'Subcertification' Becomes Widespread Practice

One year after the Sarbanes-Oxley Act required CFOs and CEOs to certify their company's financial statements, a new survey by the Association for Financial Professionals (AFP) reveals that public companies are asking other corporate financial professionals to vouch for reported information as well.

This second layer of compliance is known as subcertification, and involves all levels of finance professionals, including treasurers and assistant treasures, cash managers, controllers, directors and managers.

According to the survey, nearly one-third of finance professionals in public companies indicated that they were asked to sign off on the financial information they reported that would ultimately be included in the company's financial reports.

Most of these professionals expressed concern over increased liability for their role, and one in five sought advice of corporate counsel to explore their additional exposure.

"I believe the prevalence of subcertification, while a direct result of Sarbanes-Oxley, reflects the increased level of importance that financial professionals hold within their companies," said Jim Kaitz, AFP's president and CEO. "Greater accuracy in financial reporting and increased accountability will ensure that most companies are honest and report earnings accurately. This knowledge will ultimately lead to a more stable economic environment."

You may like these other stories...

Curious as to what the fastest-growing accounting and finance jobs might be for the next several years? According to the new 2015 Salary Guide from staffing firm Accounting Principles, some of those jobs include bookkeeping...
An increase in hiring of accounting and finance professionals can be expected in the next 12 months, according to a recently released jobs outlook from staffing firm Brilliant.Brilliant, in conjunction with Richard Curtin,...
2013 marked the third consecutive year CPA firms in the United States saw a spike in annual revenues, according to the latest national practice management benchmarking survey by The Rosenberg Associates Ltd. and The Growth...

Already a member? log in here.

Upcoming CPE Webinars

Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 12This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.