Exam CIMAPRA19-E02-1 Topic 5 Question 47 Discussion

A. Lack of knowledge may occur because there is less sharing of knowledge which can be achieved within a larger more diverse team. Best practice may not be employed and practices within some business areas may become outdated.

B. The accountants can feel isolated within the business and may develop their own ways of working which may not constitute best practice. Without a larger team around them, they may not be able to develop the acquired skills and knowledge.

C. It distances the accountants from everyday decision-making in that he/she will be unlikely to have day to day contact with the business area which the SSC supports. The outcome may be that the accountant is unable to provide up-to-date information for decision-making.

D. Loss of business knowledge as the finance function within the SSC may not have a detailed knowledge of each part of the business.

E. Business relationships are weaker. The SSC may not be able to build strong relationships with the business area, which may result in a deterioration of performance in the business area.