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Are your financial statements unintelligible?
Many would agree that Sarbanes-Oxley has made financial statements more accurate, and that's a good thing. But the flip side of that record is that they are also more complex. To the average investors, you have to wonder if the audit process and rules have moved down a path toward utter incomprehensibility. Financial Week notes in a recent survey by the Center for Audit Quality, an accounting industry group, that 80 percent of investors polled feel that financial statements are overly complicated. So we have to ask: At what point does the process start to undermine the core mission to inspire confidence in financial results? Perhaps it's time to take a cold, hard look at your statements with plain English in mind. Article
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