Macquarie Ltd has a new CEO who is keen on improving process efficiency. She has reviewed the process documentation for the prepare budgets process and has asked you to remove the requirement for operational managers to confirm their acceptance of the finalised budget amounts, as it appears to be totally inefficient.

(a) Should you agree to remove this budget confirmation activity? Why or why not?

(ROM EOS EOS)

(b) If you would not agree to remove the budget confirmation activity, how would you explain this decision to the CEO? (LO1, LO5)

(c) If you would agree to remove the budget confirmation activity how would you justify this change to the various department operational managers? (LO1, LO5)

(d) If you remove the budget confirmation activity would you need to measure process performance differently? (LO1, LO6)