PracticeAuditWorldcom – we need more transparency

Worldcom - we need more transparency

WorldCom points to the increasing need for accounting transparency inevery business, says Graham Steinsberg, CEO CODA.

The current scandals involving accounting irregularities with what we usedto call ‘blue chip’ companies, have implications for every CFO. In the caseof WorldCom, the initial explanation was that the misallocation of expensesto capital spending went unnoticed. Then of course there was Enron and Tyco.

They highlight an underlying problem, not just for blue chips. With theincreasing complexity of modern systems and financial accountingprocedures, it has become more and more difficult for those in charge ofcompany accounting systems to track and monitor all the accountingjudgements that are being made at an operating level.

It confirms the need for a new generation of Best of Breed financial engines which will allow any CFO to have instant visibility of the company’s financials – locally, by country, globally, by product or operating division; that will be capable of instantly adjusting to new systems developments and fiduciary requirements; that will allow non-financial executives to make the right business decisions based on real financial information.

In today’s complex environment every CFO knows that accounting is not anadd-on for the business, it’s the essential engine. As with Formula Oneracing cars, all engines aren’t the same. Ferrari has proved that you onlyget the best by extreme specialisation, backed up by high levels of R&Dexpenditure

Related Articles

The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

4d Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

5d Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

2w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2m Alia Shoaib, Reporter