Reference no: EM132943897

Financial Management Essential Content

LO3 Evaluate the role of management accountants and accounting control systems

Key functions of a management accountant:

The application of financial management techniques to generate, interpret and present financial data to support effective decision-making.

Financial management systems:

The collection of activities ensuring effective financial management and the management of financial risk. The use of new and advanced technologies to build integrated and inclusive financial systems. The operational benefits and risks of new technology.

Cost control and effective financial planning:

Using past performance data, known information and predictions to control costs and support operational, tactical and strategic planning.

Internal and external controls:

Understanding what the controls are and why it is important to have both internal and external controls in place.

Using financial management to detect and prevent fraud:

Understanding what constitutes fraud, the implications of engaging in fraudulent activity and the techniques employed to detect and prevent fraud. 

Question:

M3 Critically evaluate the role of management accountants and accounting control systems to support a culture of ethical financial management.