Many CFOs could intentionally misstate financial statements, aren't aware of XBRL

In a national survey of chief financial officers and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International, 62 percent believe it would be possible to intentionally misstate their financial statement to their auditor. In addition, 47 percent of CFOs are not aware of eXtensible Business Reporting Language (XBRL), the new standard for tagged business information.

Survey results

Do you believe it would be possible to intentionally misstate your financial statement to your auditor?

Yes 62.44 %
No 37.10 %

Do you think it is possible for auditors to detect any and all corporate fraud (e.g., even if they are being intentionally misled by management with respect to a company's financial health)?

Yes 16.74 %
No 83.26 %

Is it the auditor's responsibility to detect any and all fraud?

Yes 17.19 %
No 82.35 %

Are you aware of eXtensible Business Reporting Language (XBRL), the new standard for tagged business information?

Yes 53.39 %
No 46.61 %

If the SEC makes filing in the XBRL format mandatory, what is the first year's results for which you expect such filings to become mandatory?

2007 0.45 %
2008 11.31 %
2009 31.67 %
2010+ 49.77 %

Grant Thornton's survey ended on September 26th and incorporated responses from 221 CFOs and senior controllers, 55 in publicly held companies, 158 in privately held companies, and 8 other. More than 70 percent of respondants are in companies with less than $100 million in annual revenue. Survey participants came from 38 states and the District of Columbia. Twenty-two percent indicated their companies are engaged in manufacturing, 15 percent in technology, 10 percent in financial services, 6 percent in banking and financial institutions, 6 percent in not-for-profit, 5 percent in health care, 5 percent in retail, and 31 percent in other businesses.

You may like these other stories...

By Jason Bramwell The board of trustees of the Financial Accounting Foundation (FAF) finalized a new policy on November 19 that provides the Governmental Accounting Standards Board (GASB) with direction on what...
By Jason Bramwell The Governmental Accounting Standards Board (GASB) is now offering a free online toolkit designed to assist preparers and auditors of state and local government pension plans with implementing new...
By Steven Brenner With the news that the Financial Accounting Standards Board (FASB) – in conjunction with the International Accounting Standards Board (IASB) – intends to formally move...

Upcoming CPE Webinars

Apr 17
In this exciting presentation Excel expert David H. Ringstrom, CPA shares tricks that you can use with pivot tables every day. Remember, either you work Excel, or it works you!
Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.