The Independent Review into the Quality and Effectiveness of the UK Audit Market, which is being led by Sir Donald Brydon, moved forward today with the announcement of its Advisory Board and Auditors’ Advisory Group.
The review team has also published its terms of reference, which outline the scope of the review. It follows reviews of the audit market by the Competitions and Markets Authority, and a review by Sir John Kingman of the future of the Financial Reporting Council.
This review by Sir Donald Brydon is expected to be submitted by the end of 2019. The report will be published and the government will then consult on its response to the review’s recommendations.
It has been commissioned in response to a perceived widening of the “audit expectations gap” the difference between what users expect an audit to deliver, and what auditors’ responsibilities actually entail. This gap has been brought into greater focus by company failures, including high profile cases such as Carillion and BHS.
Sir Brydon’s review is intended to take a fresh look at the scope of audit, and how far it can and should evolve.
It will consider how the audit product should be developed to serve the public interest in the future, taking account of developments in technology, changing business models, and stronger public expectations.
Sir Donald Brydon said: “Following the establishment of the Independent Review into the Quality and Effectiveness of Audit, I am pleased to announce that I will be assisted in the work of the review by an Advisory Board and an Auditors’ Advisory Group.
“These bodies have extensive collective experience as both suppliers and users of audit and will provide input and challenge. I look forward to working with them as I undertake the review.”
The meetings of these groups will be confidential.
Advisory Board:
- Luke Chappell, Head of UK Fundamental Active Equities – Blackrock
- Carole Cran, Finance Director – Forth Ports Ltd
- Margaret Ewing, Chair of Audit Committee – ITV, Non Executive of ConvaTec Group plc and Trustee of Great Ormond Street Hospital Charity
- Simon Fraser, Chairman – Investor Forum, F&C Investment Trust plc, Merchants Trust plc, McInroy & Wood Ltd, Fidelity Funds SICAV
- Mark Freedman, Group Financial Controller – LSEG
- Alison Hopkinson, CFO – Oxfam
- Professor Chris Humphrey, Professor of Accounting – University of Manchester
- Emme Kozloff, Partner – Capital Group
- Michael McLintock, Chairman – AB Foods, Chairman – Grosvenor Group
- Sarah Parkes, Partner – Freshfields Bruckhaus Deringer
- Dave Ward, General Secretary – Communication Workers Union
- Julia Wilson, Group Finance Director – 3i Group plc; Senior Independent Director and former Chair of the Audit Committee – Legal & General
- Natasha Landell-Mills, Partner, Head of Stewardship – Sarasin & Partners LLP
Auditors’ Advisory Group
- •Hywel Ball, Head of Audit – EY
- Gilly Lord, Head of Audit Strategy and Transformation – PwC
- Mark Rhys, Partner – Deloitte
- Phil Smart, Partner – KPMG
- Scott Knight, Head of Audit and Assurance – BDO
- Steve Gale, Head of Audit – Crowe
- Michael Izza, Chief Executive – ICAEW
- Maggie McGhee, Executive Director, Governance – ACCA
- Annie Graham, ICAS