Exam 5: Management Concepts

Laurie and Milton are concerned about the risks created by inefficiency in the company's current fixed asset purchasing process.They could address their concern by developing: (i) an enterprise risk management plan, (ii) a business process management plan.

One of the basic principles of business process management discussed in the text states: "Ensure that top management can describe current business processes before trying to modify the processes." Which of the following would be the most appropriate way to fulfill that principle?

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.

COSO's Enterprise Risk Management-Integrated Framework comprises all the following sections except:

Laurie and Milton were developing a business process management plan for their organization.Which of the following actions should they take first, based on the generalized model of BPM discussed in the text?

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

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 table as you respond to the questions: Which of the following is the best choice for Item A in the table?

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.Part of fraud examination is analyzing an accounting information system and other sources to determine if fraud has occurred.If Nestor and Maureen expand their practice into fraud examination, which of the following statements is most true?

Laurie and Milton were developing a business process management plan for their organization.After deciding to focus on the process of purchasing fixed assets, they should:

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?

Nancy talked to two friends who had recently worked on developing enterprise risk management plans; one project was successful, but the other was not.Determine which statements in the list below were associated with the successful project; then, identify the element of the COSO enterprise risk management framework that most clearly applies. a.Backup power supplies and adequate insurance are good ideas. b.I'd say the risk is moderate to high at an inherent level, but we can probably reduce it if we implement some new procedures. c.I'm glad the president let us bring in a speaker about ERM before the project got started. d.If we have a power outage, our cooling systems could fail, leading to damaged inventory. e.Let's put together a memo that explains the work we've done to everyone in the company. f.Our costs are out of control, so let's cut them by 10%. g.Our goal is to lose no more than 1% of our inventory due to spoilage. h.Should we simply accept the risk? Or should we try another way of reacting to it? i.The operations manager and inventory control clerks can let us know how the process is working. j.We need to make the company more profitable. k.Why would anyone outside inventory control need to know what we've done?

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?

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?