What are the primary reasons for separating operational tasks?

Q: Which of the following is the impact of agency cost?

A: Agency costs are internal costs incurred due to the competing interests of Shareholder i.e the…

Q: Identify the traditionally segregated duties in noncomplex IT systemsand explain how increases in…

A: In the traditional accounting system, the duties related to the transaction authorization,…

Q: What constitutes a dicontinued operations.?

A: Definition:   Income statement: The financial statement which reports revenues and expenses from…

Q: What are unit-level, batch-level, product-level, customer-level, and organization-sustaining…

A: ABC method: ABC method is activity based cost accounting. It's the new method of accounting where…

Q: Discuss how conceptual and physical systems differ and which functions are responsible for each of…

A: Accounting Information System: The accounting information system refers to a system which helps in…

Q: What is the difference between a blended component unit and a discretely presented component unit?

A: Governmental Funds Governmental Funds are used in the state and local government organizations…

Q: What is the basis for distinguishing between operating and nonoperating items?

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Q: Should an auditor wishing to assess the adequacy of separation of functions examine a data flow…

A: Audit: Audit is the process of verification of the compliance of the financial statements.

Q: Distinguish between narrow and wide span of control. Give an example of tasks appropriate to each…

A: Definition: Space of control: The number of subordinates directly answerable to the employee can…

Q: What is a special order? How does operating capacity affect a special order? In what scenario would…

A: A special order mean a sales order which is in addition to the sales to regular customers of a…

Q: What is the difference between operating departments and service departments?

A: There are so many multinational corporations that manage difficult industries. Managing such…

Q: Why should responsibility for related transactions be divided among different departments or…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Differentiate between essential and nonessential activities.

A: Production: Production activity consist use of fixed and variable resources to produce final…

Q: Which important duties are generally not separated in end-user computing environments?

A: Introduction: End-user computing (EUC) refers to the technology that IT professionals use to…

Q: IS a outsource?

A: Outsourcing is the process of hiring a third party to perform the company's services that are…

Q: What are the three general problems associated with data redundancy?

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Q: Please differentiate between centralized and decentralized operations.

A:

Q: What are the three elements that distinguish structured and unstructured problems? Give an example…

A: Transaction Process System: Transaction process system can be defined as a system designed to…

Q: two types of operational responsibility

A: Operational responsibility is the responsibility of the managers to make sure that the operation…

Q: Define outsourcing.

A: Outsourcing: Outsourcing refers to hiring another company, to undertake a business process of the…

Q: What are the three major OE/S processes and what are the subsidary processes of  each major process?

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Q: What activities represent Segregation of Duties?

A: Internal controls:                            It is a set of rules, policies and procedures adopted…

Q: What is a reportable operating segment?

A: Operating segment is a segment of a company which can generate its own revenue and has its own…

Q: What are the major functions performed by the OE/S process?  Explain each function.

A:

Q: Which of the following is not included in the procedures of applying the Theory of Constraints for…

A: Theory of Constraints says that in order to maximize efficiency, the production should be limited to…

Q: Give two examples of nonnancial measures of internal-business-process quality.

A: Quality: Quality is the special trait possessed by a product that satisfies the needs and wants of…

Q: What role does the general ledger department play in the conversion cycle?

A: Conversion Cycle: A set of all processes that are used to collect inputs and convert them into final…

Q: Differentiate management control from joint control.

A: Control refers to the authority to make important decisions and rule other important activities of…

Q: What are the levels of operations performance?

A: There are three levels of operations performance is as follows: Societal level: Social activity is…

Q: Give example of the relationship between a Human Resource Information System and MIS.

A: Human Resource Information System (HRIS) refers to the system of collecting, recording, classifying,…

Q: If an organization processes transactions that have independent (unique) data needs, what type of…

A: Definition: Transaction process system: The transaction process system helps a business to process…

Q: What does operating activities includes?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: What are unit-level activities?

A: Cost accounting is the branch of managerial accounting, whose main aim is to calculate the total…

Q: If operating segments are based on geography rather than products or services, can they still be…

A: Operating Segment:   An operating segment of an organization is a component that is a profit centre…

Q: Give an example for each of the following control activities in the conversion cycle: transaction…

A:

Q: What are the three primary CBIS functions that must be separated?

A:

Q: What kinds of functional responsibilities should be performed by different departments or personsin…

A: Internal Control System: Internal controls system establishes the control within an organization to…

Q: What are the two phases of responsibility accounting?

A: Responsibility Accounting: The management of responsibility centers by the means of pre-determined…

Q: segregation of duties

A: Internal control is the function by which the company avoids errors and fraud in the company. It…

Q: Define agency problems, and describe how they give rise to agency costs.

A: Agency problems occur when the managers use the firm's resources to invest in projects that may not…