Exam 4: Management Concepts

Brett and Erin are accountants working for XMP Corporation; Brett is very interested in working his way up to being XMP's chief financial officer. He is confident that he can complete all his assigned tasks well before their established deadlines and control costs in his area. Which elements of expectancy theory are illustrated in that example?

Explain how Brown's risk taxonomy, discussed in the chapter on internal control, relates to COSO's enterprise risk management framework. You do not need to list the elements of Brown's taxonomy.

The COSO enterprise risk management framework comprises eight sections, one of which is objective setting. COSO identified five types of objectives most organizations should consider in developing an ERM plan. "Completing SEC filings within thirty days of the fiscal year end" is an example of a ___ objective.

Gelton was leading a team of three co-workers focused on improving their company's process for hiring new employees. They had read the company procedures manual describing the current process, then interviewed newly-hired workers about their experiences. They used the principles of activity-based costing to determine the average cost of hiring a new employee, then created a line graph tracing the average cost over the last twelve months. "Reading the company procedures manual" and "interviewing newly-hired workers" are examples of:

Gelton was leading a team of three co-workers focused on improving their company's process for hiring new employees. They had read the company procedures manual describing the current process, then interviewed newly-hired workers about their experiences. They used the principles of activity-based costing to determine the average cost of hiring a new employee, then created a line graph tracing the average cost over the last twelve months. Which of the following statements is most true?

Consider the following statements as you respond to the next question: i. Ask managers to think of one hundred uses for a brick, other than for building things.ii. Assess the educational background and organizational experience of employees.iii. Conduct a one-day seminar on how business processes can create value in the marketplace.iv. Encourage managers to suggest ideas, even if they are impractical.v. Hold weekly meetings to update interested parties on the BPM project; ensure at least one member of top management attends each meeting.vi. Ignore opinions and insights from people not directly involved with a business process.The text discussed seven basic principles of business process management. Which of the following both illustrates one of the principles and relates to the event identification component of the COSO enterprise risk management framework?

COSO has published integrated frameworks for both internal control and for enterprise risk management. Which of the following statements about the frameworks is most true?

Jay is trying to convince the company president that risk management is important. Which of the following statements is most true?

Pearl had been asked by her boss to develop a new way to process expense reimbursements in her company. In your own words, list and discuss the steps Pearl should take to accomplish her task.

Tim graduated from college three years ago, and recently has been promoted to a management position at a local charitable organization. The organization's internal controls are weak, and Tim wants to improve them; but, his employees lack motivation for doing so. Tim has sent an e-mail to Jackie, his professional mentor, asking for ideas about improving the employees' motivation.Compose an e-mail to Tim explaining how he could use expectancy theory to motivate his employees to improve the organization's internal controls. Make sure the e-mail has sufficient detail for Tim to implement the ideas you suggest.

Indicate with "yes" or "no" whether each of the following statements upholds the basic principles of business process management discussed in the text. You do not need to identify the BPM principle involved.

Nestor and Maureen are partners in a small consulting firm located in the Republic of Bufflufia; the firm has six employees. For the last five years, the firm has focused on tax planning and tax return preparation. But, Nestor and Maureen are now interested in expanding the firm's scope of services. They are considering risk management consulting, fraud examination and business valuation as potential areas to expand the firm. They are sure at least three of their six employees would put effort into at least one of those three areas, but expanding the firm's services would require additional training for everyone.Business valuation is the process of estimating the economic value of an owner's interest in a business, often for the purpose of buying / selling that ownership interest. Based on the short case above, which of the following statements is most true?

Nestor and Maureen are partners in a small consulting firm located in the Republic of Bufflufia; the firm has six employees. For the last five years, the firm has focused on tax planning and tax return preparation. But, Nestor and Maureen are now interested in expanding the firm's scope of services. They are considering risk management consulting, fraud examination and business valuation as potential areas to expand the firm. They are sure at least three of their six employees would put effort into at least one of those three areas, but expanding the firm's services would require additional training for everyone.Based on the short case above, which of the following statements is most true?

COSO has published integrated frameworks for both internal control and for enterprise risk management. Which of the following statements about the frameworks is most true?

Which of the following best pairs an element of the COSO enterprise risk management framework with an example of that element?

Consider the following statements as you respond to the next question: i. Based on my research and reading, I'm sure I want to pursue a career in fraud examination.ii. Good grades and leadership skills generally lead to a good job.iii. I am sure I'll pass the CPA exam on my first attempt.iv. I can definitely complete my accounting degree within four years.v. I've spoken to several friends and family members who work for large corporations.Which group of statements combines all three variables in expectancy theory?

Annie and Ray were having a conversation about business process management; several statements from that conversation are listed below: A. A weekly e-mail to all employees will help everyone stay informed about our progress. B. I know a great consultant who can help us out; that way, we won't have to bother company employees too much. C. I think we should create a suggestion box where employees can give us their ideas and express their concerns about the project. D. I'd suggest putting together a cross-functional team to help with the project, but we have to make sure we avoid people who will only protect their own department. E. Let's make some minor modifications to our existing process; that should be enough to satisfy almost everyone. F. Our company has always been able to compete based on the quality of our product; any new process we design should enable us to keep doing that. G. The very first thing we need to do is get rid of all paper forms; they only create waste and inefficiency. H. The vice president of operations gave me a clear description of what the process should look like, but I'm not sure he understands how things really work around here. I. We should consider the impact this new process will have throughout the organization.j. We should look for a consultant with a lot of experience; the consultant should be able to provide us with all the detail we need about matters like how long the project will take and what milestones we should set along the way.Analyze the statements; indicate which ones support the basic principles of business process management discussed in the text. For each statement, indicate the relevant BPM principle (whether supported or not).

Nestor and Maureen are partners in a small consulting firm located in the Republic of Bufflufia; the firm has six employees. For the last five years, the firm has focused on tax planning and tax return preparation. But, Nestor and Maureen are now interested in expanding the firm's scope of services. They are considering risk management consulting, fraud examination and business valuation as potential areas to expand the firm. They are sure at least three of their six employees would put effort into at least one of those three areas, but expanding the firm's services would require additional training for everyone.Based on the short case above, which of the following statements is most true?

Which element of expectancy theory is illustrated by each of the following statements? 1. After changing his major from finance to accounting, Andy planned a schedule that would allow him to finish his degree in four years. 2. Anh's suggestions for business process improvements often result in changes at her company. 3. Erin wasn't entirely sure that she wanted the extra responsibilities associated with a promotion. 4. Gloria's boss promised her a reward if she completed a training course on business process management. 5. Shortly after his hiring, Zachary knew he eventually wanted to be named "employee of the month."

Brett and Erin are accountants working for XMP Corporation; Brett is very interested in working his way up to being XMP's chief financial officer. He believes if he completes all his assigned tasks well before their established deadlines and controls costs in his area, he will be promoted. Which elements of expectancy theory are illustrated in that example?