AIMS
To
develop knowledge and understanding of the role
of a manager in an effective, efficient, safe
and secure accounting environment. This includes
the coordination of work activities, the maintenance
of an effective accounting system, people management,
personal effectiveness, health and safety and
security issues within the workplace.
OBJECTIVES
On
completion of this paper, candidates should be
able to:
- develop
an overview of the overall business organisation
and its critical external relationships and
identify the key external regulations and
relationships affecting accounting and business
- understand
how accounting systems are affected by organisational
structure and the overall management information
system
- describe
methods for resource planning and coordinating
work
- explain
the purpose, structure and organisation of
the accounting function
and its relationships with other organisational
functions
- identify
systems and procedures for effective functional
management
- describe
principles of management leadership, delegation,
motivation and communication
- explain
principles of effective working relationships
and teamwork
- understand
the need for effective performance appraisal,
development and training to enhance personal
and organisational effectiveness
- understand
the importance of a safe and secure working
environment.
POSITION
OF THE PAPER IN THE OVERALL SYLLABUS
No
prior knowledge is required before commencing
study for Paper 5. This paper provides the basic
techniques required to fulfil the role of a manager
in the accounting environment.
SYLLABUS
CONTENT
1
The business and accounting environment
(a)
Environmental influences on the organisation
(i)
political, economic, social and technological
(ii)
external regulations affecting accounting and
business practice
(iii)
external relationships (stakeholder interests)
(b)
The organisation
(i
) the structure of business functions
(ii)
sources of management information
(iii)
the nature of policies, systems and procedures
(iv)
types of business transactions
(v)
methods of planning and control
–
business planning and control
–
information management and control
–
human resources planning and control
(c)
The accounting function
(i)
purpose
(ii)
structure
(iii)
position within the organisation
(iv)
types of accounting system
–
manual
–
computerised
2
Effective management of business and accounting
systems
(a)
Monitoring business and accounting systems
(i)
the role of internal auditors
(ii)
the role of external auditors
(iii)
the role of management
(b)
Recognising potential weaknesses in the accounting
system
(i)
weaknesses of controls
(ii)
potential areas for error and fraud
(c)
Fraud
(i
) common types of fraud
(ii)
the implications of fraud
(iii)
detecting fraud in the accounting system
(iv)
preventing fraud
(d)
Internal controls
(i)
the importance of internal controls
(ii)
the control mechanisms in the accounting system
(e)
Management information and reporting systems
(i)
features of a management information system
(ii)
information flows within an accounting system
(iii)
processing and storage of data and transactions
3
Management theory, principles and techniques
(a)
Managing people for effective working relationships
(i)
principles of leadership, management supervision
and delegation, including consideration of:
–
communication
–
resolving problems and queries
(ii)
principles of authority
–
differing styles of management
–
taking corrective action
(b)
Individual and group behaviour
(i)
organisational culture
(ii)
contribution of individuals and groups to organisational
success
(c)
Team management
(i)
team formation
(ii)
team development
(iii)
team evaluation and rewards
(d)
Motivation
(i
) key theories of motivation
(ii)
the function of sanctions and rewards in motivation
4
Individual effectiveness at work
(a)
Planning and organising personal work
(i)
understanding roles and responsibilities
–
effective work methods and practices in the organisation
–
reporting procedures
(ii)
work planning and planning aids (diaries, schedules,
action plans)
(iii)
prioritising and time management, including unforeseen
situations
(b)
Constructive relationships
(i)
methods of communication
(ii)
influencing, negotiating and coordinating
(iii)
procedures for dealing with disagreement and conflict
arising from:
–
personality
–
working style
–
status
–
work demands
(c)
Improving individual performance
(i)
personal performance and appraisal
–
setting objectives
–
assessing progress
(ii)
identifying areas for individual learning
5
Health, safety and security in the working environment
(a)
The importance of health and safety
(i)
health and safety in the working environment
–
legislation
–
regulations
–
record keeping
–
keeping up-to-date with requirements
(ii)
common hazards and how to deal with them
(iii)
using equipment and behaving safely at work
(iv)
emergency procedures
–
illness
–
accidents
–
fires
–
security breaches
(v)
recommending improvements to health and safety
(b)
Recognising security risks
(i)
physical breaches of security
–
unauthorised physical intrusion
–
security of hardware and equipment
–
security of systems data and software
(ii)
methods of reducing or avoiding security risks.
EXCLUDED
TOPICS
The
syllabus does not require knowledge of specific
computing hardware systems or their specifications,
or how software systems are designed, developed,
tested and implemented.
KEY
AREAS OF THE SYLLABUS
All
areas of the syllabus are equally important.
APPROACH
TO EXAMINING THE SYLLABUS
The
paper is constructed in such a way that it provides
a broad assessment of the main issues involved
in managing systems and people. In general terms,
the paper is divided into five parts:
- The
business and accounting environment
- Effective
management of business and accounting systems
- Management
theory, principles and techniques
- Individual
effectiveness at work
- Health,
safety and security in the working environment
Note
that although the syllabus is sub-divided into
five main parts, each part has a different number
of teaching and learning sessions allocated to
it. The number of sessions in each area reflects
the number of learning outcomes identified within
that area and this in turn determines the associated
teaching and learning time required.
For
example, although health, safety and security
in the working environment contains only two teaching
and learning sessions it is still considered to
be as important as any other area within the syllabus
in terms of assessment. It should also be noted
that although the course follows this structure,
the nature of the syllabus means that there will
often be some overlap between the individual topics.
Structure
of the examination:
The
examination is a two-hour written paper.
No.
of marks -
5 compulsory questions (20 marks
each) 100
As
indicated above, a question will normally be set
in each of the five syllabus areas detailed in
the approach to examining the syllabus. Candidates
therefore need to ensure that they have a broad
knowledge
of all aspects of the five key areas of the syllabus.
RELEVANT
TEXTS
There
are a number of sources from which you can obtain
a series of materials written for the ACCA CAT
examinations. These are listed below:
Candidates
may also find the following texts useful:
Child,
J. Organisation: A Guide to Problems
and Practice (2nd edition, Chapman: 1988)
Handy,
Charles. Understanding Organisations (3rd
edition, Penguin: 1997) ISBN:
0140456038
Mullins,
L., J. Management and Organisational Behaviour
(5th edition, Prentice Hall:1999) ISBN: 0273651471
Wider
reading is also desirable, especially regular
study of relevant articles in ACCA’s student
accountant magazine.
STUDY
SESSIONS
THE
BUSINESS AND ACCOUNTING ENVIRONMENT
1
The organisation’s environment and external relationships
(a)
Define an organisation and its environment
(b)
Identify the main stakeholders within and outside
the organisation
(c)
Describe general political, economic, social and
technological factors affecting the organisation
and its stakeholders
(d)
Identify the authorities to whom businesses are
accountable in financial terms
(e)
Identify what financial information businesses
need to provide for government agencies
(f)
Describe the role of external auditors
(g)
Outline the role of accounting standards setting
bodies
(h)
Outline the role of corporate governance with
respect to accountability
(i
) Describe the overall role and purpose of employment,
health and safety and data protection legislation
within the business
2
Organisational structure
(a)
Identify the purpose and objectives of an organisation
(b)
Recognise the stages needed to establish an organisation
(c)
Explain what influences the structure of an organisation,
with
reference to the work of Fayol.
(d)
Describe the business as a system with clearly
defined functional areas
(i
) explain the role of production or direct service
provision
(ii)
explain the roles of sales and marketing
(iii)
explain the role of accounting and finance
(iv)
explain the role of human resource planning
(e)
Identify organisational levels and spans of control
(f)
Recognise how departments within an organisation
are structured
(i)
describe the hierarchical structure and functional
divisionalisation
(ii)
describe the matrix or task based structure of
business
(iii)
explain geographical divisionalisation
(iv)
explain product or service divisionalisation
3
Business and resource planning and co-ordination
(a)
Outline the purpose of an overall business plan
(i)
identify the objectives of long-range planning
(ii)
outline the role of short-range planning
(b)
Identify elements of resource planning and control
(i)
describe the elements of the organisational plan
(ii)
describe the elements of the human resource plan
(c)
Explain the need for co-ordination in the planning
process
4
General systems and clerical procedures in business
(a)
Explain the purpose of systems, policies and procedures
in a general business context
(b)
Describe the principles of effective systems and
procedures
(c)
Identify and explain general office procedures
and systems using flowcharting techniques
(d)
Review the effectiveness of office procedures
and identify weaknesses
(e)
Review the effectiveness of financial control
procedures and identify potential weaknesses
5
Accounting systems and procedures
(a)
Outline the function and purpose of the accounting
system within an organisation
(b)
Identify key elements of the accounting system
and procedures and how they are structured
(c)
Explain how the accounting department integrates
and co-ordinates with other functional areas
(d)
Explain the difference between manual and computerised
accounting systems
EFFECTIVE
MANAGEMENT OF BUSINESS AND ACCOUNTING SYSTEMS
6
Internal control and auditing
(a)
Explain the importance of internal controls in
an organisation
(b)
Describe the responsibilities of management with
respect to internal control
(c)
Describe the different roles of the internal and
external auditors
(d)
Recognise the weaknesses of controls and the features
of effective control procedures
7
Identifying and preventing fraud in an accounting
system
(a)
Describe the three prerequisites for fraud, eg
dishonesty, opportunity and motivation
(b)
Identify common types of fraud
(c)
Explain the implications of fraud for an organisation
(d)
Identify the scope for fraud using manual as against
computer systems
(e)
Describe systems and procedures to discover and
prevent fraud
(f)
Understand the role of the auditor in dealing
with fraud
(g)
Identify the duty and responsibilities of management
in the prevention and detection of fraud
8
Improving control procedures within the accounting
system
(a)
Describe the payroll system and appropriate controls
(b)
Describe the main stages of the purchases cycle
and appropriate controls
(c)
Describe the main stages of the sales cycle and
appropriate controls
(d)
Describe the cash system and appropriate controls
(e)
Explain how controls are more effective if systems
are integrated
9
Management information and reporting systems
(a)
Describe the main features of a management information
system
(b)
Describe the information flows within the accounting
system
(c)
Draft examples of relevant management reports
from an accounting system
(d)
Understand how data and transactions are processed
and stored within the accounting system
MANAGEMENT
THEORY, PRINCIPLES AND TECHNIQUES
10
Effective leadership, management and supervision
(a)
Describe the process of determining authority
and responsibility with reference to Contingency
Theory, and the work of Woodward, Burns and Stalker,
Fayol, Mintzberg and Weber
(b)
Describe the skills, traits and characteristics
of a leader, with reference to Blake and Mouton,
Handy, Hersey, Blanchard and Likert
(c)
Explain the role of management, with reference
to the work of Drucker, Kanter, Ouchi and Peters
(d)
Explain the role of the supervisor in achieving
tasks, building the team and developing individuals
(e)
Describe the principles of effective delegation
(f)
Compare and contrast the terms ‘leadership’, ‘management’,
‘supervision’ and delegation
11
Individual and group behaviour
(a)
Explain the concept of organisational culture
and discuss its limitations, with reference to
the work of Anthony and Handy
(b)
Discuss the differences between individual and
group behaviour
(c)
Outline the contribution of individuals and teams
to organisational success
(d)
Identify work that benefits from either an individual
or team approach
(e)
Recognise behaviour that facilitates and inhibits
organisational success
12
Team Management
(a)
Define the purpose of a team
(b)
Outline the composition of successful teams, with
reference to the work of Belbin, Peters and Waterman
(c)
Explain the stages in the development of a team
using Tuckman’s "Forming, Storming, Norming,
Performing and Dorming"
(d)
Identify and explain key team building blocks
and blockages, with reference to the work of Woodcock
(e)
Describe the main ways of rewarding a team
(f)
Identify appropriate methods to evaluate team
performance
13
Motivation, concepts and models
(a)
Outline the key theories of motivation: Maslow,
Herzberg, Handy, Equity Theory, Argyris, McLelland,
Vroom, McGregor’s Theories X and Y and Ouchi’s
Theory Z
(b)
Outline the difference between content and process
theories of motivation
(c)
Describe ways in which management can motivate
staff
(d)
Explain the importance of the reward system in
the process of motivation
(e)
Explain the importance of feedback
INDIVIDUAL
EFFECTIVENESS
14
Work effectiveness
(a)
Explain the benefits of planning and organising
personal work in the context of:
(i)
understanding roles and responsibilities
(ii)
using effective work methods and practices in
the organisation
(iii)
identifying appropriate reporting procedures
(iv)
using work planning and planning aids (diaries,
schedules, action plans)
(v)
prioritising work and time management, including
unforeseen situations
15
Effective communication and interpersonal skills
(a)
Recognise the importance of good communication,
both formal and informal, in the workplace
(b)
Identify and describe the main methods and attributes
of effective personal communication and the effects
of poor communication
(c)
Distinguish between verbal and non-verbal forms
of personal communication
(d)
Define the term ‘interpersonal skills’ in the
context of effective management practice
(e)
Explain the importance of developing effective
personal working relationships
(f)
Identify appropriate ways of gaining commitment
from individual staff members
(g)
Describe appropriate methods for dealing with
conflict in a work environment
16
Effective training and development
(a)
Distinguish between training and development
(b)
Explain the importance of training and development
to the organisation and the individual
(c)
Explain the roles and responsibilities of a training
manager
(d)
Explain the methods used to analyse training needs
(e)
Suggest ways in which training needs can be met
(f)
Compare and contrast the various methods used
in developing individuals in the workplace
(g)
Describe methods of staff evaluation and follow-up
17
Appraisal of competence and individual development
(a)
Explain the process of competence assessment
(b)
Outline the purpose and benefits of the staff
appraisal process
(c)
Describe the barriers to effective staff appraisal
(d)
Identify the management skills involved in the
appraisal process
(e)
Describe the roles of the appraisor and appraisee
in the appraisal process
(f)
Explain the preparation process for an appraisal
interview, including location of interview and
pre-interview correspondence
(g)
Recognise the importance of feedback from the
appraisal interview
(h)
Explain the link between the appraisal process
and effective employee development
18
The individual learning process
(a)
Explain the process of learning in the workplace
(b)
Describe the ways in which individuals learn
(c)
Explain the effect of individual differences on
learning
(d)
Identify the barriers to learning
(e)
Describe the role of management in the learning
process
(f)
Suggest appropriate ways in which the organisation
can motivate individuals to learn
HEALTH,
SAFETY AND SECURITY IN THE WORKING ENVIRONMENT
19
Health and safety in the workplace
(a)
Outline the main provisions of relevant legislation
on health and safety
(b)
Identify possible sources of danger to health
and safety of individuals within the workplace
(c)
Suggest appropriate preventative and protective
measures
(d)
Discuss the role of training in raising awareness
of safety issues
(e)
Describe safe working conditions 0
(f)
Outline the role and responsibility of management
in promoting health and safety
20
Security in the workplace
(a)
Describe possible sources of security breaches
within the workplace
(i)
identify means of physical intrusion
(ii)
describe threats related to hardware and equipment
security
(iii)
explain hazards from internal and external software
security breaches
(b)
Outline measures for preventing security breaches
(i)
describe methods of preventing physical intrusion
(ii)
explain measures of protecting hardware and equipment
(iii)
identify strategies for reducing the risk of software
security breaches
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