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Yu Ming Keung posted a new activity comment 8 years, 1 month ago
Binu,
Your Adobe Acrobat vs. Nitro Pro 9 example shows a company may want to achieve profit maximization by using cheaper software because these both software can achieve the same objective. However, if a company wants to continue in the long run, I think it better choose Adobe Acrobat because it can function better and it support most computer…[Read more]
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Yu Ming Keung commented on the post, Progress Report for Week Ending, February 16, on the site 8 years, 1 month ago
Great post Zhou, the attitude of the upper management is crucial to directly affect how a company is operated. And how to achieve a positive control environment is very important, I think that business governance has to be transparent and clear to follow for its lower-level. Employees should be provided with ongoing training,support and mentor…[Read more]
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Yu Ming Keung posted a new activity comment 8 years, 1 month ago
Describe a real life example of a company’s profitability-driven controls. What are the differences between a compliance-driven vs. a profitability driven control?
In my opinion, a profitability-driven controls mean that a company will take the most risk and be active in the market to focus on increasing the annual revenue.
Ex: Apple – be…[Read more]
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Yu Ming Keung commented on the post, Progress Report for Week Ending, February 23, on the site 8 years, 1 month ago
In your own words, how would you define a control environment?
Control environment is a set of standards, processes, and structures achieved by the upper management to provide the basis for carrying out internal control to trickle down throughout the organization. A well-functioned internal control can define culture and behavior within an…[Read more] -
Yu Ming Keung posted a new activity comment 8 years, 1 month ago
Q: What are some current system-related risks that you have experienced in your organization?
Based on my internship experience over the summer:
1. Some of my co-workers leave his/her desk without logging off the computer
This could lead to data lose or stolen because of lack of IT security
2. Post-it notes with username and password are…[Read more] -
Yu Ming Keung posted a new activity comment 8 years, 1 month ago
I agree with you Annamarie. The Wal-Mart example really shows how profitability-driven controls works in corporation. Since Wal-Mart business strategy is “everyday low price”. If walmart doesn’t select the vendors with the lowest costs, It cannot afford to offer the lowest prices of its merchandise to its customers.
A company can achieve…[Read more]
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Yu Ming Keung posted a new activity comment 8 years, 1 month ago
Question: The Sabanes-Oxley Act in the US and many similar laws in other countries were enacted as result of high profile control failures. Are these laws a sufficient reaction to the failures or are they an overreaction? Explain.
The Sabanes-Oxley Act was a response to accountants’ failure of Enron Corp, WorldCom and Arthur Anderson by p…[Read more]