OECD: Auditors accountable to shareholders
New corporate governance principles adopted by the global campaigning body emphasise that auditors should be accountable to shareholders, not to management.
Approved by the OECD’s 30 member countries and the International Federation of Accountants, they also say that the board of directors should effectively oversee the financial reporting function and ensure that appropriate systems are in place.
Not surprisingly, the principles urge greater transparency and disclosure to protect investors and strengthen capital markets – the OECD has been at the forefront of the campaign to improve transparency in so-called tax havens, and has set up a blacklist of those territories that do not comply.
IFAC president Rene Ricol said: ‘The OECD Principles of Corporate Governance are an extremely important element of the international financial system.’