A recent survey by BDO, USA LLP found that more than two-thirds of corporate directors surveyed believe that regulatory and compliance overload is the greatest risk facing their businesses. Close to half of the directors said they would prefer to spend more board time on topics such as succession planning (47%) and studying industry competitors (45%). Smaller numbers would like to spend more time on risk management (38%) and evaluating management performance (32%).
Directors were also asked about their reaction to a recent PCAOB proposal to improve financial disclosure. The proposal would require external auditors to include more detailed information in the annual auditor’s report that accompanies a business’s financial statements. Fewer than a third of the directors believed the proposed changes would improve the usefulness of the report. However, more than three-quarters of the directors favored disclosing the external auditor’s tenure.
The complete survey findings are here.