Causes of Renaissance Essay Example | Topics and Well Written Essays - 1250 words

Causes of Renaissance - Essay Example Apart from that, urbanization of cities and growth of commerce provided a suitable background for the rise of Renaissance. Before the twelve century, Italy was mostly rural with only several small urban centers. However, the established trade relationships with Byzantine and Muslims guaranteed the flow of money and goods that added to the development of commerce and, subsequently, to the wealth of the country as a whole. (Mantin 62-63)The following, in its turn, led to the growth of individual and self-governed cities-states with their own banking and political systems. Consequently, by the time the central and northern European cities were still ruled by monarchs, cities in Italy enjoyed high levels of autonomy that penetrated into various aspects of life. The atmosphere of prosperity and freedom was established and appeared to be quite conductive for the beginning of Renaissance. Furthermore, decentralization of power weakened the influence of church and its strict doctrines on people as well as contributed to the prosperity of people in Italy. The medieval society was totally subdued by the dominant rule of a church. It made impossible social development and did not allow any intellectual or economic advancement, viewing them as contradictory to Christian doctrines. The situation changed in the thirteen century when the power and prestige of the Pope were questioned. At that time, monarchs and common people started to challenge the overwhelming influence of the church with its constant proclamations of asceticism.

Case study of Jack Term Paper Example | Topics and Well Written Essays - 500 words

Case study of Jack - Term Paper Example For example, Freud would say that Jack Welch has specific abilities that he inherits from his biology. He stutters, which would be considered abnormal in today’s society. Thus, as a result this lays a genetic abnormality that is influencing the behavior of the individual. In addition, Freud would also comment on the number of divorces he had as the result of a problem in his psychosocial development, since Freud believed that humanity functioned on two principles alone: death and sex. Because Jack Welch has shown that he is unable to keep stable relationships, this poses an interesting problem as far as diagnosing where the abnormality lies in his psychosocial skills. Erikson, who was a student of Freud’s, would argue that the environment and relationships shape a person more so than the deterministic biological view. Erikson would say that Welch was able to overcome a majority of the psychosocial stages of development, such as inferiority vs. industry because he was ab le to find a way to be a very productive member in society. However, because he has had so many relationship problems, the comment could be made that there is neuroticism in the Intimacy vs. Isolation stage where he is unable to make a concrete relationship last a while.

Promotion Plans and Blends Part II Assignment Example | Topics and Well Written Essays - 250 words

Promotion Plans and Blends Part II - Assignment Example This is very important to do so as to ensure that it will not be applying the right solution for the wrong position. On technology, I strongly believe that apart from the use of social media which you elaborate, an alternative would be to use the company’s own website in a more interactive manner. Laureate Education. (Producer). (2013).  Daryl Travis: Positioning statements and branding  [Video Baltimore, MD Author]. Video posted to: https:/​/​class.waldenu.edu/​bbcswebdav/​institution/​USW1/​201520_02/​MS_WMBA/​WMBA_6060/​USW1_WMBA_6060_Week06_videoA.html I have a feeling that not only did you look at how different examples of promotions are blended by Hanes Company but you went a step further to look at the impact of blending different forms of promotion. This is because the use of television and promotional advertisement and emotional branding form two important and separate forms of promotion that could be said to be physiological and psychological (Perreault Jr., Cannon & McCarthy, 2014). Most certainly, I find this a very tactful and prudent way of attracting the promotional interest of as many people as possible. Having said this, I am of the opinion that there still remains a lot of potential in the use of social media in promotions that Hanes Company has not taken advantage of. Having social media platforms where the company can share its unique promotional blend with the public could be very

Microeconomic Theory Essay Example | Topics and Well Written Essays - 1250 words

Microeconomic Theory - Essay Example Now, if there is a PBNE where player one chooses either to play B or C, or randomizes between the two, his expected payoff has to be greater than ? from such a move. Player 1’s expected payoff on the other hand depends upon player 2’s strategies and whether he randomizes and with what probabilities. Now, player 2’s expected payoff from playing D is PB-(1- PB) and that from playing E is -PB+(1- PB). He will pick D iff PB-(1- PB)> -PB+(1- PB)4PB>2 PB>1/2.He will be indifferent between playing D and E if PB=1/2 (and hence randomize between the two) and will pick E if PB1/2 is invalidated. Thus, we cannot have a PBNE with Player 1 choosing to play C and player 2 choosing D since this invalidates the required belief criterion. Similarly it can be shown that there cannot be a PBNE where 1 chooses B and 2 plays E that is consistent with the required beliefs for player 2. Finally, if player 2 randomizes, the maximal expected payoff for player 1 is 0 as well. Thus, in all PBNE, player 1 picks A. Since in the equilibrium path 2’s turn never comes, he can pick either D or E or choose to randomize in this equilibrium. So we can have the following PBNE: 1. (A, D) with PB>1/2, 2.(A,E) with PB v2. This is true since by bidding b2= v2 he has already won the auction and the final payment he has to make depends only on player 1’s bid. On the other hand, bidding less than v2 doesn’t change anything as long as the bid is greater than player 1’s bid = player 1’s valuation. However if b2

Freud and Neuroses Essay Example | Topics and Well Written Essays - 750 words

Freud and Neuroses - Essay Example According to psychodynamic theory, neurosis, are the manifestations of one's attempts to ignore unconscious conflicts (Ricker 2006). Prior to Freud doctors and analysts believed that neuroses - metal disorders like depression, excessive anxiety were due to heredity. However, detailed investigations led Freud to believe that it was the malfunction of sexual instincts of childhood or adulthood that was at the bottom of neuroses, "there are grounds for regarding the neurosis as an acquired one, careful enquiry directed to that end reveals that a set of noxae and influences from sexual life are the operative aetiological factors" (Standard Edition, 1905 3: 99). Though some causes like emotional imbalances, physical tiredness, and stressful mishaps, other acute illnesses were more prominent, they were only secondary reasons for neurosis. According to Fine (1962) "Freud's thought in the 1890's centers around one major clinical observation: Neurosis involves a defense against unbearable ide as." (p.12) Using the concept of inner conflict, which is central to all psychoanalysis, Freud observed two distinct processes, the dominant one that propelled towards immediate release, and the other secondary one that tried to keep things under check and control; these he later named as 'ego and id' (Fine, 1962:13). Freud states that, "The tension between the harsh super-ego and the ego that is subjected to it, is called by us the sense of guilt; it expresses itself as a need for punishment" (Civilization and Its Discontents, 1962: 70). Fine observes the accuracy of Freud's analyses as "the primary and secondary processes, the main trend and the compromise trend of the nervous system, the two biological rules of attention and defense, the indications of quality, reality, and thought, the state of the psycho-sexual group, the sexual determination of repression, and, finally, the factors determining consciousness as a perceptual function" (Fine, 1962:10). The essay titled "Sexual Aberrations" in the three essays that explicate Freud's The Theory of Sexuality (1905) states that "the tension" created by the conflict, was "to be relieved the libido needs an object" and the object may be anything, including "male and female genitals" (Fordham, 1992:11-12). The ego is introduced through the introduction of an inner conflict - which sets in motion the 'anxiety'. In neurotics however, when the vision of the object is lost, it is perceived as the loss of the object itself, the imaginary sense of loss is thus, slightly more exaggerated. Which loss becomes 'unbearable'; ego is able to keep alive this perceived loss in short, he explored the conflict as two sides with the defense idea on one side and the 'unbearable' idea on the other. And from his investigations he understood that the 'unbearable' idea mostly involved the past of the neurotic patient, rather than a happening of the present (Fine, 1962:10). Repression and Hysteria Fordham observes that, "Freud had extensive evidence from the psychoanalysis of the neuroses, especially hysteria and the obsessional neuroses, in which he discovered the so-called perversions that had become repressed." (1998:12). Furthermore, for Freud, the concept of "repression," was very important to his

No Pain No Gain Essay Example for Free

No Pain No Gain Essay How much of you have had to sacrifice your time or change your plans to go and do something else like go practice or work on something? What is pain?  What is gain?  In my family my mom, dad, and sister had to constantly had to sacrifice their time to get to their goal. It took them a lot of time, blood, and sweat to reach where they are right now. I am the only one in my family that hasn’t worked hard at something and continuously to get somewhere. I don’t have the best grades, I don’t have the best skills at sports, I’m not the nicest person, and I’m not the most popular guy. I haven’t been working very hard to accomplish anything! I haven’t put in a lot of time, blood, and sweat into anything! I haven’t had any pain so I haven’t really gained anything! Wrong! I am always gaining something, I might not know it but every second I gain something! My dad has gone through a lot of trouble in his life he was born in the village of Taputimu in Samoa and then when he was five his mom and dad (my grandma and grandpa) moved to Hawaii. When they got here they were very poor they had to live in the housing. Read more: No Pain No Gain Story My dad sometimes wouldn’t eat because they were so poor, and sometimes he would have to make bad choices and go steal from the store to go get food for his mom and dad. My dad was raised in the bad parts of Hawaii; he went to school at McKinley high school. For him to stay out of trouble he started boxing he trained and worked hard, put time, blood, and sweat into boxing. He had pain and he surely gained from it. He learned from all his life lessons and now pushes my sister and I to something that we like and he helps us until we have gained something he we usually gain disciple and more respect. My sister (Masha) she’s a freshman at UCLA my dad has pushed her so much she went through a lot of pain mentally and physically and she physically gained a lot. My dad would take her to practice seven days a week for more than 3 hours. My dad put my sister through so much pain he started to feel less like a dad and more like a coach but my sister wanted to go through this  pain she said her dream was to become a pro athlete and she didn’t want my parents to pay money for her to go to school. With her hard work and motivation she’s a remodel to me and she went through a lot. Her hard work and pain paid off she got a scholarship to play softball at UCLA. This quote/saying is in my life so much. This quote/saying is in everyone’s life, everyone has pain and everyone has a gain sometimes you are not able to tell what the gain is. In my life there is always pain emotional or physical I need to push through everything that is bringing me down. Although I have a god to help me and great teachers, a great family that pushes me to meet expectations, and super great friends that are always by my side even though I may be a jerk, irritating or annoying. Without pain life would be different, life wouldn’t be life, it would be a utopia. What do you think life would be without pain? Think about it!

Examining The Effectiveness Of Accounting Systems Accounting Essay

Examining The Effectiveness Of Accounting Systems Accounting Essay The assignment begins with an attempt to find out the effective of accounting systems within a business and the analysis of management control systems of a business. Research: I used a mixture of primary and secondary research methods to complete this assignment. I have provided references at the end where necessary and used a variety of books and notes. Along with that I consulted a few websites, details are on the references. TASK 1 Introduction of accounting Accounting is all about providing financial and economic information. Accounting information is economic information, it relates to the financial or economic activities of the business. Accounting information shows the financial position of a business. This is done by the set of accounts, based on a system known as double-entry bookkeeping. One of the first complete documentation about how to keep books of accounting was written by the professor of mathematics in Rome Luca Pacioli in 1494. This documentation described the double-entry system of accounting. It was adopted and still used today around the world. Users of Accounting: there are two type of users. F:DocumentsDownloadsch1_accounting_types_users.gif http://simplestudies.com/introduction-to-accounting.html Types of accounting There are two types of accounting 1: Financial accounting Financial accounting tells us about the financial position of Business it is used to prepare financial statement. This gives all the finance related information to its users and on the basis of that information a user will be able to do comparison and analyse the position of the company and it takes part in important decision making process. 2: Management accounting On the other hand management accounts deals with the budgeting, business expenses and cost analysis it is used to make planning and control the business expenses. Accounting systems Computerised accounting system Manual accounting system These days computerised accounting system is widely used in all type of businesses. The result of this system is more convenient and accurate then manual accounting system. The question arises how this system operates, this system operates by computer software which has to install in the computer. Accounting packages softwares which is used in these days it is used to get payroll packages sales ledger purchase ledger and fixed assets. There are lots of accounting softwares are available one of the famous software name is off the shelf software it generates the document by getting commands by coding this software is very easy to use because of this software we dont need any professional accountant who set up the account it is very convenient to use one of the example of such software is sage which is very common in these days and easy to operate and it generates the accounts information by its self by coding and another kind of software is called as BESPOKE software its a customised software most of the bigger size organisations are using this software. It gives them customised entries in the books of accounts. Coding Computer operates on the bases of dose commands to performs its tasks for the accounting software coding is used to make the software more easy to use e.g. 05 for purchases 15 for interest 25 for profit and loss accounts Untitled sssss.jpg Manual accounting system Manual accounting systems are the traditional form of maintaining a businesss accounts and records this includes different steps like ledgers cash book petty cash book income statement and balance sheet which includes all the day to day transactions and sell purchase accounts this accounting system needs skills and knowledge to full fill its requirements. 1.1 Effectiveness of accounting system within a business: Information generated from the accounting system can be effective in decision making process sale and purchase of assets and in investments. Quality and benefits of accounting system is evaluated from the performance evaluation, internal control and proper records of transactions. Effectiveness of accounting information is depend on time management which have a great effect on accounting systems effectiveness, there for the accounting records should be maintain on time and with accuracy of accounting information it have a great impact on the effectiveness of accounting system. Generally accounting information system provide the information about financial position on daily and weekly basis the effectiveness of accounting system not only depend upon the propose of such system it also depend on the contingency factors ( factors like culture understanding of organisation and outer atmosphere) accounting information is said to be effective when the information is complete and according to the system users effectiveness of accounting system is subject to many researches from a long time. Accounting information is usually divided into two categories (1) the information that facilitate decision making (2) Information that influence decision making. 1.2: Accounting records All of the documents and books includes in the preparation of accounting records includes journal, ledger, trial balance, cash books, invoices or any document which help in to make accounts. In accounting records a cycle is used which is called as accounting cycle it determines the steps of financial statement. ACCOUNTING CYCLE F:DocumentsDownloadsaccounting-cycle4.jpg http://basiccollegeaccounting.com/what-is-an-accounting-cycle-and-the-steps-involved/ Purpose and use of accounting records: All accounting records are very useful and had a great value for its respective business without a proper accounting records it is very difficult to run a business successfully. The purpose of maintaining accounting records to evaluate how much capital and assets a business have and also maintain the records of creditors and debtors or buyers and sellers by the respect of that records a user can have a clear eye on the business and watch the losses and profits in the business whether the business doing well or not and on the basis of that records business can take decisions whether business have to invest or take out all the investments or run the business as it is these record help to make more accurate and satisfied decision making which help to make business more profit and also used for calculating tax liability and give the information to the investors who are willing to buy the shares of that company. Accounting concepts Accounting concepts is very important, it is used to support the application of the true and fair view, and accounting has adopted certain concepts which help to ensure that accounting information is presented accurately and consistently. (1) Going concern: it is assumed that the business entity for which accounts are being prepared is solvent and variable, and the business will continue its operations for the foreseeable future. This has important implications for the valuation of assets and liabilities. (2) Accruals concept: revenue and expenses are taken account of when they occur and not when the cash is received or paid out. (3) Prudence concept: revenue and profits are included in the balance sheet only when they are realized and liabilities are included when there is a reasonable possibility of incurring them it is also called conservation concept. Profits are not recognised until a sale has been completed. In addition, a cautious view is taken for future problems and costs of the business (they are provided for in the accounts as soon as there is a reasonable chance that such costs will be incurred in the future. (4) Consistency concept: once an entity has chosen an accounting method, it should continue to use the same method, except for a solid reason to change. Any change in the accounting method must be disclosed. Transactions and valuation methods are treated the same way from year to year, or period to period. Where accounting policies are changed, companies are required to disclose this fact and explain the impact of any change. (5) Entity concept: accounting records reflect the financial activities of a specific business or organization, and not of its owners or employees. (6) Matching concept: transactions affecting both revenues and expenses should be recognized in the same accounting period. (7) Materiality concept: relatively minor events may be ignored, but the major ones should be fully disclosed. (8) Realization concept: any change in the market value of an asset or liability is not recognized as a profit or loss until the asset is sold or the liability is paid off (discharged). (9) Money measurement concept: accounting process records only those activities that can be expressed in monetary terms (with some exceptions, as in cost-accounting). (10) Separate entity concept: Business is the separate entity from its owner. (11)Relevance concept: This implies that, to be useful, accounting information must assist a user to form, confirm or maybe revise a view usually in the context of making a decision (e.g. should I invest, should I lend money to this business? Should I work for this business?) 1.3: Factors Affecting Accounting System There are lots of factors which affect the accounting system the major factor are which affect the organisation is the (1) nature of business and (2)size of organisation and 3the structure of the organization if the organization is a multinational company then the accounting system of that organisation is on a very high level and very complex and they have separate department for all the accounting related work if a small company going to increase its size then they should have to change the accounting method and adopt the new method because of large amount of transactions are also taken place in the business on which the old method can no longer apply, and the other factor which affect the accounting system the change in IAS if in IAS some new rules are coming in then the business have to adopt that rule and adopt in the business and make there strategy according to it. 2.1: Business risk: Business risk cannot be eliminated but must be managed by companies. There are several ways to minimize the business risk by proper planning. Determining Business Risk: Developing the Business Risk Model It is important for an organization to identify the business risks that exist in the environment in which it operates. To identify those risks, organizations must look at their external environments. External business risks are economic, political, social, environmental, technological, and other external conditions. An organization cannot fully understand its business risks unless it also understands its business objectives, strategies, and processes. Interrelationships between business objectives, strategies, processes, and business risk http://www.clir.org/pubs/reports/pub90/appendix1.html Types of risk: Operational risks: Operational risks are associated with your business operational and administrative procedures. These include: recruitment supply chain transportation accounting controls IT systems regulations board composition Business should examine these operations, prioritise the risks and make necessary provisions. Financial Risk: Financial risk is the risk made by equity holders by using of firms debt. If the company raises capital by borrowing money, I t must pay back with the interest charges. This increases the degree of uncertainty about the company and it must have enough income to pay back that amount in the future Compliance risk: Compliance risk is the possibility that the business will not comply with laws and regulations in the jurisdictions where it operates or that the organization will break any legally contract. Noncompliance can be dangerous, or it can result from being unaware or local legal requirements. Response to risk: A business can take any given risk. Accept risk: if the risk of loss is minimum then only accept the risk and carry on business according to it. Reduce risk: reducing the risk by better planning and strategies Avoid risk: do not enter into that kind of business in which there is some bigger risk Transfer risk: companies can also transfer the risk by taking insurance policy. 2.2: Describe and evaluate the control system The environment in which business operates and the system it adopts is a process, affected by an entitys board of directors, management and other personnel, designed to provide assurance regarding to the success of objectives in the following areas: effectiveness and efficiency of operations, reliability of financial reporting, and Compliance with applicable laws and regulations. IAS315 gives us an understanding of the entity and its environment and assessing the risk of business and control system of business. ISA identify the five elements of control system, The control environment Risk assessment Information and communication Control activities Monitoring Control environment: Control environment is that in which control system operates. Control environment is defined by the business management. Control environment forming a base for control activities, risk assessment, monitoring, awareness and action of those changed with governance and management. The control environment is the most important component because it sets the tone for the organization. Factors of the control environment include employees integrity, the organizations commitment to competence, managements philosophy and operating style, and the attention and direction of the board of directors and its audit committee. Risk assessment: Risk assessment analyse the identification, analysis, and management of uncertainty in business facing the organization. Risk assessment is relevant to the financial reporting and organization operational objectives. The management have to carry out a risk assessment from auditor which provides information with confidence that company system will not have any error in them. Information system: Information system is the system that processes the information within an organization it includes processing the information and the procedure to initiate record and report on financial statement both manual and computerised. Control activities: Control activities include the policies and procedures maintained by the management of an organization to find risk. E.g. Control activity is a policy requiring the approval by the board of directors for all purchases exceeded from an estimating amount. Control activities are the important element of internal control, this provide satisfaction to prevent wrong decision from occurring. Monitoring: Monitoring refers to the assessment of the quality of internal control. Monitoring activities provide information about potential and actual breakdowns in a control system that could make it difficult for an organization to achieve its goals. 2.3: Fraud Fraud is an intentional mistake by the management, employs or third parties for illegal financial advantages. Or if we talk about an error its an unintentional mistake. Fraud is difficult to be identifying because it is done by complete planning and care so the internal audit is conduct to detect the fraud. THE DIFFERENCE BETWEEN FRAUDS AND ERROR: The distinguishing factor between fraud and error is that action which results in a misstatement of the financial statements it is intentional or unintentional. The term fraud is a broad legal concept, but the auditor is concerned with fraud that causes a material mistake in the financial statements. ISA 240 (Redrafted) defines fraud as: An intentional act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception to obtain an unjust or illegal advantage. And SAS 99 defines fraud as an intentional act that results in a material misstatement in financial statements http://en.wikipedia.org/wiki/Statement_on_Auditing_Standards_No._99:_Consideration_of_Fraud Types of fraud: There are many types of fraud which relates to a business. Ghost employ Miscasting of payrolls, Stealing unclaimed wages, Collusion external parties Teeming and leading Altering cheques and inflating expense claim Stealing assets Issuing false creditor notes Failing to record all sales Prevention of Fraud: Fraud is preventing by implementing the rules and laws in the business some of the points are written below which is very useful for the business to prevent the business from fraud. A good internal control system Continuous supervision of all employees Surprise audit visits Through personal procedure Detection of fraud in the business: Maintaining key control procedure reduce the risk of fraud occurring and increases the risk of detection control over cash transaction are more important this is the main area in which mostly frauds are happen. Cash receipts: Keep eye on all transactions which are placing in the business. Divide the duties between different functions, in other words more than a person. There are following point which is very useful to detect the fraud. Receipts by post: Safeguard to prevent interception of mail between receipts and opening. Appoint person to supervise mails Protection of cash and cheques Control over cash sales and collection: Restriction of receipts received Evidence Clearance of cash officer and register Investigation of cash storage and surpluses Paying into bank Daily banking Make up and comparison of paying in slips and receipts Banking receipts record Condition and events: Particular financial reporting pressure in an entity; Inadequate working capital due to declining profit or too rapid expansion Increases sales on credit this area should be check to find out if anything is going wrong is that department. Unusual transaction: If unusual transaction is take place especially at year end that gives any significant effect on earnings. Complex transaction or accounting treatment. Task 3 3.1: Auditors Duties, rights and liability; What is an audit? An audit is an examination of a companys financial statements prepared by the directors of the company. Its purpose is to give the company shareholders an independent, professional and informed opinion on the financial statements: à ¢Ã¢â€š ¬Ã‚ ¢ It has been prepared according to the Companies Acts, any other relevant legislation and relevant accounting standards. à ¢Ã¢â€š ¬Ã‚ ¢ It gives a true and fair view of the condition of the company on financial statement. Who is an auditor? An auditor is an independent professional person who is qualified to audit a companys financial statements. What does an audit involve? In carrying out an audit, an auditor will usually: à ¢Ã¢â€š ¬Ã‚ ¢ Identify the data of the financial statements that have some errors. à ¢Ã¢â€š ¬Ã‚ ¢ check the transactions record, account balances and disclosures. à ¢Ã¢â€š ¬Ã‚ ¢ Give suggestions on companys accounting policies are reasonable. à ¢Ã¢â€š ¬Ã‚ ¢ Test that the companys internal controls are effective. à ¢Ã¢â€š ¬Ã‚ ¢ write management letter if any problems discovered during the audit and advise on how to deal with that. à ¢Ã¢â€š ¬Ã‚ ¢ write and issue the auditors report to the members of the company. What are the duties of auditors? Duty to provide an audit report: The main duty of auditors is to report to the shareholders on whether in their opinion the companys financial statements give a true and fair view. They may give: à ¢Ã¢â€š ¬Ã‚ ¢ A qualified opinion this says that the financial statements give a true and fair view of the companys state of affairs except for certain stated circumstances. à ¢Ã¢â€š ¬Ã‚ ¢ A disclaimer of opinion this shows that the auditor is unable to give an opinion whether the financial statements gives a true and fair view or not. à ¢Ã¢â€š ¬Ã‚ ¢ An adverse opinion it says that the financial statements do not give a true and fair view. What are the rights of auditors? Auditors have the right to: à ¢Ã¢â€š ¬Ã‚ ¢ Access the books and accounts of the company and its subsidiaries; à ¢Ã¢â€š ¬Ã‚ ¢ Access information and explanations from the companys directors and employees. à ¢Ã¢â€š ¬Ã‚ ¢ be notified of company general meetings and address the meetings. à ¢Ã¢â€š ¬Ã‚ ¢ explain in general meeting the circumstances of any condition to remove them as auditor. Liabilities of auditor: Give a true and fair view on financial statement and deliver the right information to the general public and shareholders to prevent them from loss 3.2: Internal and external audit: The External Auditor: the external auditor tests the transactions record that takes part in the  financial  statements. The  internal Auditor: The internal auditor, on the other hand, deals with its major operations, risk management and internal controls.   The Main Differences There are many key differences between internal and external audit. The external auditor is an external contractor how does not belongs to the organization, company hire the he auditor for auditing firms. The external auditor seeks to provide an opinion on whether the accounts show a true and fair view. Whereas internal audit forms an opinion on the adequacy and effectiveness of systems of risk management and  internal control, many of which are outside the main  accounting  systems.   The 3 Key Models of Organization Activities Involves Internal and External Audit 3 Key Models of Organization Activities involves Internal Vs External Auditor Difference and Similarities of Internal Auditor Vs. External Auditor Here is a  list of  Internal  Audit Versus  External Audit in detail: Internal Auditor Vs External Auditor   http://accounting-financial-tax.com/2008/08/differences-and-similarities-of-internal-auditor-v-external-auditor/ 3.3: Planning of auditing In auditing of any organisation, auditor has to consider certain things before audit. First is scope In any audit should be to determine its scope and the auditors general approach. Audit strategy: Auditor has to make some strategy for the auditing and place it with auditing documents which defines the major areas on which auditor has to take extra care and the difficulties associate with audit and the auditing clients points of concerns. Documents accounting system: Auditor has to collect all those documents associated with audit e.g. financial statement, transactions record, receipts, and other related documents. Auditor need these documents to analyse it and find all the aspects of transactions to find out whether the financial statement have any error or not or is there any possibility of fraud is there or not and whether it gives a true and fair view or not. System and internal controls: At this stage the objective is to determine the flow of documents and the facts related to the documents and the operational system in the organisation. At this level auditor has to find the facts related to documents and the documents flow in the departments including sales, purchases, cash and stock and accounts personal. This is the good way to find out the rough estimate of system, after that which will be converted into formal record. Audit Risk: Just like risks in business some risks are also relates with the auditing. Audit risk is defined as: Audit risk is the risk that that auditor may give an inappropriate opinion on the financial statement Components of audit risk: Audit risk has three components: Inherent risk: Inherent risk is the risk that auditor may be misstated because of lack of knowledge and insufficient information available for it. Auditor has to use their professional practice and available knowledge about the item to asses inherent risk if no such information is available then the inherent risk is high. Control risk: Control risk is the risk that organisation control system fails to detect the material misstatement. And the financial statement do not prepare according to the IAS. Detection risk: Detection risk is the risk that auditor will fail to detect the material misstatement of accounting system. Detection risk relates to the knowledge, practice and the experience of the auditor. Materiality: Materiality is relates to the financial statement, it is an expression of the relative importance of a particular matter on the mean of financial statement as a whole or as an individual. A matter is material if its omission or misstatement could influence the economic decision of the users which basis on that financial statement. Materiality depends on the size operations of organization. ISA 320 tells the auditor to consider materiality and its relation with risk at the time of conducting an audit. 3.4: Audit testing and uses In developing overall audit plan, auditors uses five types of audit tests to find out whether financial statement are truly stated or not. Procedures to Obtain an Understanding Auditors perform this by a system called walkthrough to obtain understanding it applies on the transactions and entire process is operated like this. Tests of Controls procedure used to obtaining an understanding about internal control, it contains followings evidences Make inquires of client personal Examine documents, records and reports Observe control activities Reform client procedure Test of Control is used to determine whether the control system is effective or not and usually involves a testing of transaction. Substantive Tests of Transactions Procedures designed to test for dollar misstatements of financial statement balances. Analytical Procedures To indicate possible misstatements To reduce tests of details of balances Tests of Details of Balances Focus on ending G/L balances It is used to find out whether the balance of the financial statement is accurate. 3.5 Records Auditing process AuditProcessFlowchart.gif http://www.window.state.tx.us/taxinfo/audit/auditfun/5procedures.htm Audit test: In the large company with sophisticated internal control and low inherent risk therefore auditor perform extensive test and it relies on the client internal control to reduce substitutive test because of the emphasis on test of control and analytical procedure, this audit can be done comparable in inexpensive. This audit likely represents the mix of evidences used in integrated audit of public company financial statements and internal control over financial reporting. TASK4 4.1: Purpose of Audit Report Audit report is that report in which external auditor express their opinion about the true and fair view of the financial statement of the organisation. The audit report is published for the shareholders, management or directors and also for general public. There are two key differences between the report to shareholders and to report for the management. The shareholders report is to show whether the financial statement shows a true and fair view And the private report for the management and directors which contain comments and recommendations on the financial statement Contents of audit report: Auditor report on financial statement contains clear opinion based on the assessment of record. Audit report draw on a complete pattern which gives the clear view to its users. The main contents of audit report as follow. Untitled contents.JPG 4.2: Different qualifications in report: There are two types of reports one is unqualified or unmodified report and the second is qualified or modified report. 1: An unqualified audit report gives assurance to its users and gives true and fair of the financial statement and there is no material mistakes are in it. An unqualified report extract by laws and rule under companies act 1985. Which contain followings? Proper accounting records All information and explanations Details of directors benefits Particulars of loans and other transactions 2: Qualified report: On the qualified report auditor give two types of opinions. Matters that affect the auditors opinion Matter that do not affect the auditors opinion Matters that affect the auditors opinion Auditor may not be give appropriate opinion because of some circumstances like insufficient material of financial statement. And others factors are as follow. There is any limitation of scope in auditors work. It may be material or pervasive Disagreement with management it may be material or pervasive These two factors farther divide into two branches. A limitation of scope may lead to disclaimer of opinion. A disclaimer opinion should be expressed when the limitation of scope is so material or pervasive when auditor do not obtain any evidence related to that to express his opinion on the financial statement. Disagreement may leads to adverse opinion. It should be expressed when effect of disagreement is material and pervasive when some misleading or incomplete information in the financial statement. Matters that do not affect the auditors opinion In some circumstances auditor may give unqualified opinion because of the uncompleted information in the financial statement in this case auditor write a paragraph is called as emphasis of matter describing a fundamental uncertainty and then give an opinion on that. 4.3: Management letter: MANAGMENT LETTER The Board of Directors, ABC CO Alpha Co Limited, certified accountants 15 Essex Road 29 High Street, London, EC1N 2HB