THE ASSOCIATION of Chartered Certified Accountants (ACCA), has responded to the UK Government’s decision not to press ahead with the long anticipated audit reform.
Maggie McGhee, executive director – strategy and governance, ACCA, said: “Legislation to establish the Audit, Reporting and Governance Authority (ARGA) should have proceeded without delay. Over the years ACCA has been consistent in that.
“Establishing ARGA would have given businesses certainty and ensured the UK maintains its reputation for the highest standards of corporate governance.
“We cannot hide our disappointment and our disagreement with this decision which we think makes no sense.
“The time to reform and strengthen corporate governance is when we are in a relatively good place, not when we are in the midst of a corporate governance and audit failure crisis.
“So we disagree completely with the idea that the need for reform is less pressing. Businesses do not grow where corporate governance is below par.
“We will work with other stakeholders and the government to see that the FRC works as well as possible. The first step is for the government to do what it has said and put the FRC on a proper statutory footing. Please stop the delay now.”
