ACCAF1AccountantinBusinessAB

1、ABusiness organisational structure, governance and managementBKey environmental influences and constraints on business and accountingCHistory and role of accounting in businessDSpecific functions of accounting and internal financial controlELeading and managing individuals and teamsFRecruiting and d

2、eveloping effective employeesSyllabusExaminer: Bob Examiner: Bob SousterSouster Format of the ExamMarks1 mark question10 questions102 mark questions40 questions80Total90Two hour exam 50% pass markPart A Business Organisational structure, governance and managementStudy Text Chapter 1What are the diff

3、erent types of Organisations? Name famous local, national and international organizations? Commercial v. non-profit organisations Public and private organisations Limited companies: private or public (see case study) The Public Sector Co-operative societies Non-Governmental Agencies (NGOs)Mintzberg

4、Strategic Apex Technostructure Middle Line Operating Core Support StaffOrganisational structureMintzbergs 5 elements: Strategic apex, middle line, operating core, technostructure and support staff Notion of departmentation by function, by geography, by brand, by product, byexpertise, by customer Not

5、ion of divisionalisation into business units and regions Hybrid structures with specific objectives, requirements and limits The Simple Structure and the entrepreneurial spirit Matrix organisation: functions and activities (projects, customers, products) The New organisation, aiming at increased ope

6、rational flexibility The Shamrock organisation, aiming at down-costing and financial flexibility Span of Control see Key Terms and refer to BPP Tall vs flat organisations Comparative analysis Delayering, reducing the levels from bottom to top Different levels of strategy: corporate, business and ope

7、rational The Anthony hierarchy on strategic, tactical and operational management Case study: organisational structure and strategiesOrganisational departments and functionsR&D: pure, applied, development. R&D for processes or products NPD in the Automotive Industry: case study Purchasing def

8、inition Purchasing mix: quantity, price, quality, delivery Puchasing manager: input for production, for administration, cost control, inaccordance to R&D specifications, supplier management, market and productinformation and inventory management Production: creating added value through products

9、and/or services Long term and short term production-related decisions Services: reading the definition in BPP no ownership but a notion of consumption or transferability importance of people and processes, failure description Notions of tangibility, reliability, responsiveness, communication, credib

10、ility, security,competence, courtesy, customer support, accessibilityMarketing function and the management of customer relations Blending marketing strategies to corporate strategy Marketing and auditing Marketing Mix: People Product, Place, Price, Promotion Product Extended Marketing Mix: up to 7Ps

11、 People Product, Place, Price, Promotion Product + Process + Physical Evidence Pricing strategies: understanding the balance in the price mix (basic price, discounts, credit terms, interestfree credit) demand-driven pricing, branding and segmental competition Centralisation or de-centralisation of t

12、he Administrative functionFinance function: Raising money (fundraising, borrowings, grants, VCs, money markets etc) Recording and controlling Information to management, financial accounting, by-law recordings Reporting to ownership, shareholders and tax authorities Financial management: investments,

13、 financing, dividends and operations Treasury management: managing the funds of the organisation Working capital: receivables, payables, inventory and cash Coordinating with Production and Sales, for example, through credit control HRM: 4 objectives: effective human component, legal and social syste

14、ms, co-operative climateof relationships and utilisation and dispatch of these resources through the organisation The right employee for the job! A recruitment session: case study Committees: Executive, standing (permanent basis, specific aim), ad hoc (particular task), sub (routinework), joint and

15、management (all managerial levels) The leader is the Chair, overseeing the effectiveness and objectivity of such groupsStudy Text Chapter 2Information Systems (IS)Definition of “data”, “information” and “intelligence” Information is vital for planning, controlling, decision-making Good information =

16、 ACCURATE information, strictly 4 levels in the management of information: operational, knowledge, tactical ormiddle management and strategic 7 types of information systems : ESS (executive support systems) MIS (management information systems) DSS (decision-support systems) ES (expert systems) KWS (

17、knowledge work systems) OAS (office automation systems) TPS (transaction processing systems)Sources of information Internal and external sources of information Data collection systems: EPOS, EFTPOS, OMR, voice recognition, smart cards DBMS, database management system A database is shared, compatible

18、, multi-functional and evolutive Issues with Db: security, integrity, failures, expensive, timelyStudy Text Chapter 3Organisational cultureDefinition of culture Scheins 3 levels of cultural understanding: Level 1: behaviour + artefacts + attitudes Level 2: values + beliefs Level 3: Assumptions Ident

19、ifying a corporate culture Shaping a culture: foundation, history, managerial style, environmental factors Harrisons 4 types of culture: power (Zeus), role (Apollo), task (Athena) andpersonal (Dionysus) cultures, complimented by Charles Handy Hofstede research : power distance, uncertainty avoidance

20、,individualism and masculinity Informal organisations:social relationships, informal communications,behaviours, influences and interests within the organisation Benefits v. managerial problemsShareholdingWhat is a stakeholder? Internal Connected External Cashflow problems and relations to Bankers an

21、d Stakeholders Customer relations are essential. Relations to turnovers Mendelow: the balance between the level of interest and the power a party holds Structures and systems shaping the level of influence: location, information,culture, implementation Measuring stakeholder satisfaction: quality ove

22、r quantityStudy Text Chapter 4EthicsThe Law, non-legal regulations, cultural ethics, personal ethics, illegality The strategic apex is accountable Managers at all levels have a fiduciary responsibility (with public confidence) Making a profit, that is the bottom line! Richard Cyert and James Marchs

23、consensus theory in 1963: managers run abusiness, they do not own it! Ethics and consequences, by Jeremy Benthams theory of utilitarianism for thegreatest good for the greatest number of people Ethics and duty: deontology (ex. Medical doctors and patients) and Kantsabsolute rules Ethical issues: bri

24、bery, extortion, grease money, gifts CSR, the corporate social responsibility Environmental responsibilities: Incentive to protect the environment, legal compliancewaste treatment, minimising energetic inputs, pollutionCode of ethics and implementationsManaging ethical behaviours: Systematic control

25、 related to compliance response (according to the law) Cultural control related to the choice of integrity (according to corporate social roles andresponsibilities) whistle-blowers may lose their job! The issue of confidentiality and contractual framework The notion of integrity and limited reactivi

26、ty Ethics for accountants: Ethical issues may be a matter of law and regulation Professional bodies require accountants to follow a Code and standards Protecting the public interest A Code of Conduct, many codes available for professional accountants: IFAC, ACCA,internal Codes set by the Company ACC

27、A: integrity, objectivity, professional competence and due care, confidentiality,professional behaviour Professional and personal qualities of an accountant: reliability, responsibility, timeliness,courtesy, respect, independence, scepticism, accountability and social responsibilityStudy Text Chapte

28、r 5Elements of Corporate GovernanceBoard Non-Executive Directors Remuneration and Audit Committee Reporting Sarbanes Oxley Act Principle-basedCorporate governance and social responsibilityBecome familiar with the terms “good practice”! Theories of stewardship, agency and stakeholder. General governa

29、nce principles: Limitation of risks Definition and implementation related to the strategic objectives Responsibilities to stakeholders Clear accountability Independence of external auditors and assessors Financial and operational data reporting to management Quality of decision-making process Compre

30、hensive integrity throughout the companyNB: debate about principles v. rules in the UK following the Hampel report (1998) Corporate governance: definition to know by heart Corporate governance and the internationalisation of the issue How did the issue develop in the UK? Cadbury and Hampel on genera

31、l Corporate Governance Greenbury on remuneration of DirectorsThe BoardIn charge of major strategic decisions and policies Nominated by a Nomination Committee Ensuring Best Practice across the Board and the company Separating the powers: the Chairman and the CEO (Higgs) Role of Non-Executive Director

32、s (NEDs): strategy, performance, risk anddirectorship Limits of NEDs: lack of independence, time, experience, impact (Cadbury) A Remuneration Committee should regulate Directors remuneration (Greenbury) Revision of Risk Management and Internal Control (Reference to Sarbanes-Oxley) Turnbulls recommen

33、dation to include the control function into auditing of thecompany like any other operations The Audit of the Board should be complimentary to external audits and the Boarditself Analysis of the internal audit, internal control and the follow-up on riskassessment and risk managementReporting on corp

34、orate governance LSEs requirements: narrative statement on application of the Combined Codes and principles, compliance of the Combined Codes (differentiation between intention and effectiveness) Milton Friedmans views: analysis of arguments Analysis of internal and external pressures on Corporate G

35、overnanceStudy Text Chapter 6Macro? Understanding Macro-economic policy: Economic growth (National income increase per capita, not through price inflation) Inflation (stability of prices) Unemployment (as low as possible) Balance of payments ( over years, exports and imports)Relation between Organis

36、ations & GovernmentFiscal and monetary policiesThe fiscal policy provides a method of managing aggregate demand in theeconomy. Deciding on the budget: expenditures, revenues and borrowings by theGovernment. Governmental stimulation of demand by increasing its spending and byreducing taxation Dif

37、ferent type of taxes: regressive (TV licence or essential commodities) Proportional (Schedule E income tax at 23% within limited range of income) Progressive (UK income tax) Monetary policy: money supply, interest rates (price of money) and creditcontrols to influence aggregate demand Equilibrium na

38、tional income: aggregate demand = aggregate supplyInflation in discussion Inflation is the name given to an increase in price levels generally. It is also manifest in the decline in the purchasing power of money RPI (retail price index) = UK HICP (Harmonised Index of Consumer Prices) and the CPI (Co

39、nsumer Prices Index) excl. housing costs Causes of inflation: Demand excess (related to wage-push effect) Cost increase (cost-push effect) Import cost increase Expectations Excessive growth in money supplyUnemployment Rate of unemployment calculation: Flows into unemployment: redundancies, lay-offs,

40、 quitting Flows out of unemployment: school leavers, workforce (without jobs) Consequences of unemployment (see BPP p198) Governments tend to encourage employment and spend money directly on jobsEconomic growth Actual growth determined through potential output and aggregate demand Potential output: capital, land, raw materials and labour 3 types of technological progress: Capital saving: using less capital and same labour per unit of output for technical advances Neutral: same proportions of labour and capital, using less of each per unit of output Labour-saving: technical advance th