Page 61 - E1 Integrated Workbook STUDENT 2018
P. 61
The purpose of the finance function
Conflict within the finance function
Three key factors can result in conflict:
1. Interdependence 2. Short-term 3. Capital versus
versus revenue
independence versus long-term expenditure
The different Tasks carried out by Disagreements may
occur over whether
components may the finance function
rely on each other to tend to have a short- an item is capital or
revenue expenditure.
share information term focus, for
and resources. example budgeting
However, they also and variance
need to work reporting. However,
independently to this short-term focus
may be to the
achieve their own
needs, for example, detriment of long-
internal audit need to term success.
work independently
to retain objectivity.
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