The finance director of a small college is complaining about the amount of work that she is required to do at the beginning of each month. The college president requires the director to submit a monthly report by the fifth day of the following month. The monthly report contains pages of financial data from operations. The finance director was heard saying, “Why does the president need all this information? He probably doesn’t read half of the report. He’s a professor of Slavic languages and probably doesn’t know the difference between a cost and a revenue.”
a. What is the probable role of the monthly report?
b. What is the director’s responsibility with respect to the president who doesn’t know much accounting?
