will play a vital role in achieving greater transparency and trust in the UK’s business landscape.”
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