Question:
Task 1
Assess how financial systems and the financial function in your organisation interact and relate to other functions
within the organisation. Describe the financial framework and its components, including the systems of
accounting, controls and financial statements used.
Using financial statements or a set of accounts, perform an analysis of the information that would support
organisational decision-making.
Guideline word count: 1,000 – 1,200 words
A.C. 1.1 – Assess the relationship(s) between a financial system/function and other systems/function in
an organisation
A.C. 1.2 – Describe the systems of accounts and financial statements used to control a financial system
A.C. 1.3 – Analyse financial information contained in a set of accounts or financial statements
Task 2:
A.C. 2.1 – Construct a budget for an area of management responsibility
A.C. 2.2 – Develop budgetary control systems comparing actuals with planned expenditure
A.C. 2.3 – Discuss corrective actions to be taken in response to budgetary variations
A.C. 2.4 – Identify conflicts that can occur with management control systems and how these could be resolved or minimised
Task 3:
A.C. 3.1 – Define the current and potential sources of finance that support organisational activities
A.C. 3.2 – Evaluate the distribution of finance in support of organisational activities
A.C. 3.3 – Evaluate the monitoring and control of finance employed in support of organisational activities
Solution/Answer
A.C. 1.1
Assess the relationship between a financial system/function and other systems/functions in an organization
Finance constitutes an important part in the functioning of any organization because in order for the organization to make profits, it requires a steady flow of funds to make planned expenditure for delivering products and services which will generate the profit after sale. Therefore, any activities conducted by the other departments in the organization without suitable financial considerations can have a drastic effect. For example, if purchase decides to place bulk orders to avail discounts, but there aren’t sufficient funds, it could affect the relationship with the suppliers, or if the sales team decides to extend credits or discounts in order to increase sales, it will have an effect on cash flow and finance which will not be able to collect when it is needed for the business. The activities of other departments are in turn dictated by the financial system of the organization. For instance,………………………………………………………………………………………………………………………………..Please contact our team to receive guidance, support and tutorial services on this assessment in full
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