CEO & CFO Perceptions About AIS Impact on Firm Performance & FInancial Reporting

CEO and CFO perceptions about AIS impact on firm performance and financial reporting: How do SOX, COSO, and the implementation of IT help reduce fraud and increase productivity in a business? In the multifaceted, dynamic, corporate global milieu, imminent rifts continue to rattle the arenas of accounting/finance. The personal ambitions of CEO’s and CFO’s outweighed their responsibilities toward shareholders, employees, operations, civic/ethical duties, and the general financial system. CEO’s primarily focused on their own profitability, by increasing margins, meeting shareholder/market expectations, and expanding by any means necessary. Therefore, this lead to CFO’s and other members of top management on the front lines in manipulating margins to promote growth; thereby committing various levels of fraudulent activities, mainly to manipulate poor financial performance. The intertwining of ethical dilemmas and constant conflicts of interest endangered employees, shareholders, customers, and the general public.
With the passing of Sarbanes-Oxley (SOX) in 2012, the act demanded, “that corporate management design and implement internal controls over the entire financial reporting process.” (Hall, 2013) In reference to CEO turnover and the appropriateness and effectiveness of a board, board of directors that are, “dominated by independent directors are more likely to remove a CEO based on poor performance than boards dominated by insiders.” (Dah, Frye, & Hurst 2013) “During the post-SOX, significant decline in the incidence of CEO turnovers for compliant firms.” (Dah, Frye, & Hurst 2013) Top management have adopted Accounting Information Systems, utilizing information technology and new understandings of physical controls in the workplace, in their effort to comply with SOX, the Committee of Sponsoring Organizations (COSO), and to maintain ethically conscious decisions.
A company’s internal controls have been under scrupulous review and are continuously examined

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