UK: Audit Firm Governance Code - consultation paper published

The ICAEW's Audit Firm Governance Working Group has published a consultation paper as part of work which will lead to the publication of an Audit Firm Governance Code for auditors of public interest entities (mainly listed companies). The Code is being developed as a result of a recommendation by the Financial Reporting Council's Market Participants Group in the report "Choice in the UK Audit Market".

The consultation paper asks twenty questions including: 

• Which stakeholders should the Code primarily serve?
  
• What approach should the Code adopt to risk management and internal control?
• Should the Code support the appointment of independent non-executives by the firms? If so, what should it say with regard to the number or proportion of non-executives and their position, role and responsibilities in a firm’s governance structure?

The deadline for responses is 31 January 2009.