The truth tellers: Why we need profound audit sector reform now
Article
In 2017, seemingly out of the blue, the construction giant Carillion collapsed. The official inquiry into its failure describes the situation running up to the company's collapse as 'a story of recklessness, hubris and greed'.
In this report, we highlight that dramas like this one are playing out in smaller forms in other UK businesses every year. This leaves the UK economy with significant costs.
Bad governance and poor management with too little accountability in businesses is at the heart of this problem. Auditors should be the gatekeepers helping to keep such financial mismanagement at bay, yet too often they are failing to do so.
In this first report of a three-part series, we provide an assessment of the core problems of the audit sector and their costs for society. We will also show how a reformed audit sector could be boon for a productive economy.
Related items
Realism and progress: How should the UK think about international policy in 2024?
Given the current polls, the Labour party looks set to form the next government. It has taken the temperature of the country and, whereas in 1997 its leaders put hope at the heart of their campaign, this time they have chosen to focus on…Rock bottom: Low investment in the UK economy
The UK’s investment performance is still worse than every other G7 country, new data shows.There is an alternative to traditional ways of delivering social and economic value
Our new report An alternative is possible: Measuring the impact of cooperatives puts forward a new framework for measuring the value that cooperative organisations deliver to local economies.