Rachel Reeves, Labour MP and Chair of the Business, Energy and Industrial Strategy (BEIS) Select Committee, has criticised the UK audit sector, claiming it lacks competition and is failing to deliver for shareholders. In response, Michael Izza, Chief Executive of the Institute of Chartered Accountants in England and Wales (ICAEW), argued that the industry is not broken, but needs evolution rather than revolution. Reeves’ comments follow a string of corporate failures, including Carillion and BHS, which have led to calls for the break-up of the ‘Big Four’ audit firms. Izza suggested that regulation could be improved, but warned against radical change that could damage the profession. He also called for more robust corporate governance and better quality audits, as well as a review of company law to ensure directors are held to account. Izza further highlighted the need for a broad, independent review of the audit market.
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