A leading accountancy and business figure has called for a radical overhaul of auditing practices to help prevent financial scandals, arguing that a more proactive approach is needed to ensure corporate transparency.
Rod Sellers OBE, a prominent advocate for the accountancy profession, has co-authored a new book, Reflections on the Case for Audit Reform: Seeking to Avoid Future Financial Scandals, which proposes a significant shift in auditing methodology. The book, published today, was written in collaboration with the late Professor Krish Bhaskar, a highly respected academic in accounting and finance.
The book argues that traditional audit practices, which rely on passive, retrospective assessments, must be replaced with forward-looking, analytical methods that provide deeper insights into company finances. The authors stress that reforms should focus on critical thinking, professional judgement, and sensitivity reviews rather than relying solely on regulations.
A Call for Change in Audit Practices
Audit reform has become a high priority for the Government and was included in the King’s Speech last July. The proposals outlined in the book align closely with the Government’s push for stronger corporate governance and regulatory improvements to support economic growth.
Mr Sellers, who has spent more than 50 years in finance and corporate leadership roles, believes that audit reforms should go beyond simply introducing new rules. He argues that auditors must be encouraged to challenge financial information critically and adopt a more investigative approach.
“To make audit fit for the 21st century, we must move beyond simply regulating our way out of future scandals,” he said. “Instead, we need auditors who prioritise professionalism, deep curiosity, and critical thinking. I hope this book will inspire professionals, students, academics, and company directors to help shape future audit reforms that meet society’s needs in an era of rapid change.”
Legacy of a Leading Academic
Co-author Professor Krish Bhaskar, who passed away in 2023, was a pioneering figure in accounting and finance. He was the founding Professor of Accounting and Finance at the University of East Anglia and previously held positions at the London School of Economics and the University of Bristol. Over his career, he authored more than 50 books and advised Fortune 500 companies at board level.
Rod Sellers OBE, a qualified chartered accountant, has played a significant role in shaping the accountancy profession. A former president of ICAEW Manchester, he has held senior positions, including financial director, chief executive, and deputy chairman of British Vita, as well as board roles at Seddon Group and PZ Cussons.
Awarded an OBE in 2004 for services to business in the North West, Mr Sellers is also a director of MSCA Legacy Limited, an organisation dedicated to supporting financial education and the next generation of accountancy professionals.
The book, which marks the fourth and final instalment in the “Disruptions in Financial Reporting and Auditing” series, is expected to spark debate and influence future Government policy on audit reform.
