...MANAGING INFORMATION – CRITICAL EVALUATION OF RELEVANT ISSUES MODULE: MANAGING INFORMATION Table of Contents Sr. no. Contents Page no. 1. Introduction............................................................................................3 2. Definition of Information Systems...........................................................3 3. Information System as an Organizational and Management Solution.........3 4. Information Manager and Information System..........................................4 5. Environmental and Industrial Analysis.....................................................4 6. Recommended Information Systems for a Medium Sized Accountancy and Management Consultancy Firm........................................................5 6.1. Management Information System.............................................................5 6.2. Decision Support System..........................................................................6 6.3. Knowledge Management System..............................................................6 6.4. Transaction Support System.....................................................................6 6. Evaluation of Organizational, Technical and Management Aspects of the Information Systems Used.................................
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...Edited by Foxit Reader Copyright(C) by Foxit Software Company,2005-2007 For Evaluation Only. Fisher College of Business Working Paper Series Charles A. Dice Center for Research in Financial Economics Risk Management Failures: What Are They and When Do They Happen? René M. Stulz, Department of Finance, The Ohio State University, NBER, and ECGI Dice Center WP 2008-18 Fisher College of Business WP 2008-03-017 October 2008 This paper can be downloaded without charge from: http://www.ssrn.com/abstract=1278073 An index to the working paper in the Fisher College of Business Working Paper Series is located at: http://www.ssrn.com/link/Fisher-College-of-Business.html fisher.osu.edu Risk management failures: What are they and when do they happen? René Stulz* October 2008 Abstract A large loss is not evidence of a risk management failure because a large loss can happen even if risk management is flawless. I provide a typology of risk management failures and show how various types of risk management failures occur. Because of the limitations of past data in assessing the probability and the implications of a financial crisis, I conclude that financial institutions should use scenarios for credible financial crisis threats even if they perceive the probability of such events to be extremely small. * Reese Chair of Banking and Monetary Economics, Fisher College of Business, Ohio State University, NBER, and ECGI. I am grateful for assistance from Jérôme...
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...vol. 14, no. 1/2010 57 Changing Methodologies in Financial Audit and Their Impact on Information Systems Audit Doctoral School – Accounting and Management Information Systems Academy of Economic Studies, Bucharest, Romania dan.vilsanoiu@gmail.com, mihaela.serban@gmail.com This paper tries to provide a better understanding of the relation between financial audit and information systems audit and to assess the influence the change in financial audit methodologies had on IS audit. We concluded that the COSO Internal Control – Integrated Framework was the starting point for fundamental changes in both financial and IS audit and that the Sarbanes-Oxley Act should be viewed as an enabler rather than an enforcer in establishing strong governance models. Finally, our research suggests that there is a direct causality effect between the employment of BRA (business risk audit) methodologies and the growing importance of IS audit. Keywords: Financial Audit Methodologies, Business Risk Audit, Information Systems Audit, Internal Controls Framework 1 Introduction The objective of this article is to provide a better understanding of the relation between financial audit and information systems audit and to assess the influence the change in financial audit methodologies had on IS audit. In order to achieve our objective, we reviewed existing research from both academics and professionals regarding financial and information systems audit methodologies. We also obtained and reviewed materials...
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...Recommendation whether to Accept or Decline Ocean as an Audit Client.. .......... p. 6 Step 5: Important Risk Areas and Factors ........................................................................... p. 7 Step 1: Client Acceptance Decision Process Barnes and Fisher needs to decide whether it will accept the auditing request of Ocean Manufacturing Inc. or not. In the process of the client acceptance decision five steps are necessary in order to come to a result. The first step of this process is to gain information about client’s company background. Ocean Manufacturing Inc. is a home appliances company, offering products like toasters, blenders, and trash compactors. It is currently considering an Initial Public Offering (IPO) within the next five years in order to increase current capital to be able to continue expansion and growth in the upcoming years. In the last 12 years it has been audited by 3 different auditors and wants Barnes and Fisher to audit its company for the year 2011. Barnes and Fisher, a national CPA company, should issue its opinion on the 2011 financial statement and help to improve current processes. The second step involves evaluating the risk factors or potential changing factors of risk of the client Ocean Manufacturing, Inc. Thereby Barnes and Fisher need to take three different kinds of risk into consideration: audit, client and business risk. Audit risk is likely to...
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....Objective: An objective is something which a person or organization set out to achieve. Manager:The person who is responsible for supervising the organizations resources to meet the set goals. 1.Control costs and/or generate revenue 2. Develop or approve plans and processes 3. Assign and monitor tasks 4. Reorganize and hire or fire people as needed 5. Help new people get started and understand the objectives 6. Make sure deadlines are meet 7. Resolve conflicts and staff issues 8. Guide, motivate and recognize the team 9. Support the team and fight for them 10. Escalate issues or concerns to upper management 11. Help the staff develop their job skills and career 12. Inform the staff of decisions made at higher levels Employee Motivation One of your goals as a manager is to achieve high morale among the ranks. Employee motivation should be at the top of the list when it comes to the goals for your company if you want to achieve success. As author Stephen Covey wrote in his book "The Seven Habits of Highly Effective People": "There are organizations that talk a lot about the customer and then completely neglect the people that deal with the customer--the employees." It's important to set goals both for your employees to achieve and for you to accomplish as the owner to ensure a happy workplace. For instance, one of your goals could be to establish a successful employee recognition program or to increase employee productivity (which is related to motivation)...
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...Chapter 1—Auditing and Internal Control TRUE/FALSE 1. Corporate management (including the CEO) must certify monthly and annually their organization’s internal controls over financial reporting. ANS: F PTS: 1 2. Both the SEC and the PCAOB require management to use the COBIT framework for assessing internal control adequacy. ANS: F PTS: 1 3. Both the SEC and the PCAOB require management to use the COSO framework for assessing internal control adequacy. ANS: F PTS: 1 4. A qualified opinion on management’s assessment of internal controls over the financial reporting system necessitates a qualified opinion on the financial statements? ANS: F PTS: 1 5. The same internal control objectives apply to manual and computer-based information systems. ANS: T PTS: 1 6. The external auditor is responsible for establishing and maintaining the internal control system. ANS: F PTS: 1 7. Segregation of duties is an example of an internal control procedure. ANS: T PTS: 1 8. Preventive controls are passive techniques designed to reduce fraud. ANS: T PTS: 1 9. The Sarbanes-Oxley Act requires only that a firm keep good records. ANS: F PTS: 1 10. A key modifying assumption in internal control is that the internal control system is the responsibility of management. ANS: T PTS: 1 11. While the Sarbanes-Oxley Act prohibits auditors from providing non-accounting services to their audit clients, they are not prohibited from performing such services for non-audit clients...
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...sources of finance for business include internal and external sources. The business managers decide which form of financing to be used in the business (Klammer, 2003, pp.35). Internal Sources of Finance Personal funds - utilized by sole traders and partnerships. Owner takes on risk of losing their money. Family and friends - utilized by sole traders and partnerships. Friends can not only lose money but also harm relationships Selling assets - Dormant (unused) assets are typically sold. Selling of fixed assets that are currently in use may solve liquidity problems but create future production problems. Retained profit - Profits reinvested back into the business External Sources of Finance Share capital - limited companies selling shares. #1 way for limited companies to raise money and can provide up to billions. Venture capital - invest in high risk / high return firms (usually technology start ups). In return take some ownership (equity) in the firm. Initial Public Offering - going from public to private. Selling shares to the public. Business angels - an individual who invests in high risk / high return firms. Receives some ownership and usually take an active role in the organization. Also known as an angel...
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...Process and Change Management and Risk Management [Name of the Writer] [Name of the Institution] Process and Change Management Introduction The underlying task has discussed the detailed information about the process and change management. The underlying topic has discussed the change management of the airport services. How the management of the airplane terminal administrations has changed and what are the effects of changing the administration of the air terminal administrations. A high extent of expensive air terminal operation administration disturbances can be followed back frequently ineffectively organized or deficiently controlled changes to the airplane terminal operation administration scene. These unsettling influences can come about today reliance of business procedures move from the IT huge expenses. This legitimizes interest in airplane terminal operation forms in which any adjustment as far as the requirements and advantages and will be tried for the conceivable negative impacts back and the obstruction can be lessened by taking proper measures to an adequate least. It is consequently the assignment of change managment to guarantee that institutionalized strategies and methods for the execution of changes exist and these are utilized effectively and reliably. The change administration procedure of each organization comprises of a few stages. These strides are important to take keeping in mind the end goal to change the administration. The change administration...
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...Career Management Guide In the current career environment, individuals with alternatives obtain more challenging and growth-oriented opportunities. Individuals with alternatives need not accept consequences, rather they create opportunities for themselves. Career Management Guide Section 1 Paaggee 11 SECTION 1: CAREERS TODAY Part 1 - The Environment, Career Issues and Trends The Importance of Education and Experience In the current economic environment, education is becoming increasingly critical to career success. While employment rose for Canadians with university and college educations, 651,000 fewer jobs existed for those people without high school qualifications. Unemployment rates in the U.S. exceed 10% for those with less than a high school diploma and approximately 2.5% for college graduates.1 When professional designations (i.e., accounting, engineering) are taken into account, the data on employability and income is skewed in favour of the professional, relative to those who possess only a post secondary educational background. However, in order to maintain a competitive edge, individuals must continue to invest in their development throughout their careers. Specifically, with respect to the future for business and accounting positions, “growth due to the increasing number and complexity of business operations will be offset somewhat by corporate restructuring and downsizing of management, resulting in average growth for executive, administrative and managerial...
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...REFLECTING ON CAREER IMPLICATIONS… ((CHAPTER 1—INTRODUCTION) REFLECTING ON CAREER IMPLICATIONS… 1. Attributes of Strategic Management: How do your activities and actions contribute to the goals of your organization? Observe the decisions you make on the job. What are the short-term and long-term implications of your decisions and actions? Have you recently made a decision that might yield short-term profits but might negatively impact the long-term goals of the organization (e.g., cutting maintenance expenses to meet a quarterly profit target)? 2. Intended versus Emergent Strategies: Don’t be too inflexible in your career strategies; strive to take advantage of new opportunities as they arise. Many promising career opportunities may “emerge” that were not part of your intended career strategy or your specific job assignment. Take initiative by pursuing opportunities to get additional training (e.g., learn a software or a statistical package), volunteering for a short-term overseas assignment, etc. 3. Ambidexterity: Avoid defining your role in the organization too narrowly; look for opportunities to leverage your talents and your organization’s resources to create value for your organization. This often involves collaborating with people in other departments or with your organization’s customers and suppliers. 4. Strategic Coherence: Focus your efforts on the “big picture” in your organization. In doing this, you should always strive...
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...Sarbanes-Oxley Act (SOX) & Financial Statements Accuracy University of Maryland University College Geralda Francois Courtney Holbrook Nicole Mone Walker Moyosore Bankole AMBA630 Mark Wylie August 18, 2015 Introduction The United States Securities and Exchange Commission (SEC) was created after the Great Depression of the 1930’s, and given a mandate to oversee US financial markets. Since then its basic policy has been to promote transparency in corporate finance, through the full disclosure of companies’ financial performances. This allowed the SEC to maintain a strong track record of corporate financial disclosure oversight through the 1990’s, when a period of rapid stock market growth and crashes rocked the system (Introduction to SOX, n.d). During that period, companies such as Enron and Sunbeam Corporation abruptly filed for bankruptcy or devalued overnight. This occurred largely because they concealed the real state of their financial health on audit reports (Livingston, 2003, p.7). In response to these scandals the US Congress passed the Sarbanes-Oxley Act of 2002 (SOX). Many of the provisions in SOX give additional powers to the SEC, including jurisdiction over the new Public Accounting Oversight Board and oversight over private industry Generally Accepted Accounting Principles (GAAP), and Generally Accepted Auditing Standards (GAAS). Moreover, U.S. public company CEOs and CFOs must certify the accuracy of financial statements, and disgorge equity...
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...Chapter 1 Introduction to Corporate Finance Week 1 by Hee Soo Lee Learning Goals The basic types of financial management decisions and the role of the financial manager The financial implications of the different forms of business organization The goal of financial management The conflicts of interest that can arise between owners and managers The various types of financial markets 2 Chapter Structure 1.1 The Types of Firms 1.2 Ownership Versus Control of Corporations 1.3 The Stock Market 3 What is Corporate Finance? Three important questions that are answered when you start your own business: - What long-term investments should you take on? (business type, building, machinery, and equipment?) - Where will you get the long-term financing to pay for the investment? (bring other owners or borrowing?) - How will you manage the everyday financial activities of the firm? (collecting from customers and paying suppliers) Corporate finance is the study of ways to answer these three questions Finance can be defined as the art and science of managing money Finance is concerned with the process, institutions, markets, and instruments involved in the transfer of money among individuals, businesses, and governments 4 Legal Forms of Business Organization Three major forms Sole Proprietorship : business owned by a single individual Partnership: business formed by two or more individuals...
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...What is a Bank? ----------------------------------------------------------------------5 3.2 Definitions of Bank form different view -------------------------------------5 3.3 Where does the word BANK come from? ------------------------------------6 3.4 Why Banks? Why don’t go to another financial institution? -------------7 3.5 Banking System in Bangladesh---------------------------------------------------7 3.6 Banking system is very from country to country because of Following 3 reasons---------------------------------------------------------------------12 3.7 There are different kinds of financial services firms calling themselves Banks---------------------------------------------------------------------------------------12 4.0 Major Problems Faced by Bangladeshi Banking Industry-------------------------14 4.1 Lack of Good Governance, Accountability and Transparency------------14 4.2 Low quality of asset -----------------------------------------------------------------15 4.3 Inadequacy of Effective Risk Management System--------------------------16 4.4 BASEL Slandered Implementation Problem ---------------------------------17 4.5 CAMELs rating problem-----------------------------------------------------------18 4.6 Lack of Diagnostic Review Report for disclosures...
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... The organization information system is backbone of organizational operational and functional units, the malware can produce potential threat to organization image, the establishment of an effective security measures and reassessment of organizational risk management approaches in order to cater with latest implication trend in network security. This report is based on literature review, analytical analysis of case studies, news articles magazines to highlight vulnerability and implication of malware attack to an organization, highlights the salient features of malware attack, malware attacks that can significantly hurt an enterprise information system, leading to serious functional commotions, can result into destructing the basic IT security up to identity theft, leakage of data, stealing private information, corporate information system blue prints, industrial white papers and networks break down. The only constant in the world of technology is a change, report highlights the latest trends, dimension and implication of malware attack and new critical source of threats, within the perspective of constantly changing IT world (e.g. cloud services-integration) Enterprise may not effectively device and manage malware threat and 'risk assessment processes. This report highlight the malware propagation process, malware vulnerability, the types of malware, optimistic cost effective solution in order to minimize security risk for an Enterprise information systems. This Report...
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...decision. [2] To give students experience in computing and interpreting preliminary analytical procedures commonly used in obtaining an understanding of a prospective client during the client acceptance decision process. [3] To raise issues relating to auditor independence in the context of client acceptance, both in terms of financial interests and the provision of non-audit services. To illustrate the subjective and sometimes difficult nature of the judgments involved in the client acceptance decision, and to give students the opportunity to justify a recommendation on client acceptance in the presence of both significant positive and negative factors. [5] To help students understand how information gathered in the client acceptance process can help the auditor in planning the audit if the client is accepted. [4] KEY FACTS The student takes on the role of a newly promoted audit manager recently given the task of considering factors and making a recommendation with respect to the acceptance of a new prospective client. The request to consider the engagement was received two weeks past the client’s fiscal year-end. The accounting firm, Barnes and Fischer, LLP, is a medium...
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