ACTU Calls for audit watch dog

The ACTU has set out a list of reforms to tighten audit, accounting, 
reporting and disclosure standards for companies listed on the stock 
exchange in response to underhand and criminal activities of company 
executives that have resulted in massive financial losses for thousands of 
Australians.

The peak union body is calling for the formation of an Office of Corporate 
Audit which would:

* increase penalties under the Corporations Law for breach of directors' 
duties;

* ban auditors from providing non-audit services to audit clients;

* enforce disclosure requirements for all executive remuneration;

* require executive share options to be expensed in company profit and loss 
statements;

* protect corporate whistleblowers;

* remove corporate tax deductibility for corporate salaries of more than $1 
million.

The Office of Corporate Audit would be staffed by investigators, lawyers 
and accountants who would investigate and audit companies on a random basis 
or in response to complaints from shareholders or other parties.

The ACTU says that one in four of Australia's top 100 companies are failing 
in their legal duty under the Corporations Act to disclose the value of 
share option deals for directors and executives.

"Rather than the hands-off approach advocated by John Howard, the 
Government should act to improve corporate governance regulation as eagerly 
as it has moved to impose new regulation on the construction industry", 
said ACTU Secretary Greg Combet.