Question 1

Leigh is a corporate accounting manager with six employees reporting to her.Most of the employees do good work, but one of them consistently lacks motivation.Which of the following tools should Leigh use to address the problem?
A)COSO's enterprise risk management framework
B)Generalized model of business process management
C)Basic principles of business process management
D)Expectancy theory

Accepted Answer

Expectancy theory is a motivational theory that explains how an employee's effort is influenced by their belief in the likelihood of achieving a desired outcome or reward. Leigh should use expectancy theory to understand why the employee lacks motivation and identify what rewards or outcomes would motivate them. With this information, she can create a plan to increase the employee's motivation and improve their performance. The other options (A, B, and C) are not relevant to addressing the specific problem of an unmotivated employee.

Question 2

Consider the following table as you respond to the questions:  Which of the following developed the framework DFN is using?
A)COSO
B)AICPA
C)FASB
D)Vroom

Accepted Answer

DFN is using the framework developed by COSO, which stands for Committee of Sponsoring Organizations of the Treadway Commission. The COSO framework provides guidelines for internal control, risk management, and fraud prevention.

Question 3

Consider the following table as you respond to the questions:  Which of the following is the best choice for Item D in the table?
A)Risk response
B)Internal environment
C)Information and communication
D)Monitoring

Accepted Answer

Item D is asking for the best choice among risk response, internal environment, information and communication, and monitoring. Risk response, internal environment, and information and communication may be important components in overall risk management, but monitoring is the most appropriate choice for Item D because it specifically relates to the process of continuously assessing and evaluating the effectiveness of internal controls and risk management strategies.

Question 4

Consider the following table as you respond to the questions:  Which of the following is the best choice for Item A in the table?
A)Risk response
B)Control environment
C)Expectancy theory
D)Generic responses

Accepted Answer

The answer of Consider the following table as you respond...

Question 5

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?
A)An enterprise risk management plan will be required only if they decide to expand into risk management consulting.
B)Nestor and Maureen need to increase their own valence.
C)Both an enterprise risk management plan will be required only if they decide to expand into risk management consulting and Nestor and Maureen need to increase their own valence are true.
D)Neither an enterprise risk management plan will be required only if they decide to expand into risk management consulting nor Nestor and Maureen need to increase their own valence is true.

Accepted Answer

The statement about needing an enterprise risk management plan specifically for risk management consulting doesn't account for the broader applicability of such a plan across all areas of expansion. Additionally, the concept of increasing "valence" is not directly applicable or explained in the context provided, making both A and B not necessarily true.

Question 6

Consider the following table as you respond to the questions:  Which of the following is the best choice for Item C in the table?
A)DFN wants to reduce the cost of processing purchase orders.
B)DFN's cost of processing purchase orders is too high.
C)Purchasing department employees lack instrumentality.
D)Processing purchase orders is part of the acquisition/payment process.

Accepted Answer

The answer of Consider the following table as you respond...

Question 7

Jay is trying to convince the company president that risk management is important.Which of the following statements is most true?
A)Since the company president is involved, expectancy theory is inappropriate for trying to create a good internal environment.
B)Jay should follow the basic principles of business process management to increase the president's instrumentality.
C)Jay can use expectancy theory to help create a good internal environment.
D)None of these statements is true.

Accepted Answer

Expectancy theory can be used by Jay to show the president that implementing risk management practices will lead to desired outcomes such as increased profitability and reduced losses. By emphasizing the instrumentality of risk management, Jay can create a more convincing argument for the president. Choice A and B are not relevant to the situation, and choice D is incorrect.

Question 8

Consider the following table as you respond to the questions:  Which of the following is the best choice for Item H in the table?
A)To reduce the risk, DFN will offer financial incentives for long-time employees to retire.
B)To share the risk, any cost savings will defray the cost of an annual purchasing department employee retreat.
C)Both to reduce the risk, DFN will offer financial incentives for long-time employees to retire and to share the risk, any cost savings will defray the cost of an annual purchasing department employee retreat.
D)Neither to reduce the risk, DFN will offer financial incentives for long-time employees to retire nor to share the risk, any cost savings will defray the cost of an annual purchasing department employee retreat.

Accepted Answer

Option C is the best choice because it offers a solution for both reducing risk by offering financial incentives for long-time employees to retire and sharing the risk by using any cost savings to defray the cost of an annual purchasing department employee retreat. This approach aims to address both short-term and long-term risks for the company. Options A and B only address one aspect of risk management, whereas option C offers a more comprehensive solution. Option D is not a viable solution as it does not offer any action to address the identified risks.

Question 9

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?
A)The COSO enterprise risk management framework may be useful to their new clients.
B)Expectancy theory may be a useful tool in conducting a fraud examination.
C)Both the COSO enterprise risk management framework may be useful to their new clients and expectancy theory may be a useful tool in conducting a fraud examination are true.
D)Neither the COSO enterprise risk management framework may be useful to their new clients nor expectancy theory may be a useful tool in conducting a fraud examination is true.

Accepted Answer

The COSO enterprise risk management framework is designed to help organizations manage risk, which is relevant to clients concerned with fraud. Expectancy theory, which deals with motivation and decision-making, can be useful in understanding and predicting fraudulent behavior.

Question 10

Consider the following table as you respond to the questions:  Which of the following is the best choice for Item B in the table?
A)Inherent and residual
B)High
C)Reduce, accept, avoid, share
D)Expectancy, valence, instrumentality

Accepted Answer

The answer of Consider the following table as you respond...

Question 11

Consider the following table as you respond to the questions:  Which of the following is the best choice for Item F in the table?
A)Risk response
B)Internal environment
C)Information and communication
D)Monitoring

Accepted Answer

Item F appears to relate to the policies and procedures that enable the organization to capture and share information, including financial reporting. This aligns with the Information and Communication component of internal control.

Question 12

Charlie is a partner in a CPA firm.He wants to make some changes to the company's hiring practices, but is concerned current employees will lack the motivation to do so.Which of the following tools should Charlie use to address those problems?
A)COSO's enterprise risk management framework and expectancy theory
B)Expectancy theory and generalized model of business process management
C)COSO's enterprise risk management framework and generalized model of business process management
D)Expectancy theory and the steps in the accounting cycle

Accepted Answer

The best choice to address Charlie's concerns would be to use Expectancy theory and the generalized model of business process management. Expectancy theory focuses on how to motivate employees by linking effort to performance and rewards. The generalized model of business process management provides a framework for analyzing and improving business processes, which can be useful in identifying areas where changes are needed and motivating employees to make those changes. The other options, while useful in other contexts, are not as directly applicable to Charlie's situation.

Question 13

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?
A)Expanding the business into business valuation may require creating or updating the firm's risk management plan.
B)Expectancy theory can be useful both in deciding whether to expand the business and in working with future business valuation clients.
C)Both expanding the business into business valuation may require creating or updating the firm's risk management plan and expectancy theory can be useful both in deciding whether to expand the business and in working with future business valuation clients are true.
D)Neither expanding the business into business valuation may require creating or updating the firm's risk management plan nor expectancy theory can be useful both in deciding whether to expand the business and in working with future business valuation clients is true.

Accepted Answer

The case mentions that expanding the firm's services into business valuation may require updating their risk management plan. Additionally, it suggests that the theory of expectancy could be useful in deciding whether or not to expand the business and in working with future business valuation clients. Therefore, both statements in option C are true. Option A and D are incorrect because they either miss or wrongly interpret the relevant information in the case. Option B is partially true but does not capture the full picture presented in the case.

Question 14

The chapter discussed three major ideas from management and their relationship to accounting information systems: COSO's enterprise risk management framework, business process management and expectancy theory.Which of the following statements is most true?
A)The three ideas are unrelated to one another.
B)The generalized model of business process management could be used to develop a system for managing risk.
C)The generalized model of business process management should be used to analyze employee motivation.
D)All organizations should include the risk of non-motivated employees in their COSO risk management plan.

Accepted Answer

The generalized model of business process management can be used to develop a system for managing risk, as it involves analyzing and improving processes for efficiency and effectiveness, which includes identifying and mitigating risks. COSO's enterprise risk management framework focuses on identifying and managing risks throughout an organization, and expectancy theory relates to understanding employee motivation and its effect on performance. However, there is no mention of the risk of non-motivated employees specifically in the COSO risk management plan.

Question 15

"Control activities" are one element of the COSO ERM framework.To develop control activities, organizations may need to apply: (i) the FASB Conceptual Framework, (ii) expectancy theory, (iii) the generalized model of business process management.
A)(i) and (ii) only
B)(ii) and (iii) only
C)(i) and (iii) only
D)(i), (ii) and (iii)

Accepted Answer

The answer of "Control activities" are one element of the...

Question 16

Consider the following table as you respond to the questions:  Which of the following is the best choice for Item G in the table?
A)The risk is high.
B)Long-time purchasing department employees may not be motivated to make any changes.
C)DFN wants to reduce the cost of processing purchase orders.
D)To reduce risk, DFN will offer financial incentives for long-time employees to retire.

Accepted Answer

The answer of Consider the following table as you respond...

Question 17

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?
A)After the expansion, Nestor and Maureen may be able to use expectancy theory to sell new services to their old clients.
B)Regardless of the area into which the firm expands, the basic principles of business process management may be useful to new clients.
C)Both after the expansion, Nestor and Maureen may be able to use expectancy theory to sell new services to their old clients and regardless of the area into which the firm expands, the basic principles of business process management may be useful to new clients are true.
D)Neither after the expansion, Nestor and Maureen may be able to use expectancy theory to sell new services to their old clients nor regardless of the area into which the firm expands, the basic principles of business process management may be useful to new clients is true.

Accepted Answer

Expectancy theory states that individuals will be motivated to put forth effort if they believe that effort will lead to performance, and performance will lead to rewards. If Nestor and Maureen effectively communicate the benefits of the new services to their old clients, and if their employees are trained adequately to deliver those services, they may be able to use expectancy theory to sell new services to old clients.
Business process management principles are focused on improving efficiency, effectiveness, and adaptability of business processes. Regardless of the area into which the firm expands, these principles could be helpful to new clients, as they are applicable across industries and processes. Therefore, both statements are true.

Question 18

Charlie is a partner in a CPA firm.He wants to make some changes to the company's hiring practices, but is concerned current employees will lack the motivation to do so.Provided he uses an appropriate tool, which problem will be easier to address?
A)Making changes to hiring practices.
B)Motivating employees.
C)The two problems will be equally easy to address.
D)More information is needed to determine which problem will be easier to address.

Accepted Answer

The answer of Charlie is a partner in a CPA...

Question 19

Consider the following table as you respond to the questions:  Which of the following is the best choice for Item E in the table?
A)Risk response
B)Internal environment
C)Information and communication
D)Monitoring

Accepted Answer

The answer of Consider the following table as you respond...

Question 20

Charlie is a partner in a CPA firm.He wants to make some changes to the company's hiring practices, but is concerned current employees will lack the motivation to do so.He should use ___ to address needed changes to hiring practices and ___ to address his concern about current employees.
A)COSO's enterprise risk management framework and expectancy theory
B)Expectancy theory and generalized model of business process management
C)Expectancy theory and the steps in the accounting cycle
D)Generalized model of business process management and expectancy theory

Accepted Answer

The answer of Charlie is a partner in a CPA...

Quiz 5: Management Concepts

Leigh is a corporate accounting manager with six employees reporting to her.Most of the employees do good work, but one of them consistently lacks motivation.Which of the following tools should Leigh use to address the problem?

Consider the following table as you respond to the questions: Which of the following developed the framework DFN is using?

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

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

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

Jay is trying to convince the company president that risk management is important.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 H in the table?

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

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

Charlie is a partner in a CPA firm.He wants to make some changes to the company's hiring practices, but is concerned current employees will lack the motivation to do so.Which of the following tools should Charlie use to address those problems?

The chapter discussed three major ideas from management and their relationship to accounting information systems: COSO's enterprise risk management framework, business process management and expectancy theory.Which of the following statements is most true?

"Control activities" are one element of the COSO ERM framework.To develop control activities, organizations may need to apply: (i) the FASB Conceptual Framework, (ii) expectancy theory, (iii) the generalized model of business process management.

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

Charlie is a partner in a CPA firm.He wants to make some changes to the company's hiring practices, but is concerned current employees will lack the motivation to do so.Provided he uses an appropriate tool, which problem will be easier to address?

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

Charlie is a partner in a CPA firm.He wants to make some changes to the company's hiring practices, but is concerned current employees will lack the motivation to do so.He should use _ to address needed changes to hiring practices and _ to address his concern about current employees.