Store #34 of CDA Hardware Associates Has Had Below Average

question 103

Essay

Store #34 of CDA Hardware Associates has had below average sales over the past few years.As head of franchise operations, you are concerned with the continued low sales volume.The store manager wants you to diagnose the problem and recommend possible causes.Use the MARS model of individual behavior and performance to provide four different types of reasons why employees at Store #34 might be performing below average.Provide one example for each type of explanation.

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Definitions:

Internal Control

A process designed by an organization's management and personnel to provide reasonable assurance regarding the achievement of effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.

Reasonable Assurance

A concept in auditing that suggests although not absolute, there is a high level of confidence in the financial statements accuracy.

Control Activities

Procedures and policies that are implemented by an entity to ensure that its directives are carried out, including safeguarding assets and preventing and detecting errors and fraud.

Errors And Fraud

Incorrect entries or intentional misstatements in financial statements, often leading to incorrect financial reporting.