PracticeAuditUK FDs favour auditor restrictions

UK FDs favour auditor restrictions

Finance directors of some of the UK's biggest companies believing auditors should be restricted to performing only audit work, while auditor rotation should be mandatory.

Link: Volcker tells auditors to improve confidence

Almost 60% of FDs said auditors should not offer additional services but should be restricted to pure audit. Nearly two-thirds thought auditor rotation should be mandatory, according to a survey by Endelman, a global public relations consultancy.

The survey of 100 finance chiefs of FTSE-350 firms also revealed that FDs are unhappy with current attitudes toward executive responsibility.

Most surprisingly, 34% of FDs agreed limits should be set on board pay and more than four in five favour audited codes of conduct for senior executives.

The vast majority of FDs (68%) said all non-executive directors should receive mandatory financial training. They also believe that amongst the NEDs should be representatives of key shareholder groups.

The survey also showed that 90% of FDs are concerned with the company’s reputation in the public eye.

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