Listed companies would be required to undergo a mandatory review by an independent board of management accountants under a proposal submitted to the government yesterday. The proposal by the Chartered Institute of Management Accountants suggests that the results of the review be published in a company's annual accounts alongside the auditor's report. The accounting body believes the plan could reduce what it calls 'exceptional material risks' that are overlooked by auditors and borne by unlucky investors. The proposal was submitted to Chief Executive Tung Chee-hwa, Financial Secretary Antony Leung Kam-chung, Secretary for Financial services Fredrick Ma Si-hang and the heads of both the Securities and Futures Commission and the China Securities Regulatory Commission. It follows a spate of corporate accounting scandals in the United States in the past year that brought the likes of Enron and WorldCom into the corruption spotlight, and saw the demise of auditors Arthur Andersen. Unlike auditors, who mainly focus on issues such as compliance with accounting standards and internal control, the board of management accountants would concentrate on a company's profitability and whether there was any business risk that could threaten its survival. The institute says such a mechanism could have forewarned investors of the accounting fraud that took place at Enron.