The finance industry functions based on several strict regulatory measures. Accurate information forms a determining factor in evidencing compliance with legislations like the Sarbanes-Oxley Act and Basel III. A mismatch between the finance reporting information breaches the regulatory compliance, and this might lead to substantial penalties, litigation, and damage to reputations. A firm's commitment to its information being correct ensures openness and cleanness, leaving regulators and stakeholders with feelings of trust.
Performance Evaluation - The actual data is necessary for the analysis of the performance of a company. The ROI, profit margins, and cash flow analysis are all measured by real figures. False data might mislead a company to not make proper assessments of their performance and hence they make wrong strategic decisions as well as resource allocations. It is through this reliable data that an organization will be in a position to evaluate its performance and make the necessary adjustments.