Accounting Information Systems
Accounting Information Systems
11th Edition
ISBN: 9780357156032
Author: Ulric J. Gelinas; Richard B. Dull; Patrick Wheeler
Publisher: Cengage Limited
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Chapter 11, Problem 3SP
Summary Introduction

To explain: The risk and the control process that will use the technology to handle the risk.

Introduction:

B/AR/CR process:

It is an accounting process with an interacting structure of different process supporting the decision-making activities of the financial managers.

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Anderson is a portfolio manager at a reputable investment firm, Beta Investments, His job involves managing a diverse investment portfolio including institutional clients and high-networth individuals. Anderson is well respected and has a track record of strong performance. recently Anderson received a report that one of his funds has underperformed in its benchmark index significantly over the past 3 years. the report however was produced by an internal analyst who used a different benchmark for comparison that favored the fund's performance. the actual benchmark that should have been used would have shown that the funds performed slightly better than expected but not significantly. As the fund's performance report is set to be presented at an upcoming meeting. Anderson is faced with a crucial decision. 1. Use misleading performance reports when presenting them to clients, highlighting the fund's superior returns relative to the favorable benchmark. this could potentially lead to new…
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY