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Under the Pandemic, How the Going Concern Topic Reshapes Audit Dialogue

As the economic impact of COVID-19 persists, going concern has become a focal point for private and public companies. Bob Dohrer, Chief Auditor of the American Institute of CPAs (AICPA), analyzes the new implications of this accounting concept under the pandemic and offers specific recommendations for companies to communicate with auditors and address going concern doubts.

Opinion
After the CFO Departs, Who Will Take the Helm?

COVID-19 may usher in an era of unexpected turnover among finance executives. An analysis of 50 CFO transitions by CFO Dive shows that 75% of successors are internal, with most having strategic and operational experience. However, as CFO responsibilities shift toward strategy and operations, formal succession plans are becoming less common, and the probability of interim CFOs being promoted permanently ranges from about 10% to one-third. Executive search experts point out that the CFO role is evolving from an accounting-technical focus to an 'operational finance' orientation, and the disappearance of the COO position has further amplified the CFO's strategic weight.

Deep DiveJane Thier
Five Transfer Pricing Actions Multinational Enterprises Should Focus on During COVID-19

The COVID-19 pandemic has led to supply chain disruptions and declining demand, exposing multinational enterprises to the risk of ineffective transfer pricing policies. Based on insights from experts at Crowe LLP, this article proposes five action recommendations: reviewing existing transfer pricing policies, re-evaluating intercompany agreements, assessing debt positions, proactively addressing tax audits, and considering the tax implications of supply chain adjustments, to reduce tax efficiency losses and ensure compliance.

Opinion
The Spectrum of the CFO Role: Where Do You Stand?

Amid increasing global economic uncertainty and technological penetration, the CFO role is undergoing profound transformation. Based on observations by Shawn Cole, President of executive search firm Cowen Partners, this article analyzes the shift in CEO expectations for CFOs, pointing out that traditional financial expertise is merely an entry requirement, while creativity, communication skills, technological literacy, and strategic flexibility have become core competencies for CFOs in the new era. The article references KPMG's concept of the 'Renaissance CFO' and emphasizes the CFO's bridging role in connecting daily operations, long-term strategy, and financial goals.

Opinion
Needs Determination and Eligibility Review: Key to Avoiding PPP Loan Liability Risks

Amid the economic impact of the COVID-19 pandemic, the rigor of needs determination and eligibility review when businesses apply for Paycheck Protection Program (PPP) loans directly affects their legal liability risks. Based on insights from Annie Railton, a partner at Goodwin law firm, this article analyzes the oversight structure under the CARES Act, three key review focuses, legal consequences of false claims, and specific measures to mitigate risks, emphasizing the importance of thoroughly documenting decision-making processes and acting in good faith.

Deep Dive
Driving Enterprise Value Growth through Reputation Management

Facing an economic slowdown, CFOs should look beyond traditional financial metrics and prioritize reputation risk management. Based on research by Steel City Re, this article analyzes the relationship between reputation and stock prices, bond ratings, and cash flow, and uses BNY Mellon as an example to demonstrate how reputation resilience can enhance a company's relative market performance during a crisis.

Opinion
Under the Pandemic, CFO-CIO Collaboration Becomes Key to Business Survival

The pandemic has forced CFOs to re-evaluate corporate spending, and the role of data is increasingly prominent. CFO-CIO collaboration not only helps address short-term financial pressures but also enhances long-term competitiveness by optimizing IT investments and extending asset life. This article, combined with practical cases, elaborates on the value and implementation paths of cross-functional collaboration.

Opinion
Impairment Testing of Goodwill under COVID-19: Challenges and Response Strategies

The economic uncertainty caused by COVID-19 has made fair value and future cash flow forecasting in goodwill impairment testing particularly complex. This article outlines the two calculation methods for impairment testing, key points for identifying triggering events, fair value assessment amid market turmoil, the application of scenario analysis, and the necessity for companies to explain impairment judgments to shareholders.

Deep Dive
In a crisis, moving financial processes to the cloud is not enough; the key lies in unification

The pandemic has forced finance teams to work remotely, but merely migrating processes to the cloud is not sufficient. OneStream Vice President John O'Rourke writes that scattered financial applications hinder efficiency, while a unified platform provides a single source of data, accelerates closing, supports agile planning, and helps enterprises navigate uncertainty through predictive analytics and automation.

Opinion

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