Control Systems – NBC Institute

AA – May 2016 – L2 – Q2 – Planning an Audit

Planning and identifying audit risks for a new client with an increased demand for products, using a standard costing system for inventory valuation.

Question

Sweet Dreams, a limited liability company, is a new audit client and you are at the
planning meeting for the forthcoming audit. The company has grown rapidly and has
May 31 as year-end. The financial statements have not been audited in previous years
since the organization has only just converted from a partnership to a company.
The company’s bankers have requested that an audit be undertaken on the financial
statements for the year ending May 31, 2016. Higher levels of inventory required to
meet the increasing demand for its products have necessitated a request for an increase
in the bank’s overdraft facility.
The company makes beds, buying its materials directly. At the year-end, inventory
comprises raw materials, work-in-progress and finished goods. It does not undertake
continuous inventory counting but does intend to perform a full inventory count on
May 31, 2016. It uses standard costing system to value finished products and work-inprogress.

Answer

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Tags: Audit Planning, Audit Risk, Control Systems, Inventory Management, Material Misstatement
Level: Level 2

Topic: Audit evidence, Planning an Audit, Risk Assessment and Internal Control
Series: MAY 2016

PM – Nov 2015 – L2 – Q7 – Performance Measurement Systems

Evaluate weaknesses in Stuck Ltd’s MIS and suggest improvements for enhanced strategic decision-making.

Question

Stuck Ltd manufactures industrial glues and solvents in a single large factory. Approximately 400 different inputs are used to produce the 35 specialist outputs, which range from ultra-strong glues used in aircraft manufacture to high-impact adhesives for construction sites.

Two years ago, with the company only just breaking even, the directors recognized the need for more information to control the business. To assist them with their strategic control, they established a Management Information System (MIS). This system is now operational but provides only the following limited information to the directors via their networked computer system:

A summary business plan for this and the next two years. The plan includes details of expected future incomes and expenditure on existing product lines. It was produced by a new member of the accounting department without reference to past production data.
Inventory balances on individual items of raw materials, finished goods, etc. This report is highly detailed and comprises 80% of the output from the MIS itself.
A summary of changes in total demand for glues and solvents in the market over the last five years. This information is presented as a numerical summary in six different sections, with each section taking up one computer screen, so only one section can be viewed at a time.

Required:

(a) Comment on the weaknesses in the information currently being provided to the directors of the company. (9 Marks)

(b) Suggest how the information may be improved, with particular reference to other outputs the MIS might usefully provide to the directors. (6 Marks)

Answer

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Tags: Control Systems, Information Quality, MIS Evaluation, Strategic Decision-Making
Level: Level 2

Topic: Performance Measurement Systems
Series: NOV 2015

MI – Nov 2019 – L1 – SA – Q17 – Information Systems

This question asks to identify the correct description related to closed loop systems.

Question

Which of the following is NOT correct?
A. A closed loop system responds to changes in the environment
B. The comparator is one of the elements of a control system
C. Deterministic systems use predetermined rules
D. Cybernetic systems adapt to the environment
E. Business systems are probabilistic systems

Answer

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Tags: Closed Loop Systems, Control Systems, Management Information, MCQ
Level: Level 1

Topic: Information Systems Development and Security
Series: NOV 2019

MI – May 2016 – L1 – SB – Q4c – Information System Development and Security

Differentiate between feedback and feedforward control systems.

Question

Differentiate between Feedback and Feedforward control systems.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Control Systems, Feedback Control, Feedforward Control, Systems Theory
Level: Level 1

Topic: Information Systems Development and Security
Series: MAY 2016

AA – May 2016 – L2 – Q4c – Planning and Approach for Audit and Assurance Engagements

This question discusses the points to consider when advising on a system of control for cash sales.

Question

(c) You have been asked by your client, a garage proprietor, to advise on a system of control for cash sales. Set out the points you would take into consideration before giving your recommendations. (10 marks)

Answer

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Tags: Cash Sales, Control Systems, Internal Control, Risk Management, Sales Procedures
Level: Level 2

Topic: Planning and Approach for Audit and Assurance Engagements
Series: MAY 2016

PSAF – Nov 2019 – L2 – Q5a -Public sector fiscal planning and budgeting

Discuss objectives for ensuring asset control systems and circumstances where accountability is discharged.

Question

a) According to Section 52 of Act 921, “A principal Spending Officer of covered entity, State – Owned enterprise or public corporation shall be responsible for the asset of the institution under the care of the Principal Spending Officer and shall ensure that proper control systems exist for the custody and management of the Assets”.

Required:

i) State and explain TWO (2) objectives for which spending officers are required to ensure the existence of proper control systems. (4 marks)

ii) State and explain any THREE (3) circumstances under which the Principal Spending Officer is discharged of accountability over government stores. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accountability, Asset Management, Control Systems
Level: Level 2

Topic: Public sector fiscal planning and budgeting
Series: NOV 2019

IMAC – NOV 2019 – L1 – Q3 – Scope of Management Accounting

Identify features of operational information, features of a control system, and features of specific order costing.

Question

The role of Management Accounting is to assist managers at all levels of management (Strategic, Tactical, and Operational) of an organization in decision-making.

Required:
i) With examples from a manufacturing company, identify FIVE (5) features of information that is provided at the operational level of management. (10 marks)

ii) State TWO (2) features of a control system that is used at the tactical level of management in a commercial entity. (5 marks)

b) State and explain FIVE (5) features of specific order costing methods used in cost ascertainment. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Control Systems, Management Information, Specific Order Costing
Level: Level 1

Topic: Scope of Management Accounting

AA – May 2016 – L2 – Q2 – Planning an Audit

Planning and identifying audit risks for a new client with an increased demand for products, using a standard costing system for inventory valuation.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Planning, Audit Risk, Control Systems, Inventory Management, Material Misstatement
Level: Level 2

Topic: Audit evidence, Planning an Audit, Risk Assessment and Internal Control
Series: MAY 2016

PM – Nov 2015 – L2 – Q7 – Performance Measurement Systems

Evaluate weaknesses in Stuck Ltd’s MIS and suggest improvements for enhanced strategic decision-making.

Question

A summary business plan for this and the next two years. The plan includes details of expected future incomes and expenditure on existing product lines. It was produced by a new member of the accounting department without reference to past production data.
Inventory balances on individual items of raw materials, finished goods, etc. This report is highly detailed and comprises 80% of the output from the MIS itself.
A summary of changes in total demand for glues and solvents in the market over the last five years. This information is presented as a numerical summary in six different sections, with each section taking up one computer screen, so only one section can be viewed at a time.

Required:

(a) Comment on the weaknesses in the information currently being provided to the directors of the company. (9 Marks)

(b) Suggest how the information may be improved, with particular reference to other outputs the MIS might usefully provide to the directors. (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Control Systems, Information Quality, MIS Evaluation, Strategic Decision-Making
Level: Level 2

Topic: Performance Measurement Systems
Series: NOV 2015

MI – Nov 2019 – L1 – SA – Q17 – Information Systems

This question asks to identify the correct description related to closed loop systems.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Closed Loop Systems, Control Systems, Management Information, MCQ
Level: Level 1

Topic: Information Systems Development and Security
Series: NOV 2019

MI – May 2016 – L1 – SB – Q4c – Information System Development and Security

Differentiate between feedback and feedforward control systems.

Question

Differentiate between Feedback and Feedforward control systems.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Control Systems, Feedback Control, Feedforward Control, Systems Theory
Level: Level 1

Topic: Information Systems Development and Security
Series: MAY 2016

AA – May 2016 – L2 – Q4c – Planning and Approach for Audit and Assurance Engagements

This question discusses the points to consider when advising on a system of control for cash sales.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Sales, Control Systems, Internal Control, Risk Management, Sales Procedures
Level: Level 2

Topic: Planning and Approach for Audit and Assurance Engagements
Series: MAY 2016

PSAF – Nov 2019 – L2 – Q5a -Public sector fiscal planning and budgeting

Discuss objectives for ensuring asset control systems and circumstances where accountability is discharged.

Question

Required:

i) State and explain TWO (2) objectives for which spending officers are required to ensure the existence of proper control systems. (4 marks)

ii) State and explain any THREE (3) circumstances under which the Principal Spending Officer is discharged of accountability over government stores. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accountability, Asset Management, Control Systems
Level: Level 2

Topic: Public sector fiscal planning and budgeting
Series: NOV 2019

IMAC – NOV 2019 – L1 – Q3 – Scope of Management Accounting

Identify features of operational information, features of a control system, and features of specific order costing.

Question

The role of Management Accounting is to assist managers at all levels of management (Strategic, Tactical, and Operational) of an organization in decision-making.

Required:
i) With examples from a manufacturing company, identify FIVE (5) features of information that is provided at the operational level of management. (10 marks)

ii) State TWO (2) features of a control system that is used at the tactical level of management in a commercial entity. (5 marks)

b) State and explain FIVE (5) features of specific order costing methods used in cost ascertainment. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Control Systems, Management Information, Specific Order Costing
Level: Level 1

Topic: Scope of Management Accounting

Question Tag: Control Systems

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AA – May 2016 – L2 – Q2 – Planning an Audit

Planning and identifying audit risks for a new client with an increased demand for products, using a standard costing system for inventory valuation.

PM – Nov 2015 – L2 – Q7 – Performance Measurement Systems

Evaluate weaknesses in Stuck Ltd’s MIS and suggest improvements for enhanced strategic decision-making.

MI – Nov 2019 – L1 – SA – Q17 – Information Systems

This question asks to identify the correct description related to closed loop systems.

MI – May 2016 – L1 – SB – Q4c – Information System Development and Security

Differentiate between feedback and feedforward control systems.

AA – May 2016 – L2 – Q4c – Planning and Approach for Audit and Assurance Engagements

This question discusses the points to consider when advising on a system of control for cash sales.

PSAF – Nov 2019 – L2 – Q5a -Public sector fiscal planning and budgeting

Discuss objectives for ensuring asset control systems and circumstances where accountability is discharged.

IMAC – NOV 2019 – L1 – Q3 – Scope of Management Accounting

Identify features of operational information, features of a control system, and features of specific order costing.

AA – May 2016 – L2 – Q2 – Planning an Audit

Planning and identifying audit risks for a new client with an increased demand for products, using a standard costing system for inventory valuation.

PM – Nov 2015 – L2 – Q7 – Performance Measurement Systems

Evaluate weaknesses in Stuck Ltd’s MIS and suggest improvements for enhanced strategic decision-making.

MI – Nov 2019 – L1 – SA – Q17 – Information Systems

This question asks to identify the correct description related to closed loop systems.

MI – May 2016 – L1 – SB – Q4c – Information System Development and Security

Differentiate between feedback and feedforward control systems.

AA – May 2016 – L2 – Q4c – Planning and Approach for Audit and Assurance Engagements

This question discusses the points to consider when advising on a system of control for cash sales.

PSAF – Nov 2019 – L2 – Q5a -Public sector fiscal planning and budgeting

Discuss objectives for ensuring asset control systems and circumstances where accountability is discharged.

IMAC – NOV 2019 – L1 – Q3 – Scope of Management Accounting

Identify features of operational information, features of a control system, and features of specific order costing.

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Question Tag: Control Systems

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AA – May 2016 – L2 – Q2 – Planning an Audit

Planning and identifying audit risks for a new client with an increased demand for products, using a standard costing system for inventory valuation.

You're reporting an error for "AA – May 2016 – L2 – Q2 – Planning an Audit"

PM – Nov 2015 – L2 – Q7 – Performance Measurement Systems

Evaluate weaknesses in Stuck Ltd’s MIS and suggest improvements for enhanced strategic decision-making.

You're reporting an error for "PM – Nov 2015 – L2 – Q7 – Performance Measurement Systems"

MI – Nov 2019 – L1 – SA – Q17 – Information Systems

This question asks to identify the correct description related to closed loop systems.

You're reporting an error for "MI – Nov 2019 – L1 – SA – Q17 – Information Systems"

MI – May 2016 – L1 – SB – Q4c – Information System Development and Security

Differentiate between feedback and feedforward control systems.

You're reporting an error for "MI – May 2016 – L1 – SB – Q4c – Information System Development and Security"

AA – May 2016 – L2 – Q4c – Planning and Approach for Audit and Assurance Engagements

This question discusses the points to consider when advising on a system of control for cash sales.

You're reporting an error for "AA – May 2016 – L2 – Q4c – Planning and Approach for Audit and Assurance Engagements"

PSAF – Nov 2019 – L2 – Q5a -Public sector fiscal planning and budgeting

Discuss objectives for ensuring asset control systems and circumstances where accountability is discharged.

You're reporting an error for "PSAF – Nov 2019 – L2 – Q5a -Public sector fiscal planning and budgeting"

IMAC – NOV 2019 – L1 – Q3 – Scope of Management Accounting

Identify features of operational information, features of a control system, and features of specific order costing.

You're reporting an error for "IMAC – NOV 2019 – L1 – Q3 – Scope of Management Accounting"

AA – May 2016 – L2 – Q2 – Planning an Audit

Planning and identifying audit risks for a new client with an increased demand for products, using a standard costing system for inventory valuation.

You're reporting an error for "AA – May 2016 – L2 – Q2 – Planning an Audit"

PM – Nov 2015 – L2 – Q7 – Performance Measurement Systems

Evaluate weaknesses in Stuck Ltd’s MIS and suggest improvements for enhanced strategic decision-making.

You're reporting an error for "PM – Nov 2015 – L2 – Q7 – Performance Measurement Systems"

MI – Nov 2019 – L1 – SA – Q17 – Information Systems

This question asks to identify the correct description related to closed loop systems.

You're reporting an error for "MI – Nov 2019 – L1 – SA – Q17 – Information Systems"

MI – May 2016 – L1 – SB – Q4c – Information System Development and Security

Differentiate between feedback and feedforward control systems.

You're reporting an error for "MI – May 2016 – L1 – SB – Q4c – Information System Development and Security"

AA – May 2016 – L2 – Q4c – Planning and Approach for Audit and Assurance Engagements

This question discusses the points to consider when advising on a system of control for cash sales.

You're reporting an error for "AA – May 2016 – L2 – Q4c – Planning and Approach for Audit and Assurance Engagements"

PSAF – Nov 2019 – L2 – Q5a -Public sector fiscal planning and budgeting

Discuss objectives for ensuring asset control systems and circumstances where accountability is discharged.

You're reporting an error for "PSAF – Nov 2019 – L2 – Q5a -Public sector fiscal planning and budgeting"

IMAC – NOV 2019 – L1 – Q3 – Scope of Management Accounting

Identify features of operational information, features of a control system, and features of specific order costing.

You're reporting an error for "IMAC – NOV 2019 – L1 – Q3 – Scope of Management Accounting"

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