Home Tags Committees
The corporate scandal revelations and associated media, public and political scrutiny over the last decade has led to a new climate of demanding more stringent remuneration procedures and accountability from corporations. The remuneration committees of enterprises across the globe have been tasked with applying increased disclosure, discipline and accountability in this area.
There are a range of factors taken under consideration when selecting and retaining external auditors. In particular, one key consideration is the independence of the auditing process as history and research has indicated that the success of the external auditor is predominantly based on the probability that an auditor will both find and report a breach in the financial and accounting systems on an organisation.
There are a number of benefits of using executive search firms when companies are looking to hire senior professionals. The stakes are high when companies are looking to hire important, often critical, senior-level executives to their organisation. For starters, the salaries on offer for these roles can often be in excess of six figures.
From the auditors involved in the Enron scandal to the more recent Lehman Brothers accounting debacle, there is a widespread mistrust of the audit profession. Investors are only able to trust the integrity of capital markets if they are able to trust company auditors. Understandably financial market participants and corporate governance groups are increasingly asking the question: who’s auditing the auditors?
12Page 2 of 2