Financial statements can be a tool of effective governance only if they provide consistent, detailed, and accurate information.

Question

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Financial statements are able to provide valuable information to governing bodies only if they offer consistent, detailed, and accurate information. With incorrect, vague, or inconsistent data, executives will not be able to make informed decisions about the management of their organizations, leaving them vulnerable to financial losses, reduced performance, and other negative outcomes. Therefore, it is critical that organizations take the necessary steps to guarantee that their financial statements are well-organized, transparent, and trustworthy.

Financial Statements Can Be a Tool of Effective Governance Only