QUESTIONS & ACTIVITIES

Read The Institute - ’The role of accounting in business’.

1. How do Chartered Accountants serve the public interest?

2. List three users of accounting information.

3. Outline the purpose of preparing financial reports.

3. Explain three limitations of financial reports.

4. What are the objectives of sound financial management?

5. Name and explain (in your own words) five different fields Chartered Accountants can work in.

6. Why is clear and transparent reporting vital to a company?

7. Why are businesses under increased scrutiny nowdays?

EXTENSION ACTIVITIES

1. There have been many examples of companies becoming insolvent after poor or fraudulent financial management. Investigate one of these companies and present a report the events leading to their collapse. Include how these events could have been prevented with effective safeguards, transparency and financial management. Examples could include Enron, WorldCom, OneTel, HIH or Centro.

2. Using the website of St James Ethics Centre (www.corporate-responsibility.com.au) look for the information relating to ethics in business. What is corporate social responsibility and how is it achieved?