Internal controls and human capital management are keeping financial executives up at night

Internal controls and managing the workforce topped the list of financial executives’ concerns, according to a survey by U.S. audit, tax and advisory firm KPMG LLP during its 32^nd Annual Accounting and Financial Reporting Symposium.

“Considering the focus on non-financial reporting such as ESG, as well as the state of our economy, it’s not surprising that controls and ensuring they have skilled professionals top financial executives’ concerns,” said Tim Walsh, KPMG National Managing Partner – Audit Operations. “Most companies have long said that their employees are their most valuable asset. COVID-19 and the difficulty of finding, developing, and retaining talent in the current environment have highlighted the importance of talent and human capital management.”

32nd Annual AFRS Survey Infographic

Take a look at some of the findings from this year's survey.

The survey of more than 600 financial executives found that internal controls over financial reporting were respondents’ top concern at 22%, while human capital management was a close second at 20%.

KPMG’s 32nd Annual Accounting & Financial Reporting Symposium in December 2022 drew a sold-out crowd from across the country and provided financial executives with valuable insights on how to successfully navigate the rapidly evolving business environment. Each year, the Symposium offers in-depth updates on important financial accounting and reporting developments from the past year, as well as insights into what to expect in the future.

“Our Symposium is a marquee thought leadership event. This year’s Symposium featured a network of KPMG thought leaders who shared the latest information on FASB and SEC current developments, technical accounting updates, ESG, technology-enabled internal controls, crypto assets, cybersecurity, digital acceleration, risk management, data and talent,” said Stacy Nahas, KPMG Chief Client Care Officer – Audit. “These topics are important for executives focused on financial reporting.”

The survey also found:

64% of respondents said their concern about cybersecurity increased in the past year.
53% said ESG is important, but it is not linked to their overall strategy, and 61% said they are in the process of establishing an ESG reporting strategy.
48% of those surveyed said their company has not yet discussed or is in the early stages of migrating its ERP to a cloud-based solution.

KPMG’s 33rd Annual Accounting & Financial Reporting Symposium will be held November 30 – December 1, 2023, at the ARIA Resort & Casino in Las Vegas. Register early before the event sells out again.