Sir, – In your Business supplement of June 4th, both John McManus (Opinion) and Cormac Butler (“Accountants ignored company law and protected bankers”) provide an interesting insight into the machinations of external auditing. Most companies and financial institutions have their own internal audit teams; however the weakness here is any potential whistleblower is usually warned to have a care for his or her job security. The problem with the external auditors is that they tend to be too mindful of not annoying the client for fear of losing the auditing account, and the very lucrative consultation fees for advice and guidance on new systems and special projects.
It truly is a minefield. Surely the time has come for major shareholders, if they have reservations about the company’s accounts as presented, to vote against the adoption of the accounts, and also the payment of the audit fee. – Yours, etc,