Bookkeeper-Controller-CFO: The Rise of the Chief Financial and Chief Accounting Officer

2019 ◽  
Vol 46 (2) ◽  
pp. 1-8 ◽  
Author(s):  
Michael Doron ◽  
C. Richard Baker ◽  
Kiren Dosanjh Zucker
Keyword(s):  
Corporate Governance ◽  
Corporate Finance ◽  
20Th Century ◽  
Financial Reporting ◽  
Legal Liability ◽  
Senior Management ◽  
Chief Financial Officers ◽  
Management Positions ◽  
The Impact

ABSTRACT This paper traces the evolution of the chief accounting and chief financial officers from minor figures in corporate governance for most of the 20th century to senior management positions by the late 1970s. The paper begins with the testimony before Congress of Arthur Tucker during the debates over the legislation that would become the 1933 Securities Act. Tucker's testimony resulted in the controller or chief accounting officer being included among those persons specifically listed as potentially liable for fraudulent statements or omissions under Section 11 of the Act. The impact of Tucker's efforts, the evolution of the legal liability of financial and accounting officers over the next several decades, the increasing complexity of corporate finance and financial reporting that led to the establishment of the CFO as a position second only to the CEO, and the place of the accounting officer among senior management, are analyzed in the subsequent sections.

The impact of corporate governance mechanisms on earning management: Literature review and proposing framework

2012 ◽  
Vol 2 (1) ◽  
pp. 134
Author(s):  
Ebraheem Saleem Salem Alzoubi ◽  
Mohamad Hisyam Selamat
Keyword(s):  
Corporate Governance ◽  
Conceptual Framework ◽  
Financial Reporting ◽  
Audit Committee ◽  
Research Study ◽  
Senior Management ◽  
Earning Management ◽  
Starting Point ◽  
Governance Practices ◽  
The Impact

This research study seeks to come up with a conceptual framework that investigates the different mechanisms of corporate governance and its effects on earning management (EM). This is to help build a conceptual framework of governance practices and its mechanisms, which mainly consists of board of directors and audit committee. To build the conceptual framework, the background of governance practices and EM theory served as a good starting point. The current research study is based on the complete assessment of present literatures, the two mechanisms of governance practices and EM. This paper serves as a guide to senior management, who seeks to improve their company’s financial reporting quality (FRQ) through the execution of governance practices, in which the governance practices support their company’s FRQ efforts. Furthermore, the conceptual framework serves as a benchmark for practitioners to execute their governance practices more effectively and efficiently in their own respective firms. This paper seeks to close the gap on the existing literature, by giving guidance to the senior management of governance practices companies that aspires to discover the competency of EM. By developing a deeper understanding of the relationship between corporate governance practices and EM, senior management can thus focus their efforts on the practices that ensure the firms’ ability to establish a competitive FRQ.

scholarly journals A versenyképesség és a társaságok belső ellenőrzése (Competitiveness and corporate internal audit)

2012 ◽  
pp. 19-33
Author(s):  
Mária Bordáné Rabóczki
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Supervisory Board ◽  
Internal Audit ◽  
Senior Management ◽  
Internal Auditors ◽  
Mutual Dependency ◽  
Internal Audit Function ◽  
External Auditor ◽  
The Impact

A cikk a belső ellenőrzésnek a hatékony társaságirányításhoz való hozzájárulását és ennek a versenyképességre gyakorolt hatását vizsgálja. A belső ellenőrzés és a társaságirányítás kölcsönös összefüggésben áll egymással. Nemcsak a belső ellenőrzés hat a társaságirányításra, hanem a releváns társaságirányítási struktúrák, emberi kapcsolatok és magatartásformák jelentős hatást gyakorolnak a belső ellenőrzés színvonalára és hatékonyságára. A cikk ezért különös figyelmet szentel a belső ellenőröknek az igazgatósággal, az auditbizottsággal/felügyelőbizottsággal, a menedzsmenttel és a könyvvizsgálóval való kapcsolatainak vizsgálatára. Rávilágít a belső ellenőrzés legfőbb funkciójára, amely objektív bizonyosságot nyújt az igazgatóság és a felső vezetők számára a kockázatok azonosítására, kezelésére és elfogadható szintre történő csökkentésére szolgáló kontrollfolyamatok megfelelőségéről és hatékonyságáról. A bemutatott belső ellenőrzési modell azt a szemléletet közvetíti, hogy a belső ellenőrzés által nyújtott objektív bizonyosság megszerzése nemcsak a jogszabályoknak vagy az ajánlásoknak való megfelelés, hanem a társaságok versenyképessége szempontjából is kiemelkedő jelentőségű. _________ The purpose of this paper is to consider the contribution of internal audit to the sound corporate governance and the impact of that on the competitiveness of the companies. There is a mutual dependency between internal audit and corporate governance. Not only the internal audit has impact on the corporate governance but the relevant governance structures, relationships and behaviour influence the level and effectiveness of the internal audit. Therefore the present paper is highly concerned with the internal auditors` relationships with the board, audit committee/supervisory board, senior management and the external auditor. It highlights the internal audit function, that provides objective assurance to the board and senior management about the adequacy and effectiveness of the processes by which risks are identified, managed, controlled and mitigated to acceptable levels. The internal audit model demonstrated represents an approach, according to that getting objective assurance provided by internal audit is important not only to be in line with laws and recommendations but to facilitate the corporate competitiveness.

Corporate Governance Factors and Auditor Going Concern Assessments

2005 ◽  
Vol 4 (3) ◽  
pp. 5-29 ◽  
Author(s):  
Susan Parker ◽  
Gary F. Peters ◽  
Howard F. Turetsky
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Financial Distress ◽  
Audit Committee ◽  
Future Research ◽  
Going Concern ◽  
Sarbanes Oxley ◽  
Auditing Standards ◽  
Distressed Firms ◽  
The Impact

When making going concern assessments, Statement on Auditing Standards No. 59 (Auditing Standards Board 1988) directs auditors to consider the nature of management's plans and ability to mitigate periods of financial distress successfully. Corporate governance factors reflect attributes of control, oversight, and/or support of management's plans and actions intended to overcome financial distress. Correspondingly, this study investigates the impact of certain corporate governance factors on the likelihood of a going concern modification. Using survival analysis techniques, we examine a sample of 161 financially distressed firms for the time period 1988–1996. We find that auditors are twice as likely to issue a going concern modification when the CEO is replaced. We also find that going concern modifications are inversely associated with blockholder ownership. We also confirm Carcello and Neal's (2000) findings with respect to the association between an independent audit committee and an increased likelihood of modification. In a repeated events setting, we find that insider ownership and board independence are inversely associated with repeated going concern modifications. Our study concludes by proposing implications for the current financial reporting environment (including the Sarbanes‐Oxley Act of 2002) and future research avenues.

scholarly journals The extent of compliance with FRS 101 standard: Malaysian evidence

2017 ◽  
Vol 18 (1) ◽  
pp. 87-115 ◽  
Author(s):  
Azhar Abdul Rahman ◽  
Mohd Diah Hamdan
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Content Type ◽  
Corporate Compliance ◽  
Financial Reporting Standards ◽  
Compliance Level ◽  
Using Data ◽  
Analysis Models ◽  
The Impact

Purpose The purpose of this paper is to investigate Malaysian companies’ compliance with mandatory accounting standards. Specifically, this study examines the efficacy of agency-related mechanisms on the degree of compliance with Financial Reporting Standards (FRS) 101, Presentation of Financial Statements. It so proceeds by focussing on corporate governance parameters (board characteristics and ownership structure) and other firm characteristics. Design/methodology/approach Using data drawn from a sample of 105 Malaysian companies listed on the ACE market in 2009, the authors employ multiple regression analysis models to establish whether selected corporate governance and company-specific characteristics (proxying for agency-related mechanisms) are related to the degree of disclosure compliance. Findings The results indicate that the overall disclosure compliance is high (92.5 per cent). Furthermore, only firm size is positively associated with the degree of compliance. The other variables, those consisting of board independence, audit committee independence, CEO duality, the extent of outside blockholders’ ownership and leverage, do not show any significant relationship with the degree of compliance. Research limitations/implications This study focusses on only one accounting standard (FRS 101) that is mandatory in Malaysia. FRS 101 is both structured and rigid, leaving no room for companies to conceal any particular information. The sample of Malaysian companies selected is restricted to those listed only on the ACE market. As such, the results cannot be generalised to every company in Malaysia. Practical implications These results have important implications for policy makers because they suggest that whilst agency-related mechanisms may motivate compliance with mandatory standards, full compliance may be unattainable without regulations. Originality/value This is the only study in Malaysia to investigate the impact of regulatory requirements on corporate compliance level by companies listed on the new ACE market, which was introduced by the Bursa Malaysia in August 2009. This study contributes to the literature by examining the effects of both company-specific characteristics (such as company size, company age, liquidity, etc.) and corporate governance parameters on the degree of corporate compliance with mandatory disclosure, simultaneously, in contrast with prior studies which have examined them in isolation.

scholarly journals Board of directors, capital structure, investment decisions and firm-performance: An empirical study of Nordic firms

2020 ◽  
Vol 17 (4, Special Issue) ◽  
pp. 377-390
Author(s):  
Shab Hundal ◽  
Anne Eskola
Keyword(s):  
Principal Component Analysis ◽  
Corporate Governance ◽  
Firm Performance ◽  
Capital Structure ◽  
Corporate Finance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Investment Decisions ◽  
Principal Component ◽  
The Impact

Firms’ financing, boards of directors’ characteristics, investments, and firm-performance (financial and non-financial) occupy a pivotal place in corporate finance and corporate governance literature. The current study explores if causalities between the abovementioned four distinct albeit inter-related phenomena follow any pattern. The data comprising of 1240 firm-years belonging to Finland, Norway, Sweden, and Denmark for the period of 2003 to 2018 have been analyzed by applying multivariate linear regression and principal component analysis. The findings show that the impact of boards of directors’ characteristics is stronger on capital structure, however, weaker on investments and financial performance. The major contribution of the article is creating a set orderly and sequential causalities between financing, boards of directors’ characteristics, investments, and firm-performance.

scholarly journals The Effectiveness of Enterprise Risk Management and Internal Audit Function on Quality of Financial Reporting in Universities

2017 ◽  
Vol 9 (4(J)) ◽  
pp. 230-241
Author(s):  
Wadesango N ◽  
Mhaka C.
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
State Universities ◽  
Internal Audit Function ◽  
Enterprise Risk ◽  
The Impact

This study examined the impact of enterprise risk management (ERM) and internal audit function (IAF) on the financial reporting quality (FRQ) of state universities in Zimbabwe. Utilizing a dataset of 250 respondents from across nine (9) state universities, the researchers examined the effectiveness of ERM and the IAF on the quality of financial reporting in state universities. The researchers employed the contingency theory and studied each university separately to report on items that are specific to each and then also establish a commonality in the definition of parameters to be used in setting up the benchmark against which future performance may be measured. The findings were that there is a strong and significant relationship between ERM and the FRQ and also that there is a positive relationship between the internal audit function and FRQ. Quality internal audit results improved corporate governance systems. The results also underscore the significance and need for central government to establish and monitor a system of good ERM processes that minimize corporate governance breaches and enhance integrity and independence in financial reporting in state universities.

scholarly journals The Impact Of Private Securities Lawsuits On Accounting Conservatism And The Moderating Influence Of Corporate Governance

2021 ◽  
Author(s):  
◽  
Ryan Kerr
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Accounting Conservatism ◽  
The Impact

<p>This study investigates the impact of conduct which goes on to give rise to a securities lawsuit, and the filing of a securities lawsuit, on the level of accounting conservatism in financial reporting. This study also investigates the moderating influence of corporate governance on the level of accounting conservatism following conduct which goes on to give rise to a securities lawsuit, and the filing of a securities lawsuit. The study uses a sample of 617 privately enforced disclosure-related securities lawsuits against listed US firms, taken under SEC rule 10b-5 of the 1934 Securities Exchange Act, over the period 2002 to 2010. The results of the study indicate that following both the conduct that gives rise to a securities lawsuit, and the filing of a securities lawsuit, firms adopt higher levels of accounting conservatism. However, the study finds no evidence that corporate governance moderates the impact of securities lawsuits on the level of accounting conservatism.</p>

scholarly journals Integrated Reporting’s Impact on Corporate Governance: Study in Asean Capital Market

2020 ◽  
Vol 9 (1) ◽  
pp. 1
Author(s):  
Shanti Shanti ◽  
Bambang Tjahjadi ◽  
I Made Narsa
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Family Business ◽  
Capital Market ◽  
Positive Impact ◽  
Mining Industry ◽  
Financial Information ◽  
Integrated Reporting ◽  
Statistical Program ◽  
The Impact

<p class="JurnalASSETSABSTRAK">ABSTRACT</p><p>Integrated reporting (IR) that merges the firm's financial and non-financial information into one single reporting is the latest evolution of corporate financial reporting today. This study purposes to examine the impact of the implementation of IR on corporate governance, especially family business in the mining industry listed on the ASEAN capital market in the 2014-2017 period. The results of the study based on the Stata 14.2 statistical program concluded that the implementation of IR has a positive impact on corporate governance in the ASEAN capital market, i.e. the implementation of IR drivers changes in behavior and perceptions in corporate governance (reporting driven behavior), thus making corporate governance more effective.</p><p><em>ABSTRACT</em></p><p><em>Pelaporan terintegrasi (IR) yang menyatukan informasi keuangan dan non-keuangan perusahaaan ke dalam satu pelaporan tunggal merupakan evolusi pelaporan keuangan perusahaan terbaru saat ini. Penelitian ini bertujuan untuk meneliti dampak penerapan pelaporan terintegrasi (IR) terhadap tata kelola perusahaan, khususnya perusahaan keluarga dalam industri pertambangan yang terdaftar di pasar modal ASEAN tahun 2014 s.d. 2017. Hasil penelitian berdasarkan program statistik Stata 14.2 menyimpulkan bahwa penerapan pelaporan terintegrasi (IR) berpengaruh positif terhadap tata kelola perusahaan di pasar modal ASEAN, yaitu bahwa penerapan pelaporan terintegrasi (IR) memicu terjadinya perubahan perilaku dan persepsi dalam tata kelola perusahaan (reporting driven behavior), sehingga menjadikan tata kelola perusahaan menjadi lebih efektif.</em></p>

scholarly journals The Impact of Corporate Governance on Earning Management of Non-Financial Firms: Evidence from Pakistan

2021 ◽  
Vol 10 (1) ◽  
pp. 304-312
Author(s):  
MUHAMMAD TAHIR KHAN ◽  
IHTESHAM KHAN ◽  
SHAH RAZA KHAN
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Reporting ◽  
Management Practices ◽  
Stock Exchange ◽  
Research Work ◽  
Fixed Effect Model ◽  
Earnings Information ◽  
Financial Firms ◽  
The Impact

The main objective of the firm is to maximize the shareholder’s wealth; to achieve this objective the management indulge the earnings information by manipulation practices such practices reduce investors’ confidence. Furthermore, a hypothetical dispute recommends that a better quality of financial reporting reduce the information asymmetry, by refining the corporate governance compliance, result in reducing earnings management practices. Thus the main aim of this study is to explore the impact of corporate governance on earnings management by using panel data sample of 257 non-financial firms listed in Pakistan stock exchange for the period of 2012 to 2019 through Fixed effect model along with control variables. The results disclose that the CG system of Pakistan negatively and significantly impacts the EM activities of the companies registered in Pakistan stock exchange. Hence, concludes that the CG system is more effective to prevent the EM process. The entire results are seamless with prior research work that the effective CG scheme of the firms controls the EM and collapse of businesses. Keywords: Earnings Management, Corporate Governance, Corporate Governance Index.

Sign in / Sign up

Export Citation Format

Share Document