Question

Problem 4  

Identify two different types of stakeholders that rely upon financial information provided by a firm’s CFO/ Accounting manager.

For each type, identify examples of the kind of information that the stakeholder needs, and the likely published / available source of the information (what output from the system will provide the needed information).

Looking for specific examples on this answer not broad generalized commentary.    I need to see effective depth in your discussion.

Answer 1

Two different types of stakeholders that rely upon financial information provided by a firm’s

1.Investors

• Investors also seeking a potential investment opportunity to earn maximum return on their investment with minimum cost
• So they only invest in a business proposal or project that is making consistent profit
• They using different analysis(technical and fundamental)to check the growth of return from the proposed investment proposal
• For this purpose they mainly using historical data and current data, they collect data from the Financial statement of the company, various annual report, stock market, opinion of various experts

2.Government agencies

• Government agencies need financial data for various purposes like to determine the net tax liability, protect the interest of investors(by statutory audit), For various economic decisions related to inflation , recession and formulating various government policies
• They collecting information from various return submitted by the company and from the report of the statutory auditor and from other sources