Former Lib-Dem MEP Sharon Bowles is emerging as favourite to lead the UK’s new sharp-toothed audit watchdog.
If appointed, Bowles will head up the Audit, Reporting and Governance Authority, which will be created following John Kingman’s critical review of the FRC.
Kingman suggested the audit body be disbanded and replaced by a watchdog with more powers to oversee the Big Four.
After Carillion, the FRC was called “useless” by MPs. It was also identified as being too close to the largest accountancy firms.
A dose of the sisterhood
Bowles, 65, applied to become the Bank of England’s first female governor in 2012.
She says: “Nowadays I am concentrating on corporate governance and audit and I have applied to chair the FRC and its replacement – a dose of the sisterhood needed there too.”
Interestingly, the lead auditors of Britain’s 100 largest listed companies are overwhelmingly white and male, according to a report in the Financial Times,
Women are responsible for auditing only nine of Britain’s 100 largest listed companies. It all runs a bit counter to the Big Four’s claims to be champions of diversity it would seem.
Behind the times
Bowles says the report shows KPMG, EY, PwC and Deloitte are “behind the times” and “failing to resemble society”.
“To have men overwhelmingly [leading these audits] means that the whole culture and approach is dominated by the male perspective.
“Audit is an important interaction with company boards and being male, pale (and stale) at the top shows audit firms are dragging their feet in terms of culture.”
