Executives Use Accountants To Uncover Financial No-Nos

September 26, 2003 (PLANSPONSOR.com) - Nearly eight out of 10 (77%) companies have their accountants working with departments throughout the organization to uncover financial irregularities.

Trying to avoid becoming the next Enron or WorldCom, 150 executives surveyed by Robert Half Management Resources said they are working much more closely with their bean counters to stop potential corporate scandals before they happen.  

Overall, 47% of executives said they were working with their accountants somewhat more closely when asked “How have recent corporate accounting scandals impacted how closely your accounting department works with other departments in your organization on issues relating to corporate governance?”   Comparatively, three out of 10 responded to working with them much more closely and only 23% report no change/no answer.  

“Sound financial reporting is dependent on receiving accurate information from every operating unit of a business, whether the company is public or private,” said Paul McDonald, executive director of Robert Half Management Resources, in a statement. “All managers should play a role in ensuring their departments’ financial activities and reports are accurate and support the firm’s ability to comply with the Sarbanes-Oxley Act and related legislation.”

“Accounting professionals are providing direction and assistance to executives throughout the organization on compliance issues related to corporate governance. Firms where this interdepartmental collaboration is absent are at greater risk of errors in reporting,” McDonald continued.