【国际注册会计师ACCA】F1课件(英文版)F1-ch8
1. The purpose of accounting information
• Qualities of good information a. Relevance b. Comprehensibility c. Reliability d. Completeness e. Objectivity f. Timeliness g. Comparability
1. The purpose of accounting information
• The structure of accounting function c. Treasurer
Raising funds by borrowing Investing surplus funds Cash flow control
• The accounting staff informs the purchasing department of all payments of invoices.
2. Coordination with marketing/sales departments • The receivables ledger section relies on the sales
• The users of accounting information a. Managers b. Shareholders c. Trade contacts d. The debtors e. Tax authority f. Employees g. Financial analysts and advisors h. Government i. The public
F1
Accounting and finance
functions within business
1. The purpose of accounting information
• What is accounting? Accounting is a way of recording, analyzing and
1. The purpose of accounting information
• The structure of accounting function b. Management accounting
Costing accounting Budgets and budgetary control Financial management of projects
staff to send copies of sales orders or confirmations of goods delivered to customers.
• The accounting staff pass on information about payments received.
3. Coordination with debt collection staff
• The accounting staff prepares monthly statements and lists of aged receivables.
4. Coordination within the fina of accounting information
• The structure of accounting function a. Financial controller
Routine accounting Providing accounting reports Cashiers’ duties and cash control
1. The purpose of accounting information • Example question
Which of the following users groups of financial and accounting information are likely to need, and have access to, this information most?
summarizing transactions of a business.
The accounting system is affected by the size, type and structure of business.
1. The purpose of accounting information
F1 The relationship between accounting and other business function
1. Coordination with purchasing departments
• The payable ledge section relies on the purchasing department to send copies of purchase orders and confirm the validity of invoices received from suppliers, inform the accounting staff of any goods received or returned.
• The financial accounting staff responsible for preparing financial accounts might rely on the management accounting staff for data about inventory records so as to place a value on closing inventory
ACCA F8 PPT Chapter2
Slide 4
Auditors' duties (P20)
• The FS are fairly presented • Additional statutory requirements to adhere to – local law – adequate records and returns • Accounts agree to records • Consistency of other information • Disclosure of director’s benefits -M&S auditor’s report
– China?
• Strict legislative or government regulation • CICPA (中国注册会计师协会，9万多执业会员 中国注册会计师协会， 万多执业会员 万多执业会员) 中国注册会计师协会
Slide 12
EU member states
• The eighth directive
• Eligibility to act as auditor
-Generally a member of regulatory body which provide qualification and set up regulatory rule to ensure compliance with statutory requirement. -Maintenance of competence -Monitoring and enforcement rules -Auditor: individual or firm (corporate,LLP or partnership) -Ineligible person for appointment as auditor
F1 ACCA 讲义
5. The syllabus of F1 (You can see the contents and relationships between parts of F1)
The business organisation, its stakeholders and the external environment (A)
END
F1
Stakeholders in business organisations
3. The common features of organisations
a b
c d e
Formal documented systems and procedures People specialization
Variety of objectives Inputs-processing-outputs Synergy
5. The types of organisations
• Non-governmental organisations
An independent voluntary association of people acting together for common purposes The primary objective of a NGO is not a commercial one but related to social, political or environmental issues.
5. The types of organisations
• Example question In which of the following organisation can one member dominate the organisation? A. Cooperatives B. Limited companies
ACCA F8 双语教材
Course NotesACCA Paper F8Audit and AssuranceFrom June 2016 Tutor detailsJ A N U A R Y 2 0 1 6 R E L E A S E第一直觉教育www.fi_No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of First Intuition Publishing Ltd.Any unauthorised reproduction or distribution in any form is strictly prohibited as breach of copyright and may be punishable by law.© First Intuition Publishing Ltd, 2016第一直觉教育www.fi_第一直觉教育www.fi_ContentsPageContentsiii 1 Accounting standards v 2 Overview of the syllabus v 3 Approach to examining the syllabus v 4 Exam technique v 5 Study planner vi 1: Audit framework and regulation1 1 The concept of audit and other assurance engagements 12 External audits3 3 Corporate governance 54 Professional ethics and ACCA’s Code of Ethics and 95 Internal audit and governance and the 126 The scope of the internal audit function, outsourcing and internal audit 13 2: Planning and risk assessment17 1 Overview diagram17 2 Obtaining and accepting audit engagements 18 3 Objective and general principles of audit planning 19 4 Planning an audit19 5 Understanding the entity and its environment 20 6 Assessing the risks of material misstatements 21 7 Materiality, fraud, laws and regulations 22 8 Analytical procedures 24 9 Interim and final audits 25 10 Audit documentation 26 3: Internal control 27 1 Introduction27 2 The use of internal control systems by auditors 28 3 Transaction cycles 30 4 IT controls34 5 Tests of control versus substantive procedures 35 4: Audit evidence37 1 The use of assertions by auditors 37 2 Audit procedures38 3 The audit of specific items 40 4 Audit sampling and other means of testing 49 5 Computer-Assisted Audit Techniques 50 6 The work of others51 7 Not-for-profit organisations535: Review and reporting 551Subsequent events 55 2Going concern 57 3Written representations 59 4Audit finalisation and the final review 60 5Audit reports 60 6Application to scenarios 66 7Reports to Management 68Solutions to Class lecture examples 69Chapter 5 69第一直觉教育www.fi_第一直觉教育www.fi_1 Accounting standardsThe accounting knowledge that is assumed for Paper F8 is the same as that examined in Paper F3. Therefore, candidates studying for Paper F8 should refer to the Accounting Standards listed under Paper F3.2 Overview of the syllabusThe syllabus headings are the same as the titles of each chapter in these course notes: (1) Audit framework and regulation (2) Planning and risk assessment (3) Internal control (4) Audit evidence(5)Review and reporting3 Approach to examining the syllabusAs with all other ACCA exams, F8 is a three-hour exam with an additional 15 minutes’ reading and planning time.The Examiner for F8 is Pami Bahl.All the questions in the F8 exam are compulsory. Section A consists of 12 objective test questions. Section B consists of six longer questions. The bulk of these questions will be discursive but some questions involving the calculation and interpretation of some basic ratios will be set from time to time.Section TopicMarks Section A Four 1 mark objective test questions covering any area in the syllabus. Eight 2 mark objective test questions covering any area in the syllabus 4 16 Section BFour 10 mark questions on any area of the syllabus.40 Two 20 mark questions covering potentially any area of the syllabus, but with heavier emphasis on planning and risk assessment, internal control, audit evidence and review and reporting.404 Exam techniqueThe exam is 180 minutes long and totals 100 marks. Therefore, you should allocate 1.8 minutes for each mark, or 36 minutes for Section A in total, 18 minutes for each 10-mark question and 36 minutes for each 20-mark question. Some longer questions will have subsections which should also be broken up. How long it takes to answer each objective test question will vary depending on the length of the question, but you should aim to complete the whole of Section A within the 36 minutes allocated to it. Every part of every question must be attempted.As an approximate guide, in Section B every paragraph should contain 1 valid point which will earn 1 mark. You should try to keep your paragraphs to less than four lines of writing.Leave a line between each paragraph written, giving the marker the opportunity to give you maximum marks.The use of columns may work well for those questions where there are two parts of the question e.g. if the question asks for risks and controls that would mitigate those risks or audit procedures, and the reason for carrying them out.5Study plannerThe chapter number refers to the chapter of these Course Notes. The time is a guide as to how longyou should spend on this subject, including question practice. Tick each session off when you havecompleted it.Try and complete each study session in order so that you learn each topic in turn. Some sessions arelonger than others, but make sure you take a break between sessions.Read the relevant chapter of the course notes. It is essential that you try the questions from theQuestion Bank where indicated. You will not pass the exam if you don’t attempt the questions. Don’t forget, if you get stuck you can contact your tutor to ask for advice. Tick off each chapter when youhave completed it.Attempt the course examThe course exam will give you a feel for how well you have grasped the syllabus content, and will also show you if you are lacking in exam technique.RevisePractise lots of questions from the Question Bank and read the Examiner’s Comments and ExamSmarts, so that you can find out what the Examiner is looking for in your written answers.You should consider booking a First Intuition revision course at this stage, to improve your examskills, particularly if you scored below 50% in the course exam. Our revision courses are question-based, and will help you improve your exam technique. We also include a Mock Exam, giving youanother chance to practise under real exam conditions.If you complete all the sessions before you have received the course exam please email your tutor torequest it or check to download it.第一直觉教育www.fi_第一直觉教育www.fi_第一直觉教育www.fi_PERrelevanceQuestionpractice Tick when completeChapter SubjectFirst Intuition tutor guidanceTime (min) 4Audit evidenceThis chapter deals with substantive testing.Make sure you know at least four audit tests for each of the key items in the statement of financial position and make sure you understand what financial statement assertions they are testing.It is important to understand the difference between a test of control and a substantive test – both in theory and in practice P017 3 hours on the chapter and 3½ hours on thequestionsAll OT Q’s Q29 Q30 Q32 Q33 Q365Review and reportingThis chapter focuses on the closing stages of the audit and the auditor’s report to shareholders.It is essential to be familiar with each different type of audit opinion and when it would be appropriate to use them.PO183 hours on the chapter and4 hours on the questionsAll OT Q’s Q38 Q42 Q43 Q45 Q46 Q495.1 Practical Experience Requirements (PER) and Performance ObjectivesACCA requires students to have 36 months’ practical experience in order to become members. Part of the practical experience requirements is achieving performance objectives that demonstrate that you can apply what you’ve learnt when studying to real-life, work activities.ACCA has set out 20 performance objectives in 9 areas. You are required to achieve 13 performance objectives – all 9 Essentials performance objectives and any 4 Options performance objectives. ACCA has provided guidance on which objectives are strongly linked to which exam. The relevant objectives for F8, comprise Essentials objectives and Options objectives:Manage self (relevant for all exams) (Essentials)Communicate effectively (relevant for all exams) (Essentials)Use information and communications technology (relevant for all exams) (Essentials)Prepare and collect evidence for audit (relevant for F8 and P7)Evaluate and report on audit (relevant for F8 and P7)第一直觉教育www.fi_1 The concept of audit and other assurance engagementsAn audit is an evaluation of an organisation, system or process. Audits are performed to ascertain the validity and reliability of information, and also provide an assessment of a system's internal control.In the context of a company and its accounting records, the external audit is an “independentexamination and expression of opinion on the financial statements of an entity”. Many organisations(particularly companies) are legally required to have an external audit.The purpose of the external audit is for the auditor to obtain sufficient appropriate audit evidence on which to base the audit opinion. This opinion states that the financial statements give a ‘true and fairview’ of the position, performance (and cash flows) of the entity. This opinion is prepared for thebenefit of shareholders and can be seen as helping to prevent these investors from being defrauded.There is no strict legal definition of “true and fair” but essentially it means that the financialstatements contain no significant/material errors.“True” can be considered as stating that the information in the financial statements is factual andcomplies with accounting standards.“Fair” refers to information being clear, impartial and unbiased, reflecting the substance oftransactions, rather than the legal form.An audit is considered necessary for all but the smallest companies because there is often a distinction between those people that own the company – the shareholders – and those people that run the day- to-day operations of the company – the directors.In this sense, the directors are considered to be the “stewards” of the company – they are accountable to the owners for the way the performance of the company.第一直觉教育www.fi_审计和其他认证业务的概念审计是对一个组织、系统或过程的评估。
上海财大ACCA F1讲义1(课堂PPT)
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– Activity – Profit or non-profit orientation – Legal status
• Limited companies • Partnerships
– Size
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6
– Sources of finance
• Borrowing from banks • Government funding • Issuing shares
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9
• 2.2 Private vs public sector
– Private sector
• Organisations not owned or run by central or local government, or government agencies.
– Public sector
• 1.1 What all organisations have in common
– 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.
– Technology
• Varying degrees of technology use
.
7
• 1.4 What the organisation does
– Organisations do many different types of work
.
ACCA考试之F1辅导讲义回顾(1)
ACCA考试之F1辅导讲义回顾(1)本文由高顿ACCA整理发布，转载请注明出处Chapter 1The business organisationChapter learning objectivesUpon completion of this chapter you will be able to:§ define the term organisation§ explain the need for a formal organisation§ distinguish between different types of organisation§ summarise the main areas of responsibility for different functions within an organisation§ explain how different departments co-ordinate their activities§ explain the nature and process of strategic planning§ explain the purpose of each level of organizational management.1 The nature of organisations1.1 What is an organisation?‘Organisations are social arrangements for the controlled performance of collective goal s.’ （Buchanan and Huczynski）The key aspects of this definition are as follows:§ collective goals§ social arrangements§ controlled performance.Expandable textAs yet there is no widely accepted definition of an organisation. This is because the term can be used broadly in two ways:§ It can refer to a group or institution arranged for efficient work. To organise implies that there is an arrangement of parts or elements that produces more than a random collection.§ Organisation can also refer to a process, i.e. structuring and arranging the activities of the enterprise or institution to achieve the stated objectives. The very work organisation implies that there is order or structure.There are many types of organisations, which are set up to serve a number of different purpose and to meet a variety of needs. They include:§ service companies§ factories§ retail companies§ political parties§ charities§ local councils§ the army, navy and air force§ schools.What they all have in common in summarised in the definition given by Buchanan and Huczynski:‘Organisations are social arrangements for the controlled performance of collective goals.’（a）‘Collective goals’ – organisations are defined primarily by their goals. A school has the main goal of educating pupils and will be organised differently from a company where the main objective is to make profits.（b）‘Social arrangements’ – someone working on his own does not constitute an organisation. Organisations have structure to enable people to work together towards the common goals. Larger organisations tend to have more formal structures in place but even small organisations will divide up responsibilities between the people concerned.（c）‘Controlled performance’ – organisations have systems and procedures to ensure that goals are achieved. These could vary from ad-hoc informal reviews to complex weekly targets and performance review.For example, a football team can be described as an organisation because:§ It has a number of players who have come together to play a game.§ The team has an objective （to score more goals than its opponent）。
acca教材-ACCA F1 知识课程
ACCAspace 中国ACCA特许公认会计师教育平台
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The impact of technology on organisations
Homeworking and supervision
IT技术还使得部分工作得以在家里迚行，员工不用去上班。但这也带来了监管上的一 些问题。 -------------------------------------------------------------------------------------------------------------Outsourcing（外包）把一些非核心业务交给别人来做。
where the employee was employed.（公司全部关闭戒部分关闭导致的人员 冗余。） 2. The requirements of the business for employees to carry out work of a particular kind have ceased or diminished or are expected to.（流程改迚， 技术迚步导致的人员冗余。）
由内到外： 组织本身 经营环境（产业层面上的环境） 宏观环境（经济政治文化技术层 面的环境） 物理环境（整个以物质形态存在 的环境 ）
ACCAspace 中国ACCA特许公认会计师教育平台
Copyright ©
3
The political and legal environment
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Social and demographic trends
• Population and the labour market（人口数量，人口结构的变化，对劳劢力市场有 深刻长进的影响）
02-ACCA-F1-讲义-基础...
02-ACCA-F1-讲义-基础...- 70 - Chapter 16. Business Analysis Models1. SWOTSWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats (SWOT) involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable for the business to achieve that objective.A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research. (a) Strengths: characteristics of the business or team that give it an advantage over others in the industry. (b) Weaknesses: are characteristics that place the firm at a disadvantage relative to others.(c) Opportunities: external chances to make greater sales or profits in the environment.(d) Threats: external elements in the environment that could cause trouble for the business.Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.2. Porter’s Five Competitive Forces model2.1 The threat of new entrants (and barriers to entry to keep them out)A new entrant into an industry will bring extra capacity and more competition. The strength of this thrust is likely to vary from industry to industry and depends on two things:(a) The strength of the barriers to entry. Barriers to entry discourage new entrants.(b) The likely response of existing competitors to the new entrant.2.2 A substitute product is a good or service produced by another industry which satisfies thesame customer needs.2.3 The bargaining power of CustomersCustomers want better quality products and services at a lower price. Satisfying this want might force down the profitability of suppliers in the industry. Just how strong the position of customers will be depended ona number of factors.(a) How much the customer buys?(b) How critical the product is to the customer’s own bus iness?(c) Switching costs (i.e. the cost of switching supplier)(d) Whether the products are standard items (hence easily copied) or specialised(e) The customer’s own profitability: a customer who makes low profits will be forced to insist on low prices from suppliers2.4 The bargaining power of suppliersSuppliers can exert pressure for higher prices. The ability of suppliers to get higher prices depends on several factors.(a) Whether there are just one or two dominant suppliers to the industry who are able to charge monopoly prices(b) The threat of new entrants or substitute products to the supplier’s industry(c) Whether the suppliers have other customers outside the industry, and do not rely on the industry for the majority of their sales(d) The importance of the supplier’s product to the customer’s business(e) Whether the supplier has a differentiated product which buyers need to obtain(f) Whether switching costs for customers would be high- 71 -2.5 The rivalry amongst current competitors in the industryThe intensity of competitive rivalry within an industry will affect the profitability of the industry as a whole.Competitive actions might take the form of price competition, advertising battles, sales promotion campaigns, introducing new products for the market, improving after sales service or providing guarantees or warranties. Competition can stimulate demand, expanding the market, or it can leave demand unchanged, in which case individual competitors will make less money, unless they are able to cut costs.3. Porter’s value chain analysisThe margin is the excess the customer is prepared to pay over the cost to the firm of obtaining resource inputs and providingvalue activities. It represents the value created by the value activities themselves and by the management of the linkages between them.Linkages connect the activities of the value chain.(a) Activities in the value chain affect one another. For example, more costly product design or betterquality production might reduce the need for after-sales service.(b) Linkages require co-ordination. For example, Just-in-Time (JIT) requires smooth and integratedfunctioning of operations, outbound logistics and service activities such as installation.- 72 -。
02-ACCA-F1-讲义-基础...
02-ACCA-F1-讲义-基础...Chapter 10. Governance and Social Responsibility in Business General concept of corporate governance (C.G.) Definition of corporate governanceCorporate governance is the system by which organisation is directed and controlled by senior officers. Though it is discussed in relation to large quoted public companies, corporate governance is directed at all bodies corporate; commercial and not for profit.1. Separation of Ownership and ControlBoard of directors vs. Shareholders(a) Board of directorsIn simple words, BOD is responsible for managing and controlling the operation of company.Before implementation of C.G. the BOD consists of the executive directors only.Decision made by consensus (simple majority) through the meeting of BOD.(b) ShareholdersA company’s members or equity shareholders are the owners of company.Decisions made by voting rights attached to each category of shares, through the general meeting (Annual General Meetings - AGM; Extraordinary General Meetings - EGM )(c) In small private companies the directors are also shareholders most likely.However, for the large public companies especially in modern UK and US capital market the shareholders are normally not directors, Thereby the situation of separation of ownership and control aroused.1.1 Agency theoryThe situation of ‘divorce’ of ownership and controll could lead to the issues guided by agency theory:‘Principals’ - Shareholders‘Agent’ - BODPrincipals would delegate right or authority to agents.Agents should act in the best interest of principals.1.2 Agency problemHowever, if the agents have ‘moral hazard’, that will lead to notorious ‘agency problem’. E.g. the directors do not act in the best interest of shareholders instead of satisfying the own self-interest as the result of sacrificing the shareholder interest.1.3 Conflict of interest(a) Independence of external auditorAccording to Company Law, the rights of appointment of external auditor lie with the shareholders. However, in practice, the executive directors make the recommending list of external auditor for shareholder’s approv al.This practice may affect the independency of external auditor.(b) Remuneration problemExecutive directors may also pay themselves excessive remuneration.(c) Nomination problemExecutive directors may also select the incapable candidates sat in the board.(d) There are also many types of conflicts of interests.(1) Investment decision(2) Stakeholders’ claims.2. How to solve the agency problem2.1 Introducing the role of external auditorThe purpose of an audit is to enhance the degree of confidence of intended users in the financial statements. This is achieved by the expression of an opinion by the auditor on whether the financial statements are prepared, in all material respects, show true and fair view.As the basis for the auditor’s opinion, International Standards on Auditing (ISAs) require the auditor to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error.Finally, communicate the result to shareholder through external audit report. (E.g. Unqualified Opinion Report– good report; Qualified Opinion Report– bad report, Adverse Opinion Report-worst report, and Disclaimer of Opinion Report-no opinion)When conducting substantive tests, the internal auditor is examining figures which he has extracted directly from the company's financial records. For this sort of test, the auditor is concerned only with establishing whether or not the figure in the ledger is correct. He or she is not concerned as to how it got there.2.2 Only dependence on external auditor is not enough to solve problem(a) Financial focus(b) A kind of detection control(c) Other inherent limitations of the auditing arrangements2.3 Introductions the role of non-executive director (majority)Definition of NEDsThey are directors who attend to the board meetings, and committee meetings when required and do not involve in the day-to-day running of organisation.(a) Have external experience and knowledge(b) Provide a wider perspective(c) Be a comfort factor for third parties such as investors, customers, suppliers(d) Dual roles of the NED. They are full board members at the same time they are meant to provide the strong, independent element on the board.2.4 Sub-committees(a) Remuneration committeeConsist of only NEDs in order to determine remuneration policy and package related to executive directors.(b) Nomination committeeConsist of majority of NEDs in order to select suitable candidates to sit in the board and evaluate the individual director performance.(c) Audit committeeConsist of only NEDs, one of them should possess current development knowledge of accounting and auditing.3. Internal control systemThe responsibility related to design, implementation and monitoring of the internal control system lie with BOD3.1 Nature and purposes of internal control systemRiskRisks are uncertain events or factors relating to any activities that would make the organisation not to achieve its objectives. Risk consists of fraud and error.Fraud is intentional behaviors.。
acca F1ch8
2. Nature, principles and scope
Financial accounting is mainly a method of reporting the results and financial position of a business. Its principal function is to satisfy the information needs of persons not involved in the day-to-day running of the business (external users). Management accounting is a management information system which analyses data to provide a basis for managerial action. Its principal function is to satisfy the information needs of managers (internal users). *R-54:#1; *pilot paper #26
Government and it agencies need information to assess allocation of resources and activities of companies, and need a basis for national statistics The public need information about company’s contribution to a local economy and the effect of the company on the environment.
ACCAF1StudyText,PDF原版BPP教材
Accountant in Business Paper F1 Course Notes ACF1CN07 l i BPP provides revision courses question days mock days and specific material to assist you in this important phase of your studies. F1 Accountant in Business Study Programme for Standard Taught Course Page Introduction to the paper and the course...............................................................................................................iii 1 Business organisation and structure...........................................................................................................1.1 2 Information technology and systems...........................................................................................................2.1 3 Influences on organisational culture............................................................................................................3.1 4 Ethical considerations........................................................................................................................ ..........4.1 5 Corporate governance and social responsibility..........................................................................................5.1 6 Home study chapter – The macro economic environment..........................................................................6.1 End of Day 1 – refer to Course Companion for Home Study 7 The business environment..........................................................................................................................7.1 8 Home study chapter – The role of accounting.............................................................................................8.1 9 Control security and audit............................................................................................................................9.1 10 Identifying and preventing fraud................................................................................................................10.1 11 Leadership and managing people.............................................................................................................11.1 12 Individuals groups teams.........................................................................................................................12.1 End of Day 2 – refer to Course Companion for Home Study Course exam 1 13 Motivating individuals and groups.............................................................................................................13.1 14 Personal effectiveness and communication..............................................................................................14.1 15 Recruitment and selection.........................................................................................................................15.1 16 Diversity and equal opportunities..............................................................................................................16.1 17 Training and development. (1)7.1 18 Performance appraisal (1)8.1 End of Day 3 – refer to Course Companion for Home Study Course exam 2 19 Answers to Lecture Examples...................................................................................................................19.1 20 Appendix: Pilot Paper questions................................................................................................................20.1 ??Revision of syllabus ?? Testing of knowledge ?? Question practice ?? Exam technique practice INTRODUCTION ii Introduction to Paper F1 Accountant in Business Overall aim of the syllabus To introduce knowledge and understanding of the business and its environment and the influence this has on how organisations are structured on the role of the accounting and other key business functions in contributing to the efficient effective and ethical management and development of an organisation and its people and systems. The syllabus The broad syllabus headings are: A Business organisation structure governance and management B Key environmental influences and constraints on business and accounting C History and role of accounting in business D Specific functions of accounting and internal financial control E Leading and managing individuals and teams F Recruiting and developing effective employees Main capabilities On successful completion of this paper candidates should be able to: ?? Explain how the organisation is structured governed and managed ?? Identify and describe the key environmental influences and constraints ?? Describe the history purpose and position of accounting ?? Identify and explain the functions of accounting systems ?? Recognise the principles of leadership and authority ?? Recruit and develop effective employees Links with other papers This diagram shows where direct solid line arrows and indirect dashed line arrows links exist between this paper and other papers that may follow it. The Accountant in Business is the first paper that students should study as it acts as an introduction to business structure and purpose and to accountancy as a core business function. BA P3 MA F2 and FA F3PA P1 AB F1 INTRODUCTION iii Assessment methods and format of the exam Examiner: Bob Souster The examination is a two hour paper-based or computer-based examination. Questions will assess all parts of the syllabus and will test knowledge and some comprehension of application of this knowledge. The examination will consist of 40 two mark and 10 one mark multiple choice questions. The pass mark is 50 ie. 45 out of 90. INTRODUCTION iv Course Aims Achieving ACCAs Study Guide Outcomes Business organisations structure governance and management A1 The business organisation and its structure Chapter 1A2 The formal and informal business organisation Chapter 3 A3 Organisational culture in business Chapter 3 A4 Stakeholders of business organisations Chapter 3 A5 Information technology and information systems in business Chapter 2 A6 Committees in the business organisation Chapter 1 A7 Business ethics and ethical behaviour Chapter 4 A8 Governance and social responsibility Chapter 5 Key environmental influences and constraints on business and accounting B1 Political and legal factors Chapter 7 B2 Macro-economic factors Chapter 6 B3 Social and demographic factors Chapter 7 B4 Technological factors Chapter 7 B5 Competitive factors Chapter 7 History and role of accounting in business C1 The history and functions of accounting in business Chapter 8 C2 Law and regulations governing accounting Chapter 8 C3 Financial systems procedures and IT applications Chapter 8 C4 The relationship between accounting and other business functions Chapter 1 Specific functions of accounting and internal financial control D1 Accounting and financial functions within business Chapter 1 D2 Internal and external auditing and their functions Chapter 9 D3 Internal financial control and security within business organisations Chapter 9 D4 Fraud and fraudulent behaviour and their prevention in business Chapter 10 INTRODUCTION v Leading and managing individuals and teams E1 Leadership management and supervision Chapter 11 E2 Individual and group behaviour in business organisations Chapter 12 E3 Team formationdevelopment and management Chapter 12 E4 Motivating individuals and groups Chapter 13 Recruiting and developing effective employees F1 Recruitment and selection managing diversity and equal opportunities Chapter 15 16 F2 Techniques for improving personal effectiveness at work and their benefits Chapter 14 F3 Features of effective communication Chapter 14 F4 Training development and learning in the maintenance and improvement of business performance Chapter 17 F5 Review and appraisal of individual performance Chapter 18 INTRODUCTION vi Classroom tuition and Home study Your studies for BPP consist of two elements classroom tuition and home study. Classroom tuition In class we aim to cover the key areas of the syllabus. To ensure examination success you will need to spend private study time reinforcing your classroom course with question practice and reviewing areas of the Course Notes and Study Text. Home study To support you with your private study BPP provides you with a Course Companion which helps you to work at home and aims to ensure your private study time is effectively used. The Course Companion includes a Home Study section which breaks down your home study by days one to be covered at the end of each day of the course. You will find clear guidance as to the time to spend on various activities and their importance. You are also provided with sample questions and either two course exams which should be submitted for marking as they become due or an I-pass CD which is full of questions. These may include questions on topics covered in class and home study. BPP Learn Online Come and visit the BPP Learn Online free at/acca/learnonline for exam tips FAQs and syllabus health check. ACCA Forum We have thriving ACCA bulletin boards at /accaforum. Register and discuss your studies with tutors and students. Helpline If you have any queries during your private study simply contact your class tutor on the telephone number or e-mail address that they will supply. Alternatively call 44 020 8740 2222 or your local training centre if outside the London area and ask for a tutor for this paper to speak to you or to call you back within 24 hours. Feedback The success of BPP’s courses has been built on what you the students tell us. At the end of the course for each subject you will be given a feedback form to complete and return. If you have any issues or ideas before you are given the form to complete please raise them with the course tutor or relevant head of centre. If this is not possible please email . INTRODUCTION vii Key to icons Question practice from the Study Text This is a question we recommend you attempt for home study. Real world examples These can be found in the Course Companion. Section reference in the Study Text Further reading is needed on this area to consolidate your knowledge. INTRODUCTION viii 1.1 Syllabus Guide Detailed Outcomes Having studied this chapter you will be able to: ?? Ascertain the appropriate organisational structure for different types and sizes of business. ?? Understand the concepts of span of control and scalar chains. ?? Appreciate the differing levels of strategy in an organisation. Exam Context This chapter lays the foundation for an understanding of what organisations are what they do and how they do it. Section 2 Organisational structure represents a higher level of knowledge. You must be able to apply knowledge to exam questions. Qualification Context An understanding of business structures is important with regard to higher level accounting papers as well as P3 Business Analysis. Business Context Appreciating why organisations are structured in different ways will help with an understanding of how they should be managed. Business organisation and structure 1: BUSINESS ORGANISATION AND STRUCTURE 1.2Overview Departments and functions Why does the organisation exist Structural forms Business hierarchy 1: BUSINESS ORGANISATION AND STRUCTURE 1.3 1 Organisations 1.1 Definition – 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. Boundaries can be physical or social. 1.2 Key categories: ?? Commercial ?? Not for profit ?? Public sector ?? Charities ?? Trade unions ?? Local authorities ?? Mutual associates Class exercise Required Identify a real-world example of the above categories of organisation. 1.3 Organisations owned or run by the government local or national or government agencies are described as being in the public sector. All other organisations are classified as the private sector. Limited liability 1.4 Limited companies denoted by X Ltd or X plc are set up so as to have a separate legal entity from their owners shareholders. Liability of these owners is thus limited to the amount invested. Private v public 1.5 Private companies are usually owned by a small number of people family members and these shares are not easily transferable. Shares of public companies will be traded on the Stock Exchange. Pg 52-561: BUSINESS ORGANISATION AND STRUCTURE 1.4 2 Organisational structure 2.1 Henry Mintzberg believes that all organisations can be analysed into five components according to how they relate to the work of the organisation and how they prefer to co-ordinate. a Strategic apex Drives the direction of the business through control over decision-making. b Technostructure Drives efficiency through rules and procedures. c Operating core Performs the routine activities of the organisation in a proficient and standardised manner. d Middle line Performs the management functions of control over resources processes and business areas. e Support staff Provide expertise and service to the organisation. Strategic Apex Support Staff Technostructure Middle Line Operating Core 1: BUSINESS ORGANISATION AND STRUCTURE 1.5 Exam standard question Required Match the following staff/rules to Mintzbergs technostructure: a Manager of a retail outlet supervising 40 staff. b A salesman responsible for twenty corporate accounts. c The owner of a start-up internet company employing two staff. d The HR department which provides support to business managers. e The IT department seeking to standardise internal systems. 3 Structural forms for organisations Scalar chain and span of control 3.1 As organisations grow in size and scope different organisational structures may be suitable. 3.2 The Scalar chain and Span of control determine the basic shape. The scalar chain relates to levels in the organisation and the span of control the number of employees managed. 3.3 Tall organisations have a: a Long scalar chain via layers of management b Hierarchy c Narrow span of control. 3.4 Flat organisations have a: a Short scalar chain less layers b Wide span of control. 1: BUSINESS ORGANISATION AND STRUCTURE 1.6 3.5 MD Divisional directors Department managers Section managers MD Supervisors Department managers Charge hands Supervisors Workers Workers Tall Flat Pilot paper Required Identify factors which may contribute to the length of the chain and the span of control. Organisational structures 3.6 Entrepreneurial A fluid structure with little or no formality. Suitable for small start-up companies the activities and decisions are dominated by a key central figure the owner/entrepreneur. 3.7 Functional This structure is created via separate departments or functions. Employees are grouped by specialism and departmental targets will be set. Formal communication systems will be set up to ensure information is shared. 1: BUSINESS ORGANISATION AND STRUCTURE 1.7 3.8 Matrix A matrix organisation crosses a functional with a product/customer/projectstructure. This structure was created to bring flexibility to organisations geared towards project work or customer-specific jobs. Staff may be employed within a hierarchy or within specific functions but will be slotted into different teams or tasks where their skill is most needed. The matrix structure is built upon the principles of flexibility and dual authority. Required Identify two advantages and two disadvantages of each structure. Advantages Disadvantages Entrepreneurial Functional Matrix 3.9 Organisations are rarely composed of only one type of structure especially if the organisation has been in existence for some time and as a consequence a hybrid structure may be established. Hybrid structures involve a mixture of functional divisionalisation and at least one other form of divisionalisation. Area Manager A Area Manager B Area Manager C.。