Listed businesses are highly sceptical about what the government’s proposed reforms to audit and corporate governance will achieve without a more proportionate approach, according to research by accountancy firm PKF, with widespread concern audit fees will rise
Feedback from almost three quarters (73%) of the companies, investment houses and advisers approached by PKF highlights the need to reform the audit and corporate governance regime for the listed market. However, the overall impression of the proposals put forward by the government in the white paper, Restoring trust in audit and corporate governance: proposals on reforms, is that the new requirements risk over-burdening growth enterprises for limited additional benefit.
While the benefits of the reforms are expected to be limited, PKF’s analysis shows that businesses fear the proposals will significantly increase costs and bureaucracy for listed corporates.
Over two thirds (68%) of respondents said that the proposed reforms would significantly increase audit costs and internally more company resources would be required to complete an audit.
