Narrative

The finance department has been at the forefront of designing unacceptable and unethical schemes that are detrimental to the companys reputation, performance, and compliance.

Draft a speech to be presented to the Board wit following points

ICFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles (GAAP).ICFR consists of five interrelated components: control environment, risk assessment, control activities, information and communication, and monitoring³.

• ESG factors are the environmental, social, and governance aspects of our business that affect our long-term value creation and sustainability. research outcome.
• Research has shown that companies with strong ESG performance tend to have higher profitability, lower cost of capital, better operational efficiency, lower risk exposure, greater innovation potential, and higher customer loyalty.Conversely, companies with poor ESG performance tend to suffer from lower returns, higher volatility, higher cost of capital, lower productivity, higher risk exposure, lower innovation potential, and lower customer loyalty
• ESG factors are not only relevant for our moral and social responsibility, but also for our financial performance and competitiveness.
• Fraudulent financial reporting and underhand dealings violate the trust and confidence of our stakeholders, such as our customers, suppliers, employees, investors, regulators, and the public. They expose us to legal, regulatory, and reputational risks that could result in fines, sanctions, lawsuits, loss of market share, customer dissatisfaction, employee turnover, and shareholder activism. They also undermine our commitment to ESG factors, which are increasingly important in todays business environment.
• ESG factors are the environmental, social, and governance aspects of our business that affect our long-term value creation and sustainability. They reflect how we manage our impact on the natural environment, such as our carbon footprint, waste management, and resource efficiency. They also reflect how we treat our people and society, such as our labor practices, human rights, diversity and inclusion, health and safety, community engagement, and customer satisfaction. And they reflect how we conduct our business with integrity and accountability, such as our corporate governance structure, board composition, risk management, internal controls, ethical standards, and transparency.
• To take immediate and decisive action to address the issues of fraudulent financial reporting and underhand dealings in our company.
• To restore our credibility and trustworthiness in the eyes of our stakeholders and demonstrate our commitment to ESG factors.
• To establish and maintain an effective system of internal control over financial reporting (ICFR) and adhere to ethical guidelines that govern our conduct as finance professionals.