PracticeAuditMinority of CFOs show support for audit standards

Minority of CFOs show support for audit standards

A Grant Thornton survey of CFOs in the US finds minority support for latest guidance on internal controls and new audit standards

In a
survey
of chief financial officers and senior comptrollers across USA, conducted by
Grant
Thornton LLP
, found less support for the Securities and Exchange Commission
(SEC)’s newly issued guidance (AS 5) on internal controls and the new audit
standard for auditing internal controls as 47.96% did not find it to be a
significant improvement over previous rules, compared with 43.89 % who did.

More than three-quarters or 79% of the CFOs believed the roles of chief
executive officer (CEO) and chairman should be held by different people.

In addition, three-quarters of the respondents thought the SEC should revise
the 8-K rules to require reasons for all company dismissals to auditors, for all
auditor resignations and for all instances in which the auditor chooses not to
stand for reappointment.

To the question ‘do you believe shareholders in public companies should have
greater access to the proxy?’ 66.06 % answered ‘yes’ and 29.86 %, ‘no’. To ‘do
you believe that small cap companies who test internal controls, according to
Sarbanes-Oxley, will be looked upon more favourably by investors than those who
do not test internal controls?’ 68.78% answered ‘yes’ and ‘29.41 %, ‘no’.

Further reading:

The FRC: all bark and no bite

Foreign profits consultation grinds to
halt

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