As a former Chief Executive, Michael Woodward, ends his fight with his former employers to uncover a billion-plus dollar fraud, he has been quoted as saying that: ” management accountants hold the key to legitimate and robust corporate governance”.
Mr Woodward had only been in post for two weeks when he was sacked in October last year for commissioning an audit that found potential offences of “false accounting, false assistance and breaches of directors’ duties”.
However, he remains unrepentant and has campaigned for the truth to come out, helping the FBI in the US and the Serious Fraud Office in the UK with their investigations.
The 30-year is now keen to see improved corporate governance and better protection for whistleblowers in a bid to prevent a similar fraud taking place elsewhere.
Recent research has shown that risk management and corporate governance issues are increasingly influencing public policy debates on enterprise controls, while organisational and management practices including management accounting activities are also being extensively affected.
The importance of corporate governance has been highlighted in recent years due to the developments brought about through globalisation concerning the harmonisation of procedures and structures and through the emergence of global norms for it.
However, management accounting is often not given enough emphasis at board level, as a provider of timely and relevant information to facilitate the execution of good corporate governance.
Without management accounting information, firms may find it difficult to create sustainable corporate governance and risk management strategies and sometimes, external help may be needed to present directors with a clear and unbiased report on the state of the company.