Honing scepticism - Must directors be sceptics

Prevent fraud by honing the skill of scepticism in the financial reporting chain, which leads right through the boardroom.

It's a challenge worth examining. The term scepticism is often associated with doubt, but it actually describes a search for the truth. The word comes from the Greek sceptics, used some 2,300 years ago by disciples of the philosopher Pyrrhus. The verb sceptesthai means to reflect, look, view.

Today, the sceptic is perceived as a doubter, someone who may trust but must always verify. As such, embracing scepticism carries unique role-related challenges for each member of the financial reporting chain, including directors. Everyone involved in a company's financial reporting effort can benefit from scepticism. After all, they need every possible weapon at hand to hack away at the legendary fraud triangle, the three factors READ MORE

Released by NACD Directorship - January 17, 2013