Acca FIA Complete
Acca FIA Complete
Acca FIA Complete
Emmanuelmwila2005@gmail.com
Hello
Emmanuelmwila2005@gmail.com
Congratulations on being accepted to Zcas! Zcas is the Zambia Centre for Accountancy Studies, which
provides professional training in accounting, finance, and related fields. It’s a great opportunity to
further your education and gain the skills and knowledge necessary for a successful career in these
fields.
Is there anything specific you would like to know about Zcas or the programs they offer? I’m here to
help answer any questions you may have.
Emmanuelmwila2005@gmail.com
During the program, you’ll cover a range of topics including the principles of accounting, double-entry
bookkeeping, financial statements, basic costing, and management accounting. Additionally, you’ll learn
about business ethics, corporate governance, and the legal and regulatory framework in which
businesses operate.
If you have any specific questions about the program or the accounting field in general, feel free to ask
and I’ll do my best to help you out!
Emmanuelmwila2005@gmail.com
That’s exciting! The Foundation in Accountancy (FIA) program is an excellent way to gain a solid
understanding of accounting principles and practices. The program is designed to provide students with
a comprehensive introduction to accounting and finance, covering topics such as financial accounting,
management accounting, taxation, and audit and assurance.
The FIA program is also a great starting point for those who are interested in pursuing a career in
accounting, but may not yet be ready to commit to a full professional accounting qualification such as
the ACCA. The FIA program allows you to build a strong foundation of knowledge and skills in accounting
and finance, and can provide you with the confidence and knowledge necessary to pursue further
education or enter the workforce.
During the program, you’ll have the opportunity to learn from experienced instructors and work on real-
world accounting problems and scenarios. You’ll also have the chance to develop key skills such as
critical thinking, problem-solving, and communication, which are essential for success in the accounting
profession.
If you have any specific questions or concerns about the FIA program or accounting in general, feel free
to ask and I’ll do my best to help you out!
Emmanuelmwila2005@gmail.com
Can you give me simple easy to understand notes on the following topics & questions to help me with
my FIA
Of course! I’ll do my best to provide you with some simple, easy-to-understand notes on the following
topics and questions to help you with your FIA studies:
Double-entry bookkeeping:
The purpose of double-entry bookkeeping is to ensure accuracy and completeness in financial records,
as well as to help identify errors and discrepancies.
In double-entry bookkeeping, the total value of debits must always equal the total value of credits,
providing a check and balance to ensure that all transactions are properly recorded.
Financial statements:
Financial statements are documents that provide a summary of a company’s financial performance over
a specific period of time.
The three main financial statements are the income statement, the balance sheet, and the statement of
cash flows.
The income statement shows a company’s revenue and expenses over a period of time and provides an
indication of profitability.
The balance sheet shows a company’s assets, liabilities, and equity at a specific point in time and
provides an indication of financial position.
The statement of cash flows shows a company’s cash inflows and outflows over a period of time and
provides an indication of liquidity.
Cost accounting:
Cost accounting is a method of accounting that focuses on identifying and analyzing the costs associated
with producing a product or service.
The purpose of cost accounting is to help companies determine the most cost-effective ways to produce
their products or services, and to identify areas where costs can be reduced.
Cost accounting involves the use of various methods and techniques, such as job costing, process
costing, and activity-based costing, to allocate costs to products or services.
Budgeting:
Budgeting is the process of creating a plan for how to use financial resources over a specific period of
time.
The purpose of budgeting is to help companies allocate their resources effectively and efficiently, and to
monitor and control spending.
The budgeting process typically involves setting financial goals and targets, estimating revenues and
expenses, and creating a plan for how to allocate resources based on those estimates.
I hope these notes are helpful for you in preparing for your FIA studies! Let me know if you have any
further questions or if there are any other topics you’d like me to cover.
Emmanuelmwila2005@gmail.com
Sure, feel free to ask any questions you have on FIA and I’ll do my best to provide you with helpful
information!
Emmanuelmwila2005@gmail.com
Certainly! Please let me know what topics and questions you would like me to provide notes on, and I’ll
do my best to assist you.
Emmanuelmwila2005@gmail.com
List the industrial and commercial sectors in which business organisations operate.
Identify the different types of business organisations and their main characteristics.
Commercial
Public sector
Cooperatives
Certainly, here are some notes on the topics and questions you provided:
Business Organizations:
They can take many different forms, such as sole proprietorships, partnerships, corporations, and
cooperatives.
Business organizations share certain common features, such as the ability to own property, enter into
contracts, and incur liabilities.
They also have the ability to raise capital through various means, such as issuing stocks or borrowing
money from banks.
They are governed by various laws and regulations, such as labor laws, tax laws, and environmental
regulations.
Business organizations can differ in terms of their legal structure, ownership, management, and scope of
operations.
For example, a sole proprietorship is owned and managed by a single individual, while a corporation is
owned by multiple shareholders and managed by a board of directors.
Business organizations can operate in a variety of industrial and commercial sectors, such as
manufacturing, retail, finance, and healthcare.
Examples of industrial sectors include construction, energy, and agriculture, while commercial sectors
include retail, hospitality, and transportation.
Commercial organizations are businesses that are formed for the purpose of making a profit, and can
take many forms such as sole proprietorships, partnerships, corporations, and cooperatives.
Not-for-profit organizations are formed for a specific social, charitable, or educational purpose, and
typically reinvest any profits back into the organization rather than distributing them to shareholders.
Public sector organizations are those that are owned and operated by the government, such as schools,
hospitals, and public utilities.
Non-governmental organizations (NGOs) are independent organizations that are formed for a specific
social or political purpose, and can include charities, advocacy groups, and international organizations.
Cooperatives are organizations that are owned and operated by their members, who share in the profits
and decision-making of the organization. Examples include credit unions and housing cooperatives.
Define internal , connected & external stakeholders and explain their impact on the organisation.
Identify the main stakeholder groups and the objectives of each group.
Explain how the different stakeholder groups interact and how their objectives may conflict with one
another.
Compare the power and influence of various stakeholder groups and how their needs should be
accounted for , such as under the Mendelow framework.
Stakeholders:
Stakeholders are individuals or groups who have an interest or stake in the operations and outcomes of
a business organization.
They can include shareholders, employees, customers, suppliers, and the wider community.
The agency relationship in business refers to the relationship between a principal (such as a
shareholder) and an agent (such as a manager).
The principal hires the agent to act on their behalf, but there is a potential for conflicts of interest
between the two parties.
This can vary in different types of business organizations, such as in a sole proprietorship where the
owner is also the manager, or in a publicly traded corporation where the shareholders elect a board of
directors to oversee management.
Internal stakeholders are those who are directly involved in the operations of the organization, such as
employees and management.
Connected stakeholders are those who have a relationship with the organization but are not directly
involved, such as suppliers and customers.
External stakeholders are those who are affected by the organization but have no direct relationship,
such as the wider community and government regulators.
The main stakeholder groups can include shareholders, employees, customers, suppliers, and the wider
community.
The objectives of each group can vary, but generally include goals such as financial returns for
shareholders, fair compensation and job security for employees, high-quality products and services for
customers, and social responsibility and environmental sustainability for the wider community.
Interaction and Conflicts Among Stakeholder Groups:
Different stakeholder groups can interact in various ways, such as through contracts and negotiations, or
through protests and public pressure.
Their objectives may conflict with one another, such as when shareholders demand higher profits at the
expense of employee wages or environmental sustainability.
Different stakeholder groups can have varying levels of power and influence over the organization.
The Mendelow framework is one approach to understanding stakeholder power and influence, and
involves assessing the level of interest and power of different stakeholder groups in relation to a
particular issue or decision.
I hope these notes are helpful in answering your questions on stakeholders and their impact on business
organizations. If you have any further questions or need additional clarification, please don’t hesitate to
ask.
Yes, you are correct. The Mendelow matrix is often represented as a four-quadrant diagram with
stakeholder power on one axis and level of interest on the other axis. The size of each box in the matrix
represents the stakeholder’s level of importance or influence on a particular issue or decision.
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In this example, stakeholders with high power and interest in a particular issue or decision are
considered “key players” and should be actively engaged and consulted in the decision-making process.
Stakeholders with high power but low interest may not be directly affected by the decision and can be
kept informed but not necessarily consulted. Stakeholders with low power and interest can be kept
satisfied with basic information and communication, while those with low power but high interest
should be monitored to ensure their concerns are addressed.
The political system and government policies can have a significant impact on businesses and
organizations. Government policies can affect the economy, industry regulations, taxation, and trade
policies, which can directly or indirectly affect the organizations’ operations, profitability, and viability.
For example, changes in taxation policies or regulations can increase or decrease the cost of doing
business, while trade policies can impact a company’s ability to export or import goods and services.
Moreover, the political system can create a stable or unstable environment for businesses, which can
influence their decisions to invest, expand or relocate.
Sources of legal authority, including supra-national bodies, national and regional governments:
Legal authority refers to the power and right to create and enforce laws. Legal authority can come from
various sources, including supra-national bodies, national and regional governments. Supra-national
bodies, such as the United Nations and the European Union, can create and enforce international laws
and regulations that affect businesses globally. National governments have the power to create and
enforce laws within their own territories, while regional governments have jurisdiction over a specific
geographical area, such as a state or province.
How the law protects employees and the implications of employment legislation for managers and
organizations:
Define macroeconomic policy and explain it's objectives. Explain the impact of
economic issues on the individual, the household and the business Inflation
Unemployment Stagnation International payments disequilibrium. Describe the
main types of economic policy that may be implemented by government and
supra-national bodies to maximise economic welfare. Recognise the impact of
fiscal and monetary policy measures on the individual, the household & business.
Macroeconomic Policy:
Impact of Economic Issues on the Individual, the Household, and the Business:
Economic issues such as inflation, unemployment, stagnation, and international
payments disequilibrium can have significant impacts on the individual,
household, and business.
Inflation: Inflation refers to the increase in the general price level of goods and
services over a period of time. High inflation can reduce the purchasing power of
money and increase the cost of living for individuals and households. Businesses
may also face higher costs due to rising input prices, which may result in lower
profits and reduced investment.
Fiscal and monetary policy measures can have significant impacts on individuals,
households, and businesses. For example:
In the short term, costs are largely fixed and do not change significantly with
changes in output, while in the long term, costs are more variable and can
change significantly with changes in output.
The total cost of production includes both fixed costs (which do not vary with
output) and variable costs (which increase as output increases). The average cost
of production is the total cost divided by the quantity produced.
Types of Market Structures:
Perfect competition is a market structure in which there are many small firms that
produce identical products and have no market power to influence price.
Monopoly is a market structure in which there is only one firm that produces a
unique product and has significant market power to influence price.
Monopolistic competition is a market structure in which there are many firms that
produce similar but not identical products and have some market power to
influence price.
Oligopoly is a market structure in which there are few large firms that dominate
the market and have significant market power to influence price.
6.Social & demographic factors
Explain the medium and long term effects of social and demographic trends on
business outcomes and the economy.
Describe the impact of changes in social structure, values , attitudes and tastes on
the organisation.
Identify and explain the measures that governments may take in response to the
medium and long term impact of demographic change.
Social and demographic trends: Medium and long term effects on business
outcomes and the economy
Social and demographic trends can have a significant impact on business
outcomes and the economy, both in the medium and long term. For example,
changing demographics can impact consumer demand for goods and services, as
well as labour supply and demand. If the population is aging, this can increase
demand for healthcare products and services, while decreasing demand for other
products. Changes in social structures, values, attitudes and tastes can also have a
significant impact on business outcomes. For instance, shifts in values towards
sustainability can lead to an increased demand for eco-friendly products, which
can drive innovation and growth in related industries.
Measures that governments may take in response to the medium and long term
impact of demographic change
Governments may take a range of measures in response to the medium and long
term impact of demographic change. For example, they may introduce policies to
support an aging population, such as increasing funding for healthcare services,
promoting active aging, and encouraging the development of new technologies
and services that cater to the needs of older adults. Governments may also
implement policies to address changing labour supply and demand, such as
increasing immigration to address labour shortages or investing in education and
training programs to equip workers with the skills needed to fill emerging job
roles. Additionally, governments may implement policies to promote social
inclusion and diversity, which can help to mitigate the negative impacts of
demographic change on vulnerable or marginalized groups.
7.Technological factors
Explain the potential effects of technological change on the organisation
structure and strategy:
Downsizing
Delayering
Outsourcing
Describe the impact of information technology & information systems
development on business processes.
Technological change can have significant effects on an organization’s structure
and strategy. Some potential effects include downsizing, delayering, and
outsourcing.
Pollution: Businesses can cause pollution through their production processes and
use of resources such as energy and water. They can also be affected by pollution
from external sources, such as air or water pollution from nearby factories or
waste disposal sites.
Resource depletion: Businesses can use up natural resources, such as fossil fuels
or minerals, which can lead to depletion and scarcity of those resources. This can
also affect the price and availability of those resources.
Land use: Businesses may require land for their operations, which can result in
deforestation, soil erosion, and other environmental impacts.
Climate change: Businesses can contribute to climate change through their
greenhouse gas emissions and can also be affected by changes in the climate,
such as extreme weather events.
Ways in which businesses can operate more efficiently and effectively to limit
damage to the environment:
• Investing in clean technology: Businesses can invest in clean technology such as electric
vehicles, energy-efficient lighting, and low-emission machinery to reduce their
environmental impact.
• Partnering with suppliers: Businesses can work with their suppliers to ensure that they
are also using sustainable practices and reducing their environmental impact.
• Encouraging environmentally friendly behavior: Businesses can encourage their
employees and customers to adopt environmentally friendly behavior, such as using
public transportation or reducing plastic waste.
Reduced costs: Adopting sustainable practices can help businesses reduce their
costs, such as by using renewable energy sources instead of fossil fuels or
reducing waste.
Improved reputation: Implementing sustainable practices can improve a
business’s reputation and attract environmentally conscious customers.
Increased innovation: Investing in clean technology and sustainable practices can
drive innovation and lead to new products and services.
Regulatory compliance: Businesses that adopt sustainable practices are more
likely to comply with environmental regulations, avoiding potential fines and
legal issues.
Long-term viability: Adopting sustainable practices can help businesses ensure
their long-term viability by reducing their environmental impact and ensuring the
availability of resources for future generations.
9.Competitive factors
Identify a business’s strengths, weaknesses, opportunities & threats (SWOT) In a
market & the main sources of competitive advantage.
Identify the main elements within Porter’s value chain & explain the meaning of a
value network.
Explain the factors or forces that influence the level of competitiveness in an
industry or sector using Porter’s 5 forces model.
Describe the activities of an organisation that affect it’s competitiveness:
Purchasing
Production
Marketing
Service
The five forces include the threat of new entrants, the threat of substitutes, the
bargaining power of buyers, the bargaining power of suppliers, and rivalry
among existing competitors.
The intensity of each force determines the overall level of competitiveness in the
industry.
Activities that Affect Competitiveness:
Purchasing involves acquiring the necessary materials, supplies, and services to
produce goods and services.
Production involves converting inputs into finished goods or services.
Marketing involves promoting and selling products or services to customers.
Service involves providing after-sales support and assistance to customers.
Hope this helps! Let me know if you have any further questions or need more
information.
Emmanuelmwila2005@gmail.com
B
Business Organization structure, functions & governance
1.The informal & formal business organisation
Explain the informal organisation & its relationship with the formal organisation.
Describe the impact of the informal organisation on the business.
The informal organization can have both positive and negative effects on the
business. On the positive side, the informal organization can facilitate
communication and the sharing of knowledge and information, leading to
greater innovation and problem-solving. It can also help to build strong bonds
and relationships among employees, which can increase job satisfaction and
employee engagement.
However, the informal organization can also have negative effects on the
business. For example, informal relationships and power dynamics can undermine
the formal organizational structure and authority, leading to conflicts and
inefficiencies. It can also lead to favoritism and cliques, which can create a sense
of exclusion and dissatisfaction among employees who are not part of these
informal networks .
Overall, it is important for businesses to understand and manage the informal
organization in order to maximize its benefits and minimize its negative impact
on the organization. This can involve fostering a positive organizational culture
that values open communication and collaboration, as well as providing
opportunities for employees to develop social relationships and networks within
the formal structure.
2. BUSINESS ORGANIZATION structure & design
Describe Mintzberg’s components of the organisation and explain the different
ways in which formal organisations may be structured:
Entrepreneurial
Functional
Matrix
Divisional: (geographical, by product, or by customer type)
Boundaryless: (virtual, hollow or modular)
Explain the basic organisational structure concepts:
Separation of ownership and management
Separation of direction and management
Span of control & scalar chain
Tall & flat organisations
Outsourcing & offshoring
Shared services approach
Explain the characteristics of the strategic, tactical & operational levels in the
organisation in the context of Anthony hierarchy.
Explain the centralisation & decentralisation & list their advantages &
disadvantages.
Describe the roles & functions of the main departments in a business
organisation:
Research and development
Purchasing
Production
Direct service provision
Marketing
Administration
Finance
Explain the role of marketing in an organisation:
Definition of marketing
Marketing mix
Relationship of the marketing plan to the strategic plan
Mintzberg’s components of the organization refer to the various roles or
components that make up an organization. These include the operating core, the
strategic apex, the middle line, the technostructure, and the support staff.
The separation of ownership and management refers to the fact that owners of a
business may hire professional managers to run the business. The separation of
direction and management refers to the fact that the top-level management of a
business is responsible for setting the direction or strategy of the organization,
while middle-level and lower-level managers are responsible for implementing
that strategy.
Span of control and scalar chain refer to the number of subordinates that a
manager can effectively manage and the
Hierarchy of authority within an organization, respectively. Tall organizations have
many levels of management, while flat organizations have fewer levels.
There are several factors that shape the culture of an organization. These include
the organization’s history, mission, and goals, as well as its leadership style,
communication patterns, and management practices. Other factors that may
influence the culture of an organization include the industry or sector in which it
operates, its size and structure, and the external environment in which it operates.
Edgar Schein is one of the most prominent writers on organizational culture. He
has identified several determinants of organizational culture, including the
organization’s history, leadership style, reward systems, and organizational
structure. Schein also notes that organizational culture is often rooted in the
shared assumptions and beliefs of its members.
Charles Handy has identified four cultural stereotypes that are commonly found
in organizations. These include the power culture, in which decision-making is
centralized and top-down; the role culture, which is characterized by rules and
procedures; the task culture, which focuses on getting the job done; and the
person culture, which emphasizes the individual and his or her needs.
Geert Hofstede has developed an influential framework for understanding
cultural differences across different countries and regions. His research has
identified several dimensions of culture, including individualism versus
collectivism, power distance, and uncertainty avoidance. Hofstede’s work has
been widely used in cross-cultural management and has helped organizations to
understand and manage cultural differences in their operations.
4. Committees in business organisations.
Explain the purposes of committees.
Describe the types of committee used by business organisations.
List the advantages & disadvantages of committees.
Explain the roles of the Chair & secretary of a committee.
Effective corporate governance and CSR are important for maintaining the
reputation of the organization, building trust with stakeholders, and ensuring
long-term sustainability. Organizations have a responsibility to maintain
appropriate standards of corporate governance and CSR, which involves
complying with relevant laws and regulations, adopting ethical practices, and
promoting transparency and accountability.
C
Accounting & reporting systems, controls or compliance.
1. The relationship between accounting and other business functions
Explain the relationship between accounting & other key functions within
business such as procurement, production & marketing.
The key differences between internal and external auditors are their reporting
lines, responsibilities, and objectives. Internal auditors report to the board of
directors or senior management of the organization, and their primary objective
is to help the organization achieve its objectives by evaluating and improving its
risk management and control processes. External auditors are independent of the
organization and report to its shareholders, and their primary objective is to
express an opinion on the organization’s financial statements.
The accounting function plays a crucial role in helping organizations formulate,
implement, and control their policies, procedures, and performance. It provides
financial information and analysis that aids decision-making, helps assess
performance against targets, and ensures compliance with relevant legal and
regulatory requirements.
Recording and analyzing costs and revenues: This involves collecting and
analyzing data on the costs and revenues associated with the various business
activities.
Calculating and mitigating business tax liabilities: This involves calculating and
minimizing the amount of tax the business is liable to pay.
Evaluating and obtaining finance: This involves evaluating and obtaining finance
for the business, whether through loans or equity financing.
Managing working capital: This involves managing the company’s current assets
and liabilities to ensure that it has enough cash to operate effectively.
Treasury and risk management: This involves managing the company’s exposure
to financial risk, such as interest rate risk and foreign exchange risk.
The main functions of the internal auditor include evaluating the organization’s
risk management practices, ensuring compliance with legal and regulatory
requirements, and recommending improvements to internal controls.
The external auditor, on the other hand, provides an independent opinion on the
accuracy and completeness of the financial statements, ensuring that they are
free from material misstatements, errors, or fraud. The external auditor’s report
provides a level of assurance to external stakeholders such as investors, creditors,
and regulators.
3. Principles of law & regulation governing accounting & audit.
Explain basic legal requirements in relation to retaining & submitting proper
records & preparing & auditing financial reports.
Explain the broad consequences of failing to comply with legal requirements for
maintaining & filing accounting records.
Explain how the international accountancy profession regulates itself through the
establishment of reporting standards & their monitoring.
Basic legal requirements for retaining and submitting proper records, and
preparing and auditing financial reports vary by country and jurisdiction.
However, some common requirements include the following:
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4. Sources & purposes of internal & external financial information,
provided by the business.
Explain the various business purposes for which the following financial
information is required:
The statement of profit or loss
The statement of cash flows
The statement of financial position
Sustainability & integrated reports
Describe the main purposes of the following types of management accounting
reports:
Cost of schedules
Budgets
Variance reports
Financial information is crucial for decision-making in business. The following are
the various business purposes for which different financial statements are
required:
The statement of financial position: This statement shows the assets, liabilities,
and equity of a business at a particular point in time. The primary purpose of the
statement of financial position is to provide information on the financial health of
a business.
Variance reports: These reports compare actual results to budgeted results and
provide information on the reasons for any variances. The primary purpose of
variance reports is to help managers identify areas where actual performance is
different from planned performance and take corrective actions.
5. Financial systems, procedures & related IT applications
Identify an organisation’s system requirements in relation to the objectives &
policies of the organisation.
Describe the main financial systems used within an organisation:
Purchases & sales invoicing
Payroll
Credit control
Cash & working capital management
Explain why it is important to adhere to policies & procedures for handling
client’s money.
Identify weaknesses, potential for error & inefficiencies in accounting systems.
Recommend improvements to accounting systems to prevent error & fraud & to
improve overall efficiency.
Explain why appropriate controls are necessary in relation to business & IT
systems & procedures.
Identify business uses of computers & IT software applications:
Spreadsheet applications
Database systems
Accounting packages
Describe & compare the relative benefits & limitations of manual & automated
financial systems that may be used in an organisation.
Identifying an organization’s system requirements involves understanding the
goals, objectives, and policies of the organization and identifying the financial
systems that will support these objectives. This requires a comprehensive
understanding of the organization’s operations, processes, and functions, as well
as the role of financial information in these processes.
The main financial systems used within an organization include purchases and
sales invoicing, payroll, credit control, and cash and working capital management.
Purchases and sales invoicing involves the processing of invoices for goods and
services purchased or sold by the organization. Payroll involves the processing of
employee salaries, benefits, and taxes. Credit control involves the monitoring and
management of credit sales and receivables, while cash and working capital
management involves the management of the organization’s cash flows and
working capital requirements.
Manual financial systems may be suitable for small or simple organizations with
few transactions, but automated financial systems are typically more efficient and
effective for larger organizations with more complex financial processes.
Automated financial systems can provide greater accuracy, speed, and control,
while also reducing the risk of error and fraud. However, they may require more
initial investment in software, hardware, and training than manual systems.
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6. Internal controls, authorisation, security & compliance with business
Explain internal control & internal check.
Explain the importance of internal financial controls in an organisation.
Describe the responsibilities of management for internal financial control.
Describe the features of effective internal financial control procedures in an
organisation, including authorisation.
Identify & describe the types of information technology & information systems
used by the business organisation for internal control.
Identify & describe features for protecting the security of IT systems & software
within business. Describe general & application systems controls in business.
Internal control refers to the process of ensuring that an organization’s
operations comply with its objectives, policies, and procedures. It is the
responsibility of management to establish an internal control system that is
reliable and effective in achieving the organization’s goals. Internal control can be
divided into two parts: internal control and internal check.
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7. Fraud & fraudulent behaviour and their prevention in business.
In simple terms.
Explain the circumstances under which fraud is likely to arise
Identify different types of fraud in the organisation.
Explain the implications of fraud for the organisation.
Explain the role & duties of individual managers in the fraud detection &
prevention process.
Define the term money laundering.
Give examples of recognised offences under typical money laundering
regulations.
Identify methods of detecting & preventing money laundering.
Explain how suspicions of money laundering should be reported to the
appropriate authorities.
Circumstances under which fraud is likely to arise: Fraud is likely to occur when
there is an opportunity, pressure or motive, and rationalization. Examples of
circumstances that increase the risk of fraud include lack of internal controls,
inadequate supervision, and financial incentives.
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D. LEADING & MANAGING INDIVIDUALS & TEAMS
1. Leadership management & supervision
In simpe terms.
Define leadership, management & supervision & explain the distinction between
these terms.
Explain the nature of management:
Scientific/classical theories of management Fayol, Taylor
The human relations school – Mayo
The functions of a manager – Mintzberg, Drunker
Explain the areas of managerial authority & responsibility.
Explain the situational, functional & contingency approaches to leadership with
reference to leadership with reference to the theories of Adair, Fielder, Bennis,
Kotter & Heifetz.
Describe leadership styles & contexts: using the models of Ashridge, & Blake &
Mouton.
Leadership, management, and supervision are related concepts but they have
distinct meanings. Leadership refers to the ability to inspire, motivate, and
influence others to achieve common goals. Management is the process of
planning, organizing, directing, and controlling resources to achieve
organizational goals. Supervision is the act of overseeing the work of others to
ensure that it is being performed correctly.
The areas of managerial authority and responsibility include strategic planning, financial
management, human resource management, operations management, and marketing
management.
Leadership styles and contexts can be described using models such as the
Ashridge model, which identifies leadership styles based on the degree of
concern for task and people, and the Blake and Mouton model, which identifies
leadership styles based on the degree of concern for production and people.
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2. Recruitment & selection of employees
In simple terms.
Explain the importance of effective recruitment & selection to the organisation.
Describe the recruitment & selection process & explain the stages in this process.
Describe the roles of those involved in the recruitment & selection processes.
Describe the methods through which organisations seek to meet their
recruitment needs.
Explain the advantages & disadvantages of different recruitment & selection
methods.
Explain the purposes & benefits of diversity & equal opportunities policies within
the human resources plan.
Explain the practical steps that an organisation may take to ensure the
effectiveness of its diversity & equal opportunities policy.
Recruitment and selection are crucial for an organisation as they ensure that the
right people with the right skills and abilities are employed. Effective recruitment
and selection can improve the quality of the workforce, reduce staff turnover,
increase employee retention and satisfaction, and enhance overall organisational
performance.
The recruitment and selection process includes several stages, such as identifying
job vacancies, attracting and sourcing candidates, screening and shortlisting
candidates, assessing and interviewing candidates, selecting and offering a job,
and onboarding.
The roles involved in the recruitment and selection process include HR
professionals, line managers, and recruitment agencies. HR professionals are
responsible for developing recruitment policies, sourcing candidates, and
managing the recruitment process. Line managers play a critical role in defining
job requirements, interviewing candidates, and making hiring decisions.
Recruitment agencies can help organisations source candidates by advertising
vacancies, shortlisting candidates, and providing assessments.Organisations use
different methods to meet their recruitment needs, such as internal promotion,
referrals, job boards, recruitment agencies, and social media. Each method has its
advantages and disadvantages, depending on the organisation’s requirements
and resources.
Diversity and equal opportunities policies aim to promote inclusivity, fairness, and
respect for individual differences in the workplace. The benefits of such policies
include attracting and retaining a diverse workforce, enhancing employee morale,
and improving organisational reputation. However, organisations may face
challenges in implementing such policies, such as bias and discrimination.
To ensure the effectiveness of diversity and equal opportunities policies,
organisations can take practical steps such as providing training on diversity
awareness and unconscious bias, establishing clear policies and procedures,
monitoring and evaluating the policies, and holding individuals accountable for
their behaviour.
3.Individual & group behaviour in organizations.
In simple terms
Describe the main characteristics of individual & group behaviour.
Outline the contributions of individuals & teams to organisational success.
Identify individual & team approaches to work.
Purpose of a Team:
The primary purpose of a team is to achieve a specific goal or objective that
would be difficult to accomplish by an individual working alone. Teams can help
in improving problem-solving, creativity, and productivity.
Intrinsic rewards are internal rewards that come from within the individual, such
as a sense of accomplishment or fulfillment. Extrinsic rewards, on the other hand,
are external rewards provided by others, such as pay or recognition.
Intrinsic rewards:
Intrinsic rewards are internal rewards that come from within a person. They are
rewards that come from doing the work itself, such as satisfaction, a sense of
accomplishment, or a feeling of pride in one’s work.
Extrinsic rewards:
Extrinsic rewards are external rewards that come from outside of a person. They
are rewards that are given to a person for doing a task, such as money,
promotions, or recognition.
Designing and implementing reward systems:
A reward system is a structured approach to recognizing and rewarding
employees for their contributions to the organization. To design and implement
an effective reward system, managers should consider the following factors: the
goals of the reward system, the type of rewards that will be offered, the criteria
for earning rewards, and the communication of the reward system to employees.
A well-designed reward system can help to motivate employees, increase their
job satisfaction, and improve their overall performance.
These barriers can be overcome through various strategies such as setting clear
goals and objectives, creating a prioritized to-do list, scheduling tasks
appropriately, avoiding distractions, managing time effectively, and maintaining
focus and motivation.
There are several ways in which people and teams can be ineffective at work.
These include:
Lack of clear goals and objectives: If individuals or teams do not have clear goals
and objectives, it can lead to confusion, disengagement, and a lack of direction.
Poor motivation: When employees are not motivated to perform their best, it can
lead to low productivity, poor quality work, and an overall lack of effectiveness.
The impact of individual or team ineffectiveness can affect the performance of
the organization as a whole. Poor performance and low productivity can result in
decreased revenue, decreased customer satisfaction, and increased costs. This
can impact the organization’s reputation and competitiveness in the marketplace.
Therefore, it is important for organizations to address individual and team
ineffectiveness and take steps to improve performance.
Coaching, mentoring, and counseling are techniques that can be used to support
personal and professional development in employees. Coaching focuses on
performance improvement and skill development, mentoring provides guidance
and support to individuals, and counseling helps individuals address personal
issues that may be affecting their performance. The benefits of coaching,
mentoring, and counseling include increased employee motivation and
engagement, improved job satisfaction, and enhanced organizational
performance.
Formulation: The individual should identify their goals and objectives, considering
their current skills and areas for improvement. They should consider both short-
term and long-term goals, and ensure they are specific, measurable, achievable,
relevant, and time-bound (SMART).
Implementation: The individual should create an action plan outlining the steps
required to achieve their goals. This should include specific tasks, timelines, and
resources required. They should also identify potential barriers and strategies to
overcome them.
Monitoring: The individual should regularly monitor their progress towards their
goals. This can involve setting milestones and regularly reviewing their progress
against these. They should also seek feedback from others, such as their manager
or colleagues, to ensure they are on track.
Review: The individual should regularly review and update their personal
development plan. This should involve reflecting on their progress and
identifying any areas for improvement or changes in goals. It can also involve
seeking feedback from others to identify areas for improvement.
Language barriers
Emotional barriers
Physical barriers
Perception barriers
Cultural barriers
Organizational barriers
Attitudinal barriers
Technological barriers
Practical Steps to Overcome Communication Barriers:
Simplify language and use appropriate tone
Listen actively and empathetically
Use visual aids to convey messages
Be aware of nonverbal cues
Increase cultural sensitivity and awareness
Encourage feedback and clarify understanding
Create an open and inclusive organizational culture
Use technology appropriately and effectively
Main Patterns of Communication:
Define business ethics & explain the importance of ethics to the organisation &
to the individual.
Business ethics refers to the principles, values, and standards that guide the
behavior of individuals and organizations in the business world. It is a set of
moral principles and values that determine the right and wrong actions in the
workplace.
In simple terms
Describe & demonstrate the following principles from the IFAC (IESBA) code of
ethics, using examples:
Integrity
Objectivity
Professional competence
Confidentiality
Professional behavior
Sure, here are some simple explanations and examples of each of these
principles:
Integrity: This principle requires professionals to be honest and truthful in all their
dealings. They must act with integrity and avoid any conduct that could damage
their reputation or the reputation of their profession. For example, an accountant
who discovers a client is engaging in fraudulent activity should refuse to
participate and report the matter to the relevant authorities.
In simple terms
Describe organisational values which promote ethical behaviour using examples.
Openness
Trust
Honest
Respect
Empowerment
Accountability
Explain the concept of acting in public interest.
Organizational values are beliefs or principles that an organization follows to
guide the behavior of its employees and shape its culture. These values can
promote ethical behavior in the workplace, and include openness, trust, honesty,
respect, empowerment, and accountability.
Respect means treating others with dignity and courtesy, regardless of their
position in the organization. For example, an organization may have a policy of
promoting diversity and inclusion, ensuring that all employees are valued and
respected for their differences.
Empowerment means giving employees the autonomy and resources they need
to succeed in their roles. For example, an organization may have a policy of
allowing employees to take on new challenges and responsibilities, providing
them with the tools and training they need to do so.
Accountability means taking responsibility for one’s actions and decisions, and
being willing to accept the consequences of those actions. For example, an
organization may have a policy of holding employees accountable for meeting
performance targets, and providing feedback and coaching to help them
improve.
Acting in the public interest means that an organization’s decisions and actions
are guided by the needs and interests of the broader community, rather than just
those of the organization or its stakeholders. This can include ensuring that the
organization’s products or services are safe and of high quality, or minimizing the
organization’s impact on the environment.
Recognise the purpose of international & organisational codes of ethics & codes
of conduct, IFAC (IESBA), ACCA etc.
Describe how professional bodies & regulators promote ethical awareness &
prevent or punish illegal or unethical behaviour.
Identify the factors that distinguish a profession from other types of occupation.
Explain the role of the accountant in promoting ethical behaviour.
Recognise when & to whom illegal, or unethical conduct by anyone within or
connected to the organisation should be reported.
Situations where ethical conflicts can arise include scenarios where employees or
organizations face choices between moral values or decisions. Examples can
include choosing between making a profit and following the law, or choosing
between doing what is right and doing what is convenient.
The main threats to ethical behaviour include personal interests, bias, pressure to
conform, and lack of knowledge or understanding. These can create situations
where individuals or organizations may be tempted to act unethically or violate
codes of conduct.
Ethical dilemmas may be faced in various situations at work, such as conflicts of
interest, data privacy, and confidentiality. For example, an employee may be
faced with a decision to disclose confidential information to a third party, or to
report a colleague for violating company policies.
The main safeguards against ethical threats and dilemmas include the
establishment of strong ethical codes and standards, regular training and
communication on ethical issues, clear reporting and escalation channels, and
robust internal and external audits and reviews. Other safeguards can include the
creation of independent ethics committees or ombudsmen, and the development
of whistle-blower protection policies.