Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

×

Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

Two Cos. Hire CFOs From Unlikely Place: Their Auditor

Taub Stephen | December 21, 2004

In the past month, two companies announced they had tapped their new chief financial officers from the auditing firm with which they were doing business. At the surface, the move appears to be a violation of Securities and Exchange Commission rules regarding auditor independence.

But closer inspection shows that—though the new executives were indeed employed by the company’s auditor—they were not involved in providing audit services, specifically.

And therein lies the critical exemption.

The Circumstances

Back in November, Mossimo—a small, public, Santa Monica, Calif.-based company that sells apparel through retailer Target Corp.—named Vicken Festekjian its new CFO.

Festekjian had been at accounting firm of Moss Adams, where she spent about three years on the Mossimo account. That’s according to a company press release in late November. In...

Read this single article for $49, or click the subscribe button below to review subscription options.

Enjoy unlimited access to thousands of articles, browse five years of digital magazines, qualify for reduced admission to events, and more.