Question

If you were the CFO of the facility, what type of corporate compliance processes would you have in place? Which federal statutes would you include in your compliance process? What types of skills would you look for in the person that keeps up with these regulations?

please give refernces so I can better understand

Answer 1

A CFO is responsible for the finacial division of the organization. Ideally following corporate compliance process should be in place:

1) Control of cash flow- Accounting policies for credit and collection should be established properly to have control on movement of cash flow, whether source or uses. Every cash flow movement should be recorded properly.

2) Company liability: Process should be in place to take care of legal contracts, statutory & tax liability, expectations from loan covenant, etc. Overall, effective control should be in place to have continuous check on liability.

3) Financial relationship: Proper line of communication should be established with investment bankers, financial analyst and shareholder to ensure smooth exchange of financial information.

4) Financing or Raising capital: Establish & execute programs for the provision of capital required by company including negotiations on financial arrangement, via debt or equity.

Following federal statutes can be added:

Sarbanes-Oxley Act - Defines responsibility of top management for accuracy of financial numbers.

Following skill set are required:

1) Expertise in subject Knowledge of accounting as well as law

2) Excellent communicator to handle financial relationship with key stake holder

3) One who is always updated on ongoing changes in policy inside out.

4) Should be a people manager

5) Hold high on honesty and integrity