“We welcome the publication of the Brydon report, which successfully strikes the balance between radical thinking and practical solutions. It outlines a framework for bringing auditing into the 21st century, ensuring the profession is valuable and relevant to stakeholders in a modern economy.
“In particular, we are pleased that our belief that auditors play a critical role in society is reflected in today’s report. We believe that a corporate auditing profession applying Principles of Corporate Auditing will help to attract and retain the best talent, while driving up professional standards.
“In addition, we strongly support the proposed extension of audit beyond the financial statements to encompass ESG, cyber, controls and culture. Applying clear and consistent measurement of these factors will have a profound impact on businesses and society, and auditors are ideally placed to lead this shift.
“The new government now has in its possession three clear, credible and authoritative reports, which together form a framework for the future of audit. The CMA’s proposals strengthen resilience and competition in the audit market, Sir John Kingman’s review of the FRC addresses regulatory oversight, and now Lord Brydon’s report sets the tone and aspirations for the future of the industry. The roadmap is complete, and it is now incumbent upon BEIS to grasp the opportunity for profound and lasting reform”.