Reports – Audit Reform Lab

Why the principle of capital maintenance and the definition of distributable profits matter

This note has been developed in preparation for the Audit and Corporate Governance Reform Bill proposed by the new Labour administration in the 2024 King’s Speech.

Value for money and accountability: a report on the Birmingham City Council section 114 bankruptcy

This report analyses the financial situation at Birmingham City Council and the factors that led to the issuance of the section 114 notice in September 2023.

Reward for failure: The paradox of audit partners’ record payouts amidst poor audit quality

The UK's audit industry has faced unprecedented criticism after high-profile corporate collapses.

Pay And Performance: What is the evidence on rewards for failure at the Big Four?

The audit industry is plagued by poor performance. Auditors are failing to show independent judgement or professional scepticism.

Financial crisis in Birmingham City Council

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.

Audit failure in the UK energy supply industry

Between January 2021 and February 2022 thirty-one energy firms exited the energy market, affecting more than two million consumers.