2. What will happen to the share price of a company if the board
announces that they will follow all the laws?
- Andrew Fastow, former CFO, Enron
3. The case for integrity in the finance function
Finance function
Accounting
system
Reporting and
compliance
Management
accounting
Treasury
Setting up
appropriate
accounting system
Covers both
financial and non-
financial data and
information
Preparation of
financial and
management reports
for decision making
Ensure compliance
with various
laws and regulation
Annual budget
Costing
Break-even point
Performance
assessment
Capital budgeting
and decisions
Cash flow
management
Short and long
term investment
Capital structure
4. Better business decisions and
risk management
Relevant information and reports for decision making and
compliance with regulation
Knowledge
integrity
System
integrity
Data integrity
People
integrity
Effective
check-and-
balance
Organisational culture set by the tone from the board and senior
management
6. It makes business sense to maintain accounting and tax
integrity:
• Reliable data, information and reports for effective
business decision making
• Reduced risks on non-compliance and penalties which
could disrupt business operation
• Enabled business to capture opportunities and enhanced
return to shareholders