Among the crucial players with which financial managers work in the auditing department of the firm. In conjunction with controllers, the mentioned financial managers act with this auditing department in order to ensure that appropriate measures are taken so that the performance of the company could be significant. Auditors monitor and examine the processes of checks and balances in the framework of the firm to make sure that access to financials and data is proper, as well as fiscal operations are recorded and claimed. These actions should be undertaken in such a manner as to give potential investors and current shareholders precise information regarding the overall performance and the position of the firm in the market.
In this vein, it seems reasonable to provide the example of Enron and Anderson Accounting to demonstrate the consequences that may take place if the described above relations are absent. A number of this company’s financial managers utilized the approach of off-balance-sheet special purpose vehicles in order to conceal the enormous debts from the investors and shareholders. It should be stressed that this failure is considered the biggest bankruptcy issue that has ever occurred in the financial dimension.
According to Segal (2021), “The Enron scandal drew attention to accounting and corporate fraud as its shareholders lost $74 billion in the four years”. Here, the absence of appropriate recording of fiscal operations resulted in the loss of jobs and pension benefits for thousands of workers, which cannot be perceived as a great policy. Given the above analysis and the example, the importance of a financial manager’s activities, as well as their productive relations with other players of an organization, is proved.