BusinessCompany NewsFDs evenly split over non-execs role

FDs evenly split over non-execs role

Should non-executive directors have some influence over your accounting and audit decisions?

Finance directors are evenly split over increasing the influence of non-executive directors in the wake of the Enron scandal.

In this week’s Accountancy Age/Reed Accountancy survey, 42% of FDs objected to beefing up the role of NEDs while an almost identical 41% favoured increasing influence over their accounting and audit decisions.

One FD said NEDs should only advise on matters of general trading. He said: ‘Accounting and audit discussions should be left to directors and senior managers – who have been employed to carry out that role.’

Another said NEDs already had a ‘fair degree of influence’ but they need to ‘ensure they use it properly’. Another concluded: ‘Lets be honest, they don’t know enough of what’s going on to make any sort of informed decision.’

Among those who wanted the NEDs’ role strengthened, one FD said the Enron scandal had brought the matter to the front of his directors’ minds and as a result they have more influence over accounting and decisions.

The FD of Twickenham Plating Group, Robert Dearing, said: ‘Overall it’s not a bad idea and there’s no reason why they shouldn’t have influence’

However, one stated: ‘Morally yes, but not in my company!’

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor