Week 1: Introduction

Question 1

Overall company structure.

Answer 1

BOARD OF DIRECTORS

CHIEF EXECUTIVE OFFICER

EXECUTIVE SENIOR VICE PRESIDENT

CHIEF OF FINANCIAL OFFICER

CHIEF OPERATIONAL OFFICER

CHIEF INFORMATION OFFICER

CHIEF INVESTMENT OFFICER

Question 2

Board of Directors

Answer 2

AN ELECTED GROUP OF PEOPLE WHO REPRESENT THE INTERESTS OF A COMPANY’S STAKEHOLDERS

MEET REGULARLY TO DETERMINE THE ORGANIZATION’S GUIDING PRINCIPLES

SELECT TOP MANAGEMENT POSITIONS

OVERSEE POLICIES FOR THE BUSINESS

Question 3

Chief Executive Officer

Answer 3

REPORT TO THE BOARD OF DIRECTORS

ULTIMATE DECISION MAKER

MAXIMIZE COMPANY VALUE / ACHIEVE COMPANY GOALS

Question 4

Chief Operation Officer (COO)

Answer 4

SECOND IN COMMAND

OVERSEE DAILY ADMINISTRATIVE AND OPERATIONAL FUNCTIONS

Question 5

Chief Financial Officer (CFO)

Answer 5

MANAGING ALL FINANCIAL ASPECTS OF A BUSINESS

CASHFLOW, TAXATION, FINANCIAL REPORTING, FINANCIAL PLANNING

Question 6

Chief Information Officer (CIO)

Answer 6

MANAGE INFORMATION TECHNOLOGY AND COMPUTER SYSTEM IN A BUSINESS

TYPICALLY REPORT TO COO

Question 7

Chief Investment Officer (CIO)

Answer 7

MANAGE INVESTMENT AND THE COMPANY’S ASSETS AND PORFOLIO

Question 8

Executive Senior Vice President

Answer 8

OVERSEE A SPECIFIC DEPARTMENT OR REGION

REPORT TO CEO

Question 9

Accounting / Finance Team Structure

Answer 9

CFO
DIRECTOR OF FINANCE
INTERNAL AUDITOR
TREASURER
CONTROLLER
PROJECT ACCOUNTANT
ACCOUNTS PAYABLE
ACCOUNTS RECEIVABLE
TAX ACCOUNTANT
FINANCIAL REPORTING MANAGER
CORPORATE ACCOUNTANT
FP&A MANAGER
FP&A ANALYST

Question 10

Director of Finance

Answer 10

ESTABLISH STRATEGIES TO EARN PROFITS

OVERSEE ACCOUNTING FUNCTIONS

PRODUCE ACCURATE REPORTS

IMPROVE PRACTICES TO INCREASE EFFICIENCY

Question 11

Internal Auditor

Answer 11

PROVIDE INDEPENDENT EVALUATIONS ON INTERNAL CONTROLS EFFECTIVENESS

CONDUCT AN INTERNAL AUDIT ON PROCESSES AND CONTROLS

Question 12

Treasurer

Answer 12

MAINTAIN AND IMPROVE A COMPANY’S FINANCIAL STANDING

ASSESS RISK, DETERMINE FUNDING REQUIREMENTS

ADVISE ON FUNDING / INVESTMENT OPPORTUNITIES

Question 13

Financial Reporting Manager

Answer 13

PREPARE, MANAGE, AND DISTRIBUTE PERIODIC FINANCIAL STATEMENTS

COMPLY WITH GOVERNMENT REGULATIONS, PROFESSIONAL STANDARDS, AND OF FILING AUTHORITY GUIDELINES

GAAP / IFRS / ASPE

Question 14

FP&A Manager

Answer 14

PLAN, FORECAST, BUDGET, AND ANALYZE

DATA SUPPORT FOR BUSINESS DECISIONS

Question 15

Controller

Answer 15

OVERSEE DAILY ACCOUNTING OPERATIONS, INCLUDING AP, AR, PAYROLL

FIRST POINT CONTACT FOR THE ACCOUNTING TEAM

Question 16

Accounts Payable

Answer 16

RECEIVE INVOICE

HANDLE VENDOR INQUIRIES

OBTAIN APPROVAL

PROCESS PAYMENT

RECONCILE VENDOR STATEMENT

RELEASE HOLDBACK

Question 17

Accounts Receivable

Answer 17

PREPARE AND POST CUSTOMER PAYMENTS

FOLLOW UP ON CASH RECEIPTS FROM CUSTOMERS

RECONCILE CUSTOMER’S STATEMENT

UPDATE CUSTOMER’S INFORMATION INCLUDING NAME CHANGES / BILLING CHANGES / MERGERS / ETC.

ALERT ACCOUNTANT AND PROJECT MANAGERS REGARDING ACCOUNT DELINQUENCIES

Question 18

Project Accountant

Answer 18

MONITOR PROGRESS CLAIMS

LOOK INTO VARIANCES

PROJECT BILLING VS. COSTS ANALYSIS

ENSURE TIMELY BILLINGS AND COLLECTIONS

MAINTAIN BOOKS’ ACCURACY

BANK RECONCILIATION

MONTHLY ACCRUALS

Question 19

Tax Accountant

Answer 19

PREPARE VARIOUS TAX RETURNS

GST, PST, PAYROLL, CORPORATE

ASSIST IN TAX AUDIT

LIAISON WITH OTHER TEAM MEMBERS ON TAXT PAYMENTS AND REFUNDS

Question 20

Accounting Cycle

Answer 20

ACCOUNTS PAYABLE CYCLE (INVOICE AND PAYMENT)

ACCOUNTS RECEIVABLE CYCLE (BILLING AND RECEIVABLE)

MONTH END CYCLE (JOB COST AND FINANCIAL STATEMENT)

REPORTING CYCLE

YEAR END REPORT

Question 21

Account Payable Cycle

Answer 21

CREDIT APPLICATION /SET UP ACCOUNT

TRADES PERFORM WORK / PURCHASES MADE

INVOICES OR PROGRESS CLAIMS SENT TO ACCOUNTING

ACCOUNTING PROCESS DATA AND SEND TO OPERATIONAL FOR APPROVAL

OPERATION APPROVES INVOICES

CHEQUES PROCESSED AND PAYMENT MADE

Question 22

Billing and Receivable Cycle

Answer 22

SET UP PRIMARY CONTRACT AND BUDGET

PURCHASE / TRADES / PM WORK INCURRED

ACCOUNTS PAYABLE INPUTS ALL EXPENDITURES AND ACCOUNTANT ALLOCATE PM’S TIME.

PM ALLOCATE MONTHLY WORK-IN-PROGRESS % AND LET ACCOUNTANT PREPARE INITIAL BILLINGS

BILLS ARE SENT OUT BY ACCOUNTANT

COP ISSUED

CLIENT MAKES PAYMENT

Question 23

Month End Cycle

Answer 23

INVOICES AND PROGRESS CLAIMS FROM TRADES / VENDORS

JOB COST REPORT

COST OF GOODS

COST PLUS, PROGRESS BILLING

BILLINGS FOR CLIENT

REVENUE

Question 24

Reporting Cycle

Answer 24

MONTHLY REVENUE

MONTHLY COSTS

MARGINS

MONTHLY OVERHEAD ALLOCATION

BOTTOM LINE

Question 25

Year end report

Answer 25

ANNUAL PROFIT AND LOSS REPORT

EVALUATE AND WRITE OFF BED DEBT

HEAD OFFICE FIXED COST ALLOCATION

BOTTOM LINE AND BONUS

FORECAST FOR REVENUE / COSTS AND HIRING NEEDS FOR NEXT YEAR

Question 26

Implications of delays in processes

Answer 26

TRADE PAYMENT AND RELATIONSHIP

ACCURACY OF JOB COSTS

BILLING DELAYS

INSUFFICIENT FUNDS AND IMPACT ON MARGIN

INABILITY TO IDENTIFY POTENTIAL RISK FACTORS

PRESSURES TO KEEP A LARGE ACCOUNTING TEAM TO ACCOMMODATE PROCESS INEFFICIENCIES