Business Financing and the Capital Structure Essay

Explain the process of financial planning used to estimate asset investment requirements for a corporation. Explain the concept of working capital management. Identify and briefly describe several financial instruments that are used as marketable securities to park excess cash. As a business owner, it is important to know the value of your assets as they can be used as leverage for obtaining loans and can be used to estimate your ability to repay your debts. Calculate your current assets, long-term investments, fixed assets and intangible assets and add them up to get your total business assets. Pledgeable assets support more borrowing, which allows for further investment in pledgeable assets. The trade-off between liquidation costs and underinvestment costs implies that low-liquidity firms exhibit negative investment sensitivities to liquid funds, whereas high-liquidity firms have positive sensitivities. If real assets are not divisible in liquidation, firms with high financial liquidity optimally avoid external financing and instead cut new investment. If real assets are divisible, firms use external financing, which implies a lower sensitivity. In addition, asset redeployability decreases the investment sensitivity. Financial management includes management of assets and liabilities in the long run and the short run. The management of fixed and current assets, however, differs in three important ways: Firstly, in managing fixed assets, time is very important; consequently discounting and compounding aspects of time element play an important role in capital budgeting and a minor one in the management of current assets. Secondly, the large holdings of current assets, especially cash, strengthen firm’s liquidity position but it also reduces its overall profitability. Thirdly, the level of fixed as well as current assets depends upon the expected sales, but it is only the current assets, which can be adjusted with sales fluctuation in the short run. Marketable securities replenish cash quickly and earn higher returns than cash, but come with risks; maturity, yield, and liquidity should be considered. Marketable securities are the securities that can be easily liquidated without any delay at a reasonable price. Firms will maintain levels of marketable securities to ensure that they are able to quickly replenish cash balances and to obtain higher returns than is possible by maintaining cash. There are four factors that influence the choice of  marketable securities. These include risks, maturity, yield, and liquidity. Assume that you are financial advisor to a business. Describe the advice that you would give to the client for raising business capital using both debt and equity options in today’s economy. Some business owners say ratios are an accountant’s problem. That’s not smart, says Dileep Rao, president of Minneapolis’ InterFinance Corp, a venture-finance consulting firm, and professor at the University of Minnesota’s Carlson School of Management. â€Å"Running your business without knowing your numbers is like driving a car without being able to see your direction or speed,† says Rao. â€Å"It’s only a matter of time before you crash.†(Rao, 2011) The terms â€Å"debt† and â€Å"equity† get tossed around so casually that it’s worth reviewing their meanings. Debt financing refers to money raised through some sort of loan, usually for a single purpose over a defined period of time, and usually secured by some sort of collateral. Equity financing can be a founder’s money invested in the business or cash from angel investors, venture capital firms, or, rarely, a government-backed community development agency—all in exchange for a portion of ownership, and therefore a share in any profits. Equity typically becomes a source of long-term, general-use funds. The share of any hard assets, such as property and equipment, that you own free and clear also counts as equity. Striking the right balance between debt and equity financing means weighing the costs and benefits of each, making sure you’re not sticking your company with debt you can’t afford to repay and minimizing the cost of capital. Choosing debt forces you to manage for cash flow, while, in a perfect world, taking on equity means you’re placing a priority on growth. But in today’s credit markets, raising equity may simply mean you can’t borrow any more. Until recently, bank credit was a financing mainstay. But experiences like Flipse’s underlie a point made by the Federal Reserve Board’s quarterly Senior Loan Officer Opinion Survey on Bank Lending Practices, released in November. According to loan officers, small-company borrowers were tapping sources of funding other than banks. They were being driven away for many reasons. Banks â€Å"continued to tighten standards and terms†¦on all major types of loans to businesses,† though fewer were doing so than in late 2008, when tightening was nearly universal. Interest rates on small business loans were on the rise at 40% of the banks surveyed, even as the prime rate reached historic lows. One in five banks had reduced small  companies’ revolving credit lines. One in three had tightened their loan standards, and 40% had tightened collateral requirements. Partly because of the plunging value of the real estate securing many commercial loans, pressure from bank examiners for tighter standards continued to build. Meanwhile, home equity loans, another popular source of small business cash, had evaporated. Many recession-weary business owners knew they had essentially become unbankable: Loan officers surveyed said far fewer firms were seeking to borrow. Those few who could borrow were repelled by higher rates. All of a sudden, equity financing l ooked better. Explain why a business may decide to seek capital from a foreign investor indicating the risk and rewards for such a decision. Provide support for rationale. Many investors choose to place a portion of their portfolios in foreign securities. This decision involves an analysis of various mutual funds, exchange-traded funds (ETF), or stock and bond offerings. However, investors often neglect an important first step in the process of international investing. When done properly, the decision to invest overseas begins with a determination of the riskiness of the investment climate in the country under consideration. Country risk refers to the economic, political and business risks that are unique to a specific country, and that might result in unexpected investment losses. This article will examine the concept of country risk and how it can be analyzed by investors. There are many excellent sources of information on the economic and political climate of foreign countries. Newspapers, such as the New York Times, the Wall Street Journal and the Financial Times dedicate significant coverage to overseas events. There are also many excellent weekly magazines covering international economics and politics; the Economist is generally considered to be the standard bearer among weekly publications. For those seeking more in-depth coverage of a particular country or region, two excellent sources of objective, comprehensive country information are the Economist Intelligence Unit and the Central Intelligence Agency (CIA) World Fact Book. Either of these resources provides an investor with a broad overview of the economic, political, demographic and social climate of a country. The Economist Intelligence Unit also provides ratings for most of the world’s countries. These ratings can be used to supplement those issued by Moody’s,  S&P, and the other â€Å"traditional† ratings agencies. Finally, the internet provides access to a host of information, including international editions of many foreign newspapers and magazines. Reviewing locally produced news sources can sometimes provide a different perspective on the attractiveness of a country under consideration for investment. It is important to remember that diversification, which is a fundamental principle of domestic investing, is even more important when investing internationally. Choosing to invest an entire portfolio in a single country is not prudent. In a broadly diversified global portfolio, investments should be allocated among developed, emerging and perhaps frontier markets. Even in a more concentrated portfolio, investments should still be spread among several countries in order to maximize diversification and minimize risk. After the decision on where to invest has been made, an investor has to decide what investment vehicles he or she wishes to invest in. Investment options include sovereign debt, stocks or bonds of companies domiciled in the country(s) chosen, stocks or bonds of a U.S.-based company that derives a significant portion of its revenues from the country(s) selected, or an internationally focused exchange-traded fund (ETF) or mutual fund. The choice of investment vehicle is dependent upon each investor’s individual knowledge, experience, risk profile and return objectives. When in doubt, it may make sense to start out by taking less risk; more risk can always be added to the portfolio at a later date. In addition to thoroughly researching prospective investments, an international investor also needs to monitor his or her portfolio and adjust holdings as conditions dictate. As in the U.S., economic conditions overseas are constantly evolving, and political situations abroad can change quickly, particularly in emerging or frontier markets (Forbes, 2011). Situations that once seemed promising may no longer be so, and countries that once seemed too risky might now be viable investment candidates. Explain the historical relationships between risk and return for common stocks versus corporate bonds. Explain how diversification helps in risk reduction in a portfolio. Support response with actual data and concepts learned in this course. Portfolio diversification is the means by which investors minimize or eliminate their exposure to company-specific risk, minimize or reduce  systematic risk and moderate the short-term effects of individual asset class performance on portfolio value. In a well-conceived portfolio, this can be accomplished at a minimal cost in terms of expected return. Such a portfolio would be considered to be a well-diversified. Although the concepts relevant to portfolio diversification are customarily explained with respect to the stock markets, the same underlying principals apply to all types of investments. For example, corporate bonds have specific risk that can be diversified away in the same manner as that of stocks. Bonds issued by companies represent the largest of the bond markets, bigger than U.S. Treasury bonds, municipal bonds, or securities offered by federal agencies (Worldbank, 2013). The risk associated with corporate bonds depends on the financial stability and performance of the company issuing the bonds, because if the company goes bankrupt it may not be able to repay the value of the bond, or any return on investment. Assess the risk by checking the company’s credit rating with ratings agencies such as Moody’s and Standard & Poor’s. Good ratings are not guarantees, however, as a company may show an excellent credit record until the day before filing for bankruptcy. When you purchase stock in a company during a public offering, you become a shareholder in the company. Some companies pay dividends to shareholders based on the number of shares held, and this is one form of return on investment. Another is the profit realized by trading on the stock exchange, provided you sell the shares at a higher price than you paid for them. The risks of owning common stock include the possible loss of any projected profit, as well as the money paid for the shares, if the share price drops below the original price. Corporate bonds hold the lowest risk of the three types of investments, provided you choose the right company in which to invest. The main reason for this is that in the event of bankruptcy, corporate bond holders have a stronger claim to payment than holders of common or preferred stocks. Bonds carry the risk of a lower return on investment, as the performance of stocks is generally better. Common stocks carry the highest risk, because holders are last to be paid in the event of bankruptcy. Preferred stocks generally have higher yields than corporate bonds, lower risk than common stocks, and a better claim to payment in the event of bankruptcy. References Dileep Rao. 2011, â€Å"InterFinance † Cambridge, Massachusetts, The MIT Press. Forbes. 2011, † Small Business Loans: A Great Option â€Å". Retrieved on 6/19/2013 from http://www.forbes.com/sites/ryancaldbeck/2012/11/14/small-business-loans-a-great-option-unless-you-actually-need-money/ â€Å"Foreign direct investment, net inflows (BoP, current US$) | Data | Table† . Data.worldbank.org. Retrieved 6/19/2013 from http://data.worldbank.org/indicator/BX.KLT.DINV

Control risk Essay

The auditor obtains an understanding of the design and implementation of internal Control to make a preliminary assessment of control risk as part of the auditor’s overall Assessment of the risk of material misstatements. The auditor uses this preliminary assessment of control risk to plan the audit for each material class of transactions. However, in some instances the auditor may learn that the control deficiencies are significant such that the client’s financial statements may not be auditable. So, before making a preliminary assessment of control risk for each material class of transactions, the auditor must first decide whether the entity is auditable. Two primary factors determine auditability: the integrity of management and the ade – quacy of accounting records. If management lacks integrity, most auditors will not accept the engagement. The accounting records are an important source of audit evidence for most audit objectives. If the accounting records a re deficient, necessary audit evidence may not be available. For example, if the client has not kept duplicate sales invoices and vendors’ invoices, it is usually impractical to do an audit. In complex IT environments, much of the transaction information is available only in electronic form without generating a visible audit trail of documents and records. In that case, the company is usually still auditable; however, auditors must assess whether they have the necessary skills to gather evidence that is in electronic form and can assign personnel with adequate IT training and experience. After obtaining an understanding of internal control, the auditor makes a preliminary assessment of control risk as part of the auditor’s overall assessment of the risk of material misstatement. This assessment is a measure of the auditor’s expectation that internal controls will prevent material misstatements from occurring or detect and correct them if they have occurred. The starting point for most auditors is the assessment of entity-level controls. By nature, entity-level controls, such as many of the elements contained in the control environment, risk assessment, and monitoring components, have an overarching impact on most major types of transactions in each transaction cycle. For example, an ineffective board of directors or management’s failure to have any process to identify, assess, or manage key risks, has the potential to undermine controls for most of the transaction-related audit objectives. Thus,  auditors generally assess entity-level controls before assessing transaction specific controls. Once auditors determine that entity-level controls are designed and placed in operation, they next make a preliminary assessment for each transaction-related audit objective for each major type of transaction in each transaction cycle. For example, in the sales and collection cycle, the types of transactions usually involve sales, sales returns and allowances, cash receipts, and the provision for and write-off of uncollectible accounts. The auditor also makes the preliminary assessment for controls affecting audit objectives for balance sheet accounts and presentations Many auditors use a control risk matrix to assist in the control risk assessment process at the transaction level. The purpose is to provide a convenient way to organize assessing control risk for each audit objective. the control risk matrix for transaction-related audit objectives, auditors use a similar control risk matrix format to assess control risk for balance-related and presentation and disclosure-related audit objectives. Identify Audit Objectives The first step in the assessment is to identify the audit objectives for classes of transactions, account balances, and presentation and dis closure to which the assessment applies. For example, this is done for classes of transactions by applying the specific transaction-related audit objectives introduced earlier, which were stated in general form, to each major type of transaction for the entity. For example, the auditor makes an assessment of the occurrence objective for sales and a separate assessment of the completeness objective. Identify Existing Controls Next, the auditor uses the information discussed in the previous section on obtaining and documenting an understanding of internal control to identify the controls that contribute to accomplishing transaction-related audit objectives. One way for the auditor to do this is to identify controls to satisfy each objective. For example, the auditor can use knowledge of the client’s system to identify controls that are likely to prevent errors or fraud in the occurrence transaction-related audit objective. The same thing can be done for all other objectives. It is also helpful for the auditor to use the five control activities (separation of duties, proper authorization,  Adequate documents and records, physical control over assets and records, and Independent checks on performance) as reminders of controls. For example: Is there adequate separation of duties and how is it achieved? Are transactions properly authorized? Are pre-numbered documents properly accounted for? Are key master files properly restricted from unauthorized access? The auditor should identify and include only those controls that are expected to have the greatest effect on meeting the transaction-related audit objectives. These are often called key controls. The reason for including only key controls is that they will be sufficient to achieve the transaction-related audit objectives and also provide audit efficiency. Associate Controls with Related Audit Objectives Each control satisfies one or more related audit objectives. This can be seen for transaction-relatedaudit objectives. The body of the matrix is used to show how each control contributes To the accomplishment of one or more transaction-related audit objectives. In this , a C was entered in each cell where a control partially or fully satisfied an bjective. A similar control risk matrix would be completed for balance-related and presentation and disclosure-related audit objectives. For example, the mailing of statements to customers satisfies three objectives in the audit of Hillsburg Hardware, which is indicated by the placement of each C on the row . Identify and Evaluate Control Deficiencies, Significant Deficiencies, and Material Weaknesses Auditors must evaluate whether key controls are absent in the design of internal control over financial reporting as a part of evaluating control risk and the likelihood of financial statement misstatements. Auditing standards define three levels of the absence of internal controls: 1. Control deficiency. A control deficiency exists if the design or operation of controls does not permit company personnel to prevent or detect mis-statements on a timely basis in the normal course of performing theirassigned functions. A design deficiency exists if a necessary control is missing or not properly designed. An operation deficiency exists if a well-designed control does not operate as designed or if the person performing the control is insufficiently qualified or authorized. 2. Significant deficiency. A significant deficiency exists if one or more control deficiencies exist that is less severe than a material weakness (defined below), but important enough to merit attention by those responsible for oversight of the company’s financial reporting. 3. Material weakness. A material weakness exists if a significant deficiency, by itself, or in combination with other significant deficiencies, results in a reason – able possibility that internal control will not prevent or detect material financial statement misstatements on a timely basis. To determine if a significant internal control deficiency or deficiencies are a material weakness, they must be evaluated along two dimensions: likelihood and significance. If there is more than a reasonable possibility (likelihood) that a material misstatement (significance) could result from the significant deficiency or deficiencies, then it is considered a material weakness. A five-step approach can be used to identify deficiencies, significant deficiencies, and Material weaknesses. 1. Identify existing controls. Because deficiencies and material weaknesses are the absence of adequate controls, the auditor must first know which controls exist. The methods for identifying controls have already been discussed. 2. Identify the absence of key controls. Internal control questionnaires, flow charts, and walkthroughs are useful tools to identify where controls are lacking and the likelihood of misstatement is therefore increased. It is also useful to examine the control risk matrix, such as to look for objectives where there are no or only a few controls to prevent or detect misstatements. 3. Consider the possibility of compensating controls. A compensating control is one Elsewhere in the system that offsets the absence of a key control. A common example in a small business is the active involvement of the owner. When a compensating control exists, there is no longer a significant deficiency or material weakness. 4. Decide whether there is a significant deficiency or material weakness. The likelihood of misstatements and their materiality are used to evaluate if there are significant deficiencies or material weaknesses. 5. Determine potential misstatements that could result. This step is intended to identify specific misstatements that are likely to result because of the significant deficiency or material weakness. The importance of a significant deficiency  or material weakness is directly related to the likelihood and materiality of potential misstatements. Associate Significant Deficiencies and Material Weaknesses with Related Audit Objectives The same as for controls, each significant deficiency or material weakness can apply to one or more related audit objectives. In the case of Hillsburg, there are two significant deficiencies, and each applies to only one transaction-related objective. The significant deficiencies are shown in the body of the figure by a D in the appropriate objecti ve column. Assess Control Risk for Each Related Audit Objective After controls, significant deficiencies, and material weaknesses are identified and associated with transaction-related audit objectives, the auditor can assess control risk for transaction related audit objectives. This is the critical decision in the evaluation of internal control. The auditor uses all of the information discussed previously to make a subjective control risk assessment for each objective. There are different ways to express this assessment. Some auditors use a subjective expression such as high, moderate, or low. Others use numerical probabilities such as 1.0, 0.6, or 0.2. Again, the control risk matrix is a useful tool for making the assessment. This assessment is not the final one. Before making the final assessment at the end of the integrated audit, the auditor will test controls and perform substantive tests. These Procedures can either support the preliminary assessment or cause the auditor to make changes. In some cases, management can correct deficiencies and material weaknesses before the auditor does significant testing, which may permit a reduction in control risk. After a preliminary assessment of control risk is made for sales and cash receipts, the auditor can complete the three control risk rows of the evidence-planning worksheet . If tests of controls results do not support the preliminary assessment of control risk, the auditor must modify the worksheet later. Alternatively, the auditor can wait until tests of controls are done to complete the three control risk rows of the worksheet. As part of understanding internal control and assessing control risk, the auditor is required to communicate certain matters to those charged with governance. This Information and other recommendations about controls are also often communicated to management. Communications to Those  Charged With Governance The auditor must communicate significant deficiencies and material weaknesses in writing to those charged with governance as soon as the auditor becomes aware of their existence. The communication is usually addressed to the audit committee and to management. Timely communications may provide management an opportunity to address control deficiencies before management’s report on internal control must be issued. In some instances, deficiencies can be corrected sufficiently early such that both management and the auditor can conclude that controls are operating effectively as of the balance sheet date. Regardless, these communications must be made no later than 60 days following the audit report release. Management Letters In addition to these matters, auditors often identify less significant internal control-related issues, as well as opportunities for the client to make operational improvements. These should also be communicated to the client. The form of communication is often a separate letter for that purpose, called a management letter. Although management letters are not required by auditing standards, auditors generally prepare them as a value-added service of the audit. Test of controls We’ve examined how auditors link controls, significant deficiencies, and material Weaknesses in internal control to related audit objectives to assess control risk for each objective. Now we’ll address how auditors test those controls that are used to support a control risk assessment. For example, each key control that the auditor intends to rely on to support a control risk of medium or low must be supported by sufficient tests of controls. We will deal with tests of controls for both audits of internal control for financial reporting and audits of financial statements. Assessing control risk requires the auditor to consider both the design and operation of controls to evaluate whether they will likely be effective in meeting related audit objectives. During the understanding phase, the auditor will have already gathered some evidence in support of both the design of the controls and their implementation by using procedures to obtain an understanding . In most cases, the auditor will not have gathered  enough evidence to reduce assessed control risk to a sufficiently low level. The auditor must therefore obtain additional evidence about the operating effectiveness of controls throughout all, or at least most, of the period under audit. The procedures to test effectiveness of controls in support of a reduced assessed control risk are called tests of controls. If the results of tests of controls support the design and operation of controls as expected, the auditor uses the same assessed control risk as the preliminary assessment. If, however, the tests of controls indicate that the controls did not operate effectively, the assessed control risk must be reconsidered. For example, the tests may indicate that the application of a control was curtailed midway through the year or that the person applying it made frequent misstatements. In such situations, the auditor uses a higher assessed control risk, unless compensating controls for the same related audit objectives are identified and found to be effective. Of course, the auditor must also consider the impact of those controls that are not operating effectively on the auditor’s Report on internal control. Procedures for Tests of Controls The auditor is likely to use four types of procedures to support the operating effectiveness of internal controls. Management’s testing of internal control will likely include the same types of procedures. The four types of procedures are as follows: 1. Make inquiries of appropriate client personnel. Although inquiry is not a highly reliable source of evidence about the effective operation of controls, it is still appropriate. For example, to determine that unauthorized personnel are denied access to computer files, the auditor may make inquiries of the person who controls the computer library and of the person who controls online access security password assignments. 2. Examine documents, records, and reports. Many controls leave a clear trail of documentary evidence that can be used to test controls. Suppose, for example, that when a customer order is received, it is used to create a customer sales order, which is approved for credit. Then the customer order is attached to the sales order as authorization for further processing. The auditor can test the control by examining the documents to make sure that they are complete and properly matched and that required signatures or initials are present. 3. Observe control-related  activities. Some controls do not leave an evidence trail, which means that it is not possible to examine evidence that the control was executed at a later date. For example, separation of duties relies on specific persons performing specific tasks, and there is typically no documentation of the separate performance. For controls that leave no documentary evidence, the auditor generally observes them being applied at various points during the year. 4. Reperform client procedures. There are also control-related activities for which there are related documents and records, but their content is insufficient for the auditor’s purpose of assessing whether controls are operating effectively. For example, assume that prices on sales invoices are obtained from the master price list, but no indication of the control is documented on the sales invoices. In these cases, it is common for the auditor to reperform the control activity to see whether the proper results were obtained. For this example, the auditor can re perform the procedure by tracing the sales prices to the authorized price list in effect at the date of the transaction. If no misstatements are found, the auditor can conclude that the procedure . Extent of Procedures The extent to which tests of controls are applied depends on the preliminary assessed control risk. If the auditor wants a lower assessed control risk, more extensive tests of controls are applied, both in terms of the number of controls tested and the extent of the tests for each control. For example, if the auditor wants to use a low assessed control risk, a larger sample size for documentation, observation, and re performance procedures should be applied. The extent of testing also depends on the frequency of the operation of the controls, and whether it is manual or automated. Reliance on Evidence from the Prior Year’s Audit When auditors plan to use evidence about the operating effectiveness of internal control obtained in prior audits, auditing standards require tests of the controls’ effectiveness at least every third year. If auditors determine that a key control has been changed since it was last tested, they should test it in the current year. When there are a number of controls tested in prior audits that have not been changed, auditing standards  require auditors to test some of those controls each year to ensure there is a rotation of controls testing throughout the three year period. Testing of Controls Related to Significant Risks Significant risks are those risks that the auditor believes require special audit consideration. When the auditor’s risk assessment procedures identify significant risks, the auditor is required to test the operating effectiveness of controls that mitigate these risks in the current year audit, if the auditor plans to rely on those controls to support a control risk assessment below 100%. The greater the risk, the more audit evidence the auditor should obtain that controls are operating effectively. Testing Less Than the Entire Audit Period Recall that management’s report on internal control deals with the effectiveness of internal controls as of the end of the fiscal year. PCAOB Standard 5 requires the auditor to perform tests of controls that are adequate to determine whether controls are operating effectively at year-end. The timing of the auditor’s tests of controls will therefore depend on the nature of the controls and when the company uses them. For controls that are applied throughout the accounting period, it is usually practical to test them at an interim date. The auditor will then determine later if changes in controls occurred in the period not tested and decide the implication of any change. Controls dealing with financial statement preparation occur only quarterly or at year-end and must therefore also be tested at quarter and year-end. Relationship between Tests of Controls and Procedures to Obtaining Understanding There is a significant overlap between tests of controls and procedures to obtain an understanding. Both include inquiry, documentation, and observation. There are two primary differences in the application of these common procedures. 1. In obtaining an understanding of internal control, the procedures to obtain an understanding are applied to all controls identified during that phase. Tests of controls, on the other hand, are applied only when the assessed control risk has not been satisfied by the procedures to obtain an understanding. 2. Procedures to obtain an  understanding are performed only on one or a few transactions or, in the case of observations, at a single point in time. Tests of controls are performed on larger samples of transactions (perhaps 20 to 100), and often, observations are made at more than one point in time. For key controls, tests of controls other than re performance are essentially an Extension of procedures to obtain an understanding. Therefore, assuming the auditors plan to obtain a low assessed control risk from the beginning of the integrated audit, they will likely combine both types of procedures and perform them simultaneously. One option is to perform the audit procedures separately, where minimum procedures to obtain an understanding of design and operation are performed, followed by additional tests of controls. An alternative is to combine both columns and do them simultaneously. The same amount of evidence is accumulated in the second approach, but more efficiently. The determination of the appropriate sample size for tests of controls is an important audit decisions. Detection risk and the design of substantive tests We’ve focused on how auditors assess control risk for each related audit objective and support control risk assessments with tests of controls. The completion of these activities is sufficient for the audit of internal control over financial reporting, even though the report will not be finalized until the auditor completes the audit of financial statements. The auditor uses the control risk assessment and results of tests of controls to determine planned detection risk and related substantive tests for the audit of financial statements. The auditor does this by linking the control risk assessments to the balance related audit objectives for the accounts affected by the major transaction types and to the four presentations and disclosure audit objectives. The appropriate level of detection risk for each balance-related audit objective is then decided using the audit risk model. The relationship of transaction-related audit objectives to balance-related audit objectives and the selection and design of audit procedures for substantive tests of financial statement. Types of test In developing an overall audit plan, auditors use five types of tests to determine whether financial statements are fairly stated. Auditors use risk  assessment procedures to assess the risk of material misstatement, represented by the combination of inherent risk and control risk. The other four types of tests represent further audit procedures performed in response to the risks identified. Each audit procedure falls into one, and sometimes more than one, of these five categories. Figure 13-1 shows the relationship of the four types of further audit procedures to the audit risk model. As Figure 13-1 illustrates, tests of controls are performed to support a reduced assessment of control risk, while auditors use analytical procedures and tests of details of balances to satisfy planned detection risk. Substantive tests of transactions affect both control risk and planned detection risk, because they test the effectiveness of internal controls and the dollar amounts of transactions. Risk Assessment Procedures TThe second standard of fieldwork requires the auditor to obtain an understanding of the entity and its environment, including its internal control, to assess the risk of material misstatement in the client’s financial statements. Risk assessment procedures are performed to assess the risk of material misstatement in the financial statements. The auditor performs tests of controls, substantive tests of transactions, analytical procedures, and tests of details of balances in response to the auditor’s assessment of the risk of material misstatements. The combination of these our types of further audit procedures provides the basis for the auditor’s opinion, as illustrated by Figure 13-1. A major part of the auditor’s risk assessment procedures are done to obtain an Understanding of internal control. Procedures to obtain an understanding of internal control were studied and focus on both the design and implementation of internal control and are used to assess control risk for each transaction-related audit objectively Tests of Controls EThe auditor’s understanding of internal control is used to assess control risk for each transaction-related audit objective. Examples are assessing the accuracy objective for sales transactions as low and the occurrence objective as moderate. When control policies and procedures are believed to be effectively designed, the auditor assesses control risk at a level that reflects the relative effectiveness of those controls. To obtain sufficient  appropriate evidence to support that assessment, the auditor performs tests of controls.S Tests of controls, either manual or automated, may include the following types of evidence. (Note that the first three procedures are the same as those used to obtain an understanding of internal control.) †¢ Make inquiries of appropriate client personnel †¢ Examine documents, records, and reports †¢ Observe control-related activities †¢ Reperform client procedures Auditors perform a system walkthrough as part of procedures to obtain an under – standing to help them determine whether controls are in place. The walkthrough is normally applied to one or a few transactions and follows that transaction through the entire process. For example, the auditor may select one sales transaction for a system walk through of the credit approval process, then follow the credit approval process from initiation of the sales transaction through the granting of credit. Tests of controls are also used to determine whether these controls are effective and usually involve testing a sample of transactions. As a test of the operating effectiveness of the credit approval process, for example, the auditor might examine a sample of 50 sales transactions from throughout the year to determine whether credit was granted before the shipment of goods. Procedures to obtain an understanding of internal control generally do not provide sufficient appropriate evidence that a control is operating effectively. An exception may apply for automated controls because of their consistent performance. The auditor’s procedures to determine whether the automated control has been implemented may also serve as the test of that control, if the auditor determines there is minimal risk that the automated control has been changed since the understanding was obtained. Then, no additional tests of controls would be required. The amount of additional evidence required for tests of controls depends on two things: 1. The extent of evidence obtained in gaining the understanding of internal control 2. The planned reduction in control risk Figure 13-2 (p. 406) shows the role of tests of controls in the audit of the sales and collection cycle relative to other tests performed to provide  sufficient appropriate evidence for the auditor’s opinion. Note the un shaded circles with the words â€Å"Audited by TOC.† For simplicity, we make two assumptions: Only sales and cash receipts trans – actions and three general ledger balances make up the sales and collection cycle and the beginning balances in cash and accounts receivable were audited in the previous year and are considered correct. If auditors verify that sales and cash receipts transactions are correctly recorded in the accounting records and posted to the general ledger, they can conclude that the ending balances in accounts receivable and sales are correct. (Cash disbursements transactions will OF have to be audited before the auditor can reach a conclusion about the ending balance in the cash account.) One way the auditor can verify recording of transactions is to perform tests of controls. If controls are in place over sales and cash receipts transactions, the auditor can perform tests of controls to determine whether the six transaction-related audit objectives are being met for that cycle. Substantive tests of transactions, which we will examine in the next section, also affect audit assurance for sales and cash receipts transactions. Substantive Tests of TransactionsSTS Substantive tests are procedures designed to test for dollar misstatements (often called monetary misstatements) that directly affect the correctness of financial statement balances. Auditors rely on three types of substantive tests: substantive tests of transactions, substantive analytical procedures, and tests of details of balances. Substantive tests of transactions are used to determine whether all six transactions related audit objectives have been satisfied for each class of transactions. Two of those objectives for sales transactions are recorded sales transactions exist (occurrence objective) and existing sales transactions are recorded (completeness objective for the six transaction-related audit objectives. When auditors are confident that all transactions were correctly recorded in the journals and correctly posted, considering all six transaction-related audit objectives, they can be confident that general ledger totals are correct. Figure 13-2 illustrates the role of substantive tests of transactions in the audit of the sales and collection cycle by lightly shaded circles with the words â€Å"Audited by STOT.† Observe that both tests of controls and substantive tests of transactions are performed for transactions in the cycle, not on the ending account  balances. The auditor verifies the recording and summarizing of sales and cash receipts transactions by performing substantive tests of transactions. Figure 13-2 shows one set of tests for sales and another for cash receipts. Analytical Procedures analytical procedures involve comparisons of recorded amounts to expectations developed by the auditor. Auditing standards require that they be done during planning and completing the audit. Although not required, analytical procedures may also be performed to audit an account balance. The two most important purposes of analytical procedures in the audit of account balances are to: 1. Indicate possible misstatements in the financial statements 2. Provide substantive evidence Analytical procedures done during planning typically differ from those done in the testing phase. Even if, for example, auditors calculate the gross margin during planning, they probably do it using interim data. Later, during the tests of the ending balances, they will recalculate the ratio using full-year data. If auditors believe that analytical procedures indicate a reasonable possibility of misstatement, they may perform additional analytical procedures or decide to modify tests of details of balances. When the auditor develops expectations using analytical procedures and concludes that the client’s ending balances in certain accounts appear reasonable, certain tests of details of balances may be eliminated or sample sizes reduced. Auditing standards state that analytical procedures are a type of substantive test (referred to as substantive analytical procedures), when they are performed to provide evidence about an account balance. The Extent to which auditors may be willing to rely on substantive analytical procedures in support of an account balance depends on several factors, including the precision of the expectation developed by the auditor, materiality, and the risk of material misstatement. Figure 13-2 illustrates the role of substantive analytical procedures in the audit of the sales and collection cycle by the dark shaded circles with the words â€Å"Audited by AP.† Observe that the auditor performs substantive analytical procedures on sales and Cash receipts transactions, as well as on the ending balances of the accounts in the cycle. Tests of Details of Balances Tests of details of balances focus on the ending general ledger balances for both balance sheet and income statement accounts. The primary emphasis in most tests of details of balances is on the balance sheet. Examples include confirmation of customer balances for accounts receivable, physical examination of inventory, and examination of vendors’ statements for accounts payable. Tests of ending balances are essential because the evidence is usually obtained from a source independent of the client, which is considered highly reliable. Much like for transactions, the auditor’s tests of details of balances must satisfy all balance-related audit objectives for each significant balance sheet account. Figure 13-2 illustrates the role of tests of details of balances by the circles with half dark and half light shading and the words â€Å"Audited by TDB.† Auditors perform detailed tests of the ending balances for sales and accounts receivable, including procedures such as confirmation of account receivable balances and sales cutoff tests. The extent of these tests depends on the results of tests of controls, substantive tests of transactions, and substantive analytical procedures for these accounts. Tests of details of balances help establish the monetary correctness of the accounts they relate to and therefore are substantive tests. For example, confirmations test for monetary misstatements in accounts receivable and are therefore substantive tests. Similarly, counts of inventory and cash on hand are also substantive tests. OSelect the appropriate types of audit tests Typically, auditors use all five types of tests when performing an audit of the financial statements, but certain types may be emphasized, depending on the circumstances. Recall that risk assessment procedures are required in all audits to assess the risk of material misstatement while the other four types of tests are performed in response to the risks identified to provide the basis for the auditor’s opinion. Note also that only risk assessment procedures, especially procedures to obtain an understanding of controls, and tests of controls are performed in an audit of internal control over financial reporting. Several factors influence the auditor’s choice of the types of tests to select, including the availability of the eight types of evidence, the relative costs of each type of test, the effectiveness of  internal controls, and inherent risks. Only the first two are discussed further because the last two were discussed in earlier chapters. Availability of Types of Evidence for Further Audit Procedures OEach of the four types of further audit procedures involves only certain types of evidence (confirmation, documentation, and so forth. †¢ More types of evidence, six in total, are used for tests of details of balances than for any other type of test. †¢ Only tests of details of balances involve physical examination and confirmation. †¢ Inquiries of the client are made for every type of test. †¢ Documentation is used in every type of test except analytical procedures. †¢ Re performance is used in every type of test except analytical procedures. Auditors may re perform a control as part of a transaction walkthrough or to test a control that is not supported by sufficient documentary evidence. †¢ Recalculation is used to verify the mathematical accuracy of transactions when per forming substantive test of transactions and account balances when per – forming tests of details of balances. Relative Costs When auditors must decide which type of test to select for obtaining sufficient appropriate evidence, the cost of the evidence is an important consideration. The types of tests are listed below in order of increasing cost: †¢ Analytical procedures †¢ Risk assessment procedures, including procedures to obtain an understanding of internal control †¢ Tests of controls †¢ Substantive tests of transactions †¢ Tests of details of balances Analytical procedures are the least costly because of the relative ease of making calculations and comparisons. Often, considerable information about potential misstatements can be obtained by simply comparing two or three numbers. Risk assessment procedures, including procedures to obtain an understanding of internal control, are not as costly as other audit tests because auditors can easily make inquiries and observations and perform planning analytical procedures. Also, examining such things as documents  summarizing the client’s business operations and processes and management and governance structure are relatively cheaper than other audit tests. Because tests of controls also involve inquiry, observation, and inspection, their relative costs are also low compared to substantive tests. However, tests of controls are more costly relative to the auditor’s risk assessment procedures due to a greater extent of testing required to obtain evidence that a control is operating effectively, especially when those tests of controls involve re performance. Often, auditors can perform a large number of tests of controls quickly using audit software. Such software can test controls in clients’ computerized accounting systems, such as in computerized accounts receivable systems that automatically authorize sales to existing customers by comparing the proposed sales amount and existing accounts receivable balance with the customer’s credit limit. Substantive tests of transactions cost more than tests of controls that do not include re performance because the former often require recalculations and tracings. In a computerized environment, however, the auditor can often perform substantive tests of transactions quickly for a large sample of transactions. Tests of details of balances almost always cost considerably more than any of the Other types of procedures because of the cost of procedures such as sending confirmations and counting inventories. Because of the high cost of tests of details of balances, auditors usually try to plan the audit to minimize their use. Naturally, the cost of each type of evidence varies in different situations. For example, the cost of an auditor’s test-counting inventory (a substantive test of the details of the inventory balance) often depends on the type and dollar value of the Inventory, its location, and the number of different items. Relationship between Tests of Controls and Substantive Tests To better understand tests of controls and substantive tests, let’s examine how they differ. An exception in a test of control only indicates the likelihood of misstatements affecting the dollar value of the financial statements, whereas an exception in a substantive test of transactions or a test of details of balances is a financial statement misstatement. Exceptions in tests of controls are called control test deviations. From the three levels of control deficiencies: deficiencies, significant deficiencies, and  material weaknesses. Auditors are most likely to believe material dollar misstatements exist in the financial statements when control test deviations are considered to be significant deficiencies or material weaknesses. Auditors should then perform substantive tests of transactions or tests of details of balances to determine whether material dollar misstatements have actually occurred. Assume that the client’s controls require an independent clerk to verify the quantity, price, and extension of each sales invoice, after which the clerk must initial the duplicate invoice to indicate performance. A test of control audit procedure is to inspect a sample of duplicate sales invoices for the initials of the person who verified the information. If a significant number of documents lack initials, the auditor should consider implications for the audit of internal control over financial reporting and follow up with substantive tests for the financial statement audit. This can be done by extending tests of duplicate sales invoices to include verifying prices, extensions, and footings (substantive tests of transactions) or by increasing the sample size for the confirmation of accounts receivable (substantive test of details of balances). Even though the control is not operating effectively, the invoices may still be correct, especially if the person originally preparing On the other hand, if no documents or only a few of them are missing initials, the control will be considered effective and the auditor can therefore reduce substantive tests of transactions and tests of details of balances. However, some re performance and recalculation substantive tests are still necessary to provide the auditor assurance that the clerk did not initial documents without actually performing the control procedure or performed it carelessly. Because of the need to complete some re performance and recalculation tests, many auditors perform them as a part of the original tests of controls. Others wait until they know the results of the tests of controls and then determine the total sample size needed. Relationship between Analytical Procedures and Substantive Tests Like tests of controls, analytical procedures only indicate the likelihood of misstatements affecting the dollar value of the financial statements. Unusual fluctuations in the relationships of an account to other accounts, or to nonfinancial information, may indicate an increased likelihood that material misstatements exist without necessarily providing direct evidence of a  material misstatement. When analytical procedures identify unusual fluctuations, auditors should perform substantive tests of transactions or tests of details of balances to determine whether dollar misstatements have actually occurred. If the auditor performs substantive analytical procedures and believes that the likelihood of material misstatement is low, other substantive tests can be reduced. For accounts with small balances and only minimal potential for material misstatements, such as many supplies and prepaid expense accounts, auditors often limit their tests to substantive analytical procedures if they conclude the accounts are reasonably stated. Trade-Off between Tests of Controls and Substantive Tests There is a trade-off between tests of controls and substantive tests. During planning, auditors decide whether to assess control risk below the maximum. When they do, they must then perform tests of controls to determine whether the assessed level of control risk is supported. (They must always perform test of controls in an audit of internal control over financial reporting.) If tests of controls support the control risk assessment, planned detection risk in the audit risk model is increased, and planned substantive tests can therefore be reduced. Figure 13-3 shows the relationship between substantive tests and control risk assessment (including tests of controls) at differing levels of internal control effectiveness Impact of information technology on audit testing Auditing standards provide guidance for auditors of entities that transmit process, maintain, or access significant information electronically. Examples of electronic evidence include records of electronic fund transfers and purchase orders transmitted through electronic data interchange (EDI). Evidence of the performance of automated controls, such as the computer’s comparison of proposed sales orders to customer credit limits, may also only be in electronic form. The standards recognize that when a significant amount of audit evidence exists in electronic form, it may not be practical or possible to reduce detection risk to an acceptable level by performing only substantive tests. For example, the potential for improper initiation or alteration of information may be greater if information is maintained only in electronic form. In these circumstances, the auditor should perform  tests of controls to gather evidence in support of an assessed level of control risk below maximum for the affected financial statement assertions. Although some substantive tests are still required, the auditor can significantly reduce substantive tests if the results of tests of controls support the effectiveness of controls. In the audit of a larger public company, computer-performed controls (these are called automated controls) must be tested if the auditor considers them to be key controls for reducing the likelihood of material misstatements in the financial statements. Because of the inherent consistency of IT processing, however, the auditor may be able to reduce the extent of testing of an automated control. For example, software based control is almost certain to function consistently unless the program is changed. Once auditors determine an automated control is functioning properly, they can focus subsequent tests on assessing whether any changes have occurred that will limit the effectiveness of the control. Such tests might include determining whether any changes have occurred to the program and whether these changes were properly authorized and tested prior to implementation. This approach leads to significant audit efficiencies when the auditor determines that automated controls tested in the prior year’s audit have not been changed and continue to be subject to effective general controls. To test automated controls or data, the auditor may need to use computer-assisted audit techniques or use reports produced by IT to test the operating effectiveness of IT general controls, such as program change controls and access controls. In many cases, testing of automated controls may be performed by IT audit specialists. When auditors test manual controls that rely on IT-generated reports, they must consider both the Effectiveness of management’s review and automated controls over the accuracy of Information in the report.

Veni Vidi Vici Vimy (Vimy Ridge for Canada)

Veni, Vidi, Vici Vimy (following the outline plan given in 3. 10) Introduction Paragraph: – World War 1, defining moment for Canadian nationalism. Did not escape unscathed, but the participation in the war gave a stronger sense of nationhood. – Canada's contributions into WWI led to international recognition; other countries must recognize you as sovereign. – The effort also brought acknowledgement to Canada's contributions and heroism on the battlefields of Europe, giving Canada the shot to be a more-mature, experienced nation because of the sacrifices made by their armed forces. The Battle at Vimy Ridge was the greatest assertion in Canadian sovereignty in WWI. Body Paragraph 1: – Canada stepped up to the plate because of their ties to Britain; originally, wanted nothing to do with the World War, but a sense of duty and owing Britain their help through the war persuaded them otherwise. – Alliances and history tied many countries together. If one g ot pulled into the war, others did too. Something like a chain-reaction. Canada did not have much reason to fight, other than Britain called for the aid they had promised earlier; Canada thought they might escape untouched by the war, but they lost many citizens, materials, family, loved ones and experienced the financial loss that war brings. Canada also had to bear knowing many of their people were overseas, far from home, fighting for someone else's war. – Fought and participated in many battles, with one of the most prominent being their victory at Vimy Ridge. Body Paragraph 2: – From July to mid-November 1916, the Battle of the Somme claimed 24,029 Canadian casualties.Greater loss than expected. It also gave Canadian units the reputation of a formidable assault force. – Canadians' first taste of the Battle of the Somme occurred when they were asked to secure the town of Courcelette, France. November 11, the Canadian Division finally secured most of the Germ an trenches in Courcelette and then rejoined the Canadian Corps at Vimy Ridge. – Prime Minister Lloyd George: â€Å"The Canadians played a part of such distinction that thenceforward they were marked out as shock troops; for the remainder of the war they were brought along to head the assault in one great battle after another.Whenever the Germans found the Canadian Corps coming into the line they prepared for the worst. † Body Paragraph 3: – April 12, Hill 145 fell, Vimy Ridge was won over by Canadian troops. The whole plan was entirely devised by Canada and was independent of British thoughts. – The success in the capture of the ridge earned Canada a reputation of great strength and accomplishment, and it was also the first time that Canada had ever planned its own attack without British help. It was the first step towards Canada's independence and sovereignty. Even under British rule, Canadian troops planned, rehearsed, followed through, and defeated th e Germans at Vimy Ridge under the command of Canadian officers and officials. – Although the victory came with a great cost, with more than 10,000 killed and wounded, it helped prove Canada in front of other world countries. Concluding Paragraph: – I believe that the effort put into it by Canada gave the world a chance to recognize Canada's contributions and heroism after the battles they fought and won on the European battlefields. Canada was given the chance to be perceived as a mature, wiser nation through the sacrifices it made during the war. – The Battle at Vimy ridge was the exceptional proclamation of Canadian sovereignty in WWI. – World War 1 was an interpreting moment for Canadian nationalism in many ways and instances. Although Canada didn't make it through the war untouched or without dissension, our role in the war gave us a greater and stronger sense of nationhood.

Advanced Emergency Care Essay Example | Topics and Well Written Essays - 2000 words

Advanced Emergency Care - Essay Example The article was chosen for its rigour and scientific form and the aim of this analysis is thus to assess the article by Preston et al. (2009) and how well they follow general research standards (posing and testing a hypothesis) and the use of (appropriate) methods. The analysis examines therefore the aim of Preston et al. (2009) and how well it is tested, whether it is properly contextualized in the relevant literature, whether the sample, research site or population are adequate and clearly defined and ethical questions have been considered and whether there is a thorough presentation of the results of the test (a RESULTS section). As part of the analysis the focus must also be on the conclusions and recommendations by Preston et al. and the relevance of the paper to advanced emergency care practice. The evaluation of Preston et al (2009) also notes in which sense the study under examination has tested the research question and whether limitations of the findings are acknowledged (R ees 2003). This essay analyses the work of Preston et al. (2009) and draws on external literary sources ) and the Resuscitation Council Guidelines (UK) 2010 when further clarification and referencing is be needed. After the analysis, it proceeds by framing the research paper in terms of its relevance to practice. The conclusions offered are a summary of the arguments in the essay. Evaluation of the research article, ‘Assessing advanced life support competence: Victorian Practices’ (Preston et al. 2009) 1. Aim in Preston et al. (2009) Preston et al. (2009) note that there are few studies that rigorously examining advanced life support (ALS) to direct educators about how to best assess ALS competence (knowledge and performance). The aim is therefore to point to a systematic approach to guide educators and has, as will be seen later, great relevance to practice. Preston et al.’s (2009) aim is accordingly to determine the most useful methods to assess competence amon g nurses and their resuscitation skills and knowledge (Preston et al. 2009, pp. 164-65). Their research is descriptive and uses content analysis (arranging the data into categories). It follows the standards of proper research presentation (Bowling, 2009; Rees, 2003). 2. Literature review Having outlined the problem by way of their hypothesis and aim, Preston et al. (2009) now turn to an analysis of relevant literary sources and concepts. So as to provide proper background to their own study (to contextualize it in the literature, Rees 2003) they cite the work of Chiarella et al. published in 2008. It identifies the competence to be tested, such as skills, knowledge, attitudes, values and abilities that appear to shape performance (ibid: 165). In the assessment of skills and ALS competence, psychomotor proficiency is recommended by other studies cited and refer to ‘arrhythmia [irregular heartbeat] recognition’, defribillation, intravenous therapy through insertion of in travenous cannula, administration of drugs and other means of coping with cardiac arrest by managing the airways and through ventilation and by assuring proper transport of the patient. While Preston et al. (2009) refer to Australian Resuscitation Council Guidelines (ibid: 165), one my here usefully refer to a similar

Security...See below Essay Example | Topics and Well Written Essays - 250 words - 1

Security...See below - Essay Example All laptops, cell phones, tablets, and gadget should be checked to mitigate this risk. Another element that is crucial to understand is collaboration with authorities. Airport personal must conduct a due diligence of collaboration with all authorities. They must create a network and collaboration in which all agencies work together to combat terrorism. This is crucial towards fighting domestic threats that are risky to this country. Moreover, a stricter immigration policy along with a solid criminal justice system here in America it would have to include making tighter rules on those applying for visa’s and green cards.   A focal point that all personnel must understand that authentication of identity is also extremely crucial. These background checks are absolutely necessary for traveling and other admin related tasks. A great enhancement in this realm is face recognition software, which can detect criminals when entering airports or even local municipalities. The new policy will ensure that all offenses including prior crimes such as identity theft, fraudulent documents creation, biological threat, and etc. Special issue: Intelligence, governance and the interagency. (n.d.). Special issue: Intelligence, governance and the interagency. Retrieved May 26, 2014, from

Analyzing the key elements of the nature-nurture controversy Essay

Analyzing the key elements of the nature-nurture controversy - Essay Example These factors involve various dimensions including physical environments such as prenatal nutrition, social environments such as the media among others. The nature versus nurture debate is an argument concerned with the innate qualities of an individual versus the personal experiences used to determine or create differences in individuals, in their behavioral and physical traits. Psychologically, nativism has the implication that some skills or abilities are usually hard wired in a person’s brain at the time of birth. On the other hand, Empiricism or behaviorism implies that theoretical knowledge that state categorically that an individual’s knowledge can only come through sensory experience. In this regard, certain scientific researchers have indicated that children become the product of the environments that they live in, or they acquire knowledge to do the things they do by nurturing. Others argue that, people behave in certain ways through hereditary and this consti tute to nature. Most theorists are also in an agreement that, nature and nurture are both intertwined, and they have an influence in most human aspects such as emotion, cognition among others. The questions behind the human development as well as the factors that influence it have taken central importance in psychology ever since the beginning of the discipline. The argument that human development comprises of these two factors has been argued for a long time by both philosophers and psychologists. Revolutionary ideas that came in the nineteenth century and their upheavals such as industrialization, Darwinism, and the abolition of slavery created an incitement to the conflicting interpretations that existed about the world and human life. In straightening out the effects of environment and genes to individual, behavioral geneticists usually perform the twin and adoption studies. Such studies aim at decomposing the variance that exists in a population into environmental and genetic c omponents. By the use of the comparison of the correlation in an exceptional dimension like the intelligence test (IQ) scores in identical twins and the fraternal twins, it possible for researchers to theoretically work out the comparative influences of both nature and nurture on this particular dimension. Sandra Scarr, for example, reported a correlation for the IQ test scores for identical twins of 0.86 and for the fraternal twins of 0.55 she indicated that, identical twins had scores that are close to one another as compared to those of the fraternal twins. This is an indication of hereditary. Contrary, where the IQ scores are 100 percent determined genetically, the identical twins’ correlation would be 1.00 according to this example, heredity seems to have a significant role. This does not mean that it is certainly the determinants in IQ tests. Researchers also do monitor concordance rates, in addition to the heritability estimates. Concordance rates are the ones at which the development of a characteristic occurs in both twins (Novel guide, 2011). In this study, the lack or availability of a specific mental condition is usually considered being an excellent example. Under situations that both twins showed some clinical depression in all pairs that were examined in the study, this would give a concordance rate of 100 percent in such a case. Contrary, if, in every pair, there was one individual who had the clinical depress

Teenagers and Young Adults Are Changing Marketing Practices Literature review

Teenagers and Young Adults Are Changing Marketing Practices - Literature review Example The world has said to be entered in the era of globalization as there are no real boundaries and distances are contracted because of the free flow of information and knowledge. Indeed, the advancements in information and communication technology (ICT), especially the arrival of the internet, have facilitated networking and information sharing among people worldwide. For instance, this has not only benefited the trade and commerce but also provided new business and investment opportunities to entrepreneurs across the globe. Also, this has resulted in intense competition among the firms because new people/ investors/firms regularly enter the corporate world, which ultimately benefits consumers in terms of greater variety and availability of choice. However, it is worthwhile to mention that this competition also put greater strain on marketing personnel, since they have been bombarded with various new responsibilities and duties to ensure survival, growth and sustainability of an enterp rise. (Chan & Fang, 2007) Marketers have realized the fact that teenagers (under age bracket of 12 – 16 years) and young adults (16 + years) could be the most attractive and lucrative market segments; since they have relatively better purchasing power as well as inclination to acquire innovated products and accept ideas. Nevertheless, Spero and Stone (2004) argued that this segment was not provided sufficient channels, which they could use to express and share their ideas, values, aspirations and opinions with the general public.

Design Rubric Coursework Example | Topics and Well Written Essays - 500 words

Design Rubric - Coursework Example This paper presents an information system capable of realizing both the learning method and the learning management process. This system has been designed using the ADDIE model and is divided into 5 phases as discussed in the following section. The course is about introduction to the basics of a computer system. The main aim of this course is to enable the students identify and familiarize with the different parts and basic architecture of a computer system. The basic architecture refers to computer components (both hardware and software) and how they interact together. After this course, students should also be able to identify the various types of input and output devices. The target students are teenagers of mixed gender aged between 13 to 17 years, who have used computers before. The main teaching approach will be done face to face (direct interaction between students and the tutor). There will also be practical lessons in the computer room. Students will be provided with learning materials throughout the course which is expected to last for 4 months. Students will be given a detailed introduction to the computer hardware parts. During the practical lessons, students will be divided into several groups and given various hardware components and asked to identify them. Students will be required to give their feedback after every session in order to ensure that they fully understand the topic at hand. Students will also be told about the latest technology related to each software or hardware component (Clark, 2004). Students will be provided with work books and lesson programs that will be produced in the library. This will help the students prepare for the coming lessons. A flow chart will also be created and will help in guiding the tutor on the flow of events throughout the course period. Before any session, it will be ensured that students have all the necessary materials. Before lab sessions, the instructor will ensure that all

Soccer Injures Essay Example | Topics and Well Written Essays - 1500 words

Soccer Injures - Essay Example Besides soccer being very much enjoyable, this paper tries to put forward the argument that it also injures. The essay explains how soccer as a game is a cause to many diverse injuries and that it is fundamental for it to be realized for the right prevention measures to be employed. The effects of the injuries are also clearly explained that the extent of the injuries caused by soccer may come out clearly. Beside Soccer being an enjoyable sport and with fast growing popularity, many people do not consider the fact that soccer in itself is quite dangerous and can cause injuries both serious and minor. Many people view soccer as a very safe game and very soft, thus, many people who join the sport do not have any anticipation of being injured. Some other people, including players who know that soccer can cause injuries only believe that those injuries can only be mild. They also assume that these injuries can simply be cured by physicians who are present on the field. I figured out that it is important to understand and accept the fact that soccer can cause injuries and thereby it will be easy to take precautions and even prevent some of the injuries. Although it is widely argued that most of the injuries that players get on the field cannot be prevented, since they are not planned for, I believe that once the players know what to expect of the game, they can avoid the injuries, and besi des that, they will also learn how to manage them (Per, Kristian and Kim 1248). Soccer as opposed to the thoughts of many can cause injuries from mild ones to very serious ones and worse off, they can even cause death. I consider all of these together as dangerous. Taking an example of mild injuries, repeated mild injuries can lead to serious problems. One can even end up with a permanent injury because of repeated mild injuries. This can lead to suspension from the game or even termination of one’s career as a soccer

The Life of Agatha Christie Essay Example for Free

The Life of Agatha Christie Essay On 15th of September, 1890, a girl named Agatha Mary Clarissa Miller was born. She was given birth in Torquay, England. She was taken care of by her loving parents named Frederick and Clara. She also had two siblings who were older than her. Their names are Madge, her sister, and Monty, her brother. Agatha’s father was a very sociable man who had a self-sufficient income. Clara, who was shy, was the opposite of Frederick. Agatha acquired the personality of her mother (ACL, 2008). Madge was able to have a formal education. However, their mother Clara thought that Agatha should not have one. It was her intention that Agatha would learn how to read when she reached the age of eight. But through Agatha’s own will and way, she learned reading when she was five years old. Her education was very diverse. She had varied tutors. She had part-time education. She also enrolled in French schools. Agatha also even had training in singing and playing the piano. But because she was shy like her mother, she was not able to make it as her career (ACL, 2008). Agatha’s father passed away when she was eleven years old. Because of this incidence, she became more intimate to her mother. When Frederick was gone, Clara started to travel a lot. There were times that she would bring Agatha with her trips. This had become the beginning of Agatha’s passion for traveling (ACL, 2008). Agatha was eventually married to a man named Archie Christie. It was a Christmas Eve of 1914. Archie was an aviator during World War I. Even her husband was at the war, Agatha kept herself busy. She became a nurse. During the times that she was working in hospital, she had thought to write a novel. Her first novel was titled â€Å"The Mysterious Affairs at Styles. † She was bale to finish the novel in just a year. However, it took her several years before her book was published. Agatha received an exceptional review in Pharmaceutical Journal for this novel (MysteryNet, 2005). Agatha had a daughter was born on 1919. Her daughter was named Rosalind. However, in 1926, Agatha also faced some challenges in her personal life. Clara died and Agatha also had her first marriage divorced (ACL, 2008). In 1930, she went on a vacation in Iraq. She was already 40 years old by that time. In this vacation, Agatha met a man named Max Mallowan. Max was an archeologist and was fourteen years younger than her. Also in that year, Agatha and Max got married. From time to time, Agatha helped out in some archeological activities of her husband. Nevertheless, she continued writing novels and short stories even she was on a trip (Jonasson, 2000). Agatha Christie had written almost 70 novels and a hundred or more short stories (Jonasson, 2000). â€Å"Evil under the Sun†, â€Å"Hercule Poirot’s Christmas†, and â€Å"Murder on the Orient† are just few among the stories she had published. Her most famous character Miss Marple appeared in the book â€Å"The Murder at the Vicarage† which was published on 1930. Agatha Christie also wrote for a stage play and it became very popular. It was titled â€Å"The Mousetrap† (Simkin, 1997). She even had become the Dame Commander of British Empire in 1971. On 12th of January 1976, Agatha Christie died, leaving a flourishing career and wonderful life (Simkin, 1997). List of References Agatha Christie Limited. (2008) The Queen of Crime: Biography [Internet]. London, ACL. Available from: http://www. agathachristie. com/about-christie/the-queen-of- crime/biography/ [Accessed 6 November 2008]. Jonasson, R. (2000) Agatha Christie [Internet]. The Icelandic Homepage. Available from: http://www. simnet. is/jonasson/agatha/ [Accessed 6 November 2008]. MysteryNet. (2005) Agatha Christie [Internet]. Available from:http://christie. mysterynet. com/ [Accessed 6 November 2008]. Simkin, J. (1997) Spartacus Educational [Internet]. Available from: http://www. spartacus. schoolnet. co. uk/WRchristie. htm [Accessed 6 November 2008].

Counterbalancing China or Exploiting BRICS

Counterbalancing China or Exploiting BRICS COUNTERBALANCING CHINA OR EXPLOITING BRICS: OPTIONS FOR INDIA INTRODUCTION 1.BRICS, a unique group of countries with shared opportunities common challenges, came into being in New York in Sep 2006. However, it was during the third Summit at Sanya, in China, in Apr 2011 that South Africa joined this group thereby completing the acronym. BRICS symbolises the amalgamation of the most powerful emerging economies of the world into a group whose composite economic strength will wrest the global economic power away from the developedG7economies. 2.BRICS economies account for a quarter of the world’s Gross Domestic Product (GDP) has been consistently displaying sustained high annual growth rates. The economic potential of the BRICS nations cannot be overlooked however, it is yet to be seen whether BRICS would only limit itself to being an economic group or will it also assert itself on the world matters in global forums that have been dominated by the G7 nations. The possibilities of using its economic potential are endless. In its quest to realise the stated goals, it is imperative that these nations work jointly cohesively. 3. The Sixth BRICS Summit held in Brazil on 16th 17th Jul was an important milestone for the member nations as well as huge economic opportunities for them as well as the member nations with the announcement of making BRICS Bank operational to be headquartered at Shanghai. China and India being the two of the largest and most influential members share an uneasy relationship both economically and politically. BRICS is the key to their relationship and path to mutual growth. Statement of the Problem 4.Can India leverage BRICS platform to offset its economic and border issues with China? Hypothesis 5.India can resolve its economic and border issues with China by leveraging BRICS platform. Method of Data Collection 6.The information for this paper shall be gathered through the study of various books, journals papers in print as well as the Internet. Views of various guest speakers would also be incorporated. An attempt would be made to refer the sources from various agencies. Scope 7.The scope of the Dissertation is:- (a)Background/Historical perspective of BRICS. (b)Economic potential of BRICS. (c)Significance of BRICS in global politics/ international governance. (d)Challenges faced way ahead. (e) Sino-Indian Disputes. (e)Sino-Indian Relations in Foreseeable Future. (f) How India can leverage BRICS. CHAPTERS Chapter I : Background/Historical Perspective Of BRICS 8.This section will attempt to throw light on the origin the journey of BRICS from its inception to the present day. It will also broadly cover important aspects of the Goldman Sachs report by Jim O’ Neil that brought about the acronym of BRICS. Chapter II : Economic Potential of BRICS 9.Developing to Emerging Economies. This section of the paper will bring out the geo economic geo political journey of individual nations, leading to their present status. It will also give out the steps initiated by the member nations of BRICS to emerge as a cohesive stable economic platform. It will also highlight the key economic reforms resorted to by the BRICS nations the latent potential existing with these members. 10.Present Scenario. This section will deal with the current economic potential of the BRICS nations, both individually collectively. The present potential of BRICS has been listed as progressive however certain critical aspects that boost the economic potential are not symmetric across the members of BRICS. 12.Future Potential. The future potential as predicted for the BRICS will be discussed in this section. This section will also analyse the barriers that BRICS can implement to immune itself from the present global economic slowdown thereby maintaining its economic growth. It will aim to bring out that as economic powerhouses regional hubs, intra-BRICS market integration can insulate these nations from worldwide economic downturn. Chapter III : Significance Of BRICS in Global Politics / International Governance 13. Economics Finance. The interaction of BRICS members in order to reform international financial system is likely to remain a key priority in the midterm perhaps also in the long term. 14. Global Politics. BRICS as a group has already accumulated valuable experience in coordinating actions with regard to several major global political problems. BRICSs deeper engagement with the UN will aim to preserve strengthen the central role of the Security Council in maintaining international peace security. 15.Security. The format of the BRICS does not provide for deliberating military, political issues developing mechanisms for military cooperation. However, there are regular meetings of the high representatives of the members on security issues, including strategic stability, international regional security, non-proliferation of weapons of mass destruction the settlement of regional conflicts. This section will aim to bring out the underlying security implications for the BRICS nations in current geo – political environment. Chapter IV : Challenges Faced Way Ahead 16.The BRICS is still in its nascent stage owing to which it is likely to face a number of challenges ahead. The member nations need to overcome the internal contradictions to develop the group into a cohesive entity. This section will analyse some of these challenges like:- (a)Growth Disparity between member nations. (b)Trade Imbalance Mutual Distrust. (c)Public Private Participation. (d)Policy reforms for BRICS members to make their growth processes more durable development oriented. (e)Bring out the need to reform the structure functioning of IMF. (f)Launching of a joint development bank. 17.The Way Ahead. Under way ahead, recommendations for BRICS nations to sustain their economic growth mutual development will be deliberated. The important aspects such as mutual cooperation, handling of economic situation, establishment of BRICS bank and other miscellaneous issues will be discussed. Chapter V : Sino-Indian Disputes. 18. This chapter will be covering the disputes between both the nations as under:- Border issues. Geopolitical threat. Economic imbalance. Tibet issues. Nexus with Pakistan. Potential arms race. Indian Ocean Region. Brahmaputra water projects dispute. (j) Race for minerals/hydrocarbons in Africa and CAR. Chapter V : Sino-Indian Relations in Foreseeable Future. 19. This Chapter will be dealing with the mutual relations:- (a) Political relations. (b) Economic relations. (c) Potential cooperation areas. Chapter V : How Can India Leverage BRICS? 20.Key Thrust Areas for India. There are a few key thrust areas that India must seek in order to enhance its influence in the world forums. These thrust areas such as strengthening economic infrastructure reforms, building strategic alliances with members of BRICS, maintenance of steady pace of economic growth; increasing service industry’s influence energy security will also be discussed in this section. 21.Leveraging BRICS. (a)Geo-Political Leverage. This sub section will bring out how India stands to gain Geo-Political mileage by being part of BRICS. It will cover the aspects that will bear major advantages for India in the Geo-Political sphere. (b) Economic Leverage. This sub section will dwell upon India’s likely economic gains from BRICS that will further boost its economic growth add greater value to its economic potential. (c) Geo-Strategic Leverage. BRICS offers India ample opportunities to enhance its global reach overcome certain strategic impediments. This sub section will view all these opportunities against the backdrop of the Geo-Strategic implications that they may bring forth. (d) Defence Cooperation. This sub section will analyse the opportunities that India will have in realms of security while being the member of this group especially as Russia China, two of major military powers also part of the group. CONCLUSION 19. It is well evident that BRICS has emerged as an entity that has the potential to challenge the influence of G7 in the world forums. This potential evolves from a sustained economic growth the diversity exhibited by its member nations. The economic potential of BRICS is the sole reason why it is being viewed as the initiation of a Multi Polar World Order that is set to overcome the unipolar hegemony of the US. However, BRICS, in order to maintain its economic potential will need to eradicate multiple challenges that it faces due to the Geo-strategic locations divergent national interests of its member nations. BRICS will be a success in true self only if India and China can resolve their mutual issues and steer it towards the path of development and prosperity.

Denition Of Baby Dumping Theology Religion Essay

Denition Of Baby Dumping Theology Religion Essay The issues of the baby dumping become a contemporary issues that never decrease in term of their quantity. Nowadays, this issues become more worse compared to previous years. We can say that, the baby dumping activities always happening almost everyday. According to the Headquarters of Royal Malaysia Police (PDRM), they stated that, the meaning of the baby dumping is the act of leaving away their babies at the any places without taking care of that babies. According to the Community, Family and Women Ministry, the issues of baby dumping already had achieved almost to thousand per a year. This cases become a hot and big topic around malaysians people. Many parties had already discussing about this problem that commonly happen in Malay communities. The question that we should always asking is, why this problems always happen toward our teenagers? According to Wikipedia, the free encyclopedia it define baby dumping as a social problem that happen when the mother of the baby want to abondent or have willing to leave their children in public or private places with the intent to dispose their baby without have heart to take care their babies. Usually this kind of cases happened when the mother of the baby have giving birth to the unwanted babies. Thus, to cover all their mistakes, they take a drastic way by dispose their own babies. Besides that, the Wikipedia also defined baby dumping as a rejecting and throwing a baby away after the mother of the baby have giving a birth and exposeing their baby with the danger in a means to make sure their baby death. In addition, according to Kamus Dewan Edisi 4, page 208, the term dumping give a means throw, delete and remove while the meaning for the word baby is a newborn child by the mother. If we combined the meaning of the baby dumping, it give to us a deep meaning as a dumped or eliminate the innocent child to everywhere without have any humane nature. The meaning that was given by the dictionary give a more and better understand about the issues that was always happened and occured in our country. Besides that, baby dumping also can be defined as when a pair of irresponsible parent either already married or not make a decision to just abandon their unwanted baby in unfavorable places such as dumpstair, abondan places even in front of other houses. ALTERNATIVE WAYS TO CURB THE BABY DUMPING Some of the steps that was taken by the parties either by government, parent and school cannot brought a successfull method in order to overcome this kind of issue. Therefore, it is important to discuss the alternative ways in order to curb this baby dumping problems. GOVERNMENT The other alternatives that government shall take is set up the DNA (Deoxyribonucleic acid) Bank. It is was proposed by Selangor police, Chief Datuk Khalid Abu Bakar in year 2010. In Malaysia, using DNA Bank to solve the crime cases like baby dumping is a one of the new approach. The DNA Bank will give a lot of benefict for the police by facilitate their investigation. For baby dumping cases, DNA Bank can trace the parents that abandoned their newborn babies because DNA Bank will keep the DNA of all newborn babies. Thus, any person that abandoned their babies will easily to get trace by the police. Besides the baby dumping cases, DNA Bank also can help the police in other crime cases, like murder, robbery cases and so on. Eventhough this facilities will give alot of benefit to solve the crime issues, but it may going to take a time and need a lot of cost to build this facilities in our country. However, it still become a best solution to address cases that related with baby dumping p roblems. Second alternatives that government can take in action is reconstruct the syllabus. The present syllabus that our children used today is good enough to them become acknowledgeable person but there are leakage in creating an awareness to our children regarding the sexual relationship. Thus, government should reconstruct or add the syllabus in certain subject like in Pendidikan Islam and Pendidikan Moral. The element that can create and rise the awareness and could highlight the consequences of social problem like free sex and baby dumping should be emphasized. Besides reconstruct the syllabus, the government also should exterminate the pornographic material either from internet or in form of electronic multimedia. This kind of things will influence the teenager to do a bad thing easily if the immediate and the drastic step did not take by the government. Nowadays, teenagers can access this pornographic material by using the internet so government should block all this matter from ente r to our country. Set a strict rule also can be taken by government in order to overcome this cases. The promotion of islam as a way of life also can be a excellent alternative to reduce the number of baby dumping statistic because the majority person that involved in baby dumping cases are muslim youth. Therefore, the government can hired the islamic scholar or ulama to take a reesponsible to explain and have a some talk about the religion to our young generation. Beside that, when there is a program or when there is a national celebration, the government could invited the religious person or motivator to motivate our citizen instead of invite the singer to organise their concert. One of the politician in our country had said that, one of the reason why the baby dumping in our country increase for every year is due to the entertaiment that they easily to get. Too entertaimnet that didnot give any benefit for them will cause them to get chances involve in social problem. Other than that, government also should give a support for NGO activities. One of the method that NGO organised t o overcome this problem is by providing baby hatch. The baby hatch was get supported by our Ministry of Women, Family Community development. The function of baby hatch is to help the women especially the young women that need help from abandoning their babies by providing place for them to leave their unwanted babies instead of throwing them in unsuitable places. Thus, this baby hatch should be build in other state so that this problem can resolved. SCHOOL School plays important role to help in curbing the baby dumping problem among the teenagers. The first alternative that the school should do is increase the knowledge and social skill among the teenagers. The teacher should not just teach the students about the knowledge in textbook, but they also should have iniciative to teach the student about the general knowledge including the sexuality issues. The students should know how worse the social problem that just happening in our country. They also should have some knowledge how to take care themselve from being trapping in free sex and also baby dumping cases. Besides that, the teenagers also need some skill to make decision about when they should initiate with sex, with whom and under what circumstances they should know about the sex. Besides the knowledges, school also should provided the martial art class. This martial art class is important to teenager to have a some skill to defence them from be a victim in sexuality issue. The second alternative is school should offer reproductive health service and contraception. Normally, the facilities was only exist in public and private family planning clinic. Thus, the teenagers that have some problem in sexuality relationship may feel embarrassed due to the perception of cammunity toward them. We should take some example from United State, they also offer reproductive health in school to give their students the knowledges regarding with the sexual relationship. By providing this service in school, the students can use it to get counseling session regarding with their sexuality relationship. To overcome the baby dumping issues, besides give counseling, the service also can organise communication program for parents and teen to discuss about the teenagers problem in sex education. It is important to enhance the teens sense of personal development and to parent in knowing about their children problems. The third method that the school can do is by applying the sex education to their students. Sex education in school is a better option to overcome this problem. But, many parties may have a wrong perception toward the objective of sex education in school. actually, it is not the teacher teach the student about how to have a safe free sex, but the objective of sex education are to provide the awareness to the students and let them to have a better understanding of reproductive system and health. It is important to provide the students especially female students about the consequences of having a relationship with a boy in a early stage. Beside that, sex education could give the extra knowledge and tend to reduce the number of unprotected sexual intercourse and also illegal pregnancy. We should learn from Singapore, they addressed the issues much better and faster than us. Now, the sex education was formally taught in upper primary school until the pre university level. The objective t hat Singapore emphasized regarding the sex education are to building the teenagers that mature and be responsible with their own body. PARENT Parents play a high role to teach their kids to become good in their own behavior. Thus, the role of parent in curbing the baby dumping need to address very well. First of all, the parent should openly discussed about the sex education with their children. Eventhough the topic about the sex education is still taboo to aur culture, but it is important to prevent the teenage to get the wrong information about sex from wrong sources. Parents always refuse and opposed to discuss about the sex with their children and leave the respnsible to the teacher only. Thus, the parent should take their own role to reduce the number of baby dumping in our country. The parent should have initiative to story the consequences of being in a relationship in an early stage to their children. The children should know how they should respect their own body by not letting any men touch their body without have any legal relationship. Beside that, if the children asking the questions, the parent should provide the actual answer to their children. They should not give a wrong answer because the children may have cinfusing in understanding that topic. Second alternative that the parent could taken is supervise their children activities. Parent should know very well about what their children do and with who their children befriend. If necessary, parent should control their children when they frequently love to hangout with their friend instead of staying at home. Once, before egulate all their children activities including their children social life, but now parents is different. They believe that their children can manage their life very well even without their parent guide. They also should firm their childrem activities relating with the activities that do not good for their life. Sometimes, parents did not give a full attention to their children because of too much spending with their work. Thus, the children feel boring staying at home by themselve and finally take a decision to hangout with their friends that tend to involve in social problem. So, parent should spent their time with their children in order to understand their children behaviour and problems.