Outsiders appoint Dawson auditors

12 April 2012

DAWSON Holdings executives have decided that they will play no part in appointing the firm's auditors, to boost investor confidence in the wake of the Enron scandal.

The newspaper distribution company is the first British firm publicly to change its policy, though the move is likely to put pressure on other companies to follow suit. 'We think it is a good idea,' said Jon Grant at the Auditing Practices Board.

From now on, Dawson's auditors will be chosen by independent, non-executive directors. Traditionally, a firm's finance director tends to make the appointment, which is rubber-stamped by the board.

'We are conscious of people's concerns,' said Dawson's finance director, David Lowther. 'We think this makes the whole process more transparent for shareholders.' Dawson rose 7 1/2p to 93 1/2p.

Trade Secretary Patricia Hewitt, who has called a review of auditing practices, has hinted the government may strip executives of their powers to appoint auditors.

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