Posts in category Financial Effectiveness Perspectives

FEI – Audit committee relationships key to success

FEI Daily reports from the Current Financial Reporting Issues Conference (CFRI) that audit committee members and audit committee chairs want and need more and better communication from finance managers and executives at their company. “I talk with the chief accounting officer or head of internal audit on a monthly basis,” Cyprus said. “I don’t want to […]

CPAs as Crime Fighters

This isn’t our usual fare, but we found it pretty fascinating. The Journal of Accountancy has a great article running on the CPA as a Criminal Pursuing Agent. Durkin was an FBI agent working undercover as he had a drink with known members of an organized crime group at a fancy restaurant in Los Angeles. […]

Accenture: The Finance Department as We Know it is Dead

Writing in CFO Magazine, David Axson, Managing Director of  Accenture’s Strategy, CFO & Enterprise Value practice tells us that the finance organization of the future will be nothing like that of  today: Finance 2020 — tomorrow’s digital finance organization — is a radical departure from the status quo. It deals in analytics and forward-looking decisions to […]

Acuitas: Failure to Assess Risk and Test Internal Controls the Main Causes of Audit Failure. Fair Value Measurement Deficiencies Remain Significant

Hat tip to CFO Magazine. Atlanta based consulting firm Acuitas recently released a survey of Fair Value Audit Deficiencies (pdf) covering the period 2009-2013.   The survey is based on an in depth analysis of PCAOB data from the same time period.    What they found is that Fair Value Measurement audit deficiencies continue to […]

PCAOB Audit Quality Indicator (AQI) Exposure Draft – SVA Response

Note: You can read our entire comment letter to the PCAOB on the Audit Quality Indicator Exposure draft The PCAOB recently released an exposure draft for a set of proposed Audit Quality Indicators.    In releasing the exposure draft for comment, the Board stated the following goals: The goal of the AQI project is to improve […]

Forbes: No Single Close Technology is a Panacea

Writing in Forbes,  Jay Humphries notes that “The pressure for an accelerated accounting close can be relentless”.    We agree, and have seen this pressure through industry.  In addition, Humphries notes that while technology can help to overcome some challenges, by itself, it is an incomplete approach, and that “A successful, holistic approach must account for […]

Audit Fees Rise Again in 2014 – Do They Ever Go Down?

Jason Bramwell at AccountingWeb reports on the Annual Audit Fee Survey from  Financial Executives Research Foundation . Among the key findings: Audit fees paid by SEC filers last year averaged $1.5 million Nearly 21 percent of SEC filers reported ineffective internal controls over financial reporting Public companies as a whole realized a 3.1 percent median increase […]

CFO Magazine: Top 25% release quarterly earnings 12 or fewer days after quarter end

CFO Magazine just tweeted out a cool Metric of the Month Fast Fact: The top 25% of companies can finish the close-to-disclose cycle in 12 days or less. — (@cfo) October 17, 2015 We followed the link, and found a great article (as usual) by Mary Driscoll “Metric of the Month: Close-to-Disclose […]

FASB Exposure Draft – Materiality –

The Financial Accounting Standards Board (FASB) is seeking input on a recently released an exposure draft of proposed changes to chapter 3 of the Conceptual Framework for Financial Reporting.  The proposed changes effect the concept of materiality. There are a number of changes, but the most significant is that the board acknowledges that in the United […]

IIA Review the Three Lines of Defense

The “Three Lines of Defense” model is widely used throughout industry as a framework for addressing risks in today’s increasingly complex world.  Originally proposed in a position paper from the Institute of Internal Auditors in 2013, the model proposes a “streamlined approach to risk management and control built on three layers — operational management, risk […]