Financial Audit Failures Transition Economy -Myassignemenrhelp.Com

Question: Discuss About The Financial Audit Failures Transition Economy? Answer: Introduction: In the wake of global financial crisis the importance of audit have reached its peak. Considering the number of accounting scandals that the world of business has seen in recent times the utility of auditing has been reaffirmed. However, the failure of auditing in many cases such as in case of Enron, Satyam and other such accounting scandals have compelled the stakeholders to question the auditing standards governing the auditing principles and policies. With the objective of improving the quality of auditing, ASA 701 Communicating Key Audit Matters in the independent Auditors report has been issued by the Australian Auditing and Assurance Standards Board (AUSAB). An in-depth analysis on the auditing standard and its practical implementation in an audit of an entity is provided to help the readers in understanding the importance of the standard (Segal 2017). In order to complete the evaluation of ASA 701 and to assess its importance in auditing of an entity, BHP Billiton Limited has been chosen. BHP Billiton Limited is an Australian company in involved in the business of mining, petroleum products and metals. The registered head office of the company is in Melbourne, Australia. Auditing and its objectives The objectives of auditing is to provide an unbiased and independent opinion on the financial statements of an entity to express whether the financial performance reflected in the income statement of the company is a fair reflection of the financial performance of the entity and simultaneously whether the Balance sheet of the entity shows the true and fair picture of the entity as on the date to which these statements relate (Ratzinger-Sakel and Theis 2017). AUSAB has issued number of auditing and assurance standards to guide the auditors in discharging their duties efficiently as the auditor of different entities. ASA 701 has been issued by the AUSAB to deal with the matters which are recognized as key audit matters to make it compulsory for the auditors of listed entities to communicate these matters in the independent audit reports of such entities (Khler et al. 2016). Not only the standard is to be followed mandatorily by the auditors of listed entities but it also recommended for the entities which do not have their shares listed on a recognized stock exchange in the country. However, it has been left to the discretion of the auditor to take final decision whether to follow ASA 701 in auditing of unlisted entities. The standard has described the Key Audit Matters, here in after to be referred to as KAM in this document, which must be communicated to the stakeholders in the independent reports of the auditors. Let us have a brief dis cussion on the KAM to understand the matters which are to be communicated by the auditors in their reports to attract the attention of the investors and other stakeholders of the entities (Cordos and Flpa 2015). Key Audit Matters to be communicated in the independent auditors report ASA 701 has prescribed the matters to be communicated in the independent auditors report to ensure that key matters are communicated in the audit reports. In order to take cognizance of the investors and other stakeholders of an entity to assess the actual financial performance and position of an entity as on a particular date (McKee 2015). Following are the KAM which have been mentioned in ASA 701 to be mandatorily disclosed by auditors of listed entities and also recommended for the auditors of unlisted entities; Matters which require personal judgment of the accountants: The matters and items in the financial statements of an entity which require significant amount of personal judgment by the accountants and sometimes even that of the management need to be reported as KAM in the independent auditors report. These are the areas in financial statements which are prone to manipulation. ASA 701 has prescribed these matters to be reported in the independent auditors report to ensure that the investors and shareholders take note of these matters while evaluating the financial statements of an entity (Afterman 2016). Areas of financial statements which require auditors to make significant judgment There are few alternative methods which are allowed to be used in valuing the inventories of an entity. The accountants have the liberty to use any particular method to value inventories of an entity. The auditor needs to assess the inventory valuation method used by an entity to determine whether the same is in accordance with the relevant accounting standard. In case there is any contravention in valuation of inventories by an entity then the matter must be communicated in the report of the auditor in accordance with ASA 701 (Bdard et al. 2015). The inventory valuation technique used by an entity must be in accordance with the prescribed guidelines provided in the accounting standard AASB 102 to ensure that there is no contravention in valuation of inventories. This aspect must be evaluated by the auditor and accordingly, reported in his report to comply with the requirements of ASA 701 (Livne 2016). The depreciation method used by an entity: The AASB 116 has been issued by the Australian Accounting Standards Board to guide the accountants to charge depreciation in accordance with the standard to ensure that the financial statements reflect the true picture of an entity. However, due to the varied and complex economic and business environment under which different entities have to operate it is not possible to have a single method applicable for charging depreciation on non-current assets. Thus, there are more than one alternative which have been allowed for the accountants to choose while charging depreciation on non-current assets (Prasad and Chand 2017). Written down value method, straight line method of depreciation, sum of years digit method are all allowed under different circumstances to calculate the amount of depreciation in the books of accounts of the company. The auditors will have to use their knowledge and judgment to evaluate whether the method that has been used by an entity to ascertain the amount of depr eciation is in accordance with the AASB 116. In case of non-compliance with the provisions of AASB 116 by the entity which is under audit the auditor must communicate the matter in his report to attract the attention of the investors and shareholders of the entity (Reid et al. 2015). BHP Billiton financial statements dealing with such matters Matters and areas in financial statements of BHP Billiton Limited which require significant judgment of the auditors as well as that of the management of the company: Being one of the largest companies in the world as far as in the mining industry is concerned; BHO Billiton Limited has to deal with numerous aspects in its financial reports which require significant amount of judgment by the accountants and management of the company (Boolaky and Quick 2016). A brief description of the areas of financial statements of the company which have been determined after significant judgment from the management and the accountant are as following: Depreciation and amortization: The amount of depreciation and amortization provided by the company on its non-current assets including intangible assets require the management to use substantial amount of judgement. The auditor of the company must evaluate the method of depreciation followed by the entity and the amount of amortization provided on intangible assets to assess whether the same is in accordance with the relevant accounting standards, i.e. AASB 116 for depreciation and AASB 138 for amortization on intangible assets (Carson et al. 2016). Valuation of intangible assets of the company: The company has substantial amount of intangible assets. The management and accountants judgments are essential in recognition and measurement of intangible assets. However, the estimates and judgements by the management and the accountants of the entity should be in accordance with the accounting standard AASB 138 issued by the accounting standards board in the country. Recognition and measurement of intangible assets are essential to the preparation and presentation of financial statements in accordance with the conceptual framework in financial reporting (Reid et al. 2016). The auditor of the company must evaluate the technique and methods used by the entity to assess whether these are in conformity with the accounting standards or not. In case there is any contravention with respect to accounting standards in recognition and measurement of intangible assets of the company then the same must be reported by the auditors of the company in the independent auditors report. Significant events or transactions and their impact on the audit of the financial statements The significant events and transactions are those which are irregular in nature and unique from the point of view of an entitys regular business. It is important that such events and transactions are identified separately and reported by the auditors in the audit reports. ASA 701 prescribes that such significant events and transactions must be reported in the audit report of an entity to allow the users of the financial statements and audit report of an entity to take note of such significant events and transactions to appraise the effect of these transactions and events on the financial performance and position of the entity. Such event includes any significant event and transaction which might influence the going concern assumption of an entity as envisaged in ASA 570. Let us have brief discussion on such events and transaction which can be considered as significant from the stand point of an entity (Carver and Trinkle 2017). Any transaction involving the sale of a portion of an entitys business Transactions which involve sale of a portion of entitys business such as sale of non-current assets of the company which are used for the revenue generation purpose of the entity. Sale of an important portion of an entitys business will impact the going concern assumption of the entity as its ability to continue in the long run will be negatively influenced subsequent to the sale of portion of an entitys business (Majors 2015). Any new contract in which an entity has entered In case an entity has entered into any contract which will significantly influence the revenue of company in the future will have to be communicated by the auditor in the independent auditors report to ensure that the investors and other stakeholders of the entity are aware of such contract (Lee 2016). Severance of any existing contracts: In case of severance of existing contracts that is expected to negatively influence the ability of the entity to generate revenue in the future shall also be reported in the audit report of the entity. Other significant events and transactions: Other significant events and transactions also have to be reported by the auditor in accordance with the relevant standards on auditing to comply with the requirements of the standards. In respect of BHP Billiton Limited: The significant events and transactions in respect of BHP Billiton Limited is the expansion plan of the company to invest huge amount of funds to expand its business in the future with the objective of continue on the path of growth in the future. In order to maintain a sustainable growth in the future the company has been continuously looking for new markets and has decided to invest huge amount of funds in the future (McKee 2015). Apart from that the decision of the company to amortize all of its intangible assets within a period of 10 years is also something which is to be given due importance by the auditors while conducting the audit of the company (Livne 2016). Conclusion It is recommended that an entity should follow the accounting standards while preparing the financial statements and the auditors to follow the relevant auditing standards while conducting an audit. It is important for the auditor to communicate all KAM by providing such matters in the independent auditors report. Reference Afterman, A.B., 2016. The PCAOB's Proposed New Auditor's Report.The CPA Journal,86(7), p.64. Bdard, J., Gonthier-Besacier, N. and Schatt, A., 2015. Analysis of the Consequences of the Disclosure of Key Audit Matters. Boolaky, P.K. and Quick, R., 2016. Bank Directors Perceptions of Expanded Auditor's Reports.International Journal of Auditing,20(2), pp.158-174. Carson, E., Fargher, N. and Zhang, Y., 2016. Trends in auditor reporting in Australia: A synthesis and opportunities for research.Australian Accounting Review,26(3), pp.226-242. Carver, B.T. and Trinkle, B.S., 2017. Nonprofessional Investors Reactions to the PCAOB's Proposed Changes to the Standard Audit Report. Cordos, G.S. and Flpa, M.T., 2015. Understanding audit reporting changes: introduction of Key Audit Matters.Accounting and Management Information Systems,14(1), p.128. Khler, A.G., Ratzinger-Sakel, N.V. and Theis, J.C., 2016. The Effects of Key Audit Matters on the Auditor's Report's Communicative Value: Experimental Evidence from Investment Professionals and Non-Professional Investors. Lee, H., 2016. Financial reporting and audit failures in transition economy: examples of auditors in China's financial market.Law and Financial Markets Review,10(1), pp.4-15. Livne, G., 2016. Are auditors independent of their clients? A review of past research and discussion of research opportunities in Europe. Majors, T.M., 2015. The Interaction of Communicating Measurement Uncertainty and the Dark Triad on Managers' Reporting Decisions.The Accounting Review,91(3), pp.973-992. McKee, D., 2015. New external audit report standards are game changing.Governance Directions,67(4), p.222. Prasad, P. and Chand, P., 2017. The Changing Face of the Auditor's Report: Implications for Suppliers and Users of Financial Statements.Australian Accounting Review. Ratzinger-Sakel, N.V. and Theis, J.C., 2017. Does Considering Key Audit Matters Affect Auditor Judgment Performance?. Reid, L.C., Carcello, J.V., Li, C. and Neal, T.L., 2015. Are auditor and audit committee report changes useful to investors? Evidence from the United Kingdom. Reid, L.C., Carcello, J.V., Li, C. and Neal, T.L., 2016. Impact of auditor and audit committee report changes on audit quality and costs: Evidence from the United Kingdom. Segal, M., 2017. ISA 701: Key Audit Matters-An exploration of the rationale and possible unintended consequences in a South African.Journal of Economic and Financial Sciences,10(2), pp.376-391.

Worlds Worst Dictators Essay Example

Worlds Worst Dictators Paper World’s Worst Dictators There are many different dictators in the world, who have all done horrific and immoral things. They all have their worst points, and different people rank the â€Å"Worlds Worst Dictators† differently. I believe that Hu Jintao, from China, is the number one worst dictator, King Abdullah from, Saudi Arabia, is second, and Sayyid Ali Khamernei, from Iran, is third. Sayyid Ali Khamernei has been the dictator of Iran since 1989. Since then he has oppressed the rights of women, stored nuclear weapons, carried out public hangings, and destroyed media and music stores. Sayyid Ali Khamernei is number three on our list of World’s Worst Dictators because he has executed hundreds of people, supports nuclear activity in his country, even though the UN has restricted all nuclear weapons. King Abdullah has been the dictator of Saudi Arabia since 1995. He has led a punitive justice system, where he can sentence anyone including teens to death for little or no reason. One of the worst things about his rule is that women aren’t allowed to do anything without the permission of a male guardian. He has been suspected to be involved in the 9/11 attack, because many of the bombers were Saudi, but no concrete evidence has been found. King Abdullah is number two on out list. Hu Jintao of China has been in power since 2002. He has China locked down and ALL public news formats are censored and restricted by the Chinese government. Hu Jintao supports the â€Å"one child policy† which limits all the families in China to only having one child. In our opinion the worst thing that he has done is forced abortions because of the one child law. We will write a custom essay sample on Worlds Worst Dictators specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Worlds Worst Dictators specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Worlds Worst Dictators specifically for you FOR ONLY $16.38 $13.9/page Hire Writer He enforces that law brutally and forces mothers who already have a child to abort their pregnancy. That is why we believe that Hu Jintao is the number one World’s Worst Dictator. All of these people have been dictators for a long time and have done many horrific things. Sayyid Ali Khamernei has carried out public hangings, King Abdullah sentences people to death at will, and finally Hu Jintao forces abortions. Each one has ruled cruelly and has violated the moral principals that hold the world together.

Principal Leadership Experience Essay Sample

Principal Leadership Experience Essay SamplePrincipal leadership experience is all about what you do on the job and how you handle situations that come up. It also takes on aspects of management, communication, team building, conflict resolution, and teamwork. Because leadership is all about getting along with others and leading others to success, the essay sample will help you in giving these responses. It gives you a choice to write on the topic of your choice.A combination of words that will fit a reader's perspective is usually used in the writing that follows. For example, if the person wants to get rid of bad habits in the workplace, the reader might consider using positive words to promote doing good things. The way you ask questions in the essay sample is also essential for those who want to study this topic. Those who prefer to study from a book will enjoy the examples that are included in the essay samples.These topics were included in the book 'Essays for Kindergarten Chil dren' by Robert W. Singleton, which focuses on the different areas of learning in elementary school. This was one of the first books to be released in this particular subject, and it is still considered as one of the best. The essay samples are a great resource that gives both practical information and valuable lessons.People can study for different areas of lessons, depending on their interests. Since everyone will need some kind of advice on this particular topic, this is a good place to start. However, not every essay can be about this topic.Those who are taking presentations or who are presenting are a bit more prone to getting nervous and having to know what to say next. You can learn from this particular example. Use all of the tips in this example when you need to give an opening speech.Teachers should take note of how they respond to a certain thing that has happened in the class. This is a situation that can help you gain insight into how you handle the situation. The examp le here is about how to react to a certain situation. It will help you know the proper response for situations such as these.If you have a lot of attention needed to write an essay for Principal Leadership Experience, you will find that the essay samples available online are an excellent source of information. This is because there are several solutions for each different problem. If you choose to study from a book, you will get information in the form of a chapter.There are also videos that are available on the Internet that provide successful techniques for every writing task. This is because there are various types of reading material available in the internet that provide guidance to students. For example, the voiceover on the video for Principal Leadership Experience provides information about the different ways of writing, using exercises to test your knowledge of the subject, and how to create a whole essay. It will help to know this type of training when you want to prepare for a speech.

The Impacts of Chernobyl Nuclear Accident in the US essays

The Impacts of Chernobyl Nuclear Accident in the US essays The Impacts of Chernobyl Nuclear Accident in the US Nuclear energy used to be a dream energy source because it did not emit air pollutants as long as they were operating properly. The US government and Utility Companies invested billions of dollars to build and develop nuclear power plants. However, its magic was collapsed on April 26, 1986. A series of explosions in a nuclear power plant in Chernobyl blew the massive roof off the reactor building and flung radioactive debris and dust high into the atmosphere to encircle the plant. Although the Chernobyl accident was thousands of miles away and did not cause direct damage to the US, we were able to experience the tragedy through the media. This accident took thousands of lives and contaminated the land, but it resulted in bringing the following positive effects in the US: people became aware of the risks involved with nuclear power, it led to public opposition, and the government and utility companies tried to find cleaner and safer alternative energy sources. Through the media, people became aware of the risks involved with using nuclear power as an energy source. Before the accident, the majority of people were ignorant in regards to nuclear power, and it was only understood among the physicists. However, it became public knowledge after the incident. The media reported how the system worked. The heat, which was generated by a nuclear fission chain reaction, can produce high-pressure steam, which spins turbines that in turn generate electricity. Also, the media reported the serious damages of the accident and visualized them. The explosion took 32,000 lives, contaminated 62,000 square miles of the land with radioactivity, and a half-million people suffered from cancers (Miller, 1999, p.540). In spite of this distant accident, such virtual experiences through the media generalized more knowledge of nuclear power and its risk. ...

A Marketing Information System I Information Technology Essay

A Marketing Information System I Information Technology Essay Introduction: A Marketing Information System is a routine, planned, gathering, sorting, storage and retrieval system for market information relevant to the operation of a particular business. Most except the largest businesses do not have much of a marketing information system, if at all, with executives perhaps relying on reading a few trade publications and the monthly reports of their staff.As far as I am aware you cannot buy a ready made marketing information system suitable for any market, rather you have to organise your own, specific to your markets, your staff and your decision needs. The more volatile your markets, the more your organisation wishes to get ahead of the pack, the more you wish to be a winner, the more you are able to respond to emerging opportunities or threats faster than your competition, the more you could perhaps benefit if you organised the routine gathering of up to date pertinent market information from within and without your organisation so that it i s to hand, to warn, and to present opportunities to your organisation. Here the overall analysis was made on a Specific Company’s Marketing Information Systems Which is HSBC Ltd. The overall report begins hereand also some of the materials are attached in the Appendix section. About HSBC: HSBC is one of the largest banking and financial services organisations in the world. HSBC’s international network comprises about 10,000 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. Through an international network linked by advanced technology, HSBC provides a comprehensive range of financial services. Corporate communications for ‘The World’s Local Bank’ means informing employees in 76 countries about the latest HSBC news, legislation, HR and legal issues. History of HSBC: The HSBC Asia Pacific group represents HSBC in Bangladesh. HSBC opened its first branch in Dhaka in 17th December, 1996 to provide personal banking services, trade and corporate services, and custody services. The Bank was awarded ISO9002 accreditation for its personal and business banking services, which cover trade services, securities and safe custody, corporate banking, Hexagon and all personal banking. This ISO9002 designation is the first of its kind for a bank in Bangladesh. Realizing the huge potential and growth in personal banking industry in Bangladesh, HSBC extended its operation to the personal banking sector in Bangladesh and within a very short span of time; it was able to build up a huge client base. Extending its operation further, HSBC opened a branch at Chittagong, two branch offices at Dhaka (Gulshan and Mothijheel) and an offshore banking unit on November, 1998. Another branch has been opened at Dhanmondi on 1st of March, 2003. Till date, the number of employees of this bank in Bangladesh was 180. HSBC Bangladesh is under the strict of supervision of HSBC Asia Pacific Group, Hon g Kong. The Chief Executive Officer of HSBC Bangladesh manages the whole banking operation of HSBC in Bangladesh. Under the CEO, there are heads of departments, who manage specific banking functions e.g. Personal banking, corporate banking, etc. Currently HSBC Bangladesh is providing a wide range of services both individual and corporate level customers. In 2000, the bank launched a wide array of personal banking products designed for all kinds of (middle and higher middle income group) customers. Some such products were Personal loans, car loans, etc. Recently the bank launched three of its’ personal banking products – Personal Secured Credit, Personal secured loan & Automated Tele Banking (ATB) service, Credit Cards, ATM, Day& Night Banking Service and Easy Pay Machines. These products are designed to meet the diverse customer needs more completely.

Dqweek7 r 9 Essay Example | Topics and Well Written Essays - 1000 words

Dqweek7 r 9 - Essay Example John Elkington (1995) coined the phrase, "people, planet, profit". This was while he was at SustainAbility. This is an organization which was created in order to deliver guidelines which are socially responsible. This were supplied to large corporations who considered profits to be more important than any possible benefits for wider society. An enterprise which is described as having a triple bottom line is one which aims to benefit a variety of constituencies, without exploiting or endangering any one group. In 2004 Elkington described wha the named as the "upstreaming" of a percentage of any profit created by selling finished goods to those who originally produced the raw materials used.( This triple bottom line consists of several factors including concerns which are to do with the environment , society and the economy. The phrase "People, planet and profit" describes the ways in which an organization has an impact in these areas. All three should be considered if an organization is to succeed and to do good. The other side of this is sustainability. Lots of companies finds themselves forced sacrifice possible benefits to wider society simply in order to keep going at a profit. Ultimately profit motives are seen far as being more important than any possible social benefits, unless the organization finds that it can do this using the society’s resources (Aupperle, Carroll, and Hatfield, 1985). A quick scan of the media backs up this negative view of what is actually going on. Too many organizations seem devoid of any degree of social responsibility. Considering the readings to date, what are the future projections for the idea of the triple bottom line? If a cost versus benefit analysis were carried out on this subject what conclusions would be reached? What reasons are there for this? Brown, Dillard and Marshall, (2006) came up with a working paper about the Triple Bottom Line. Idea. They described it

Salvador Dalis Critical Paranoia Essay Example | Topics and Well Written Essays - 1500 words

Salvador Dalis Critical Paranoia - Essay Example Dali’s images - his bent watches, his figures, half-human, half chest of drawers – have made him the most famous of all Surrealist painters†. Like many Surrealists, Dali often painted the images he saw in dreams or in nightmHe deliberately cultivated delusions similar to those of paranoiacs in the cause of wresting hallucinatory images from his conscious mind. Like many Surrealists, Dali often painted the images he saw in dreams or in nightmares, but determining which was dream and which was simply his way of pushing social conventions remains difficult to determine. â€Å"Surrealism attempts to further our understanding of the human condition by seeking ways of fusing together our perceived conscious reality with our unconscious dream state† and Dali was a master. His philosophy of art involved embracing the inner animal and exposing the hidden insanity that lurks at the core of every human. Through Dali’s use of line, color, space, shape and other elements, Dali continuously presents unified dreamscape images that successfully combine concepts of the mind while presenting several sides of change from an emotional perspective. His final works often force viewers to consider them from both a distracted metaphysical perspective as in the dream-state as well as from the conscious state in which knowledge can be known and thus related to the overall presentation. His brilliant means of maintaining balance and harmony by repeating patterns through various elements serve to keep his paintings in a constant state of precarious stability that remains perfectly in tune with the message he is trying to convey. He ends up evoking a feeling much like one might feel if they were the spinning coin, standing on its edge and just waiting to find out which way it was going to drop.