The ICAS public voice – the corporate ecosystem post-covid
As we begin to emerge from Covid-19, a key strand in the public policy work undertaken by ICAS relates to reforming the corporate ecosystem.
From a public interest perspective, our role is to share insights, shaped and informed by the views of ICAS Members, into the many complex issues and decisions involved in developing high-quality financial reporting standards for entities – from large corporates to smaller not-for-profit entities, including charities.
In early 2021 ‘Recalibrating the corporate ecosystem’ was published by ICAS which set out a vision for the future and identified key areas to be addressed to restore trust. This will be essential if we are to deliver a respected corporate and regulatory framework that will support a sustainable economic growth. A roadmap for a future Corporate Auditor Profession has also been published setting out how Sir Donald Brydon’s recommendations could be implemented in practice.
‘Restoring trust in audit and corporate governance: proposals on reforms’ have been discussed in a webinar in which FRC Chief Executive, Sir Jon Thompson, was interviewed, in front of an audience of key stakeholders from across the globe. ICAS has since submitted its formal response to the consultation, highlighting key themes to the government, which have emerged over the consultation period. These are:
- Global alignment: proper consideration needs to be given to the international consequences of any changes that are introduced.
- Focus on the key priority areas: to deliver much needed change in a proportionate and timely manner.
- Certain reforms will require further consultation: it is imperative that all proposals taken forward following the consultation process are subject to appropriate due process before being finalised, or further consultation if required.
- Resources: the proposed changes will require considerable additional resources across all aspects of the corporate ecosystem – including ARGA.
As well as contributing to the UK debate on audit reform and corporate governance, ICAS also works with fellow accountancy bodies in the Global Accounting Alliance, and with other external bodies such as the International Federation of Accountants (IFAC) and Accountancy Europe. The audit debate extends beyond the UK and ICAS seeks to inform and influence it.
Professional ethics are also important to any professional accountant but are crucial at a time when behaviours may be tested, such as in the pandemic. ICAS, as a leading professional body that sets the tone in professional ethics, is pleased that its Director of Policy is the Technical Adviser to the UK CCAB member of the International Ethics Standards Board for Accountants (IESBA). ICAS also held a very successful joint virtual event with the Chartered Professional Accountants of Canada and IFAC on the subject of Ethical Leadership in an Era of Complexity and Digital Change. The first in a series of publications from that event ‘Complexity and the professional accountant: Practical guidance for ethical decision-making’ was published recently.
ICAS revised its Code of Ethics to highlight the importance of respecting values of equality, diversity and inclusion (EDI) and this came into effect from 1 January 2021. ICAS is the first professional accountancy body to expressly incorporate EDI into our Code of Ethics.