Their common goals—quality financial reporting and creating value for the business and its stakeholders—may be clear, but as chief financial officers (CFOs) and audit committees grapple with expanding workloads, increased complexity, enhanced regulatory oversight and ongoing digital disruptions, staying in sync has never been more challenging.
The work of the CFO and the finance function has continued to expand beyond financial reporting. CFOs often have responsibility for a range of nonfinancial issues, including, cybersecurity, artificial intelligence (AI), interacting with the regulator and digital transformation, as well as managing strategic risks—all of which may require new skill sets on the finance team. Many CFOs today do not have a traditional accounting and financial reporting background. At the same time, the composition of many audit committees has changed to reflect expanded committee oversight responsibilities for a range of risks, many of which are nonfinancial, such as cybersecurity, generative AI, environmental and social issues. The expanded role of the audit committee means that ongoing education for all members is vital, with some members requiring deeper dives in specific areas.
