In a recent interview with Financial News, Sir Keith Skeoch, former Chief Executive of Standard Life Aberdeen (now Abrdn) and past-Interim Chair of the UK Financial Reporting Council (FRC), stressed the importance of implementing audit reform before another corporate collapse like Carillion, BHS, and Patisserie Valerie.
"The thing I'm disappointed about is the slow pace with which we seem to be moving towards legislation that gives the power to the FRC that it needs to make a difference," Skeoch said. "We would have been in a lot better place if the FRC had been given the powers it needs and deserves."
The primary driver of the delay of these much-needed reforms, Skeoch lamented, is politics. "The question for politicians is: how important is this fix for you?" He argued. "Let's hope we don't have to wait for the next corporate crisis to recognise this is an issue."
Earlier this year, Starling Insights published "Renal Failure: A Crisis in Audit Culture?," a Deeper Dive report discussing the importance of audit quality to a well-functioning economy and society.