31 May 2022
We, The Chartered Institute of Management Accountants (CIMA), welcome the long-awaited publication of the final proposals to reform the U.K. corporate ecosystem. We have been calling for a holistic package of reforms, encompassing corporate governance, reporting and audit for some time and we believe that the proposals are a step in the right direction.
However, these proposals continue to put a strong focus on audit. We should not forget that external audit doesn’t operate in a vacuum. It is part of the wider corporate governance and reporting framework that oversees large corporate entities. When it comes to the adoption of internal controls, which we have strongly advocated for in the past, we want to see such reforms applied consistently by the largest companies rather than on a comply or explain basis, as it seems to be proposed.
The U.K. has been widely recognised as a leader in corporate governance. We cannot waste this new opportunity to make an impact and help promote trust, accountability and transparency in the modern business world.
Andrew Harding, FCMA, CGMA
Chief Executive — Management Accounting
The Chartered Institute of Management Accountants, part of the Association of International Certified Professional Accountants