ISACA and the Chartered Institute of Internal Auditors (Chartered IIA) are among the organizations that have jointly written a letter to Rt Hon Jonathan Reynolds MP, Secretary of State for Business and Trade, emphasizing the urgent need for audit reform legislation to enhance digital resilience. The letter highlights the support from various stakeholders for the Audit Reform and Corporate Governance Bill that was promised in the King’s Speech last year but has not yet been published.
The letter includes endorsements from CEOs of organizations such as Airmic, CREST, Sheffield University’s Audit Reform Lab, the Chartered Governance Institute, UK & Ireland, CompTIA, IASME Consortium, The National Preparedness Commission, NEDonBoard, and Share Action. Also included as signatories are notable figures like Sir Donald Brydon, Rt Hon Baroness Neville-Jones, Ciaran Martin (former CEO of the NCSC), Dr. Vladlena Benson MBE (Professor and Director of the Aston Centre for Cyber Security Innovation), and Adrian Jolly (Co-Founder of the Institute of Corporate Resilience).
The collective group is urging for the implementation of recommendations put forth by Sir John Kingman in 2018 and Sir Donald Brydon in 2019, which includes granting enhanced powers to the UK’s audit regulator, the Financial Reporting Council. The letter also calls for broader reforms to ensure that major UK companies are reporting on their digital resilience alongside financial risks.
While acknowledging the positive steps taken by the government to enhance digital resilience, the letter argues that more swift and comprehensive action is necessary. Several other regions like the US, EU, and Asia are already progressing with similar audit reforms, and without prompt action from the UK Government, the country risks lagging behind in terms of investment and digital governance, which could have significant economic consequences.
Chris Dimitriadis, Chief Global Strategy Officer at ISACA, emphasized the critical need for legislation to prioritize audit reforms to safeguard against digital disruptions and cyber threats. He highlighted the impact that understaffing and skills gaps in digital sectors like cyber, audit, and privacy are having on businesses’ ability to protect themselves.
Anne Kiem, Chief Executive at the Chartered IIA, pointed out the importance of addressing audit and governance deficiencies to prevent corporate failures and enhance digital resilience in an increasingly digital world. The proposed Audit Reform Bill and the requirement for larger companies to publish Audit and Assurance Policies and Resilience Statements are seen as crucial steps in achieving these goals.
The letter is timely as cyber threats continue to evolve with advancements in technology, posing new challenges to digital resilience. Concerns about the potential vulnerabilities posed by quantum computing and the need for improved defenses against cyber attacks are highlighted in upcoming research findings from ISACA.
Dimitriadis reiterated the urgency of bolstering defenses against digital disruptions caused by AI, cloud computing, and quantum computing to ensure a digitally resilient future. Collaborating with the UK government to address these challenges is seen as essential for safeguarding public services, jobs, and investor confidence in the face of technological advancements.
In conclusion, the joint letter from ISACA, the Chartered IIA, and other stakeholders underscores the critical importance of swift audit reform legislation to enhance digital resilience and mitigate risks posed by digital disruptions and cyber threats. The need for a proactive and comprehensive approach to address the evolving cybersecurity landscape is emphasized to ensure the UK remains competitive and resilient in the digital age.