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ACCA Strategic Professional · Advanced Financial Management · The role and responsibility of senior financial executive/advisor

Zentra plc is a listed multinational whose board is considering a large overseas acquisition. According to the AFM syllabus view of the senior financial adviser's role, which primary responsibility best describes the adviser's contribution to the board's decision?

The senior financial adviser's core responsibility is to recommend financial strategies that aim to maximise shareholder wealth while taking account of risk, ethics and other stakeholders' interests. The adviser cannot guarantee returns, replace the auditor, or run production schedules.

  1. ARecommending strategies that aim to maximise shareholder wealth while considering the interests of other stakeholders and the risks involvedCorrect
  2. BGuaranteeing that the acquisition will deliver the forecast returns to shareholders
  3. CReplacing the external auditor by verifying the financial statements of the target
  4. DSetting the operational production schedules of the overseas subsidiary

Explanation

The senior financial adviser advises the board on financial strategy, typically aimed at maximising shareholder wealth within risk, ethical and stakeholder constraints. Guaranteeing returns is impossible because outcomes are uncertain. Audit and production scheduling are not the adviser's role.

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