Materiality in Auditing Essay Example | Topics and Well Written Essays - 2000 words - 7

Materiality in Auditing - Essay Example Financial mistakes are not always unintentional instead there is a culture of making misstatements in accounting due many reasons including unexpected errors, mistakes or negligence level of misstatement and/or fraud cases. Pointing out and examining the level of misstatement and its impact on the whole financial performance is one of the major concerns of auditors. Rittenberg, Johnstone, and Grambling (2011) suggested that the point or level of misstatements or materiality in data possess high concerns of auditors’ judgments and experience. The term â€Å"materiality† refers to the acceptable level of misstatement according to the experience and judgments of the auditors that do not affect the decisions of financial statement readers (Financial Accounting Standard Board). It sounds vague that a highly sensitive document and its materiality issues are left only to the judgments and knowledge of the auditors. Unfortunately, it is widely practiced and kept secret by the auditors as stated by Mock, at el (2009). The gaps in the phenomena are vital and should be covered with identifiable measures. It is necessary to develop a level of understanding for establishing accurate measures to address the problem. For the purpose of getting deep insight of the matter of materiality in auditing, the piece of writing is crafted to define and discuss wider aspects of materiality. The importance of materiality is apparent in the making of financial statement. International Accounting Standard board’s conceptual framework for preparing financial statements defined materiality as the data become â€Å"material† if its alteration or omission affects the stakeholders’ decisions (Todea, Joldos, and Cioca, 2013). To elaborate materiality is the cut-off point of accepting material data to the level up to which it does not impact in decision-making via financial statement drivers. Although, IASB

The Production Choices to Achieve Trend Growth Assignment

The Production Choices to Achieve Trend Growth - Assignment Example The production possibility represents alternative combinations of different commodities which can be produced by the economy with the total available resources. In other words, the production possibility curve is the locus of all those points that represent different product combinations that an economy can attain by employing its total available resources to the fullest. For simplicity, let us assume that only two commodities (x and y) are being produced using the total available resources in an economy. In the following diagram, we plot units of x on the horizontal axis and units of y on the vertical axis. The curve AF represents the production possibility curve of the economy. If all the resources are devoted to the production of x then the country can get OF amount of x and no amount of y. On the other hand, if the total resources are devoted to producing y then the country can OF amount of y and no amount of x. since the resources are assumed to be fixed in quantity and since th ey are assumed to be fully employed with utmost efficiency, if though production of one commodity is increasing then that of the other will definitely decrease. For this reason, this curve is assumed to be downward sloping.   The coordinates of any point of AF curve shows the different product mix that is available to the economy to produce with the given amount of resources. Sot he country can produce at any point of the curve and achieve trend growth. If the supply of resources increase or a technological improvement takes place then the production possibility curve or production possibility frontier (PPF) will shift to the right from AF to A’F’. Any point on the curve (e.g. Point's’) implies full and efficient employment of the resources, that is, the maximum amount of output that an economy can produce in the most effective manner using the given amount of resources. Any point inside the curve (e.g. Point ‘g’) implies that production in the economy is taking place without using all the resources to the optimum level.     Ã‚  

Leadership in the accounting profession Research Paper

Leadership in the accounting profession - Research Paper Example The integrative leadership model will be applied to understand the important system of leadership in accounting profession. 2.0- LEADERSHIP IN A BROADER PERSPECTIVE AND IN ACCOUNTING PROFESSION The role of leaders in every organization has gained a critical importance. Organizations increasingly focus on developing leaders along with managers. There are different leadership styles or approaches that plays effective role in different scenarios. The leader is often the main force to drive the organization to success. Leaders in the organization direct the structure of organization, the culture and ethical values in the organization for contribution towards goal. Leaders actually develop the road map for the organization. Example, of Tim Cook at Apple, Jeff Bazos at Amazon and many more have led to the success stories for the organizations (Williams, 2013). Leadership can be present at any level of hierarchy such as strategic managers, middle-level managers, functional managers and oper ational managers. Accountancy profession has been witnessed to rely increasingly on the accounting curricula. Accounting field, since recent past, has realized the growing importance of developing leadership mindset among accounting students to successfully deal with the growing challenges of the practical field. 3.0- INTEGRATED LEADERSHIP MODEL The systematically defined model of leader’s role in professional service firms (PSFs) could better define the role a leader is required to play in the firm. Integrated model of leadership shall clearly define the combined role of employees with mindset of understanding â€Å"to whom they are leaders†. This clearly outclasses the performance of distant roles of liked and imposed jobs (Delong, Gabarro, and Lees, 2007). According to the model there are three major responsibilities that leader possess in the firm that are setting direction, building commitment and ensuring execution. The graphical representation of the model is as follows: (Delong, Gabarro, and Lees, 2007) 3.1- SETTING DIRECTION Direction determination is the necessary element for every organization and leader stands with a direction. Direction shall lead to the vision of the organization. In the new paradigm, it shall be taken as the major responsibility by the leaders to set the direction for the employees for to keep them on the desirable track (Delong, Gabarro, and Lees, 2007). 3.2- BUILDING COMMITMENT The involvement of all the employees including him/ her should be considerable in related company matters. Leaders shall take it as a responsibility to have consistent involvement of every employee in company matters and decision making. This activity contains all the employees on the same path in the organization (Delong, Gabarro, and Lees, 2007). 3.3- ENSURING EXECUTION Good leader not only formulate the strategies but they also ensure the execution and evaluation of each planned activity and its execution. Professionals and leader must be accountable for the execution of the strategies. Also evaluation and analysis at every stage about the effectiveness of the implemented strategy is important. Execution does not only mean implementing the strategy but it requires gaining the full planned benefit (Delong, Gabarro, and Lees, 2007). 3.4- SETTING PERSONAL EXAMPLE Position of this aspect being

Physics Essay Example | Topics and Well Written Essays - 1250 words

Physics - Essay Example The heat that is produced will be calculated from the amount of carbon dioxide that is produced. For a mile, the heat that is produced seems to be high in the first mile than in the next miles. The reason behind is that, in the first mile, there are additional heat changes that are produced as the automobile begins to accelerate (Stapleton, 200). Due to the fuel economy that has been used as a technique of manufacturing many automobiles, the amount of heat that is produced is limited since the automobiles are more automated. A modern car will produce less heat in a short period since the amount of petrol and diesel that is burned is less. When the amount of fuel that is burned in a short period is less, the heat that will be produced will be less. The size and density of the automobiles engine will also contribute to the amount of heat that will be produced. A big-sized engine is likely to produce more heat when compared to a small engine-sized automobile. In calculating the amount o f heat that is produced in a mile, we will have to calculate Gallons per mile to get the real heat produced (Stapleton, 125). 2. What is the average temperature of the exhaust gas? The exhaust gas is estimated to have the same temperature to that of the engine at that particular time. It is usually tricky get the temperature since the exhaust gas since after it comes outside the engine other external factors immediately affect. Another factor that is likely to affect the real value of the temperature is the fact that the measurements will be calculated away from the place where combustion takes. The exhaust system as a whole will affect the right temperature of the exhaust gas (Stapleton, 112). In a case where gasoline and air are mixed in a proportion that will lead to complete combustion, the temperature of the exhaust gas is estimated to be 1500 F ranges. This temperature is estimated to be very high to cause catastrophe in the engine. Therefore, it is said that in most cases com plete combustion does not occur (Stapleton, 205). Manufactures at most times will manufacture vehicles with a limited space for combustion so that complete combustion does not take place. At most, a case, the temperature that is estimated by manufactures is 1200 F to 1300 F range. This temperature can withstand the harsh conditions in the engine. When the temperatures range at these temperatures, the functioning of the engine will be proper. At proper temperatures, the combustion that will take place will be favorable functioning of the engine. At high temperatures, the pressure will be minimal thus proper working of the engine (Stapleton, 99). 3. Design a method to reclaim the thermal energy from the exhaust? It can be either electrical or mechanical energies The energy that is produced in the exhaust is in the most cases wasted into the atmosphere. This energy can be reclaimed through various methods. Some of them have been tried out but they have not showed any positive results. The methods to claim the energy can be electrical or mechanical. In my case, I am going to design an electrical method of reclaiming the energy (Stapleton, 211). In my model, the apparatus will be electrical wires that can be identified as positive and negative, cathode, and anode. In the model, the connections will bring from the combustion chamber where the exhaust gas will be directed

Management accounting and financial reporting Essay

Management accounting and financial reporting - Essay Example Value has been defined in more than one way. In the business world at least, the definition of value ranges from that of finance, to that of marketing. The difference in use according to these definitions are usually the common cause of conflicts with regard to the use of the term. In basic finance, value, or more specifically the value of an asset in economic terms is best defined as the sum of the future benefits, or cash flows to the company which is discounted to the present (Wallace 2008). This is more commonly referred to as the fundamental value (Hanney 2008). On the other hand, built on the argument of benefits that are to be received, value in marketing is usually linked to the asset price that the buyer is willing to pay (OKelly 2008). This is the perceived value. As value is linked to utility, which is linked to perception of future benefits to the receiver of a thing, these two definitions of value, although related in the most basic way, are usually confused when being used (Rossi III, 2009). Perceived value is the concept of true value being reflected in price of a traded commodity (Wallace 2008). This link between value and the price is held by the efficient market theory, where the price includes all the available information in the market and is a good predictor of value (OKelly 2008). Capital markets are considered efficient markets where investors are assumed to be sophisticated, rational individuals who maximise their wealth and utility, and thus only accept prices that reflect the true value of the commodity (Campbell, Owens-Jackson & Robinson 2008). This provides the link between the definition of fundamental value and the perceived value. Accounting regulatory boards have find it hard to define the concept of fair value. According to McCollum, â€Å"obtaining information relevant to fair value is one of the biggest challenges organisations and auditors face in the current market

Finance Essay Example | Topics and Well Written Essays - 500 words - 2

Finance - Essay Example In the year 2007, British Petroleum, Plc took many of the restructuring initiatives. It had restructured its operations in the North Sea Organisation. The restructuring was aimed to simplify the organisation and to improve the efficiency of the various related processes. The company was compelled to initiate such changes as the production in that area was depicting decreasing trend while cost was rising rapidly (BP, 2007). As the chief executive of BP put it, the over all restructuring measure was not all about ‘cost reduction and cull’, rather it was about the a change in culture among the employees of BP, as he observed that the oil major has been suffering from ‘over- complexity’ (Macalister, 2007). Though the management claimed it to be mere change in culture but it invariably meant reduction in the employee force as the company was witnessing alarming financial results. To do away with the complexities that according to the top management were responsible for such deplorable financial results, the company decided to make processes simpler. The corporation used to have three major divisions namely ‘exploration and production’, ‘refining and marketing’ and ‘gas, power and renewable’. To make operational process straightforward and reduce costs, the management restructured the process by doing away with the third segment and incorporating it into the other two. The company introduced a separate division to handle business of low carbon and options of future growth and named it ‘alternative energy’ (Kukec, 2007). The objective of any restructuring plan that any corporate initiates, is to increase its profitability and the financial performance and to create enhanced value for the share holders. The financial results of the British Petroleum for the financial year 2008 clearly depicts that the restructuring plans

The Yellow Wallpaper and the Mark on the Wall Essay

The Yellow Wallpaper and the Mark on the Wall - Essay Example Virginia Woolf was one of the English Women who pioneered the field of modern literature. Woolf is attributed to have written and published a lot of essays, short stories and novels. Woolf’s active years in literature climaxed during the 1920s when she pushed novels such as To the Lighthouse, Mrs Dalloway, Orlando and among others. The two essays were written from the perspectives of two women, who are also the narrators in the stories. This paper provides a compare and contrast analysis of the two essays â€Å"The Yellow Wallpaper† and â€Å"Mark on the Wall†. The two essays compare in that they have been written in a first person narration. It is evident that both Virginia Woolf and Charlotte Perkins Gilman have written the essays while at the same time narrating their stories. The two authors, also compare since they have centered their theme on addressing social concerns, which women experienced during the time they wrote the essays. The narrators of the two essays seem to be in deep contemplation of the current state of life. The narrators embark on providing details on the immediate environment surrounding them. The mentioned details are things in their background such as furniture and walls. Additionally, for the narrator in â€Å"the yellow wall paper† she gives details on the actual yellow wallpaper she is seeing (Gilman 1), while the narrator in â€Å"mark on the wall† describes the mark, which happen to be a snail (Woolf 8). Their contemplations compare since both narrators see their lives as either being suppressed or sidelined. The issue of men dominance, the narrator in â€Å"the yellow wall paper†, mentions that â€Å"†¦I am†¦absolutely forbidden to work†¦until I am well† (Gilman 1). However, according to the narrator she disagrees with ideas from the two men who subject her in dominance. The two men are his husband and his brother she asserts that â€Å"†¦congenial work†¦ with excitement†¦ change†¦would do me good† (Gilman 2). is also common in the two essays because the narrators state. On the other hand, in the essay â€Å"the mark on the wall†, the narrator points out men dominance when she states â€Å"†¦Hell and so forth†¦leaving us†¦with intoxicating sense of illegitimate freedom†¦if freedom exists†¦Ã¢â‚¬  (Woolf 7). The two essays also compare since the narrators focus their minds on an imaginary place whereby their femininity, freedom and creativity are guaranteed. The two women writers, ultimately compare since they successfully address the plight of women through the powerful voice of literature. Another comparison comes from the fact that both narrators have experienced mental problems in there real lives. One of the main contrasts between the essays†The Yellow Wallpaper† and â€Å"The Mark on the Wall† lies on how they have been narrated. The narration of the story† The Yellow Wallpaper† is aided by characters close to the narrator his husband, John and brother. She says â€Å"John is a physician†¦my brother is a physician† (Gilman 1). In the, â€Å"Mark on the Wall† it is different in that the narrator does not seem to rely on a direct conversation with other characters since the narration is based on ideas coming from her mind (Woolf 3). In the â€Å"The Yellow Wallpaper† the narrator faces conflict between her inner desires, which entail her nature and creativity and her husband’s opinion of her. She writes â€Å"John†¦has no patience with faith†¦intense horror of superstition†¦scoffs openly on †¦