A forecast is a best estimate of future events. Accurate forecasts help companie

Question

A forecast is a best estimate of future events. Accurate forecasts help companies may good strategic decisions and allocate resources. Individual managers can often have personal reasons for describing those events in the best possible light. This often puts the CFO in the middle of a bad situation. Is there an alternative (ethically and financially) that allows the CFO to do the right thing, maintain a good working relationship with their boss and provide the company with good data? Your response to this case should cover 1-2 typed double spaced pages.

Explanation / Answer

The chief financial officer (CFO)   is a corporate officer who is primarily and entirely responsible for managing and accessing the financial risks and opportunities of the company. CFO is also responsible for financial planning, record keeping, managing the assets, and financial reporting. Therefore, it’s a due responsibility of a CFO to present a true and accurate data even in an adverse situation.

An adverse situation puts a CFO in the middle of a bad situation as they have to respond the reasons and a possible action need to come out of the problem to their management. A CFO can avoid this bad situation, do the things right and maintain a good relationship with their bosses if they follow the points discussed below:

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