RegulationCorporate GovernancePower shifts from boards to advisers

Power shifts from boards to advisers

Sir Adrian Cadbury warns of power shift in favour of advisers due to uncertain times.

A shift in the balance of power from boards to their professional advisers is
occurring, making advisers’ expertise and advice more essential and potentially
pricier than ever, Sir Adrian Cadbury has said.

The apparent shift in power is great news for accountants and auditors who
could see a higher price placed on their advice given the volatile economic
outlook.

Sir Adrian said: ‘Boards are more dependent on their professional advisers
and especially on their accountants and auditors, both external and internal,
than ever before.

‘There has been a shift in the balance of power from boards to their
professional advisers and their expertise and advice has become more essential
than ever.

‘The challenge in a more uncertain and volatile financial world lies with
these professionals.’

Sir Adrian Cadbury made his comments in an address to the 18th National
Auditing Conference, organised by the Auditing Special Interest Group of the
British Accounting Association.

ASIG chairman Dr Ilias Basioudis, a senior lecturer at Aston Business School
in Birmingham, said of Sir Adrian’s comments: ‘It can also be interpreted that
he does not have much confidence in the directors who run businesses today,
given the major scandals and asset write-offs in the recent years.’

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