BEIS Consultation: Reforming the UK's corporate governance, audit and reporting regime

“The BEIS consultation on reforming the UK's corporate governance, audit and reporting regime marks an important step in increasing trust and confidence in UK business. These proposals have wide-reaching implications for companies, auditors, directors and others. I encourage all interested parties to respond to the Government’s consultation by the 8 July deadline to help achieve a set of measures that lead to positive, lasting change.”

Hemione Hudson, Head of Audit, PwC UK
Hemione Hudson


On 18 March, BEIS published its consultation on reforming the UK's corporate governance, audit and reporting regime, which includes 155 recommendations drawn from the reviews undertaken by Sir John Kingman, the CMA and Sir Donald Brydon. Responses to the BEIS consultation are due by 8 July.

In a series of events, recorded discussions, blogs and papers, we give our perspectives on the consultation, our thoughts for the future, and things you should consider as we move towards reform.

Hemione Hudson was recently joined by Mark Holmes and Andrew Death, the Deputy Directors at BEIS responsible for the consultation to reflect on the proposals and take questions from our audience. Watch the recording here.

We’ve also created a summary briefing document of the key proposals for companies/directors, audit committees and auditors.

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57:16

Hemione Hudson speaks to BEIS officials

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Key proposals in the consultation

Managed Shared Audits

The consultation includes a proposal that would require a meaningful portion of the audit of FTSE 350 companies to be performed by a non-big four firm.

Listen to our in-conversation discussion from January 2021

Audit and assurance policy

The consultation outlines a requirement for an Audit and Assurance Policy that sets out what assurance is being commissioned over the whole annual report and other corporate information - subject to shareholder comment and advisory vote.

Read our paper on the Assurance Map

Listen to our in-conversation discussion from December 2020

Director Accountability

Under the proposals, all directors of PIEs will be held accountable for their reporting responsibilities and subject to increased regulatory scrutiny and enforcement powers. They would also strengthen the role and responsibilities of audit committees, subjecting them to more regulatory scrutiny and potential inspection and observation of their activities.

Listen to our in-conversation discussion from January 2021

Internal controls framework

The consultation includes a proposal that the UK should adopt a version of the US Sarbanes-Oxley rules which require directors to attest to the effectiveness of internal controls over financial reporting.

Listen to our in-conversation discussion from November 2020

Read our blog - 'A UK SOX regime - Five key considerations'

Expanding the PIE definition

The consultation proposes expanding the definition of Public Interest Entities to include large AIM and large private companies.

Download FAQs on the expansion of PIEs

Contact us

Hemione  Hudson

Hemione Hudson

Head of Audit, PwC United Kingdom

Gilly Lord

Gilly Lord

Head of Audit Strategy & Public Policy, PwC United Kingdom

Tel: +44 (0)20 7804 8123

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