ICAEW explores future of UK Audit in internal controls paper
In December 2019, Sir Donald Brydon recommended improvements to the Internal Controls over Financial Reporting (ICFR) as part of a reform agenda in UK audit.
More effective ICFR could provide management and users of financial statements with better quality information and facilitate better decision-making.
A new ICAEW report explores the scope of a future UK internal controls reporting framework, ahead of a period of consultation that will determine the future of audit and reporting in the UK.
The report explores what the scope of a future UK internal controls reporting framework could be via interviews with audit committees and external auditors.
Generally, interviewees agreed that improvements would reduce the risk of error, manipulation, collusion and fraudulent financial reporting, but thought that reporting might, in time, be extended to a wider set of controls.
Read more and access the report here.