With the rise of private equity investment in audit firms, ICAS is calling for a full-scale review of who can own these firms.
It believes the rules of ownership need to be reassessed to ensure they are fit for purpose.
ICAS said there is still uncertainty over the medium-to-long-term impact of private equity on the audit profession, and a new ICAS paper says private equity investment in audit firms presents both a risks and opportunities.
There is a real concern that providers of capital will unduly seek to influence behaviour, and ICAS strongly believes that the number one priority must be ensuring high standards of audit quality and auditor independence.
Bruce Cartwright CA, ICAS CEO, said: “Technology, geopolitics, and changing public expectations are transforming the way the world does business. That’s why we believe the time is right to review the rules around who can own audit firms. These rules shouldn’t be disregarded lightly – they must be independently and objectively assessed to ensure that they continue to best serve the public interest.”
Read what PQ magazine said about private equity in our November 2024 issue: https://issuu.com/pqpublishing/docs/pq_nov24_issue
