Hot potato.

AuthorBarman, Tanya
PositionUpdate

This month's dilemma:

I work as an FD with a small manufacturing company. I have had disagreements with the CEO about how the company's future cash flow is being forecast--based on projected sales. There is an over-reliance on projections from the sales team, focused on current clients.

I also know that many of the contracts on which the projections are based have not been finalised. I suspect that the company's prospects may be being misrepresented to the board and I have concerns about the ongoing position of the company as a result. How should I escalate my concerns?

Our response:

Raise the issue again with the CEO, keeping in mind your responsibility to uphold objectivity (section 120). It is always good practice to document any discussions and concerns, together with any potential solutions proffered, and you should consider copying any recommendation to the wider executive team. Under section 320 of the code, preparation and reporting of information, it is a requirement to "represent the facts accurately and completely in all...

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