New Financial Reporting Act Can Benefit Automotive Companies, Says Executive Responsibility Advisors

BLOOMFIELD HILLS, Mich.--Oct. 1, 20035, 2003--Auto supplier companies are well prepared for the federal government's new corporate reporting requirements, says Larry Gatt, a partner at Executive Responsibility Advisors LLC.

"For many automotive supply companies, developing the necessary controls documentation to support claims of accuracy is familiar territory," says Gatt, whose firm specializes in the assessment and improvement of internal control structures to assure compliance with governmental regulations and requirements.

"Manufacturers understand that detailed management involvement and documentation of controls is essential to support claims of accurate quality -- this is the basis for ISO quality certifications," Gatt notes. "A parallel case is now made by the Securities and Exchange Commission (SEC) related to accurate, verifiable financial reporting." Better financial reporting can benefit organizations throughout the automotive supply chain, he said.

"Most companies will gain benefits beyond compliance," says Jim Martin, also a partner at Executive Responsibility Advisors. "Companies that 'get it right' will find the requirements of new federal regulations will make them better. Evaluation should help to identify potential weaknesses and deficiencies before a system breakdown can occur, and will help companies detect fraudulent financial reporting and deter or minimize fraudulent behavior and the accompanying adverse effects. This promotes an attitude in which integrity is important and ethical behavior becomes the norm," Martin continues.

"Even smaller, privately-held organizations need to be informed and aware of the process changes implicated by the Act, especially as their customers begin to require their adoption," says Martin.

For its clients, the Bloomfield Hills based Executive Responsibility Advisors LLC applies a proven system for assessing current practices and reporting structures to identify gaps and developing action plans to remediate high-risk areas. The firm assists in implementing process and controls structure for compliance and provides on-going monitoring to maintain compliance in an ever-changing regulatory environment.

"The ultimate goal is to make ethical behavior part of a company's corporate culture," says Martin. "The foundation of our country's investment system rests on the faith of shareholders in the quality of a company's financial reports."

Executive Responsibility Advisors LLC and its partner firm, Cendrowski Selecky PC provide consulting services to private and public companies regarding corporate governance issues, regulatory compliance, business process controls design, business process redesign, fraud detection and deterrence, forensic accounting, program management and training and education.

Cendrowski Selecky PC, founded in 1983 and celebrating its 20th anniversary this year, provides innovative and responsive tax and operational recommendations to large, diverse organizations as well as private business owners. The companies recently spearheaded the development of a comprehensive fraud-deterrence training program to support a new professional designation, the Certified Fraud Deterrence Analyst (CFD), for a major professional association, the National Association of Certified Valuation Analysts (NACVA).