Page 58 - E1 Integrated Workbook STUDENT 2018
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Chapter 4
Components of the finance function
There are four components to the finance function:
Management accounting
Process of measuring,
analysing, interpreting and
Financial accounting communicating information to
Preparing annual financial
management in a form that is
statements in accordance easy to understand.
with relevant accounting Management reports may
standards and legislation. include cost schedules,
budgets and variance reports.
Components
Treasury management Internal audit
Includes the management Examines and evaluates the
of working capital, cash organisation's risk management
management, financing, processes and systems of control,
foreign currency and tax. making recommendations for
improvement.
A properly functioning internal audit
department is part of good
corporate governance.
Illustrations and further practice
Now try TYUs 1-7 from Chapter 4.
Read illustrations 1, 4 and 5 from Chapter 4.
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