BEIS Committee report – the future of audit in the UK

This article focuses on a report entitled “The Future of Audit” ¹ that was recently published by the UK House of Commons Select Committee for Business, Energy and Industrial Strategy (BEIS). While the contents of the report respond to three other reviews: the Kingman review into the Financial Reporting Council (FRC); the Brydon review into the effectiveness of audit; and the Competition and Markets Authority’s review of the competition and resilience of the audit markets (WAR, May 2019), the Committee has conducted its own independent inquiry into the UK audit industry and has formed its own judgements. Its views carry weight and influence and it is perhaps true to say that none of the other reviews would have happened were it not for the fact that the BEIS Select Committee and the Treasury Select Committee investigated the collapse of Carillion and criticised regulators, auditors and the company for their respective failures. Furthermore, since many recommendations of the other reviews will need to be enacted in Parliament, the Government will want the support of the MPs on this Committee.