As a very small shareholder in a few companies, I have been conducting a one-man campaign for many years, by voting against the motion on most AGM agendas to retain the services of the current auditors. Ever since the fall of Enron, I have always felt that there is self-interest in both parties wishing to maintain this close relationship.
Enron was not mentioned in your article (Bonus reforms ‘biggest shake-up of UK corporate governance in years’, 18 March), but it did bring down a major accountancy firm. Accountancy firms wish to cling on to the business, and the business wishes to retain the services of an auditor that “understands” how it works. My suggestion is that an auditor of any business of a certain size should be retained for no more than three years, and they should be selected at random.
David Selby
Winchester, Hampshire
