Read the attached files carefully. I need 2-3 pages memo on the given instructions. You must include 2-3 scholarly references must be cited in APA. Your answer must be properly addressed, must be 100% original.

 

Instructions

 

 

Read the attached files carefully, and write 2-3 pages memo on discussing our responsibilities for auditing the controls at a service organization, and whether a SSAE 16 report fulfills our obligations under Section 404 of SOX? Also, if I remember correctly, there are two types of SSAE 16 reports, but I don’t know which one we need and whether the attached letter is a Type 1 or Type 2 report. You need to discuss briefly that attached SSAE 16 report. Also, just include the service auditor’s report as a brief description in the memo.

Independent Service Auditor’s Report on a Description of a Service Organization’s System

and the Suitability of the Design and Operating Effectiveness of Controls

To the Board of Directors of Roll Pay Payroll Services, Inc.:

Scope

We have examined Roll Pay Payroll Services, Inc.’s description of its system for processing user entities’ payroll transactions throughout the period January 1, 2014 through December 31, 2014 and the suitability of the design and operating effectiveness of controls to achieve the related control objectives stated in the description.

Service organization’s responsibilities

On page 11 of the description, Roll Pay Payroll Services, Inc. has provided an assertion about the fairness of the presentation of the description and suitability of the design and operating effectiveness of the controls to achieve the related control objectives stated in the description. Roll Pay Payroll Services, Inc. is responsible for preparing the description and for the assertion, including the completeness, accuracy, and method of presentation of the description and the assertion, providing the services covered by the description, specifying the control objectives and stating them in the description, identifying the risks that threaten the achievement of the control objectives, selecting the criteria, and designing, implementing, and documenting controls to achieve the related control objectives stated in the description.

Service auditor’s responsibilities

Our responsibility is to express an opinion on the fairness of the presentation of the description and on the suitability of the design and operating effectiveness of the controls to achieve the related control objectives stated in the description, based on our examination. We conducted our examination in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform our examination to obtain reasonable assurance about whether, in all material respects, the description is fairly presented and the controls were suitably designed and operating effectively to achieve the related control objectives stated in the description throughout the period January 1, 2014 through December 31, 2014.

An examination of a description of a service organization’s system and the suitability of the design and operating effectiveness of the service organization’s controls to achieve the related control objectives stated in the description involves performing procedures to obtain evidence about the fairness of the presentation of the description and the suitability of the design and operating effectiveness of those controls to achieve the related control objectives stated in the description. Our procedures included assessing the risks that the description is not fairly presented and that the controls were not suitably designed or operating effectively to achieve the related control objectives stated in the description. Our procedures also included testing the operating effectiveness of those controls that we consider necessary to provide reasonable assurance that the related control objectives stated in the description were achieved. An examination engagement of this type also includes evaluating the overall presentation of the description and the suitability of the control objectives stated therein, and the suitability of the criteria specified by the service organization and described at page 12. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

Inherent limitations

Because of their nature, controls at a service organization may not prevent, or detect and correct, all errors or omissions in processing or reporting transactions. Also, the projection to the future of any evaluation of the fairness of the presentation of the description, or conclusions about the suitability of the design or operating effectiveness of the controls to achieve the related control objectives is subject to the risk that controls at a service organization may become inadequate or fail.

Opinion

In our opinion, in all material respects, based on the criteria described in Roll Pay Payroll Services, Inc.’s assertion on page 11,

a. the description fairly presents the system for processing user entities’ payroll transactions throughout the period January 1, 2014 through December 31, 2014.

b. the controls related to the control objectives stated in the description were suitably designed to provide reasonable assurance that the control objectives would be achieved if the controls operated effectively throughout the period January 1, 2014 through December 31, 2014.

c. the controls tested, which were those necessary to provide reasonable assurance that the control objectives stated in the description were achieved, operated effectively throughout the period January 1, 2014 through December 31, 2014.

Description of tests of controls

The specific controls tested and the nature, timing, and results of those tests are listed on pages 15–18.

Restricted use

This report, including the description of tests of controls and results thereof on pages 15-18, is intended solely for the information and use of Roll Pay Payroll Services, Inc., user entities of Roll Pay Payroll Services, Inc.’s system for processing user entities’ payroll transactions during some or all of the period January 1, 2014 through December 31, 2014, and the independent auditors of such user entities, who have a sufficient understanding to consider it, along with other information including information about controls implemented by user entities themselves, when assessing the risks of material misstatements of user entities’ financial statements. This report is not intended to be and should not be used by anyone other than these specified parties.

Michael Scarn, CPA

January 25, 2015

Scranton, PA

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

SET#1 QUESTIONS

1. (p. 3) Which of the following is an element of a firm’s remote external environment?

A. Competition

B. Suppliers

C. Government agencies

D. Economic and social conditions

 

 

Difficulty: Easy

Learning Objective: 1

 

2. (p. 3) Which of the following is NOT a part of a firm’s immediate external environment?

A. Technological development

B. Competitors

C. Suppliers

D. Government agencies

 

 

Difficulty: Easy

Learning Objective: 1

 

3. (p. 3) The immediate external environment includes:

A. Competitors

B. S. B. U. s

C. Divisions

D. Management

 

 

Difficulty: Easy

Learning Objective: 1

 

 

 

4. (p. 3) The _______ comprises economic and social conditions, political priorities and technological developments, all of which must be anticipated, monitored, assessed and incorporated into the executive’s decision making.

A. Remote external environment

B. Task environment

C. Operating environment

D. Internal environment

 

 

Difficulty: Easy

Learning Objective: 1

 

5. (p. 3) The set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company’s objectives is defined as:

A. Strategic policy

B. Business policy

C. Strategic management

D. Tactics

 

 

Difficulty: Medium

Learning Objective: 2

 

6. (p. 3) Strategic management compromises nine critical tasks. Which of the following is NOT one of the tasks?

A. Development of annual objectives compatible with grand strategies

B. Assessment of the company’s external environment

C. Selection of a particular set of long-term objectives and grand strategies

D. Evaluate the success of the strategic process

 

 

Difficulty: Medium

Learning Objective: 2

 

 

 

7. (p. 4) Strategic management involves the _____, directing, _____ and controlling of a company’s strategy-related decisions and actions.

A. Financing; marketing

B. Planning; financing

C. Marketing; planning

D. Planning; organizing

 

 

Difficulty: Medium

Learning Objective: 2

 

8. (p.4) Large-scale, future-oriented plans, for interacting with the competitive environment to achieve company objectives refers to its

A. Strategy

B. Goals

C. Competitive analysis

D. Dynamic policies

 

 

Difficulty: Easy

Learning Objective: 2

 

9. (p. 4) A strategy is a company’s

A. Game plan

B. Pricing policy

C. Value statement

D. Long-term objective

 

 

Difficulty: Easy

Learning Objective: 2

 

 

 

10. (p. 4) A(n) _____ reflects a company’s awareness of how, when and where is should compete, against whom it should compete and for what purpose it should compete.

A. Vision

B. Organizational structure

C. Strategy

D. Long-term objective

 

 

Difficulty: Medium

Learning Objective: 2

 

11. (p. 4) Strategic issues require which level of management decisions?

A. Operative

B. Top

C. Front-line

D. Middle

 

 

Difficulty: Easy

Learning Objective: 2

 

12. (p. 5) Strategic decisions ostensibly commit the firm for

A. 1-2 years

B. The short term

C. 3-4 years

D. A long time, typically five years

 

 

Difficulty: Medium

Learning Objective: 2

 

13. (p. 4-5) Some business decisions are strategic and therefore deserve strategic management attention. Which of the following is one of the six strategic issue dimensions?

A. Requires front-line employee decisions

B. Is not likely to have a significant impact on long-term prosperity of the firm

C. Necessitates considering factors in the firm’s external environment

D. Is spontaneous

 

 

Difficulty: Medium

Learning Objective: 3

 

 

 

14. (p. 5) Which of the following applies to strategic issues?

A. Consider only the firm’s internal environment

B. Are future oriented

C. Concern allocation of insignificant amounts of company resources

D. Do not have long-term impact on the firm’s prosperity

 

 

Difficulty: Easy

Learning Objective: 3

 

15. (p. 5) Strategic decisions are based on what managers _____, rather than on what they _____.

A. Forecast; know

B. React to; anticipate

C. Know; forecast

D. Compromise with; analyze

 

 

Difficulty: Hard

Learning Objective: 3

 

16. (p. 5) In a turbulent and competitive free enterprise environment, a firm will succeed only if it takes a(n) ____ stance towards change.

A. Reactive

B. Anti-regulatory or anti-government

C. Proactive

D. Vision and not mission

 

 

Difficulty: Medium

Learning Objective: 3

 

 

 

17. (p. 6) Typically how many strategic decision levels are in the corporate decision-making hierarchy?

A. 5 or more

B. 4

C. 3

D. 2

 

 

Difficulty: Easy

Learning Objective: 4

 

18. (p. 6) To a large extent, attitudes at the corporate level reflect the concerns of

A. Stockholders and society at large

B. Top managers

C. The CEO

D. The federal government

 

 

Difficulty: Medium

Learning Objective: 4

 

19. (p. 6) The top of the decision-making hierarchy comprises all of these EXCEPT

A. Board of directors

B. Front-line managers

C. The CEO

D. Administrative officers

 

 

Difficulty: Easy

Learning Objective: 4

 

20. (p. 6) In a multi-business firm, ______ -level executives determine the businesses in which the firm should be involved.

A. Business

B. Functional

C. Corporate

D. Operative

 

 

Difficulty: Medium

Learning Objective: 4

 

 

 

21. (p. 6) At Office Supply, Inc., ____ -level managers would be responsible for determining whether the company should be involved in home furnishings or electronic appliance businesses, where as ____ -level managers would be responsible for determining how the firm will compete in the selected product-market arena.

A. Business; corporate

B. Corporate; functional

C. Functional; business

D. Corporate; business

 

 

Difficulty: Hard

Learning Objective: 4

 

22. (p. 6) In the middle of the decision-making hierarchy is the _____ level.

A. Corporate

B. Functional

C. Business

D. Strategic

 

 

Difficulty: Medium

Learning Objective: 4

 

23. (p. 6) Who determines the basis on which a company can compete in the selected product-market arena?

A. Functional-level strategic managers

B. Corporate-level strategic managers

C. Business-level strategic managers

D. Operational managers supervising operative

 

 

Difficulty: Medium

Learning Objective: 4

 

 

 

24. (p. 6) Which of these managers tries to identify and secure the most profitable and promising market segment?

A. Functional managers

B. Corporate managers

C. Business managers

D. Operative

 

 

Difficulty: Medium

Learning Objective: 4

 

25. (p. 6) The functional level of decision making is characterized by:

A. The board of directors deriving corporate goals

B. Managers of product, geographic and functional areas

C. The CEO developing a company profile

D. Business managers interpreting the mission into operational objectives

 

 

Difficulty: Medium

Learning Objective: 4

 

26. (p. 6) Which strategic level is typically responsible for developing annual objectives and short-term strategies?

A. Functional level

B. Corporate level

C. Business level

D. Board of Directors level

 

 

Difficulty: Medium

Learning Objective: 4

 

27. (p. 6) Which of the following is NOT a level in the decision-making hierarchy of a firm?

A. Business

B. Corporate

C. Operative

D. Functional

 

 

Difficulty: Medium

Learning Objective: 4

 

 

 

28. (p. 6) Functional managers are typically responsible for which of the following?

A. Annual objectives

B. Tactics

C. Corporate goals

D. Mission

 

 

Difficulty: Medium

Learning Objective: 4

 

29. (p. 6) Whereas corporate and business-level managers center their attention on _____, managers at functional-level center their attention on ____.

A. Operational issues; strategic issues

B. Doing things right; doing the right things

C. Entrepreneurial mode; adaptive mode

D. Doing the right things; doing things right

 

 

Difficulty: Hard

Learning Objective: 4

 

30. (p. 6) Decisions at which level of management tend to be more value-oriented and conceptual?

A. Functional

B. Corporate

C. Operative

D. Business

 

 

Difficulty: Medium

Learning Objective: 4

 

31. (p. 7) Dividend policies are decided at the

A. Corporate level

B. Business level

C. Functional level

D. Operational level

 

 

Difficulty: Medium

Learning Objective: 4

 

 

 

32. (p. 7) Which level of decisions encompasses greater risk, cost and profit potential?

A. Business

B. Lower echelon

C. Corporate

D. Functional

 

 

Difficulty: Medium

Learning Objective: 4

 

33. (p. 8) Corporate-level decisions are characterized by:

A. Decreased risk

B. Doing things right

C. Short-time horizons

D. Greater profit

 

 

Difficulty: Hard

Learning Objective: 4

 

34. (p. 7) Decisions concerning plant location, distribution channels, geographic coverage and market segmentation are typically made at:

A. The corporate level

B. The business level

C. The functional level

D. The front-line operational level

 

 

Difficulty: Medium

Learning Objective: 4

 

35. (p. 8) The degree to which participation, responsibility, authority and discretion in decision-making are specified is called:

A. Informality

B. Formality

C. Functional tactic

D. Dynamic mode

 

 

Difficulty: Medium

Learning Objective: 4

 

 

 

36. (p. 8) Which of these is usually positively correlated with the cost, comprehensiveness, accuracy and success of planning?

A. Greater formality

B. Functional structure

C. Organizational matrix

D. Functional tactics

 

 

Difficulty: Medium

Learning Objective: 4

 

37. (p. 8) According to Henry Mintzberg, very large firms typically use the _____ mode of strategic management.

A. Adaptive

B. Entrepreneurial

C. Informal

D. Planning

 

 

Difficulty: Medium

Learning Objective: 4

 

38. (p. 8) Henry Mintzberg identified a mode which he associates with medium-sized firms in relatively stable environments. This is referred to as a(n) ____ mode.

A. Entrepreneurial

B. Adaptive

C. Business

D. Planning

 

 

Difficulty: Medium

Learning Objective: 4

 

 

 

39. (p. 8) Firms that are basically under the control of a single individual and produce a limited number of products/services are referred to as following ______ mode.

A. Entrepreneurial

B. Intrapreneurial

C. Managerial

D. Corporate

 

 

Difficulty: Medium

Learning Objective: 4

 

40. (p. 8) The informal, intuitive and limited approach to strategic management associated with owner-managers of smaller firm refers to the ____ mode of formality, according to Mintzberg.

A. Entrepreneurial

B. Functional

C. Planning

D. Adaptive

 

 

Difficulty: Easy

Learning Objective: 4

 

41. (p. 8) The planning mode refers to the

A. Strategic formality associated with the large firms that operate under a comprehensive, formal planning system

B. Strategic formality associated with medium-sized firms that emphasize the incremental modification of existing competitive approaches

C. Strategic formality associated with global firms that emphasize cultural value systems

D. Informal, intuitive and limited approach to strategic management with owner-manager of smaller firms

 

 

Difficulty: Medium

Learning Objective: 4

 

 

 

42. (p. 8) According to Mintzberg, the adaptive mode refers to

A. Strategic formality associated with the large firms that operate under a comprehensive, formal planning system

B. Strategic formality associated with medium-sized firms that emphasize the incremental modification of existing competitive approaches

C. Strategic formality associated with global firms that emphasize cultural value systems

D. Informal, intuitive and limited approach to strategic management with owner-manager of smaller firms

 

 

Difficulty: Medium

Learning Objective: 4

 

43. (p. 8) Which of these is NOT a mode of formality identified by Mintzberg?

A. Adaptive

B. Planning

C. Functional

D. Entrepreneurial

 

 

Difficulty: Easy

Learning Objective: 4

 

44. (p. 9) The ideal strategic management team includes decision makers from

A. All three company levels (corporate, business and functional)

B. Just the functional level since they are closest to the customers

C. Just the corporate and business levels given that they focus on doing the right thing

D. Just the top management since they understand the big picture

 

 

Difficulty: Medium

Learning Objective: 4

 

 

 

45. (p. 8) Managers at the _____ level typically have principal responsibilities for developing environmental analysis and forecasting, establishing business objectives and developing business plans prepared by staff groups.

A. Corporate

B. Functional

C. Operational

D. Business

 

 

Difficulty: Medium

Learning Objective: 4

 

46. (p. 9) When the dominance of the CEO approaches autocracy, the effectiveness of the form’s strategic planning and management processes are likely to:

A. Enhance strategic planning but diminish its processes

B. Be greatly enhanced

C. Have no effect

D. Be diminished

 

 

Difficulty: Medium

Learning Objective: 5

 

47. (p. 11) Which of these is NOT true about the behavioral effect of strategic management?

A. Strategy formulation activities enhance the firm’s ability to prevent problems

B. Resistance to change is reduced

C. Gaps and overlaps in activities among individuals and groups are increased to ensure the checks and balance

D. The employee involvement is strategy formulation improves their understanding of the productivity reward relationship in every strategy plan

 

 

Difficulty: Hard

Learning Objective: 5

 

 

 

48. (p. 11) Managers must be trained to guard against all of the following types of unintended negative consequences of involvement in strategy formulation EXCEPT

A. Managers must be trained to minimize the negative impact on operational responsibilities by scheduling their duties to allow the necessary time for strategic activities

B. Managers must be trained to limit their promises to performance that the decision makers and their subordinates can deliver

C. Managers must be trained to anticipate and respond to the disappointment of participating subordinates over unattained expectations

D. Managers must be trained to disregard the productivity-reward relationship since strategy implementation makes it invalid

 

 

Difficulty: Hard

Learning Objective: 5

 

49. (p. 11) Which of the following is a major function of the strategic management model?

A. It helps make profits for the firm

B. It helps in identifying key issues faced by the firm

C. It helps in deciding which products to sell

D. It depicts the sequence and relationships of the major components of the strategic management process

 

 

Difficulty: Medium

Learning Objective: 5

 

50. (p. 13) Social responsibility is a critical consideration for a company’s strategic decision makers since

A. Stockholders demand it

B. The mission statement must express how the company intends to contribute to the societies that sustain it

C. It increases a company’s profits

D. It helps make decisions

 

 

Difficulty: Medium

Learning Objective: 5

 

 

 

51. (p. 13) Analysis of the quantity and quality of the company’s financial, human and physical resources is a part of

A. Internal analysis

B. Mission statement

C. External environment analysis

D. Corporate goals

 

 

Difficulty: Easy

Learning Objective: 5

 

52. (p. 13) The external environment consists of:

A. The operating environment

B. Managers

C. Employees

D. Owners

 

 

Difficulty: Easy

Learning Objective: 5

 

53. (p. 13) Which one of the following is NOT an interactive segment of a firm’s external environment?

A. Functional

B. Remote

C. Industry

D. Operating

 

 

Difficulty: Medium

Learning Objective: 5

 

 

 

54. (p. 12) Description of the company’s product, market and technological areas of emphasis is contained in the

A. Assessment of the external environment

B. Company profile

C. Company mission

D. Interactive opportunity analysis

 

 

Difficulty: Easy

Learning Objective: 5

 

55. (p. 13) The results that an organization seeks over a multiyear period are its

A. Generic strategies

B. Grand strategies

C. Mission statements

D. Long-term objectives

 

 

Difficulty: Easy

Learning Objective: 5

 

56. (p. 13) The doubling of EPS within 5 years with increases in each intervening year is called a(n):

A. Long-term goal

B. Long-term objective

C. Short-term goal

D. Short-term objective

 

 

Difficulty: Hard

Learning Objective: 5

 

57. (p. 13-14) The difference between long-term and short-term objectives is principally:

A. Greater attainability

B. Greater flexibility

C. Greater measurability

D. Greater specificity

 

 

Difficulty: Hard

Learning Objective: 5

 

 

 

58. (p. 14) Grand strategies include:

A. Market turnaround

B. Vertical diversification

C. Conglomerate integration

D. Concentric diversification

 

 

Difficulty: Medium

Learning Objective: 5

 

59. (p. 14) Which of the following is an example of a grand strategy?

A. Decentralization

B. Policy making

C. Conglomerate integration

D. Innovation

 

 

Difficulty: Hard

Learning Objective: 5

 

60. (p. 14) Long-term objectives are principally attained through:

A. Annual goals

B. Functional strategies

C. Short-term goals

D. Grand strategy

 

 

Difficulty: Hard

Learning Objective: 5

 

61. (p. 14) The minimum equity position required for all new McDonald’s franchises is an example of:

A. A goal

B. A procedure

C. A policy

D. An objective

 

 

Difficulty: Medium

Learning Objective: 5

 

 

 

62. (p. 14) The general plan of major actions through which a firm intends to achieve is long-term objectives is called its:

A. Corporate plan

B. Long-term goal

C. Grand strategy

D. Mission

 

 

Difficulty: Easy

Learning Objective: 5

 

63. (p. 14) Broad, precedent-setting decisions that guide or substitute for repetitive or time-sensitive managerial decision making are called

A. Goals

B. Strategies

C. Objectives

D. Policies

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"