Senior Finance Execs Support SEC Chairman & See Increased Board Scrutiny
The majority of senior finance executives support pension and lease accounting revisions, according to a national survey conducted by Grant Thornton LLP. In another survey, the majority report the Sarbanes Oxley Act (SOX) has resulted in increased board scrutiny, while more than half say it has not made it more difficult to recruit directors.
Executives provided the following answers to the survey’s questions:
- Is the Securities and Exchange Commission (SEC) Chairman Cox doing a good job?
Yes – 75.07 percent
No – 24.93 percent
- Should lease accounting rules be revised to give investors more transparency?
Yes – 62.80 percent
No – 37.20 percent
- Should the external auditor also design and oversee internal controls?
Yes – 23.87 percent
No – 76.13 percent
- Should companies be required to account for pension plans on their balance sheets?
Yes – 81.07 percent
No – 18.93 percent
- Do we need greater transparency in financial reporting?
Yes – 64.97 percent
No – 35.03 percent
- Should there be uniform global accounting standards?
Yes – 79.52 percent
No – 30.05 percent
In the survey regarding the effect of SOX on corporate boards, 75.61 percent reported having experienced increased scrutiny from their board due to SOX, while 60.49 percent indicate SOX and concerns about increased liability have not made it more difficult for companies to recruit directors.