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The Audit Reform Lab

We put audit failure under the microscope, offering recommendations to reform the audit sector, tackle the UK’s urgent accountability problems and build a fairer society.

Projects and Campaigns

Pay And Performance:

What is the evidence on rewards for failure at the Big 4?

Corporate Stability:

Do auditors ensure companies report prudently?

Climate change:

Are auditors holding companies to account on their environmental reporting?

Public Accountability:

How well do auditors audit local councils and other public bodies?

Reimagining The Purpose Of Audit:

What works, what doesn’t and what audit could be.

Latest headlines

Audit Reform: Kicked into the long grass?

It is almost a year since the UK government published its response to the White Paper on audit reform. Then, it was viewed as one of the UK’s most pressing regulatory failures following high-profile corporate collapses where audits had been shown to be deficient. Today it looks to all intents
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What the ICAEW Could Do With Its £148m

Guest blog – Richard Murphy A recent review of the accounts of the Institute of Chartered Accountants in England and Wales (ICAEW) that I undertook on behalf of the Audit Reform Lab and the Corporate Accountability Network (of which I am a director) revealed that it has received more than
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The Tory Put Option: Why Opposition Parties Should Target Audit Reform Now

Back in May the Audit Reform Lab suggested that after multiple delays, the government was likely to kick audit reform into the long grass. A matter of days ago, this was all but confirmed as it transpired that this much needed overhaul would not be included in the King’s Speech
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Audit failure in the UK energy supply industry

Executive Summary Authors: James Brackley, Thejo Jose, Adam Leaver, Daniel Tischer Between January 2021 and February 2022 thirty-one energy firms exited the energy market, affecting more than two million consumers. The Office of Gas and Electricity Markets (Ofgem) estimated the cost of energy supplier failure and market exits to be
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Local Authorities ‘At A Cliff Edge’: Birmingham City Council’s Accountability Crisis

There is a major public accountability crisis emerging at Birmingham City Council (BCC). The equal pay liability, which has led to the proposed fire sale of £500m worth of assets, has yet to be formally audited. Meanwhile, the same auditors have concluded that there is presently “no reliable position” from
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Financial crisis in Birmingham City Council

Executive Summary Authors: James Brackley, Adam Leaver This briefing responds to the recent section 114 (s114) notice at Birmingham City Council (BCC) in September 2023, described as the ‘effective bankruptcy’ of Europe’s largest authority. Part 1 of this briefing challenges the accepted view that the s114 notice was solely due
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