Innovation

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Financial reporting: striking all the right notes

10 questions to ask yourself

From transaction processing to board oversight, the financial reporting process today is multifaceted. Many integrated processes, activities, and interactions between various parties are necessary to get it right. A typical finance team is being pressed to deliver varying and timely information to inform the organization’s strategy decisions, the audit committee’s oversight responsibilities are evolving to include emerging areas like cyber and other risks. And at the same time, auditors are contending with increased scrutiny from their own regulators.

Finance teams and audit committees are continually looking for ways to be at the forefront of financial reporting practices, and we’ve given that some thought.

We surveyed our Audit & Assurance partners from across Canada and asked where they commonly see opportunities for public companies to optimize their financial reporting processes, and in turn, what improvements would make the greatest impact on the execution of the audit. In this report, we explore 10 questions—and a catalogue of corresponding leading practices—to assist you in efficiently achieving quality, transparent, and reliable financial reporting.

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Article

Financial reporting: striking all the right notes

10 questions to ask yourself

Activities and interactions that matter

We want to help both finance and audit committees identify opportunities to optimize their financial reporting processes, in turn enhancing audit quality. Financial reporting: striking all the right notes explores the following questions:

CFOs
must understand the risks in order to establish the right processes and systems to manage and contain them.

  1. Are you confident your finance team has the right capabilities and capacity to achieve what is asked of it?
  2. How attentive are you to your system of internal controls?
  3. Is your data management strategy suitably comprehensive?
  4. How adequate is your oversight of outsourced services and external parties?
  5. Are your financial reporting preparation and close processes efficient?
  6. Do you consider your risk management process comprehensive enough?

Audit committee chairs
are charged with overseeing the adequacy of financial reporting, controls and compliance with laws and regulations, and reviewing and monitoring the activities of management and its finance team.

  1. Do you believe the audit committee has the right composition and dynamics?
  2. Do you consider your oversight of the financial reporting and controls to be effective?
  3. How effective are your oversight of internal and external audit processes?
  4. Are you attentive enough to risk?





Harmonious conditions for high-quality financial reporting

We’ve pinpointed 10 questions to ask yourself to reflect on the integrity of your financial reporting process, and how that impacts the overall audit execution.

Download the full report

Financial reporting: striking all the right notes from the Deloitte Institute for Audit Innovation and Quality, explores the optimal conditions necessary for companies to achieve high-quality financial reporting and audit execution process. We take a broader view to consider an organization’s risk profile and the factors that determine how well adapted its people, processes, and systems are to manage those risks, and how these factors influence the effectiveness of the audit.