Explain how independent performance evaluation procedures are either violated or ef- fectively applied in each of the following situations. Identify the problem and suggest the check required (or applied) to prevent the identified problem from occurring.
a. The manager who oversees the corporate fleet vehicles signed off on the purchase of 15 luxury SUVs to expand the company's fleet of cars. As soon as this was done, he instructed that the payment be made.
b. At a newly opened local restaurant, waiters work six-hour shifts. There are three six- hour shifts per day, with each shift overlapping the next. The restaurant currently has two cash registers and these can be operated by any one of the waiters during a shift without them requiring any form of identification. The new manager has decided that the cash in the cash register box will be checked once every 24 hours, i.e., in the mornings before the new shift for the day begins.
c. A company's financial clerk does a spot check of the account books and finds that there is a discrepancy between the balances of the checking account and the bank statement.
d. In July of the previous year, the inventory clerk suspects that the warehouse inven- tory level is not being reflected accurately. When the year-end inventory was re- viewed at the end of February of this year, his suspicions were confirmed.
e. There was a spike in credit sales that was not picked up by the credit sales controller. When he was confronted by his line manager about it, he blamed the accounts receivable department for not identifying the issue earlier. The accounts receivable department denies that there was a spike in credit sales as their records do not indi- cate such a change.
f. A new employee at a company identifies a discrepancy between the total debits and total credits after payroll entries were finalized.
g. A client calls up a store to check the availability of a specific product at the store. The client is informed by the sales manager that he has checked their inventory system and the stock is available for the specific product. The customer visits the store, only to find that the product is no longer in stock. Upon querying the cashier, the client is again informed that the inventory system shows a relatively large quantity of the product stock being available. However, no one at the store is able to locate this stock.
h. Over a period of five years, one of the managers in a company realizes that the company does not seem to be performing as well as it
i. In order to speed up the processing of sales transactions, one person was made re- sponsible both for the sales journal as well as the accounts receivable master file.
Step by stepSolved in 3 steps
- For the past several years, Kent Corporation had achieved remarkable success in winning R&D contracts. The customers were pleased with the analytical capabilities of the R&D staff at Kent Corporation. Theoretical and experimental results were usually within 95 percent agreement. But many customers still felt that 95 percent was too low. They wanted 98–99 percent. In 1989, Kent updated their computer facility by purchasing a large computer. The increased performance with the new computer encouraged the R&D group to attempt to convert from two-dimensional to three dimensional solutions to their theoretical problems. Almost everyone except the director of R&D thought that this would give better comparison between experimental and theoretical data. Kent Corporation had tried to develop the computer program for three dimensional solutions with their own internal R&D programs, but the cost was too great. Finally, after a year of writing proposals, Kent Corporation…arrow_forwardPls help ASAP on botharrow_forwardIn a make-or-buy decision, relevant costs include: incremental fixed costs fixed factory overhead costs allocated to products ) unavoidable fixed costs prior investments in production equipmentarrow_forward
- If goods are specially manufactured, unique, or rare, a buyer may have the right to specific performance. Group of answer choices True or Falsearrow_forwardneed help asaparrow_forwardIf a sale staff is found not verbally disclosed specific features and materials risks of a high yield bond, which of the following is the most suitable follow-up action in Hong Kong? A. the sale staff should provide the key risk factor disclosure to the customer once again B. the sale staff should send an e-mail to the customer by highlighting the specific features and materials risks of the high yield bond. C. the sale staff should make a supplementary call to the affected customer and adio-record the disclosure in due course. and acknowledgement from the customer is obtained to confirm his/her/their understanding or the disclosure. D. if the transcation is completed, no further action is required.arrow_forward
- You are working as a chief information officer in a mid-sized company. The chief executive officer of your company has decided to automate all the operational areas to enhance the operational efficiency of the business. In particular, the chief executive officer decided to implement enterprise resource planning. For this purpose, the chief executive officer has arranged a meeting with a consulting firm that specialises in implementing enterprise resource planning. The first instinct of the chief executive officer was to sign a contract with the consultant, but he decided to hold off until he had received your input. The chief executive officer wants your opinion on this issue. In particular, he asked you to write a memo presenting the issues and the risks associated with consultants. Your discussion should be based on the relevant interactive tutorial. Is there any impact of the recent pandemic on the behaviour of ERP consulting firms? Further, outline a set of procedures that could be…arrow_forwardRenaldo's Boutiques, Incorporated, has 14 stores located in a midwestern part of the United States. Renaldo, the president of the company, has set budgets for each store that do not allow for lost, stolen, or misplaced merchandise ( inventory shrinkage). Research shows the disappearance of store merchandise is attributed to a combination of internal and extemal causes. Customer theft-35 percent Employee theft-40 percent Administrative errors-18 percent Vendor dishonesty 7 percent Which philosophy do you believe Renaldo is following?arrow_forwardA cattle producer purchased an insurance contract form the USDA Risk Management Agency. The contract pays a fixed dollar amount if and only if the rainfall in the 10 by 10 miles grid surrounding the producer’s land falls below 90 percent of the historical average rainfall. According to the lecture, this is a type of _____ insurance A cattle producer purchased an insurance contract form the USDA Risk Management Agency. The contract pays a fixed dollar amount if and only if the rainfall in the 10 by 10 miles grid surrounding the producer’s land falls below 90 percent of the historical average rainfall. According to the lecture, this is a type of _____ insurance weather pure parametric aggregate loss index parametric indexarrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.