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

  1. Two male construction workers in high vis jackets laughing together in a van

    Mission-driven industrial relations: The case for fair pay agreements

    How fair pay agreements could support the government’s mission-based approach by resolving labour market challenges.

  2. Women in Scotland: the gendered impact of care on financial stability and well-being

    Women in Scotland are far likelier than men to take on childcare and other caring responsibilities, which puts them at an economic disadvantage. 
  3. One person handing a blue UK passport to another

    Citizenship: A race to the bottom?

    The ability to move from temporary immigration status to settlement, and ultimately to citizenship, is the cornerstone of a fair and functional immigration system.