A new professional body for corporate auditors

Original recommendation

The Brydon Review recommended that ARGA acts as the midwife to create a new profession of corporate auditing, establishing the necessary professional body, to encompass today’s auditors and others with appropriate education and authorisation. ARGA would be the statutory supervisory body for that profession. (Source: Brydon 6.0.11)


The audit, done well, should be an ally of good business behaviour and a spur to directors to meet their legal obligations to shareholders, creditors and other stakeholders, which ultimately serves the public interest. Auditors check for directors’ compliance with legal duties and accounting standards and provide an opinion that the accounts are free from material misstatement. That is important, but it does not address the increasing expectations of shareholders and other users of company reporting that the audit report should be more forward looking and informative.

The Government (Section 6.9) is clear that reform is needed to drive a new auditor mindset and to strengthen the resilience and integrity of the audit market. Central to achieving this is the proposed creation of a new, stand-alone audit profession, underpinned by a common purpose and principles – including a clear public interest focus – and with a reach across all forms of corporate reporting, not just the financial statements.

Government response

Rather than trying to create a new professional body for auditors that is independent of the existing accountancy professional bodies, the Government will ask professional bodies to improve auditor qualifications, skills, and training in order to help create a more effective and distinctive audit profession.

Correction list for hyphenation

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