Accounting Information Systems and Decision Making

a. You are thinking of purchasing stock of The Sinfully Sweet Bakery Company, which produces the rolls that you have for breakfast every morning. You know they hire a number of bakers for their products each year and you will only invest if at least half of their bakers are women. Would you expect company management to know this information? Should you be able to get this information from the general purpose financial statements?

Would you expect the bank that lends money to Sinfully Sweet to get this information if it thinks it is necessary in making its loan decision?

b. Different external groups interested in an organization have different goals and different decisions to make. Explain how businesses typically provide the information needed by financial statement users in an economical way.

c. Internal controls include those policies and procedures designed to ensure that the goals of the organization will be achieved. Identify at least two examples of goals that internal control may be used to achieve.