Chapter 1 The Accounting Function

Question 1

What is an Organisation?

Answer 1

Organisations are social arrangements for the controlled performance of collective goals

Question 2

What are the elements and order of a control system?

Answer 2

Standard
Sensor
Comparator
Effector
Feedback

Question 3

What control mechanisms are there?

Answer 3

Organisational Structure
Target Setting/ Budgeting
Direct Supervision
The Culture of an Organisation
Self-Control
Control Systems
Specific Control Processes

Question 4

What are the Fundamental Qualitive Characteristics of the Conceptual Framework?

Answer 4

Relevant
Faithful Representation

Question 5

What are the Enhancing Qualitive Characteristics of the Conceptual Framework?

Answer 5

Comparability
Verifiability
Timeliness
Understandability