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25 Cards in this Set

  • Front
  • Back
Social Responsibilities - Functions
Protection of human rights
Protection of consumers interests
Protection of natural resources
Environmental protection
Provision of safety services
Provision of security services
Provision of charitable contributions
Social Responsibilities – Goals
Enhance social welfare
Endowing corp relationship with govt auths
Enhancement of corp image
Est and dev of efficient public relations
Activating customers patronage and loyalty
Social Responsibilities - Importance
Increase corporate sales volume
Increase corporate profit
Social Responsibilities – Auditing Areas (10)
Selection of priorities
Credibility of activities
Risk of manipulations
Govt. compliance
Impact of public social sectors
Impact on govt relations
Implementation costs
Implementation benefits
Implementation difficulties
Public awareness
Define - Integrated Components Operations
Operations that aim to increase the productivity and profitability of an enterprise through the addition or deletion of integrated components to its operations and organization structure.
Determines the degree or corporate dependence on external parties for the performance of its activities. Involves the process of taking decisions concerning corporate needs for adding or deleting integrated components.
Integrated Components – Functions (5)
Identify a need for IC’s
Evaluate alternatives
Prioritize the need
Add IC’s from corporate operations and org structure whenever required
Delete IC’s whenever required
Integrated Components – Goals (5)
Reduce the level of dependence on external operations
Improve the operating standards
Diversify and increase revenues
Reduce operating costs
Endow the operating strategy
Integrated Components – Importance
Increase corp productivity
Increase corporate profitability
Integrated Components – Auditing (7)
1 Identify IC needs
2 Pre-implementation evaluation of alternative IC ops
3 Prioritization of the needs for IC’s
4 Selection of IC’s
5 Decision making concerning IC’s
6 Post implementation eval of IC ops
7 Corrective actions concerning IC ops
Define Merger
Business combination involving the acq of all the net assets of one or more enterprises, after which the acquired enterprise or enterprises will be liquidated into the combining enterprise and accordingly will Cease to exist as a legal entity or legal entities.
Define acquisition (but leave separate)
Business combination involving a partial or total acquisition of an enterprise by another enterprise, after which the acquired enterprise remains intact as a separate legal entity.
M&A Operations - Functions (7)
Determine M&A needs
Identify candidate
Investigate interest
Negotiate deals
Initiate the M&A contracts
Implement backup systems
Evaluate the results
M&A Operations - Goals (5)
Meet investment and expansion needs
Endow the operating strategies
Maximize revenues
Minimize costs
Avoid financial and legal problems
M&A Operations - Importance (3)
Increase volumes
Increase productivity
Increase profit
M&A Operations - Auditing
Validity - Does M or A meet needs/goals
Basis of selection
Evaluation of the deals
Evaluation of the backup systems
Appraisal of the results
Business Ethics – Define
Moral values and behavioral conducts set by professional and business codes of ethics and relevant laws, rules and regulations that depicts the ethical standards that should be well observed by all parties involved in professional and business operations.
-Essential to protect private and public interests
-Ethics set ethical standards for each type of professional and business practice.
-Used to evaluate the overall performance efficiency of organizational administrators, professionals and personal.
Business Ethics – Functions (5)
Identify sources of ethical standards
Identify implementation of PROFESSIONAL ethics (accouting, auditing, management, engineering, legal)
Identify implementation of BUSINESS ethics (safety, antitrust, advertising, security, political, gifts, loans)
Training
Monitor implementation
Business Ethics – Goals (5)
Inform managers
Train concerned parties
Detect
Correct
Eliminate or reduce litigation
Business Ethics – Importance (3)
Safeguard public and private interests
Protect employees from temptations
Protect financial resources
Business Ethics – Auditing (7)
Corporate Code of Ethics
Sources of ethics
Compliance of corporate code of ethics
Fraud – Define
Intentional unethical and illegal acts
committed by an individual or an enterprise
to deceive, cheat and trick other individuals and enterprises
and to defraud them from their properties.

Examples – Reporting and disclosing false f/s information
Forging, theft, false advertising
Fraud – Financial Crime Examples (10)
-Bogus Sales
-Fake A/R & Rev’s
-Kiting
-Laping
-Padded payroll
-Theft of assets
-Misuse of CC and petty cash
-Charging personal expenses as corporate expenses
-Kickbacks
-Bribes
Fraud – Financial Crime Examples (10 more)
Foreign disbursement documents
Counterfeiting currency
Improper manipulating of EDP operations
Money laundering
Deceptive advertising and propaganda
Mail fraud
Loan fraud
Overcharging governmental agencies
False financial statement disclosures
Tax evasion
Fraud – Latest areas
Computer fraud
Insider trading
S&L’s
Banking
Consumer
Insurance
Medicare
Bilking
Corporate
Electronic tax evasion
Fraud – Auditors responsibility (5)
Be alert to finding fraud at all levels of the company
Must participate in the development and implementation of operating systems that can prevent fraud
Assist and cooperate with other organizational administrators in investigating fraud
Carry out special assignments related to fraud when requested
Detect fraud and report findings to concerned parties.