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| PRESIDENT uNIVERSITYFINAL Semester ExaminationAcademic Year 2015 – 2016Subject : Management Control SystemsLecturer : Drs. Sanyoto Gondodiyoto MComm., MKom., MMSI., SE., Akt.CA, PIAProgram : Accounting/Tax |

Instructions to Students

a. This is a Take Home Assignment for the final examination.

b. Do this assignment in Microsoft Word and submit to the lecturer via the class manager.

c. The last date of submission is the final exam schedule of this course.

d. Do all the problems/questions in order

Part-1 (each of this question has 5 mark)

1. Explain the relationship between strategy formulation, strategic planning, budgeting, financial performance analysis, and other performance analysis to the management controls systems.

2. Explain and give an example why strategy formulation is called unsystematic/unstructured, while strategic planning is systematic/structured?

3. Contrast and mention the weaknesess of financial performance analysis method comparing to the balance score card method!

4. What are the purposes of doing the variance analysis, mention and explain at least 5 points of limitations in the variance analysis, and what ideas incorporated in conducting variance analysis?

5. Mention at least five indicators of nonfinancial neasures related to customers!

6. Top management control function in an organization is influenced by the style of senior management. Who are the “senior management”, and what kind of management’s background can effects the management style?

Part-2 (70 mark)

ENRON Corp./ ANDERSEN

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Introduction

Enron Corporation entered 2001 as the seventh largest public company in the United States (US) only to later exit the year as the largest company to ever declare bankruptcy in US history. Although investigations into the company’s demise will likely continue for years, reasons for Enron’s collapse are already becoming clear. Investors who lost millions and lawmakers seeking to prevent similar reoccurrences are...