Audit governance ensures clarity over the purpose and responsibilities of the audit, that there’s an official mandate and clear departmental goals are in place.
Deloitte in the UK today announces changes to its audit governance structure, with the establishment of an independent Audit Governance Board.
Margaret, Baroness Ford of Cunninghame OBE, will be appointed as independent non-executive chair of the AGB when it is established, which will have a majority of independent non-executive directors, including Jim Coyle, Almira Delibegovic-Broome QC and Shirley Garrood, in addition to Baroness Ford.
Effective from 1 January 2021, the AGB will have responsibility for providing independent oversight of the United Kingdom audit practice, with a focus on the policies and procedures for improving audit quality and ensuring the Financial Reporting Council objectives of, and desired outcomes for, operational separation are met.
The creation of the AGB is the initial phase of Deloitte in the UK’s implementation of the principles for operational separation set out by the FRC in July 2020.
Alongside the establishment of the AGB and the independent non-executive appointments, Deloitte in the UK has also announced that Stephen Griggs will become managing partner for Deloitte in the UK.
Finally, Deloitte in the UK will also establish a new Colleague Advisory Forum, in line with the Corporate Governance Code, to support engagement on governance.
Made up of colleagues from a range of grades and parts of Deloitte in the UK, it will provide a more diverse perspective to the AGB and the firm’s UK Oversight Board, to help inform decision-making.