Keeping Your Company’s Accounting Straight

Topics:
Investor Relations
Tags:
Accounting,
Ernst & Young LLP,
Finance,
Financial Services,
Operational Accounting
Source:
Ernst & Young

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Overview: For the most part, corporate financial reporting seems to moving away from the front pages of major newspapers and back to the business section where it belongs. But directors are no doubt still nervous about the possibility of their company being or becoming another Enron. For starters, it is critical that directors set the right tone at the top. One need to insist on: Conservative accounting policies, full and understandable disclosure in footnotes, rigorous auditing by both the external and internal auditors and two-way communications. Thus, if the financial results look too good to be true, they may not be true. At some recent corporate failures, the analytics looked okay but they shouldn’t have, given general industry conditions.

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Format: PDF | Size: 35KB | Date: Sep 2003 | Pages: 2

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