Answers and Explanations

1. Standard operating procedures are step-by-step instructions about how a task should be carried out so that employees know exactly what to do.
2. A BPA is used by companies in a joint venture and it lays out each party's contribution, their rights and responsibilities, how decisions are made, and who makes them.
3. A memorandum of understanding is a formal agreement between two parties but it is not legally binding, whereas the memorandum of agreement is similar but is legally binding.
4. An Interconnection Security Agreement (ISA) states how connections should be made between two business partners. They decide on what type of connection and how to secure it; for example, they may use a VPN to communicate.
5. If we adopted separation of duties in the finance department, we would ensure that nobody in the department did both parts of a transaction. For example...