Too Much?

A top audit expert is asking authorities close ownership loopholes on investment trusts, as capital market regulators tighten the noose on auditors and listed companies. A top audit expert is asking authorities close ownership loopholes on investment trusts, as capital market regulators tighten the noose on auditors and listed companies. The requests comes as the securities watchdog issued tough guidelines on the role of auditors and non-audit services, which will be made compulsory for listed firms starting next April.

Listed firms will also be required to rotate their auditors every three years from 2006.

Auditors will also have to certify their independence (that they are not under pressure from outside parties) every year.

Another new addition asks CEO’s and Chief Financial Officers to add their signature to a ‘Responsibility Statement’, which will be included in financial statements from next April.

The Securities & Exchange Commission (SEC) also went a step further, by asking the Institute of Chartered Accountants of Sri Lanka (ICASL) to incorporate the guidelines into their Corporate Governance Code.

The composite index will be co-branded