The global COVID-19 pandemic has created the greatest financial crisis since the Great Depression. Despite the challenges of today’s unprecedented times, there are, nonetheless, strategic principles that merit thoughtful consideration in solving today’s unprecedented problems.
One of the critical components of financial statements is the audit report. While audited financial statements are not perfect they should be “good enough” that the informed investor, having read the financial statements, has enough data to make knowledgeable decisions based on the firm’s history and its management’s handling of finances.
Jeffrey Pfeffer who noted that most organizations are victims of ineffective leaders who fail to research or apply correct management principles.
Directors must know what information is needed to govern effectively – and take responsibility for getting it.