Chapter 14 & 15: Controllers, Auditors and Ethics

Question 1

Designs and operates the control and information systems. Ex: control measure

Answer 1

Controller

Question 2

1. Financial audits
2. Compliance audits
3. Performance audits

Answer 2

Auditor

Question 3

Provide a useful guide for defining how employers and employees should behave

Answer 3

Ethics

Question 4

1. Make ethical behaviour explicit as part of a personnel/cultural control mechanism
2. Include virtues such as: integrity, loyalty, objectivity, confidentiality, competence

Answer 4

Codes of Conduct

Question 5

Actions taken to make performance look better in the short-run than it otherwise would.

Answer 5

Earnings Management

Question 6

1. Choices of accounting policies
2. Accounting judgements
3. Timing of sales, expenses, etc.

Answer 6

Forms of Earnings Management