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In any case, when faced with important decisions that require sound financial analysis, CFOs can always be called up to sit in at select board meetings to provide counsel. He or she does not need to be part of the board to fulfil this important role.
1.4 The CFO has administrative responsibility for the Director of Internal Audit who is accountable to the Board through the Chair of the Audit Risk Committee. They must ensure the avoidance of any conflict of interest or compliance issues in despatching this administrative responsibility.
While the heads of internal audit usually dont report directly to CFOs, they do look to finance chiefs for leadership. Best practice is for the head of internal audit (also called the chief audit executive, or CAE) to report functionally to the audit committee and administratively to a top executive, usually the CFO.
A key CFO role is to manage risk. While a boards risk committee may oversee enterprise-level risk management, many audit committees also expect the CFO to take a leading role in managing enterprise and operational risk beyond traditional financial, accounting, and regulatory compliance risks.
CFOs work to protect the vital assets of the company, ensure compliance with financial regulations, close the books correctly, and communicate value and risk issues to investors and boards.
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In any case, when faced with important decisions that require sound financial analysis, CFOs can always be called up to sit in at select board meetings to provide counsel. He or she does not need to be part of the board to fulfil this important role.
The Smith Report was a report on corporate governance submitted to the UK government in 2003. It was concerned with the independence of auditors in the wake of the collapse of Arthur Andersen and the Enron scandal in the US in 2002.
1.4 The CFO has administrative responsibility for the Director of Internal Audit who is accountable to the Board through the Chair of the Audit Risk Committee. They must ensure the avoidance of any conflict of interest or compliance issues in despatching this administrative responsibility.

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