As we know, the chief financial officer (CFO) is the officer of a company that has primary

responsibility for managing the company's finances, including financial planning,

management of financial risks, record-keeping, and financial reporting. In some sectors, the
CFO is also responsible for the analysis of data.

Stakeholder

Nick is responsible for liaising with stakeholders regarding finances (e.g., bankers, investors).
Nick should be on the side as an investor. Stakeholders ideally share an interest in making
sure that capital is deployed with maximum efficiency. But they likely have their definitions
of what that means, even if they are attempting to be neutral. CFOs should bring clarity to
those roles and responsibilities. Transparent governance and improved accountability in
capital allocation are substantially enabled when a broad set of stakeholders gets involved in
developing standard objectives, measures, tools, and processes. If Prescott’s disclosure
strategy is not on their side. Nick can directly advise stakeholders on decisions about the
Prescot strategy. It seems that the direction is wrong and brings disadvantages rather than
advantages to the company

Control

The chief financial officer (CFO) holds the top financial position in a LEXM. They are
responsible for tracking cash flow and financial planning and analyzing the company's
financial strengths, and weaknesses, and proposing strategic directions other than that nick.
Oversee the organization's financial activities, including being responsible for the finance and
accounting professionals who perform operational functions, and serve in a strategic advisory
role for the CEO. Other than that, Nick needs to manage risk as the business executes its
strategies and initiatives as well as maintain a strong internal controls environment and
financial reporting processes. With the power, nick can reject Prescot’s instructions, and he
can disclose cash flow in the third quarter.

Ima ethics

The next power of the CFO is monitored by a professional body regulator. In this case, IMA

is an association that promotes the management accounting specialty. The IMA has its
Statement of Ethical Professional Practice for its members. Managerial accountants should
never commit acts that violate the standards of ethics, and they should never ignore such

deeds by others within their companies. All employees within a company are expected to act
ethically within their business actions. This can sometimes be difficult when the company
itself almost promotes the idea of unethical actions. As a member of IMA, IMA will always
monitor their member to always follow the ethics as a management accountant should do.
Nick can influence Prescott to do the best for the finances of the company and itself.

Advising

CFO is responsible for advising and supporting the organization's strategy with financial
resources. Nick needs to develop a systematic understanding of the company’s baseline
profitability through profit mapping. Nick is also responsible to create a wide budget for the
company and providing guidelines for company finance. Nick is also the person who knows
more details about the company's finances, then Nick can advise the CEO and influence the
company's decisions. So, Nick has the right to give financial advice to press out because he
knows it better than the CEO.

Conclude

Nick should consider the following courses of action the resolution process could include a
discussion with the member’s immediate supervisor. If the supervisor appears to be involved,
the issue could be presented to the next level of management such as the other board director.
IMA offers an anonymous helpline that the member may call to request how key elements of
the IMA Statement of Ethical Professional Practice could be applied to the ethical issue of
LEXM. Nick should consider consulting his or her attorney to learn of any legal obligations,
rights, and risks concerning the issue. If resolution efforts are not successful, DFO Nick may
wish to consider disassociating from the organization to protect his future career and
professional reputation.