FDs defend close relationship
Are finance directors too close to their companies to be objective about their accounts?
Despite the shock revelation that nearly one in three finance directors think they are too close to their company’s accounts to be totally objective, it does not mean that they see it as a problem.
The result of this week’s Accountancy Age/Reed Accountancy Personnel Big Question shows that 29% of respondents thinking objectivity is difficult. Some 60% believe their impartiality inscrutable but the significant minority that think otherwise will make investors all over the country nervous.
‘Yes of course finance directors are too close to their companies to be objective,’ said one. ‘Objectivity is for auditors and liquidators.’
Another said: ‘That’s the reason for audits. If FDs were totally impartial they would be unnecessary.’
One was proud of his close relationship. ‘You can never be too close especially when you are responsible for the accounting.’
Perhaps closer to the truth was the FD who said: ‘You can’t risk upsetting the people who pay your wages.’