Recommendations introduced following the report by Sir Robert Smith, say that every audit committee should have at least one member with ‘significant, recent and relevant financial experience’.
Traditionally, these candidates have been found in the Big Four firms, but ‘given the controversy over auditor independence, Big Four audit partners are finding it more difficult to take up non-exec roles’, said Joelle Warren, a headhunter from Warren Partners.
She added: ‘We’ve also seen a significant increase in demand for non-execs with backgrounds in the banking and financial sectors. This in turn is reducing the pool of non-execs from non-competitors available to these financial institutions.’
As a result boards will need broaden the scope of their searches and to allow longer for the recruitment process, Warren explained.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements