Financial Responsibility Gains Ground In 2002

This has been the year of unrelenting corporate financial scandals, and it's also been the year in which we've witnessed a growing number of business executives being indicted for malfeasance or other alleged financial crimes. As a result, rules were enacted requiring top business executives to attest that their company financial statements are true and accurate.So it comes as little surprise that reporting financial data more accurately is a business priority for an ever-increasing percentage of companies. This year alone, the percentage of 300 business-technology executives who said this was a priority climbed from 68% in the second quarter to 70% in the third quarter to 75% in the fourth quarter, according to InformationWeek Research's Priorities 4Q 2002 survey.

The unanswered question is, who makes up the 25% who say more accurate financial reporting isn't a priority?

The goal of improving the accuracy of financial data seems to be felt a little more strongly within the IT industry. In manufacturing, 71% said it was a priority while 75% of those in the services industry said the same thing. However, a hefty 83% in the IT industry identified it as a priority in the fourth quarter, perhaps because many of the questionable financial reports emanated from technology companies. Plus, businesses in many industries have turned to IT to help ensure the accuracy of financial data and reports.

Nearly two-thirds of survey respondents said the recent accounting scandals had little or no effect on their relationships with IT vendors. About a third, 35%, said they were going forward with existing vendor relationships, but that they would be careful with future relationships. Only 1% said they were holding back on all vendor relationships.

How will the accounting scandals affect your IT operations in 2003? Let us know at the address below.

Paul Travis
Senior News Editor
[email protected]

Prevalent Endeavors
Is your IT division implementing or supporting tools that let you report financial data more accurately?

Companies of all sizes in InformationWeek Research's ongoing Priorities study have increasingly been investing in tools and procedures that allow for better financial reporting. By the fourth quarter of this year, approximately three-fourths of the study's small, midsize, and large companies will have involved IT in this pursuit.