Question

corporate & accounting responsabilities

1 Explain how information can reduce risk when making a decision. 2 Explain why accurate accounting information and audited financial statements are important. 3 Read and explain a balance sheet, income statement, and statement of cash flows. 4 Summarize how stakeholders evaluate the financial health of a business. 5 Understand what is meant by business social responsibility. 6 Discuss the factors that affect the level of ethical behavior in organizations. 7 Explain how ethical decision making can be encouraged. 8 Identify the steps a business must take to implement a program of social responsibility

Answer 1

1.Information and risk are related to each other. If there is a more information then there is better decisions and less risk. On the other hand, if there is a less information then chances of poor decisions are more that will increase the risk.
Risk is everywhere in business. And information one of the assets that an organisation can use to mitigate the risk. With the help of right information, company can achieve the organisation goal effectively and efficiently.

In line with this, organisation are using many tools for the same. One example is Management information System - this system provides all the information to the managers and employees that they need to perform their job.

Hence, if everybody is informed then there is less chances of ambiguity which will lead to less risk as each and everyone is clear about roles and responsibilities.

2.Accurate accounting system and audited financial statements will provide a true and fair view of an entity to the users of the financial statement which help them to make better and informed decision.
Accurate and audited financial statements helps the potential investor to build trust on the organisation.
This is why accurate and audited financial statements are important.