In: Operations Management
Review the codes of ethics and professional standards in the module resources and then address the following questions:
What is the manager’s responsibility regarding ethical
financial reporting?
What challenges might a manager face in ensuring ethical accounting
and financial analysis practices?
answer :
MANAGER'S RESPONSIBILITY REGARDING ETHICAL FINANCIAL REPORTING :
Monitor the preparation of financial statements :
Ensure the accuracy of the financial statements :
help in making important management decision :*
Timeliness of financial statements :
it is the role of managers to ensure that the financial reports are generated in a timely manner. Meeting the deadlines are of prime importance.
CHALLENGES FACED BY MANAGERS IN ENSURING ETHICAL ACCOUNTING AND FINANCIAL ANALYSIS PRACTICES:
managers usually have a subordinate team of various individuals working with the numerical data. therefore in case of an error or a missing important data it imposes huge pressure on the managers to verify and correct the errors in a timebound senario.
. there is a massive challenge when the inputs to the financial reports come from various quaters of the company and it has to be presented in a unified manner.
. the ever changing business environment is another challenge to the managers that comes in way of ethical financial reporting. managers as well as the team should be well versed with current business environment and the updated standards , rules and regulations.
staff and line conflict is another issue that managers face in case of the ethical financial reporting . that is managing and cordinating the efforts of the team of subordinates . situation where the subordinates fails to meet the deadlines or their conflict against the interest of the company.