Author Archives for Cindy Fornelli

Updating the Auditor’s Report: Opportunities and Challenges

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“The new audit report is a great opportunity for the profession.” So spoke Marty Baumann, chief auditor and director of professional standards at the US Public Company Accounting Oversight Board (PCAOB), at a panel during the American Accounting Association (AAA) Auditing Section’s midyear meeting this past January. I agree wholeheartedly with Marty. Updating the auditor’s reporting model in the United States represents an extraordinary opportunity, as it has in the United Kingdom and elsewhere. Yet as we discussed on that January panel, with opportunities come challenges—and I have put together some strategies for addressing those challenges. The Standard To understand... Read More


Seven Principles for Understanding and Avoiding Short-Termism

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Six years ago, Warren Buffett, John Bogle, Barbara Hackman Franklin, and two dozen other business luminaries sounded the alarm about short-termism by signing Overcoming Short-Termism: A Call for a More Responsible Approach to Investment and Business Management. This manifesto highlights an unhealthy focus on short-term results that overwhelms “the desirable long-term growth and sustainable profit objectives of the corporation.” Despite this call to action, overcoming short-termism remains a stark challenge for many companies. In fact, as the National Association of Corporate Directors’ (NACD) 2015 Blue Ribbon Commission observed, “factors encouraging a short-term focus are stronger now than ever before.” Additionally, in... Read More