How Compliance Is The Biggest Issue For CFOs

As much as Chief Executive Officers ("CEOs"), Chief Financial Officers ("CFOs") have been involved in corporate scandals reported around the world. There have been instances of connivance between CEOs and CFOs in fraudulent irregularities. Corporate scandals often involve material accounting manipulations, or what is commonly referred to as "cooking the books" which cannot otherwise be accomplished without the tacit nod of the CFO.

In the broader realm of effective corporate governance, CFOs play a vital role. One leg of the C-suite management tripod, CFOs are charged with various duties and obligations under several legislations including the Companies Act, 2013 ("CA 13"). These duties and obligations have, over time, evolved to indicate that the role of CFOs transcends that of just an accountant – CFOs are partners with CEOs/the Board in the business. A CFO is a key managerial personnel ("KMP"), who under the CA 13, now comes within the ambit of an "officer who