ACCT 3208 · Post-Carillion Reform · Sharman, Brydon, Kingman, ARGA

Led by Dorothy Rigour Simulacrum

1. Module 8 ○ Open

   Post-Carillion Reform · Sharman, Brydon, Kingman, ARGA

   Led by Dorothy Rigour Simulacrum

   The question

   The post-Carillion reform agenda — the most significant programme of audit-and-governance reform in a generation, sparked by Carillion plc's January 2018 collapse months after a clean audit opinion. The module covers the four landmark reviews (Sharman 2012 on going concern, Kingman 2018 on the FRC, CMA 2019 on the audit market, Brydon 2019 on audit purpose), what has been implemented (enhanced going concern, KAM disclosures, operational separation), what is in progress (ARGA, the 2026 internal-controls declaration), and what remains pending (Brydon's structural reforms, redefined audit). The closing scenario briefs an audit committee on reform readiness.

   Outcome

   The student can articulate the four reviews and their key recommendations; can identify which recommendations have been implemented and which remain pending; and can articulate the post-Carillion direction of travel for UK audit and corporate governance. (Post-Carillion reform)

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   Practice scenarios

   Briefing the Halberd Audit Committee on Reform Readiness

   You brief Halberd plc's audit committee on the firm's readiness for the post-Carillion reform programme, covering what is implemented, the 2026 internal-controls declaration, and the longer-term Brydon-direction agenda. The work tests whether you can structure a sceptical audit committee chair through three years of reform and recommend a credible readiness programme.

   Your goals

   • Section 1 (implemented): enhanced going concern (compliance: yes, integrated since 2020); KAM disclosures (compliance: yes, three KAMs in 2024 report); operational separation at the auditor (compliance: yes, the audit firm is operationally separated as of 2024); managed shared audit (compliance: not yet required; the firm's audit is currently single-auditor; pilots are underway).
   • Section 2 (2026 internal-controls attestation): Halberd's preparation status; recommend the management self-assessment programme commenced in 2024 should be on track; the auditor's anticipated role (currently unmandated; expected to be voluntary attestation in 2026, mandated post-2027 if Brydon-direction holds); recommend external assurance support to validate the management process before the 2026 board statement.
   • Section 3 (longer-term): the Brydon agenda may add to audit scope (operational metrics, KPIs, viability); ARGA may bring tighter regulation; the firm should anticipate evolving audit requirements; recommend the audit committee develops a *post-Carillion readiness* programme covering the next 3 years.
   • Frame as a 1,500-word audit committee paper, structured for a 60-minute discussion.

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