ACC 531 Final Exam-12

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School

University of Illinois, Chicago *

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531

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Information Systems

Date

Dec 6, 2023

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docx

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Uploaded by SuperHumanBoulder12139

What is a control? Why do formal controls deteriorate trust? Any mechanism imposed by management to encourage (or discourage) a specific behavior. Controls (extrinsic) increase effort but do so at the expense of trust, which can also motivate behavior (intrinsic). The issue is finding the right balance between trust and controls to get the level of effort desired. They signal management's level of trust (or lack thereof). They affect how employees see the situation; e.g,, "if controls are needed at the Testing Center, then cheating must be an option.” They affect the factors to which good behavior is attributed.

What are examples of formal Budgets, financial measurements, variances, targets, (traditional) control internal controls, etc. mechanisms? Traditional controls are "used to measure progress against plans in order to guarantee the predictable achievement of goals.” Diagnostic Controls: What do they look like? What are they? - Budgets, financial measurements, variances, What are they good for? targets, etc. What happens if these are your only controls? What are they good for? - Having objective data What happens if these are your only controls? - The risk is that people will do anything to reach those goals; e.g., gaming the system.

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ACC 531 Final Exam-12

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