CPA -
Balanced scorecard ✔✔Strategic objective into performance measures
Corporate Opportunity Doctrine ✔✔Duty of loyalty prohibits the director from the taking the
opportunity for himself
Good corporate governance ✔✔Majority of board should be independent
Sarbanes Oxley 2002 ✔✔- Corporate Responsibility
- Enhanced financial disclosures
- Fraud
Section 404 ✔✔Assessment of internal controls
Review by SEC ✔✔Review completeness, not accuracy
Work papers ✔✔Auditors should retain them for 7 years
COSO ✔✔Independent private sector initiative
Internal control ✔✔To provide reasonable assurance that it will achieve its compliance,
operating and reporting objectives
Major deficiency ✔✔Material internal control deficiency or combo of deficiencies that
significantly reduces the likelihood that an organization will achieve its objectives
Types of control deficiencies ✔✔1. Control deficiency
2. Significant deficiency
3. Material weakness
ERM ✔✔To balance risk and return
Risk tolerance ✔✔Accepted level of variation relative to the achievment of objectives
Event identification techniques ✔✔- Event inventories
- Internal analysis
,- Escalation/threshold triggers
Risk assessment techniques ✔✔- Benchmarking
- Probabilistic models
- Non- probabilistic models
Risk response ✔✔- Avoid
- Reduce
- Share
- Accept
Patch ✔✔Software developer's updates to the system to eliminate problems/promote system
efficiencies
Frequency diagram ✔✔Pareto diagram
Marketing-focus ✔✔1.Product
2.Market segment/customer
3.Delivery system (wholesale/retail)
4.Communication strategy
5.Price
OH Rate ✔✔(Budgeted OH) / (Estimated cost driver)
Applied Overhead ✔✔ACTUAL cost driver * OH Rte
Maintenance and repair ✔✔Semi variable cost
Operations costing ✔✔Both job order and process costing
Backflush costing ✔✔Cost the product at the end, used in JIT
Life cycle costing ✔✔Monitor the costs throughout the life cycle
Job cost records ✔✔- Job cost sheets/job orders
- Records used to accumulate all costs for the job
, Material requisitions ✔✔Materials requested for the job
Production Report ✔✔Costs + units produced --> physical flow of units
Previous dept costs ✔✔Transfers in
Considered DM
Resource cost driver ✔✔Resources that will be used by an activity
Transaction based costing ✔✔Same as ABC
NRV at split off ✔✔Only for inventory costing, no use for planning, control purposes
Business Process Management ✔✔Continuous improvement in customer satisfaction
Process Mgt Activities ✔✔Design
Model
Execute
Monitor
Optimize
Shared services- risks ✔✔Service flow disruption
Failure demand
Rational Assessments ✔✔- Strategic Gap analysis
- Review competitive priorities (price, quality)
- Review production objectives
- How to improve
Redesign of product, processes ✔✔Prevention cost
Inspection ✔✔Appraisal cost
Statistical quality checks ✔✔Appraisal cost
Maintenance of the lab ✔✔Appraisal cost
Balanced scorecard ✔✔Strategic objective into performance measures
Corporate Opportunity Doctrine ✔✔Duty of loyalty prohibits the director from the taking the
opportunity for himself
Good corporate governance ✔✔Majority of board should be independent
Sarbanes Oxley 2002 ✔✔- Corporate Responsibility
- Enhanced financial disclosures
- Fraud
Section 404 ✔✔Assessment of internal controls
Review by SEC ✔✔Review completeness, not accuracy
Work papers ✔✔Auditors should retain them for 7 years
COSO ✔✔Independent private sector initiative
Internal control ✔✔To provide reasonable assurance that it will achieve its compliance,
operating and reporting objectives
Major deficiency ✔✔Material internal control deficiency or combo of deficiencies that
significantly reduces the likelihood that an organization will achieve its objectives
Types of control deficiencies ✔✔1. Control deficiency
2. Significant deficiency
3. Material weakness
ERM ✔✔To balance risk and return
Risk tolerance ✔✔Accepted level of variation relative to the achievment of objectives
Event identification techniques ✔✔- Event inventories
- Internal analysis
,- Escalation/threshold triggers
Risk assessment techniques ✔✔- Benchmarking
- Probabilistic models
- Non- probabilistic models
Risk response ✔✔- Avoid
- Reduce
- Share
- Accept
Patch ✔✔Software developer's updates to the system to eliminate problems/promote system
efficiencies
Frequency diagram ✔✔Pareto diagram
Marketing-focus ✔✔1.Product
2.Market segment/customer
3.Delivery system (wholesale/retail)
4.Communication strategy
5.Price
OH Rate ✔✔(Budgeted OH) / (Estimated cost driver)
Applied Overhead ✔✔ACTUAL cost driver * OH Rte
Maintenance and repair ✔✔Semi variable cost
Operations costing ✔✔Both job order and process costing
Backflush costing ✔✔Cost the product at the end, used in JIT
Life cycle costing ✔✔Monitor the costs throughout the life cycle
Job cost records ✔✔- Job cost sheets/job orders
- Records used to accumulate all costs for the job
, Material requisitions ✔✔Materials requested for the job
Production Report ✔✔Costs + units produced --> physical flow of units
Previous dept costs ✔✔Transfers in
Considered DM
Resource cost driver ✔✔Resources that will be used by an activity
Transaction based costing ✔✔Same as ABC
NRV at split off ✔✔Only for inventory costing, no use for planning, control purposes
Business Process Management ✔✔Continuous improvement in customer satisfaction
Process Mgt Activities ✔✔Design
Model
Execute
Monitor
Optimize
Shared services- risks ✔✔Service flow disruption
Failure demand
Rational Assessments ✔✔- Strategic Gap analysis
- Review competitive priorities (price, quality)
- Review production objectives
- How to improve
Redesign of product, processes ✔✔Prevention cost
Inspection ✔✔Appraisal cost
Statistical quality checks ✔✔Appraisal cost
Maintenance of the lab ✔✔Appraisal cost
