Investors are set to be rebuffed in attempts to have more information on audit committees, after a meeting of senior company directors held last week by the Audit Quality Forum saw strong criticism of the proposal.

Moves to open up the workings of audit committees have featured in regulatory attempts to reform the audit market.

John Buchanan, chairman of Smith & Nephew, who was present at the AQF meeting, said ‘no good case had been made for separate audit reports for shareholders’.

‘That is the board’s job, even though some investors would like more [information],’ he added.

‘It was seen as important for the chairman to have strong relationships with internal and external auditors as well as management. That would enable the chairman and committee to conduct cross-checks of what is going on.

‘And strong relationships would require pre-meetings and open-ended discussions, where the auditors can be asked what concerned them most about the company and what issues they would like to see on meeting agendas,’ Buchanan said.

Investors have suggested that they would like improved engagement with audit committees. The Market Participants Group, a body working under the auspices of the Financial Reporting Council, has even suggested a shareholder vote on audit committee reports.

AQF chairman Gerald Russell said: ‘Investors may want more information about accounting judgements and these should be part of reports from executive managements of companies.

‘It isn’t the purpose or point of the audit committee to communicate the financials of the company, it’s the job of the company.’