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Giving Finance Dept. the Audit It Deserves

Dan Swanson | July 1, 2008

Usually I write a column about how to audit some aspect of a whole enterprise—say, how the company manages risk, or how executives invest their IT dollars. That’s important. But we shouldn’t lose sight of the nuts and bolts: Companies are run by specific departments doing specific jobs, and they need auditing too. So we’re going to get back to our internal auditing roots this month, starting with the finance department.

The finance function is critical because it helps drive most organizations to higher levels of performance. A well-run finance department enables sound financial management, strategic planning, organizational performance reporting, treasury-related activities, and financial reporting (among many other things). It tells you how many dollars are coming and going and where they’re coming from and going to. Without that information, people are driving blindfolded, and the organization will have a... To get the full story, subscribe now.