Do CFO's make better CEO'S? Introduction The CFO possesses many significant advantages as well as disadvantages if he/she is chosen to become the CEO. Recently an increasing number of company boards have decided that in order to best serve shareholders it is prudent to promote the CFO to CEO. CFOs themselves remain reticent about any personal ambitions beyond the CFO role - at least in public. But given this recent string of high profile promotions there is an increasing recognition that they
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2010, p.90). Though there are many benefits that have come out of SOX, many argue that there are several issues that should be addressed. As a team we will discuss the main advantages and disadvantages of the act, the effect the act has had on CEO’s and CFO’s of publicly held companies, how the act has affected the function of internal controls within organizations, and what changes should be made to act. What Are the Main Advantages and Disadvantages of SOX? The Sarbanes-Oxley Act
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Sarbanes-Oxley The Sarbanes-Oxley act of 2002 is a law passed to control financial scandals such as Enron and WorldCom, and restore investor confidence. Sarbanes-Oxley, or SOX as many people call it, was considered a significant change to federal securities law, but at the time, the costs were unknown. Today after nine years, companies have realized that the costs of this act are not be stopping the fraud as originally expected, and it is having some unintended consequences to the securities industry
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Sarbanes-Oxley Act (SOX) of 2002 Topics Covered: How SOX affects the following: CEO’s and CFO’s of Public Companies Outside Independent Audit Firms SOX section 404 on Internal Control The Main Advantages and Disadvantages of SOX Executive Summary The Sarbanes-Oxley Act of 2002 (SOX) was intended to create more transparency in financial reporting and to combat the perceived inflation of CEO compensation. To do this, the act required that a board of directors be financially independent from
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Donahue 1 Jaime Donahue Professor Phillip Miller Principals of Management 12th, December 2012 Sarbanes-Oxley Act’s Impact on Corporate Business Business scandals, Ponzi schemes and fraud are something we have all heard of. Over the years there have been many accounting scams from companies all over the world. We all remember one of the most publicized cases of fraud, Enron. For many years there has been fraudulent activity in many companies. Sarbanes-Oxley was established to
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Better Solutions to Information Overload Substantial information overload is present in every organization. I can recall specifically working in the Marketing/IT department for a small computer outsourcing firm several years ago in Omaha, Nebraska. The company’s business model was to show potential clients that outsourcing their finance, IT and HR department’s data systems with their firm could save them tremendously short and long term. The company invested millions of dollars into state-of-the-art
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Introduction Benefits are incentives used to attract and retain quality employees. Benefits can range from short-term to boost production and employee moral to long-term to make employees want to stay and be loyal to the company. There are benefits that are required by law and those that common in most work places but surprisingly not required by labor laws but are used to attract and retain employees as well as keeping the organization competitive in the job market. There are different types
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an apple pie. To make an apple pie, first, we need to have flour which is the main ingredient. Thus, data is our main ingredient. However, Databases are like huge swimming pools. There are many data sources that we can collect data but having all the data cannot make a good apple pie which is desired at the end. Similarly, no matter how many ounces we have the flour, it is not possible to prepare an apple pie with having only flour. In this step, knowledge which is ‘know how to make a pie’, takes place
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publicly traded companies, by holding those in power in the corporate world accountable for their actions. The Act increases penalties for executives who do misdeeds and imposes internal governance rules on their companies (Bawa, 2004). How does the Act hold executives accountable? The legislation requires the most senior company executives (CEO’s, CFO’s, etc.) to certify the company’s financial statements each time those reports are filed with the Security and Exchange Commission (Brigham & Ehrhardt
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The DNA of the CFO A study of what makes a chief financial officer 2010 Our thanks to nearly 700 CFOs who participated in the study and, in particular, to those who shared their insights and personal experience of the role in a series of interviews: Giacomo Baizini CFO, Evraz Ben Noteboom CEO, Randstad Srikanth Balachander CFO, Bharti Airtel Caroline Raggett Managing Director, London financial officers’ practice, Russell Reynolds Associates Evelyn Bourke CFO, Friends
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