Finance and Accounting Services Outsourcing

In October 2001 one of the world’s leading corporations announced that it accrued a USD 618 Million net loss for the third quarter and that it would be reducing shareholder equity. Although this scandal was believed to be an anomaly, another large corporation in the telecommunications space declared an even larger fraud in 2002. The Forbes Corporate Scandal Sheet lists dozens of corporations falling prey to financial accounting fraud. The more recent cases are those of a global financial services firm failing to disclose Repo 105 transactions to investors in 2010, a leading Information, Communications and Technology firm presenting falsified accounts in 2009 and a business and commercial bank’s hidden loan controversy in 2008. This trend demonstrates the need for corporate governance to usher in a regime of greater accountability. Internal controls on financial reporting have been in place for a long time but have taken on relevance in recent times, as risk management has become more crucial. Whether an organization is large or small, public or private, internal controls over financial reporting are important to ensure that the policies, directions and procedures put in place by the board and management are functioning well. A good governance system in place, irrespective of regulatory obligations, is the way forward. This requires a team with technical knowledge, skills and a thorough understanding of the objectives of the organization to set up internal control for financial reporting, while maintaining the cost of compliance in check. WNS, a leading BPO specializing in Finance and Accounting Outsourcing, presents the right set of skills and expertise to chalk out a robust compliance management program such that, even if a new law or regulation is enacted at a later date, the organization needs to make minimal adjustments to their existing risk management and compliance program. WNS advocates in implementing these practices as part of the organization’s DNA.