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The Position of Chief Accounting Officer (CAO) is Gaining Popularity

A recent article reveals that since 2009 there has been a 40 percent rise in the number of chief accounting officers (CAO) among American companies. CAO’s now do much more than just manage the company’s books and prepare financial statements. Companies increasingly need a CAO that can stand up and debate strategic issues related to how best to balance the balance sheet, and know when and how to recognize revenue, and know how to report results using both USA and foreign standards (GAAP vs IFRS). CAO’s are more and more signing the company’s financial filings, making them personally liable for any mistakes or improprieties – along with the CFO and CEO. As more and more firms acquire foreign firms and even relocate their headquarters offshore (inversion), a CAO is needed who knows both USA and foreign insurance and accounting practices. Garu Kabureck, former CAO at Xerox Corp. says: “I think what happened over the last 15 years in the USA is that the accounting function started to separate from the controller function.” In a firm, a controller is typically more focused on budgeting and planning, whereas the CAO is responsible for the in’s and out’s of global bookkeeping. The CAO also interacts closely with the board’s audit committee, as well with outside firms auditing the company.

Based on: Kimberly Johnson, “Chief Accountants Are Adding Up,” Wall Street Journal, August 25, 2015, p. B5.

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