IoD: Broad thrust of Brydon Review ‘on the money’

Responding to the publication of the Brydon Review, Roger Barker, Head of Corporate Governance at the Institute of Directors, said:

“The broad thrust of the Brydon Review report is on the money, tackling some of the underlying issues that have undermined trust in the auditing sector. As things stand, four in ten of our members have expressed doubts about the effectiveness of statutory audit in providing meaningful assurance that the accounts of major companies are fair and accurate.

“We welcome the proposed widening of the scope of audit to encompass disclosures beyond the financial statements. Company reporting on issues such as governance, environmental risks and social impact are increasingly important to shareholders and other stakeholders. External auditors can help rebuild trust in business by offering independent assurance on the robustness of these statements. Meanwhile, the amount of dividends paid to shareholders has been a controversial issue in several recent corporate collapses. We are therefore supportive of the Review’s recommendation for auditors to oversee the ju