The CFO'S Perspective

3 Paths to Making Your Independent CPA Audit a Success

Why Audits Matter

For many middle market, closely-held businesses, the annual independent financial statement audit is an important part of the financial reporting process.

Lenders, investors and the company’s board of directors rely on audited financials to validate the interim financial data they are receiving as well as provide a sense of security as to the assets they have at risk.

As a result, many loan and shareholder agreements require annual audited financials.

In the best run businesses, the audited results should not differ from the unaudited internal financials.

That’s because the finance and accounting team is closing the monthly books on an accurate and timely basis. The team is also staying abreast of potential accounting issues that may need to be dealt with before year end.

In many businesses, incentive compensation plans may be tied to audited results.

This means that a well-managed company can ill afford to provide the management team with financial data subject to significant audit adjustments. Accordingly, it is in everyone’s best interests that the audit be conducted in an effective and efficient manner.

Topics: Leadership Audit CFO Responsibilities

The CEO Email Fraud

Carl in accounting receives an urgent email from Erica, the company CEO. 

The unusual email captures Carl’s attention, so he verifies that it is from Erica’s email and notes how the tone and writing style is consistent with her other email messages.  The CEO is requesting a wire be sent immediately to the bank displayed in the email.  Since Erica is out of town, Carl complies and sends the wire as requested. 

Topics: CEO Security Risk Management CFO Responsibilities Controller Responsibilities

How Does a CFO Manage & Mitigate Risk?

Risk comes from not knowing what you're doing. - Warren Buffett

One of the pillars of a CFO's responsibilities is risk management. From overall financial compliance to the IT department, a fractional or full-time CFO is the first line of defense in establishing and maintaining adequate risk management and mitigation for today's organizations.

The threats may come in many forms - from lack of internal controls to cybersecurity in a privately held business or social enterprise. The CFO is charged with understanding and mitigating the risks that your organization faces.

Topics: Risk Management CFO Responsibilities