Newsletter

Another Increase in Accounting Deficiencies....

We'd like to shed light on an escalating issue that demands our attention — the consequences of major deficiencies within accounting firms and their alarming increase over the years.

The Public Company Accounting Oversight Board inspectors anticipate approximately 46% of the audits reviewed in 2023 will have one or more deficiencies compared to the firm's inspection reports in 2022 at 43%, up from 40% in 2021 and 26% in 2020.

The integrity of financial reporting is the backbone of a healthy economy. However, recent trends reveal a disconcerting rise in the incidence of significant deficiencies within accounting practices. These deficiencies can result in inaccurate financial statements — thus misleading investors and damaging market stability.

While accounting firms have been traditionally regarded as pillars of trust, it's crucial to acknowledge that even the best can stumble. Regulatory bodies worldwide are intensifying their scrutiny and penalties for such lapses.

Why is the rate of deficiency increasing? Factors such as complex financial instruments, global economic volatility, and evolving accounting standards have contributed to the challenges faced by firms. It's paramount that we recognize this trend and collectively work towards rectifying it.

As professionals in the financial and business sectors, we hold a shared responsibility to uphold transparency and accuracy in financial reporting. By staying informed, advocating for improved practices, and promoting a culture of integrity, we can reverse this concerning trajectory.

Let's engage in a constructive dialogue about the steps we can take to address this issue and bolster trust in financial markets. Feel free to share your insights, experiences, and suggestions in the comments below. Together, we can foster a more robust financial landscape.

Executive Interview

Christine Petrozzino, Senior Director of Corporate FP&A at Capri Holdings

Christine Petrozzino is currently the Senior Director of Corporate FP&A at Capri Holdings Limited , a multinational fashion company comprised of Michael Kors, Jimmy Choo, and Versace. They are known for their handbags, shoes, watches, clothes, and other accessories. In recent news, the conglomerate was just acquired by Tapestry around two months ago.?Christine has an extensive background with companies like ADP and Ralph Lauren.

We at Hire Point Recruiting were given the opportunity to gain Christine’s perspective on current trends within the retail sector, Capri Holdings, and career advice. While working for these organizations, Christine supported their Financial Planning and Analysis function, system transformations, and managed large teams.

Enjoy the Q&A below!!

Q1. What makes retail different than other industries and how has it changed from your early days at Ralph Lauren until now?

Retail is an industry that moves at a very fast pace compared to other industries I’ve worked in. ?I love that it’s tangible and you can walk into a store and touch and feel the product or shop online.? People that work in retail are usually passionate about the product and want it to succeed.? If you don’t care about the product or use it in your personal life, you may not be as invested.? I recently attended a Versace sample sale and purchased a few items for my own use, which I was excited to bring to the office.

When a new product comes out everyone in the office gets excited.? People will come to your desk and say, “Did you see our new bag?!”? Or say “What shoes are you wearing?”? No two products here are ever the same.?

I’m obviously a big fan of our products so it’s not uncommon for me to sport a fresh new bag almost every time I go to the office (laughs).? Retail is a passion of mine for sure.

The business keeps evolving and the landscape has shifted.? Customers shop more online, data analytics is playing a significant role, and people are seeking increasingly faster checkout experiences. Why wait in line at a store when you can check out on an iPad?

There’s also a pop culture aspect to retail.? If a celebrity shares a photo on Instagram wearing Versace, it's sure to spark conversations throughout the office, which makes it a fun and lively atmosphere.

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Q2. How is Capri different than other organizations you worked for??

Capri is very brand focused and centric, so employees here are invested and want the brand to succeed.? There is a strong sense of comradery which is one of the main reasons I enjoy working here.? We still have Michael, Donatella, and Sandra (founders) involved, so our employees want to be successful for them.?

There are a lot of companies that say, well this is how we’ve been doing it…but Capri has always been open to change and willing to make things better.? Since we have multiple brands, we've created a culture of mutual learning and collaboration to create synergies.?

People can come up with as many ideas as they want, but if people aren’t willing to act it doesn’t matter.? It makes it rewarding to work here and feel like you’re making a difference.

Also At Capri, when you make a change, a customer’s behavior changes pretty quickly so it’s a fast response time compared to other industries with recurring revenue models where nothing moves the needle.?

Q3. What advice would you give young professionals getting into retail for the first time?

I would say if you have an interest in retail or fashion, I would definitely try it.? One thing I’ve seen is that people in retail move around in terms of job function more frequently than other industries.? Many other teams, such as the merchandising and product teams, also utilize financial skills.? People may start in finance but end up transitioning elsewhere.

Questions like, where should we ship the product? ?What products are selling?? Which aren’t?? Should we raise prices?? Should we spend more marketing dollars?? What does that get us?? It’s not exactly finance but those skills are valuable.? I would almost call it “Shadow finance”.

It’s the product that drives you and personal interest, so if they have any interest in fashion or retail, you never know where you’ll end up.

Q4. You’ve had a great career, do you have any general advice on how to be successful in the corporate world?

What’s helped me is that I’ve always been open to doing new things that aren’t necessarily in the job scope.? Yes, you signed up for a job, what they are asking you to do is not in the scope, but if they are asking you to do it, embrace it and don’t resist it.? You will learn, there are a lot of people that aren’t well rounded and that prohibits them from growing.? I was just on a system implementation project which I’ve never done before.? So why not, roll up your sleeves, blow things up, do things you haven’t done before.

Even at ADP I had that mindset, just jumping in on things, if you feel scared to try something or help out, just do it.? Worst thing that happens is you make a mistake but at least you learned and people will see you at least tried.? What is the worst that can happen?

There are certain people that only want to do a certain thing, don’t want to step/think outside the box.? That is going to prevent them from growing.

Q5. What do you look for when interviewing people for your team?

I am all about the people skills, willingness to learn, ability to communicate, and their level of drive.? Everything else can be taught but you can’t inherently change someone.? I just hired someone with no FP&A experience but she came from banking, is super smart, and loves retail and wants to learn. Versus someone that has been at another retail organization for a number of years, they will know the finance and learn our systems faster, but that’s not someone I would want.? Work ethic is also very important.? I don’t focus on technical skills, it’s about the people.? Having the right mindset and natural curiosity to figure things out.

A very special Thank You to Christine for this amazing interview! - from everyone at Hire Point Recruiting :)

Why Work with Us?

Working with recruiting firms to secure your next role or fill roles on your team, especially in accounting and finance, holds massive importance for several compelling reasons. First and foremost, specialized firms, like ourselves, have a deep understanding of the industry's intricacies, job market trends, and the specific skills required by employers. Our expertise enables us to match candidates with the most suitable positions, increasing the likelihood of finding a perfect fit! Additionally, we have extensive networks and connections with top-tier companies, giving candidates access to exclusive job opportunities that may not be publicly advertised. The guidance and personalized support provided by Hire Point Recruiting throughout the job search process can significantly enhance an overall successful outcome. Hire Point specializes in helping candidates and companies navigate interviews, negotiate offers, and secure competitive compensation packages. In the competitive realm of accounting and finance, collaborating with a reputable recruiting firm becomes an invaluable strategic advantage, paving the way for a rewarding and prosperous career path. Don't hesitate to reach out to our team members at Hire Point, because we all have the same goal, WIN for you!

Leadership

Kate Donato — [email protected]

Anthony Carrea — [email protected]