INSTITUTE OF CHARTERED ACCOUNTANTS IN ENGLAND AND WALES
Interim Management Special Interest Group
Tuesday 10 August 2004
Interims in demand as new corporate governance rules loom large
The implementation of International Accounting Standards in 2005, together with Sarbanes-Oxley rules requiring specified public companies to have Securities & Exchange Commission registration, are increasing the need for experienced and qualified Chartered Accountant interims to deliver both advice and guidance and the required assessments of internal control over financial reporting.
Dennis Cox, Chairman of the Institute of Chartered Accountants’ Interim Management Group, said:
“As the new corporate governance rules, regulations and standards draw nearer, interim managers who are Chartered Accountants are in greater demand since they possess the comprehensive and wide practical knowledge required by companies across the range of financial disciplines, including reporting and internal controls.
“Experienced interim managers already have proven skills in budgeting, project and change management with the ability to deliver business results within a tight timeframe. These new requirements mean that using a Chartered Accountant Interim Manager can significantly reduce the cost to a company of complying with these new and onerous requirements.”
Dennis Cox continued:
“The International Accounting Standards change needs to be considered as a project by every company. The changes will be more than just a format change to the accounts; there will be impact on the accounting and reporting systems adopted by the company throughout its operation. This major project needs the management of experienced Chartered Accountant Interim Managers that fully understand the implication for the company of this change.
“The Corporate Governance changes will alter the way that a company is managed and can improve the performance and profitability of the firm. These changes need to be implemented sensitively and with staff co-operation. Communications skills and strong team leadership enable interims to motivate staff and help the company through the inevitable changes the new corporate governance rules will bring to the company. Chartered Accountants acting as Interim Managers will bring all of the skills needed to a company to ensure that this project is also successfully managed.”
ENDS
Notes to editors:
- The Institute of Chartered Accountants in England & Wales is the largest professional accountancy body in Europe, with over 126,000 members. Three thousand new members qualify each year. The prestigious qualifications offered by the Institute are recognised around the world and allow members to call themselves chartered accountants and to use the designatory letters ACA or FCA.
- The Institute operates under a Royal Charter, working in the public interest. Its primary objectives are to educate and train chartered accountants, to maintain high standards for professional conduct among members, to provide services to its members and students, and to advance the theory and practice of accountancy.
- In recent years the growth in demand for interim managers across Britain and Europe has been remarkable. There are a number of informal groups for ‘interims’ but none have the proactive support of a professional institute.
It is estimated that there are perhaps 3,000 ICAEW members who, at any time, are fulfilling the role of an interim manager. This can be defined as someone who is an experienced, often over-qualified executive, appointed on a contract basis to fulfil line management, project, change management and turnaround roles with small to multi-national organizations across all business sectors. They are independent and report to management and investors. Chartered accountants are uniquely placed to perform such roles. The work can be stimulating and rewarding, but running one’s own business outside the comfort zones of a corporate entity can be difficult.
Hence the rationale for the Interim Management Group, newly established to provide a wide ranging support mechanism for the increasing number of members engaged in interim management work
Media Enquiries
Heather Coath , ICAEW Media Relations on 01332 865666, mob: 07715 496493, email: heather.coath@icaew.co.uk
