LO1.1 Authority Protocols

Question 1

What TWO areas do Authority Protocols generally refer to?

Answer 1

1. Who has the “authority” to sign off certain tasks, and 2. Who has responsibility for decision making

Question 2

AUTHORITY can be passed down the _____ __ _______, ie less senior staff can be empowered to sign-off purchases against a department budget

Answer 2

CHAIN OF COMMAND

Question 3

RESPONSIBILITY is passed up to staff at a ______ _____, i.e. a complaint can be escalated to a manager

Answer 3

HIGHER LEVEL

Question 4

TRUE OR FALSE?

Authority Protocols can motivate staff

Answer 4

TRUE

Being given responsibility for a task can make less senior staff motivated, whilst reducing the risk to the business

Question 5

TRUE OR FALSE?

Authority Protocols centre around being ‘the Boss’

Answer 5

FALSE

They are centred around decision making and level of sign-off

Question 6

TRUE OR FALSE?

Authority Protocols reduce the day to day work for managers

Answer 6

TRUE

Senior staff can concentrate on strategic issues rather than day to day administration tasks

Question 7

TRUE OR FALSE?

Authority Protocols increase the risk of fraud

Answer 7

FALSE

The risk of fraud is reduced as payments require authorisation by a manager

Question 8

An organisational structure shows the level of authority and responsibility in a business, this is known as _________?

Answer 8

HIERARCHY

Question 9

The amount of decision making and/or sign-off authority a manager has is known as what?

Answer 9

SPAN OF CONTROL

Question 10

Authority Protocols can be controlled a) in one place within a business or b) given to senior staff within a function or department. These two options are known as…

Answer 10

Authority can be:

Centralised (in one place) or decentralised (by department or function)