If There Is A Regulatory Breach At An Accountancy Firm, Is The COO To Blame? — Mark Jones
The Chief Operating Officer (COO) of an accounting firm plays an integral role in ensuring that the terms of contracts are complied with. Therefore, in the case of a breach, they will be expected to answer some questions. Before we decide whether they are to blame or not, we will take a closer look at the duties undertaken by Chief Operating Officers in an accounting firm.
The Roles of a Chief Operating Officer
The chief operating officer is a senior executive who takes care of an accounting firm’s day-to-day administrative and operational undertakings. The Chief Operating Officer of the company will always report to the CEO. This is the second in the chain of command. In some cases, the Chief Operating Officer can be referred to as the executive vice president of operations.
The Chief Operating Officer ensures that an organization’s immediate plans are perfectly executed based on the business model. The CEO, on the other hand, will always focus on the long-term goals of the company and ensure that the right strategies are put in place to achieve them.
For example, if the firm experiences a drop in the market share, the CEO might suggest sold quality control. This is done to fortify the company’s reputation among its customers. If this happens, the Chief Operating Officer might be obliged to carry out some functions of the CEO, such as asking the human resource management to hire more individuals to take part in quality control.
What If There Is a Regulatory Infringement?
As we have seen, the Chief Operating Officer is the second in the chain of command after the CEO. Also, since the Chief Operating Officer is there to ensure that short term goals are achieved, they need to ascertain that each department is working correctly.
There are many ways the terms might be violated, but the Chief Operating Officer will have to blame if it happens. For example, as an executive, the Chief Operating Officer must ensure that each person in the accounting firm is familiar with the terms. If some parts are not exact, they must seek clarification.
The Chief Operating Officer will also supervise the work and see that instructions are followed to the letter at each stage. Therefore, the fact that there has been a violation means that the Chief Operating Officer failed to do their work. In that case, they will be asked to explain what happens, and if there is a disciplinary action to be taken, they will have to face it.
How To Handle The Situation
Terms are always put in place to ensure that companies don’t struggle to achieve the bottom line, so they must be adhered to. In case there has been a regulatory breach, the Chief Operating Officer must take action as soon as possible. This can be done by summoning the individuals responsible, ensuring that the CEO is informed about the matter beforehand.
The Bottom Line
Whether you are a professional accountant or a COO in an accountancy firm, it is vital to ensure that everyone understands the terms of operations. According to Mark Jones, companies that don’t operate on clear regulations are highly likely to fail before achieving short and long-term goals.
