This section emphasizes the critical role of financial reporting and disclosure in corporate governance. It highlights the importance of transparency for building trust, enabling informed decision-making, and ensuring legal compliance. Key financial statements—balance sheets, income statements, cash flow statements, and changes in equity—are explored, along with the essential functions of auditors in verifying financial accuracy. Regulatory requirements, such as IFRS and GAAP, guide financial practices, while ethical issues like earnings management and fraudulent reporting are addressed to uphold integrity and accountability.