Role Of The Finance Function

Question 1

What does VUCA stand for?

Answer 1

Volatility
Uncertainty
Complexity
Ambiguity

Question 2

How does the finance function create and preserve value?

Answer 2

1. Enabling - planning, forecasting and resource allocation
2. Shaping - performance management/control
3. Narrating - corporate reporting

Question 3

What are the three basic groups of stakeholders?

Answer 3

1. Internal
2. Connected
3. External

Question 4

What does CIPOP stand for?

Answer 4

Confidentiality
Integrity
Professional behaviour
Objectivity
Professional competence and due care

Question 5

What are the personal qualities required of an accountant? (RRRTC)

Answer 5

Reliability
Responsibility
Respect
Timeliness
Courtesy

Question 6

What are the professional qualities required of an accountant? (SASI)

Answer 6

Scepticism
Accountability
Social responsibility
Independence

Question 7

What are the 4 main ethical stances?

Answer 7

1. Short-term shareholder interest
2. Long-term shareholder interest
3. Multiple stakeholder view
4. Shaper of society

Question 8

What is corporate governance?

Answer 8

The system by which companies are directed and controlled.

Question 9

What is the Sarbanes Oxley Act 2002?

Answer 9

Requirements relating to corporate governance in the United States of America.

Question 10

What is corporate social responsibility?

Answer 10

The responsibilities that a company has towards society.

Question 11

What are the 4 approaches to CSR?

Answer 11

1. Proactive strategy
2. Reactive strategy
3. Defence strategy
4. Accommodation strategy

Question 12

What are the 2 main motivations from Donaldson and Preston?

Answer 12

1. Normative
2. Instrumental

Question 13

What are the 5 As?

Answer 13

1. Assemble
2. Analyse
3. Advise
4. Apply
5. Acumen

Question 14

What order is the information to impact framework?

Answer 14

Information
Insight
Influence
Impact