CFOs not confident in corporate reporting
Australian chief financial officers (CFOs) are losing confidence in corporate reporting and its effectiveness, according to an Ernst & Young (EY) survey.
The survey said this was thanks to pressure from audit committees, the complexity of implementing new reporting requirements, and reporting overload.
Only 40 per cent of CFOs were confident in their overall level of compliance, and 22 per cent had confidence in the clarity and relevance of messages to respective audiences.
The survey said part of this drop was from increased attention from audit committees (90 per cent of respondents), analysts, investors, and financial regulators.
EY financial accounting and advisory services partner, Graham Jackson, said corporate reporting needed to be all things to all people — relevant, timely, and cost effective.
"CFOs need to step back and evaluate what they are producing and be prepared to engage regularly with key stakeholders on their needs. Only then can they be confident of delivering a valuable product," he said.
The survey found the increased complexity and attention from stakeholders highlighted challenges such as internal controls and governance systems, the complexity of the organisation's global structure, and weaknesses in supporting IT infrastructure.
Half of the respondents said they did not have a consistent approach to data collection as a key challenge, and 90 per cent were expecting to increase investment in reporting technologies.
Recommended for you
ASIC has issued infringement notices to two AFSLs over financial advisers providing personal advice while they were unregistered.
Australian retirees could increase their projected annual incomes by as much as 51 per cent through comprehensive financial advice, according to a Vanguard study, but cost continues to be an issue.
AMP has announced a senior appointment to its North leadership team, reinforcing the firm’s commitment to the advice industry.
Despite the financial adviser exam being rooted in ethics, two professional year advisers believe the lack of support and transparency from the regulator around the exam is unethical.
