Board members are realizing they have a direct interest in oversight of the company's finance function. But how can boards tell if the finance organization is strong enough to deliver financial statements that are timely, accurate and reliable? This article, written by Deloitte Consulting LLP Principals Steven Ehrenhalt, Bob Comeau and Bob Pagano, describes five signs that indicate the finance organization may be in over its head (along with some practical advice on how to address the problem).

In this article, we highlight five red  flags:

1. Reams of data but precious little insight
2. No one can remember the company’s last investment in finance systems
3. Excessive turnover in finance
4. Lack of a succession plan for the chief financial officer and other key finance leaders
5. Some board members are consistently quiet at board meetings
   

The article was published in the Fall 2007 issue of the Boardroom Briefing.

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