New guidance for auditors: Focus on small-company CFOs

When it comes to small companies, a really good CFO can make all the difference. The PCAOB has released new guidance in the form of an instruction manual designed to complement AS5, notes CFO.com. It makes clear that a good CFO can create the conditions for a relatively low-cost Sarbanes-Oxley compliance process or it can wreak havoc.

Smaller companies tend to have simpler financial reporting systems and more centralized accounting functions and fewer levels of management, the PCAOB suggests that auditors should focus more on the CFO when it comes to Sarbox controls. So it really make sense to have your CFO also be the Sarbox go-to guy, the one who can answer auditor questions. If he can instill confidence, you can bet the process will got much smoother. This ups the pressure on the CFO, but that's what the job is all about these days.

For more:
- here's the article

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