Thea Voogt

An exploratory study of the focus areas of South African Top 40 company CFOs

The roles and responsibilities of the chief financial officer (hereafter CFO) have evolved dramatically over the past 10 years. This article explores this evolution from a South African perspective by, firstly, presenting an extensive literature review on the matter. Secondly, a unique South African model of the key focus areas for CFOs is proposed. Lastly, the results of a questionnaire administered to the CFOs of FTSE/JSE Top 40 companies are reported. The results revealed significant findings relating to the CFO’s most important current and future role ‐ that of planner and strategist. In addition, CFOs at the top of the corporate ladder expect to focus more on their role as a growth and innovation catalyst. This article also identifies three key areas for future research that will make an important contribution to the continued development of the educational framework for chartered accountants.

Audit committee responsibilities vis‐á‐vis internal audit: how well do Top 40 FTSE/JSElisted companies shape up?

Effectively functioning audit committees have proven to fulfil a vital role in strengthening the role of internal audit. This article presents the results of a literature review that pinpoints six responsibilities that audit committees should perform in relation to internal audit. These responsibilities were tested as part of an empirical study focusing on the 40 largest companies listed on the JSE to determine the extent to which large listed companies in South Africa fulfil and disclose these responsibilities. The study consisted of an analysis of annual reports and a questionnaire administered to the chairs of audit committees. The study returned significant findings, including sound empirical evidence that the audit committees of the largest listed companies in South Africa are executing their responsibilities for internal audit effectively, but are performing more functions and responsibilities than those actually disclosed and reported on. While this apparent deficiency in disclosure may not affect the effective functioning of audit committees, it may influence perceptions about this effectiveness.