Relate the subjects in a CPA board to the job of a CFO as enumerated in page 22 of our textbook. Relate the subjects in a CPA board to the jobs of a controller as enumerated in page 24 of our textbook. For each subject, maximum of three sentences.

22 Chapter 2 the controller transmits the best accounting procedures to be followed by the line people to the President who will communicate such through a manual of instructions. In practice however, the controller. holds delegated authority from top line management to direct the line people on how to apply these procedures. This is known as functional authority which is the right to command action, laterally or downward, with regard to a specific function or specialty. THE CHIEF FINANCIAL OFFICER AND THE CONTROLLER . . The chief financial officer (CFO) - also called the finance director in many countries is the executive responsible for overseeing the financial operations of an organization. The responsibilities of the CFO-vary among organizations, but they usually include the following areas: Controllership includes providing financial information for reports to managers and reports to shareholders and overseeing the overall operations of the accounting system. Treasury includes banking and short- and long-term financing, investments, and management of cash. Risk management - includes managing the financial risk of interest rate and exchange rate changes and derivatives management. Taxation - includes income taxes, sales taxes, and international tax planning Internal audit - includes reviewing and analyzing financial and other records to attest to the integrity of the organization's financial reports and to adherence to its policies and procedures. In some organizations, the CFO is also responsible for information systems. In other organizations, an officer of equivalent rank to the CFO - called the chief information officer - is responsible for information systems. The controller (also called the chief accounting officer) is the financial executive primarily responsible for management accounting and financial accounting. This book focuses on the controller as the chief management accounting executive. Modern controllers do not do any controlling in terms of line authority except over their own departments. Yet, the modern concept of controllership maintains that relevant data (problem-solving and attention-directing roles), the controller exerts a force or influence that impels management toward making better-infomed decisions. The Professional Environment of Cost Management 23 Figure 2-1 is an illustrative organization chart of the CFO and the corporate controller of an apparel company Figure 2-1: Reporting Relationships for the CFO and the Corporate Controller Board of Directors Chairman Chief Executive Officer (CEO) President Chief Operating Officer (COO) Chief Financial Officer (CFO) Treasurer Controller The Controller as the Top Management Accountant Controllership is the practice of the established science of control which is the process by which management assures itself that the resources are procured and utilized according to plans in order to achieve the company's objectives. In most organizations, the top managerial accounting position is held by the controller. The controller provides reports for planning and evaluating company activities (e.g., budgets and performance reports) and provides the information needed to make management decisions (e.g., decisions related to construction of a new factory or decisions related to adding or dropping a product). The controller also has responsibility for all financial accounting reports and tax filings with the Burcau of Internal Revenue and other taxing agencies, as well as coordinating the activities of the firm's external auditors. 24 Chapter 2 A simplified illustration of the organization chart for the controller's office is shown in Figure 2+2. Note that one of the areas reporting to the controller is cost accounting. Most medium-sized and large manufacturing companies have such a department. Cost accountants estimate costs to facilitate management decisions and develop cost information for purposes of valuing inventory. The controller is an integral part of the top management team. If one wants a high- level career in management accounting, he/she will need not only strong accounting skills but also skills required of all high-level executives. These skills include excellent written and oral communication skills, solid interpersonal skills and a deep knowledge of the industry in which the firm competes. The controller's authority is basically staff authority in that the controller's office gives advice and service to other departments. However, in his own department, he has line authority. In the concept of controllership, it is maintained that the controller does control in a special sense. That is, by reporting and interpreting relevant data, the controller exerts a force or influence that impels management toward logical decisions consistent with objectives. Figure 2-2: A Typical Organization Chart Showing the Functions of the Controller Controller Financial Reporting Cost Management Budgeting and Performance Reportino Financial Analysis and Special Studies Systems Development Taxation Reporting 22 Chapter 2 the controller transmits the best accounting procedures to be followed by the line people to the President who will communicate such through a manual of instructions. In practice however, the controller. holds delegated authority from top line management to direct the line people on how to apply these procedures. This is known as functional authority which is the right to command action, laterally or downward, with regard to a specific function or specialty. THE CHIEF FINANCIAL OFFICER AND THE CONTROLLER . . The chief financial officer (CFO) - also called the finance director in many countries is the executive responsible for overseeing the financial operations of an organization. The responsibilities of the CFO-vary among organizations, but they usually include the following areas: Controllership includes providing financial information for reports to managers and reports to shareholders and overseeing the overall operations of the accounting system. Treasury includes banking and short- and long-term financing, investments, and management of cash. Risk management - includes managing the financial risk of interest rate and exchange rate changes and derivatives management. Taxation - includes income taxes, sales taxes, and international tax planning Internal audit - includes reviewing and analyzing financial and other records to attest to the integrity of the organization's financial reports and to adherence to its policies and procedures. In some organizations, the CFO is also responsible for information systems. In other organizations, an officer of equivalent rank to the CFO - called the chief information officer - is responsible for information systems. The controller (also called the chief accounting officer) is the financial executive primarily responsible for management accounting and financial accounting. This book focuses on the controller as the chief management accounting executive. Modern controllers do not do any controlling in terms of line authority except over their own departments. Yet, the modern concept of controllership maintains that relevant data (problem-solving and attention-directing roles), the controller exerts a force or influence that impels management toward making better-infomed decisions. The Professional Environment of Cost Management 23 Figure 2-1 is an illustrative organization chart of the CFO and the corporate controller of an apparel company Figure 2-1: Reporting Relationships for the CFO and the Corporate Controller Board of Directors Chairman Chief Executive Officer (CEO) President Chief Operating Officer (COO) Chief Financial Officer (CFO) Treasurer Controller The Controller as the Top Management Accountant Controllership is the practice of the established science of control which is the process by which management assures itself that the resources are procured and utilized according to plans in order to achieve the company's objectives. In most organizations, the top managerial accounting position is held by the controller. The controller provides reports for planning and evaluating company activities (e.g., budgets and performance reports) and provides the information needed to make management decisions (e.g., decisions related to construction of a new factory or decisions related to adding or dropping a product). The controller also has responsibility for all financial accounting reports and tax filings with the Burcau of Internal Revenue and other taxing agencies, as well as coordinating the activities of the firm's external auditors. 24 Chapter 2 A simplified illustration of the organization chart for the controller's office is shown in Figure 2+2. Note that one of the areas reporting to the controller is cost accounting. Most medium-sized and large manufacturing companies have such a department. Cost accountants estimate costs to facilitate management decisions and develop cost information for purposes of valuing inventory. The controller is an integral part of the top management team. If one wants a high- level career in management accounting, he/she will need not only strong accounting skills but also skills required of all high-level executives. These skills include excellent written and oral communication skills, solid interpersonal skills and a deep knowledge of the industry in which the firm competes. The controller's authority is basically staff authority in that the controller's office gives advice and service to other departments. However, in his own department, he has line authority. In the concept of controllership, it is maintained that the controller does control in a special sense. That is, by reporting and interpreting relevant data, the controller exerts a force or influence that impels management toward logical decisions consistent with objectives. Figure 2-2: A Typical Organization Chart Showing the Functions of the Controller Controller Financial Reporting Cost Management Budgeting and Performance Reportino Financial Analysis and Special Studies Systems Development Taxation Reporting