CFO

CFOs: Sarbox benefits plentiful, but risks still high

Tue, 04 Mar 2008 06:59:59 -0500

We've heard a lot of people voice the view that Sarbanes-Oxley compliance done well can yield lots of strategic benefits--if only as a way to slice and dice to support strategic ends. A new survey by BDO Seidman confirms that most CFOs believe Sarbox compliance activity has led to improved processes in general. Interestingly enough, a majority also believe that "risk-taking" has not been curtailed. It may be that the risks Sarbox attempts to control stem from human impulses--rogues, mainly. If they are motivated, they can circumvent controls. Still, at least there are other benefits.

For more:
- here's the release (scroll down for the 404 section)

Related Articles:
Do you need a formal risk management strategy? Article
Compliance readiness--A way of life. Article
Tools and tips for enterprise risk management. Article

CFOs face complex GRC software decisions

Tue, 26 Feb 2008 06:59:59 -0500

Most people assume that so-called GRC software--governance, risk and compliance--will continue to gather steam, as big boys like Oracle and SAP continue their marketing. It makes sense to automate compliance and risk issues, but the reality of this nascent field is that there really isn't a single point solution. Sure the big guys offer lots of functionality, but you have to weigh that against your budget and specific needs. There are plenty of small vendors out there leaving their marks. Movaris, for example, recently was bought by Trintech, which will round out its service offering for CFOs. John Hagerty of AMR makes the point that most GRC solutions are bought and implemented within silos. While all companies want to offer a complete set of services, the reality is that most companies will have to mix and match to get their optimal solution.

For more:
- here's a note from Hagerty

Automation really helping?

Tue, 04 Dec 2007 06:59:59 -0500

It's become a cliche in the compliance universe that companies need to automate. The vendors truly believe this; they have to. But cfo.com poses a troubling question: If automation is so great, why are finance departments spending so much time processing transactions? A recent study has found that CFOs say their departments spend 46 percent of time on transactions and 18 percent on control. That leaves little for anything strategic, which is where they can add the most value. The problem lies not so much in the technology but the implementation. It may be that off-the-shelf software doesn't work all that much against the particular complexities of your companies. And customization may not be so simple. This is a reminder that automation can be a panacea but it may not come easy.

For more:
- here's the cfo.com article

Related articles:
- Preaching to the choir on automation
- State of compliance: Automation catching on?

XBRL making slow gains

Tue, 27 Nov 2007 06:59:59 -0500

I know I sound like a broken record on this, but Extensible Business Reporting Language (XBRL) is a reality. According to cfo.com, the new electronic filing language is scheduled to debut Dec. 5th, when a draft version will be released for public review. That will allow for actual testing to begin. The problem is that awareness seems to be really low. A Grant Thornton survey found that only 53 percent of CFOs knew about XBRL in November, compared with 60 percent in April. This is a good time for someone in your organization to step up and own the situation. XBRL will likely make filing a lot easier over time, though there will be some implementation hiccups. Might as well see it as an opportunity.

For more:
- here's the article

Related articles:
- XRBL to become mandatory soon?
- Do you need help with your SEC filings?
- Avoiding transition problems to XBRL

Read more on: XBRL

ALSO NOTED: Lost amid the news of Dell's restatement: More Fraud; Mixed prosecutorial record on corporate fraud since Sarbox ..

Tue, 06 Nov 2007 06:59:58 -0500

> Lost amid the news of Dell's restatement: more fraud. Article
> Survey: few companies enforce ethics policies. Article
> Survey: 80 percent of CFOs would split CEO and chairman jobs. Article
> Mixed prosecutorial record on corporate fraud since Sarbox. Article
> Little agreement so far on global audit rules. Article
> Sarbox driving more outsourcing of accounts payable operations? Article
> More on the David Welch whistle blower case. Article
> New finance employees: Immature? Article
> Tom Hohman, CFO of PCAOB, to step down. Article

IT Watch:
> Best practice for buying BI software. Article

And finally ... The biggest interview blunders. Article

ALSO NOTED: What ever happened to congressmen Sarbanes and Oxley?; Novel way of reporting Sarbox costs;

Tue, 07 Aug 2007 06:59:58 -0400

> What ever happened to congressmen Sarbanes and Oxley? Article | Another Happy 5th Anniversary article.

> Here's an interesting way to grapple with Sarbanes-Oxley in your earnings report. Provide data for EBITDA including Sarbox costs and excluding Sarbox costs, as Spark Networks has done. Release

> PCAOB CIO to step down. Article

> SEC announces members of the new Advisory Committee on Improvements to Financial Reporting. Release

> More than 60 CFOs convicted in the past year. Article

> Another Fair Fund distribution. This one to Qwest shareholders. Article

> Another foreign company will delist from the NYSE. This one was an early complier with Sarbanes-Oxley. The fact is that ADR volume is very low. And the NYSE and Euronext are now one. Release

> Survey: Most investors happy with Sarbox. Article

> Should the CIO be a technologist or a business person? Or both? Article

> Japanese version of Sarbanes-Oxley to be enacted in April. Article | And that has at least one vendor heading for Tokyo. Article

> New credit card rules get mixed reviews. Article

And finally ... What your IT department is afraid to tell you. Article

ALSO NOTED: On the 5th anniversary of Sarbox, here's the tally; Corporate Fraud Task Force celebrates fifth anniversary;

Tue, 24 Jul 2007 06:59:10 -0400

> Even in New Orleans, Sarbanes-Oxley work abounds. Article

> Welcome to the big leagues: Grant Thornton suffers serious growing pains. Article

> On the 5th anniversary of Sarbox, here's the tally: 214 CEOs, 128 vice presidents, and 53 CFOs have been convicted. Article

> Time for Sarbanes-Oxley-like rules for government. Article

> Defense lawyers continue to fret about arrest of attorney under Sarbox. Article

> Corporate Fraud Task Force celebrates fifth anniversary. Article | Five years later, prosecutors are under pressure to reign in their tactics. Article

> PCAOB and Aussies link up on audits. Article

> Director pay and workload continue to rise. New law requires better disclosure. Article

> IT News: HP buys Opsware for vital software services. Article

And finally... A very embarrassing accounting snafu.

ALSO NOTED: Think you know a lot about Sarbanes-Oxley? Test yourself; Another big fair fund distribution;

Mon, 16 Jul 2007 20:01:38 -0400

> Think you know a lot about Sarbanes-Oxley? Test yourself. Take this quiz.

> Relief for small companies. I've said it before: Do not count on another small-company Sarbox extension. But the House has added an amendment to a bill that would do just that. I still doubt it will happen. Article

> The SEC has announced another fair fund distribution. This one, for $316 million, will got to investors in Time Warner. Total distributions now total $2 billion. Article

> New book (not free) on practical tips for Sarbox compliance. Release

> Tricky issues. Lawyers are grappling with discovery issues and personal email accounts. Article

> Survey: CFOs lack succession plans. Article

> More on AIM's plans to snag more U.S. small companies. Article

> Judge's ruling results in dropped charges in KPMG case. Article

> More on the need for an e-discovery action plan. Article

> Sarbanes-Oxley still looms large in the U.K. Article

> Another major breach of customer data. Article

> LogicalApps helps Qualcomm with financial reporting. Article

> Reference accounts: One way vendors sell Sarbox (and other) solutions. Article

And finally... Are you a frustrated achiever? Article

Small company advice: Reprieve is over

Mon, 07 May 2007 20:01:38 -0400

James Champy, the chairman of Perot Systems and well-known strategist and author, says the reprieve for small companies is over. And I agree. If you are a non-accelerated filer, you should probably count on complying with 404. The official rule is that companies with FY year closes after Dec. 15 are subject to that controversial section. Champy says now is the time for dialogue between IT managers and CFOs. Do not wait to have the other bring it up. Some IT folks may still think that this is the CFO's responsibility--and it is--but they are on the hot seat too. For starters, ask the hard embarrassing questions about financial systems, security and how information gets input. "Most importantly, begin now to document your processes." Article

Financial and IT pros more alike than we think?

Mon, 30 Apr 2007 20:01:39 -0400

One issue we've grappled with in this newsletter is that the different worldviews that financial pros and IT pros bring to the table. It's fair to say that they do not often see the world the same way. One CIO has dared to write a column listing ten reasons why there's a "dark side" to going public. As I read the list, there was a sense that perhaps the two sides aren't that far apart. Number 1 on the list is "Ronco sales tactics." Truth be told, the frenzy to come up with earnings, as if they can be magically conjured, probably rubs a lot of financial people the wrong way also. It's a fact of life, and I'm sure more than a few CFOs have nixed some ideas. Number 2: Obsession with stock options. The CIO sees a lot of time wasted on the complex processes that govern the use of options. While the CFO understands the need to incent people, I'm willing to bet that more are sensing that some grants aren't achieving that. Then we get to Number 3: "The Crushing Burden of Sarbanes-Oxley." The CIO certainly sees the pain and the costs, but does he see the upside? More CFOs are coming around to the procedural benefits of compliance. It's all a matter of perspective. I propose that all CFOs ask the company's CIOs out for lunch more often.

For more:
- here's the CIO's column in Computerworld