A coalition of industry bodies, including the Chartered Institute of Internal Auditors (CIIA) and ISACA, has called on the UK government to expedite the introduction of audit reform legislation, emphasising the need to bolster digital resilience in the face of increasing cyber threats. 

The CIIA and ISACA have jointly addressed a letter to the UK Secretary of State for Business and Trade, advocating for immediate action on audit reform legislation to strengthen the nation’s digital resilience.  

“Given the rising threats posed by cyberattacks, we urge you to ensure your audit and corporate governance reform agenda also keeps pace with these challenges by incorporating measures that require significant employers to implement robust cyber resilience protocols,” the letter said. 

The correspondence underscores the urgency of implementing robust cyber resilience protocols for significant employers, aligning with the government’s audit and corporate governance reform agenda. 

The letter highlights the broad support for the Audit Reform and Corporate Governance Bill, as outlined in the King’s Speech the previous year, yet notes its absence from publication by the government.  

The signatories include CEOs from various organisations and thought leaders who are collectively pressing for the bill’s swift enactment. 

The signatories urge the rapid adoption of recommendations from Sir John Kingman in 2018 and Sir Donald Brydon in 2019, including granting the Financial Reporting Council more authority.  

They commend the UK Government’s current efforts towards digital resilience but stress the need for accelerated progress to prevent economic and reputational repercussions. 

The letter points out that other major economies are advancing digital reporting requirements, potentially leaving the UK behind if it does not act promptly. The risk is that the UK could become less appealing for investment compared to its global counterparts who are leading in this area. 

Furthermore, the letter calls for comprehensive reforms that would require the UK’s largest companies to report on their resilience to both digital and financial risks. This includes the publication of Resilience Statements and Audit and Assurance Policy Statements, which would detail their strategies for managing and auditing these risks. 

The coalition argues that effective reform could spur technology adoption and economic growth. They emphasise that addressing digital risk through enhanced corporate governance is now an economic necessity, not just a precautionary measure. 

“Strengthening corporate governance to address digital risk is now an economic imperative,” the letter said.