Every
finance director needs to be aware that new accountancy proposals for disciplinary procedures will affect them, reports Accountancy Magazine.
Steve Maslin, head of external professional affairs at Grant Thornton, claimed that audit firms have taken heed of the new changes in disciplinary actions but that chief financial officers (CFOs) had not.
The Accountancy and Actuarial Discipline Board (AADB) are currently considering proposals that defendants will be unable to claim back costs even if they are found to be innocent.
Mr Maslin said: "I'm not sure that all CFOs have woken up to the fact that if they are qualified accountants, then the AADB applies as much to them as it does to the audit firms."
CFOs need to take extra care of how the proposals would affect them as unlike large accountancy firms, they are less likely to be able to afford costly legal proceedings, he added.
The Financial Reporting Council was forced to pay £987,500 last year in defendant costs when PricewaterhouseCoopers and a
finance director were cleared at a tribunal about the collapse of bus company Mayflower.
© Adfero Ltd