Documente Academic
Documente Profesional
Documente Cultură
FIA
F1 FAB
Accountant
in Business
Accountant in Business
Syllabus
A
46 questions of 1 or 2 marks
(multiple choice)
76
Section B
24
Total
100
Two hour exam 50% pass mark
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Organisations
An organisation is a social arrangement which pursues
collective goals, which controls its own performance and
which has a boundary separating it from its environment
System
Environment
Boundary
Input
Organisation
Output
Types of organisation
Commercial sole traders, partnerships, limited
liability partnerships, limited companies
Not-for-profit
Public sector
Non-governmental organisations, eg Greenpeace
Cooperatives
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Organisation structures
Entrepreneurial
Functional
Divisional
Matrix
Boundaryless (virtual, hollow, modular)
Functional structure
MD
Finance
Manufacturing
R&D
Sales
Main functions
Research and development
Purchasing
Production
Direct service provision
Marketing
Administration
Finance
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Divisional structure
MD
Division A
Finance
Manufacturing
Division B
R&D
Sales
Finance
Manufacturing
R&D
Sales
Matrix structure
Project A
Production
department
Sales
department
Finance
department
Project B
Project C
Quality control
department
R&D
department
Marketing
department
Boundaryless structures
Hollow: focus on their core competencies and
outsource peripheral processes.
Virtual: creating a company outside the
organization to respond to an exceptional,
and often temporary, market opportunity.
Modular: offer different parts from internal or
external providers and assemble them into
a product.
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Mintzbergs structure
hn
Middle line
f
taf
Te
c
rt s
os
po
tru
c
p
Su
tur
e
Strategic apex
Operating core
Levels of management
Strategic
Technical
Operational
Tall/narrow, wide/flat
Tall narrow
Wide flat
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Centralisation/decentralisation
Looks at where power lies.
Advantages of decentralisation:
Work-load/time
Speed
Expertise
Motivation
Training and assessment
But
Poorer coordination
Recent trends
Downsizing
De-layering
Outsourcing
Personal ambitions
Mission statement
Procedures manuals
Group norms
Personal preferences
Alliances
Rumour/gossip
Shortcuts
Mutual cover-up
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Information
What is information?
ACCURATE
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Information technology
Stand alone
Lans
Wans
Internet
Intranet
Extranet
Strategic
Technical
Operational
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Competitive forces
Porters 5 forces model:
o Rivals/competitors
o Buyer pressure
o Supplier pressure
o Threat of new entrants
o Substitutes
Value chain
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SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
Cultural web
Culture The way we do things round here
Symbols
& Titles
Myths &
stories
Organisational
Assumptions
(Paradigm)
Rituals &
routines
Power
relations
Orgn
structure
Control
systems
10
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National cultures
The Hofstede model
Power distance
Uncertainty avoidance
Individualism-collectivism
Masculinity
Stakeholders
Internal
Connected
External
11
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Mendelow
Level of interest
High
Low
Low
Power
High
Corporate governance
How are companies directed and controlled?
Separation of ownership and control the
agency problem or stewardship.
Shareholders (owners)
Appoint/report
Directors
Ownership
Day-to-day management
Company
12
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Ethics - importance
Risk reduction
Cost reduction
Lower returns required
More collaboration
Better employees
More sales
13
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14
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Financial accounts
Record financial
transactions
Prepare financial
statements
Financial accounts
Any format
Format regulated
Historical
Often ad hoc
Routine
Not governed by
statute
Statutory and
accounting rules
15
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Audit
Internal:
reports to
management
about
procedures
Audit
External:
report to
members re
true and fair
16
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Internal controls
Authorisation
Computer controls
Comparison eg to budget
Arithmetic controls
Accounting reconciliations
Physical
Maintaining a trial balance and control accounts
Segregation of duties
17
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Back-up controls
Fraud
An intentional act involving deception to gain unjust
or illegal advantage
Types
Financial reporting
Misappropriation of assets
Fraud - requirements
Incentive
Opportunity
Attitude
18
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Fraud - requirements
Risk factors
Fraudulent financial
reporting
Misappropriation of assets
Incentive
Profitability threatened
Pressure to perform
Incentives
Opportunity
Many estimates
Dominant chief executive
Poor internal controls
Cash
High value portable stock
Poor internal controls
Attitude
Implications of fraud
Financial
Performance
Misrepresentation
Incorrect decisions
Reputation
19
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Money laundering
A process whereby the proceeds of criminal activity
are converted into assets appearing to have a
legitimate origin.
Placement into a legitimate business activity
Layering the transfer of money from place to
place to conceal its source
Integration to make it appear that the money is
legitimate
20
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21
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figurehead
Information processing
roles
monitor
liaison
leader
disseminator
spokesman
improver/changer
disturbance handler
resource allocator
negotiator
22
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Drucker
Management has three functions
Managing a business
Managing managers
Managing workers and work
Broken down further into five categories
Drucker
Setting objectives
Organising the group
Motivating and communicating
Measuring performance
Developing people
Leadership
Leadership class
Trait theory
Style theory
23
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Contingency theories
Fiedler
Adair
Bennis
Heifetz
Kotter
24
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Concern for
the group
Concern for
the task
Bennis - 1
Manager - Administers, maintains, focuses on systems &
controls and the short term view, asks how and when,
keeps eye on the bottom line
Leader - Innovates. Develops, focuses on people, inspires
trust, asks what and why has a long-term view and an eye
for the horizon
Bennis distinguishes between transformational (doing the
right thing) and transactional leadership (doing things
right). This distinction is often quoted as the difference
between management and leadership.
Bennis - 2
Qualities of great leaders:
Integrity
Dedication
Magnanimity
Humility
Openness
Creativity
25
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Fiedler
Effectiveness depends on:
Leadership style: psychologically close or distant
and
Situational favourableness: the degree that the
situation gives the leader control and influence
Three things are important here:
Relationship between the leaders and followers.
Structure of the task.
Position power.
26
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Kotter
Transformational
Transactional
Leadership change Leadership
(Leadership)
(Management)
Creating agenda Establishing direction Planning and
budgeting
Developing HR
Aligning people
Organising and
staffing
Execution
Motivating and
inspiring
Controlling and
problem solving
Outcomes
Produces changes
often dramatic
Produces
predictability and
order
Groups
What is a group?
any collection of people who perceive themselves
to be a group
(Charles Handy)
Sense of purpose, aim
Identity
Group norms
Communication
Team Roles
Dr Meredith Belbin: eight (or nine)
different roles in teams:
Chairman
Shaper
Monitor/evaluator
Company worker
Resource-investigator
Team worker
Plant
Completer/finisher
Specialist
27
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Motivation
What is motivation?
The urge to take action to achieve or avoid
something.
Managers need to understand what motivates
individuals in order to urge them to fulfil the
organisations objectives.
28
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Motivation
Content Theory - What motivates employees to
perform to the best of their abilities?
Process Theory - How can managers get the most
out of their staff?
Selfactualisation
Esteem needs
Social needs
Safety needs
Physiological needs
29
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Herzberg
Focus on hygiene factors to avoid
dissatisfaction
Jobs should be redesigned to provide
motivators
Expectancy
Force
30
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Pay as a motivator
How pay is determined
What do we want from pay?
Performance related pay
Group rewards
31
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Time management
Set goals which are SMART
Action plans/to-do lists
Prioritise results and tasks
Sequence tasks
Communication
Communication is required for planning,
coordination, control, negotiation, motivation,
training, counselling etc.
Form thought
Encode
Transmit
Receive
Decode
Feedback
32
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Communication
Communication within the organisation can be:
Vertical
Horizontal
Diagonal
Formal/informal
Barriers to communication
Inappropriate language
Status
Emotion
Wrong medium
Not wanting to transmit
Not wanting to receive
Information overload
Leavitt
Patterns of communication
1. Y
2. Wheel
3. Circle
4. Chain
33
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Advertising vacancies
Advertise vacancies to try to attract applicants to bit
the person specification
Describe job
Provide information
Interest suitable applicants
34
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Selection methods
A systematic approach to selection should be
employed
Interviews
Selection tests
References
Work sampling
Group selection methods
Interviews
Most frequently used technique but poor at
predicting how candidates will perform
They must be well structured and conducted by
suitably skilled interviewers
1:1, 1:many, selection panels.
Selection testing
Applicants undergo formal tests to identify
competence and attributes
Psychometric tests personality
Proficiency
Intelligence
Aptitude
35
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36
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Reflect
Theory
Performance appraisal
Improve
organisational
performance
Develop
individuals
Appraisal systems
Three review elements
Reward
Performance
Potential
37
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Appraisal interviews
Prepare
Interview
Tell and sell, tell and listen, problem-solving
Plan
Gain commitment, agree, summarise
Report
Agreed conclusions
Follow up
Take action, monitor progress
Sources of law
European Community law:
Regulations directly applicable to all member
states
Directives national laws have to be altered
38
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Risks to data
Human error.
Technical malfunction or error.
Catastrophic events.
Malicious damage.
Industrial espionage or sabotage.
Dishonesty.
39
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Employment protection
Termination of employment
Retirement
Resignation
Dismissal (termination, non-renewal, constructive)
Is dismissal fair or unfair?
40
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Fair/unfair dismissal
Fair dismissal
Redundancy
Legal impediment
Non-capability
Misconduct
Other substantial reason
Unfair dismissal
Unfair selection for redundancy
Membership and involvement in a trade union
Pregnancy
Insisting on documented payslips and employment
particulars
Carrying out certain activities in connection with health
and safety at work
Equal opportunities - 1
Anti-discrimination laws relate to:
Race
Sex
Disability
Religion
Sexual orientation
Age
41
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Equal opportunities - 2
Direct discrimination
Indirect discrimination
Victimisation
Diversity
What is diversity?
ensuring that the composition of the workforce reflects the
population as a whole
A diverse organisation will better understand and meet the
needs of customers
Consumer protection
Contract law
Binding contract
Goods properly described
Unfair terms
Consumer legislation
Eg a right to a cooling-off period
A right to have a refund if goods are not of the right
standard.
42
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Macro-economic policies
Inflation
Employment
Economic growth
Wealth distribution
Foreign exchange
Public services
Overall economic
policy
Taxation
Protection vs Free Trade
V
E
Industry policy
M
E
Environment and
infrastructure policy
Distribution
Workplace regulation,
employment law
Social policy
Labour supply, skills, education
N
T
R
N
Cost of finance
Foreign policy
O
R
G
A
N
I
S
A
T
I
O
N
Inflation - causes
Demand pull
Cost push
Import cost factors
Expectations
Increase in the money supply
43
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Unemployment
Real wage
Frictional
Seasonal
Structural
Technological
Cyclical
Income
Borrowing
44
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Functions of taxation
To raise revenues for the government
To discourage certain activities regarded as
undesirable.
To cause certain products to be priced to take into
account their social costs.
To redistribute income and wealth.
To protect industries from foreign competition.
To provide a stabilising effect on national income.
Types of taxation
A regressive tax takes a higher proportion of a
poor person's salary than of a rich person's.
A proportional tax takes the same proportion of
income in tax from all levels of income.
A progressive tax takes a higher proportion of
income in tax as income rises.
More terminology!
A direct tax is paid direct by a person to the
Revenue authority.
An indirect tax is collected by the Revenue
authority from an intermediary (a supplier).
A specific tax is charged as a fixed sum per unit sold.
An ad valorem tax is charged as a fixed percentage
of the price of the good.
45
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Current account
Trade in goods (balance of trade; visible exports)
Trade in services (invisible)
Income from overseas investment
Transfers (eg EU)
Capital amount (eg loans)
Financial account (eg investment overseas)
Demand curve
Price of goods
Consumers income
Q Substitutes and complements
Fashion and taste
Whether the goods are
essential or luxury
Expectation of future price
changes
46
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47
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Demand curve
Supply curve
P
Excess supply
Excess demand
Equilibrium
48
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Rise in income.
Rise in the price of
substitutes.
Rise in the expected price
of the product.
Reduction in the price of
complements.
Change in tastes.
Population increase.
Supply curve
Fall in cost of
production
Technology changes
Improved efficiency
Subsidies
Lower taxes
49
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Cost curves
Costs
MC = Marginal cost
AC = Average cost
Types of competition
Perfect: many small buyers and sellers each unable to
influence the market (equilibrium price).
Monopoly: only one supplier. Can choose price to charge.
Oligopoly: a few large suppliers
Monopolistic competition: compete on something other
than just price.
50
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