Auditing and Professional Practice Australia

Question: The engagement partner has requested a meeting tomorrow to discuss audit plan for MTI She has requested several documents for that meeting. 1. A preliminary audit plan assessing internal control risk and providing preliminary judgment for detection risk. 2. A description of specific substantive procedures that could be conducted for the WIP inventory. You are required to justify the audit plan by referring to theoretical grounds learnt from this unit. Answer: Internal control is basically the processes well designed, implemented and maintained by those charged with governance, management and other personnel. The main objective of the internal control is provide reasonable assurance about the achievement of the entity objective with regard to reliability of financial reporting. It is the responsibility of the auditor to plan the audit of the financial audit. As per ASA 300 Planning an Audit of Financial report, the partner and other the team member of the engagement team shall be involved in planning the audit. (Board A. a., 2011) As per ASA 300, the auditor shall establish an overall audit strategy that set the timing, direction and scope of the audit and that guides the development of the audit plan. In the given case also Engagement partner of Dalen jay want to hold a meeting to discuss the audit plan of MTI. Before making any audit plan the Engagement partner must identify the characteristics and scope of their Engagement in the audit of the organization. As per ASA 315 (Board, 2013) Assessing and Identifying the risk of Material Misstatement through understanding the entity and its environment the auditor should identify the risk of material misstatement in the organization, whether due to fraud or error, at the financial statement and assertion levels. Thomas Smith also needs to understand the MTI and its environment including the internal control before starting any Audit plan. This will help Mr. Smith to reduce the risk of material misstatement at an acceptable low level. Business Risk is a risk which is resulting from significant event, condition, action, circumstances or inaction that could adversely affect an entity ability to achieve the objective of the entity. MTI is basically engaged in production of environmental friendly product such as recycle containers. However, the company also deals with variety of metal as well as plastics. Audit Plan Assessing risk and Judgment in detection risk for different department of MTI is as follows: Control regarding availing service of another organization: As per Guidance Statement GS 007 Audit Implication of use of Service Organization (Board A. a., Guidance Statement 007, 2011) it is duty of the auditor to obtain understanding of the nature and significance of service provided by the service organization and their effect on the users entity control. In the given case MTI is using the service of Machining and turning center suppliers which helps MTI to develop efficient operation by furnishing sample numerical control program for standard machine operation and by providing training to employee of the employees. In regard to the Service provided by the said organization Mr. Thomas need to identify the risk and internal control of MTI to deal with such risk. It has also been observed from the past working paper that due to lack of control one of the suppliers unfortunately sent the program which was infected with virus as a result of which entire system need to be clean by Tiffany with the antivirus. To avoid this time of situation Mr. Thomas smith would ask the management to prepare a report regarding service organization system, control objective, related control which has been designed and implemented during the period. Mr. Thomas Smith can also asked for the report of the service auditor with the objective of conveying reasonable assurance that include the service auditor opinion on the description of the service organization system and control objective. Further, MTI should first install all the Software purchase from the vendor in one standalone computer and after its successful installation it has been installed to another computer to reduce the risk of virus spreading in the entire network. Further, MTI must make an agreement with the supplier in case of any infected software supplied by them, they make to make good the amount of loss caused to the company due to installation of the infected software in the system. Control regarding Equipment maintenance: As per the previous working paper it has come to notice of Mr. Thomas Smith that the company used to purchase all the equipment from Tony Lee, the owner of the computer shop conventionally located three blocks away. In this regard Mr. Thomas must ask the company to get the quotation from at least three suppliers to compare the rate of the machinery which has been supplied by Tony Lee. Further, Mr. Thomas should also ascertain that what is the company procedure to ensure that proper maintaining and upgrading of the software has been done by the Tony Lee. Further, Mr. Thomas should also ask the company regarding the frequency of the updation and should check record that whether proper up gradation at regular interval has been done or not. Control regarding accounting software password: Mr. Thomas should also ensure that every person have different password. Further a log book in the system is maintained in which the details of the person using the system and making change should be recorded in order to prevent loss of data. However, in case of any undesired situation proper record should be there so that the person can be held for such undesired situation. Backup of data: Data Backup is one of the most important task of the organization. Mr. Thomas should check the company procedure for back up of data, person who are reasonable for back up of data, time interval between two back up and what document is maintained for backup. Further, since as per the company experience of lost of back up of data Mr. Thomas should ensure that the company back up is now store at a safe place. Control regarding the company data: Mr. Thomas should check what control has been adopted by MTI regarding the employee copying the Image and take it to their home. As there might be changes of theft in which the copied image can also be given to the competitor who might misuse the image of the company. Control regarding generation of reports: Mr. Thomas should have to understand how payroll is generated. How the working hours of the employee have been recorded and who authorize the working hours. Further, Mr. Thomas should also ascertain what control has been implemented in entering the input resource in the payroll system. Whether any system of cross checking is possible or not. If the cross checking is possible, then Mr. Thomas must cross check the payroll generated with the source document for some of the weeks and give their suggestion or view on the same. After generation of pay book and during payment of money to the worker the company must take signature of the worker in the pay book in order to avoid any future litigation. Control regarding Approval and updation of Quotation in the System: Mr. Thomas must check who is authorized to approve the quotation which has been entered in the stand alone electronic data interchange system. Further, Mr. Thomas will also check how frequently the quotation is updated in the system. Further, he should also check once the quotation has been approved by the customer how payment has been received by the company and its payment term. Mr. Thomas will also made sure that proper documentation has been maintained by the company for each and individual case. Control regarding monitoring staff hours: Mr. Thomas should check what procedure has been adopted by the company to monitor the total hours worked by the staff in an organization. Further, he should also check what type of report has been generated in the organization and what procedure has been adopted to rely on such report. Thomas should must cross check the report with the device which record the sign in and sign out time of the employee in order to cross check correct pay register has been generated. Beside this he should also check that labour hour rate provided by calculation is also correct. Control regarding Accounting Entry: Mr. Thomas should check the company internal control regarding Accounting Entry such as who authorizes the voucher, when entry has been done in the system, who is responsible for Entry e.t.c. After entraining the vouchers in the system what procedure is being adopted to ensure that the entry is correct. Control regarding Check issue: No one will be issued until and unless there balance is known. Further as and when an entry has been done in the system and it has been confirmed that the balance is being due to the suppliers then only payment should b ad to the suppliers. Control regarding backup of Accounting software: Once the Entry has been completed daily backup of the Accounting Software must be taken in order to avoid any unwanted circumstances of loss of data. Mr. Thomas should check the company policy of back up of data i.e. the person responsible for data back up, type of back up and the frequency of back up taken by the representative. Answer to Question No :2 Substantive test of procedure or transaction helps to reduce the level of detection risk so that the audit objective can be fulfilled. (James, 2011) . This test helps the auditor to detect the material misstatement in the financial statement. Substantive procedure include test of details of transaction details and analytical procedure of disclosures and account balance. (Not for Profit Orgnisation, 2009). As per ASA 501 on Existence and valuation of Inventory the auditor shall obtain appropriate audit evidence regarding the existence and valuation of inventory material in the financial statement. (Board A. a., April 2006). The auditor should must use the following assertion: Presentation and disclosures Records completeness, accuracy, cut-off Obligation Valuation and allocation Existence The following Steps to be followed by Mr. Thomas for conducting WIP Audit First of all Mr. Thomas needs to check the opening balance of the WIP as recorded and reconcile/ cross check the same with the closing of financial statement of the last year. Then Mr. Thomas will check the Cost sheet statement as prepared by the clerk and cross check each and every figure of the spread sheet as provided by the accounts clerk with the data available in the accounts. Before Finalizing the value Mr. Thomas must agree with the accounting records of the MTI to ensure the completeness / correctness of the data. Thomas then checks that proper Job no. has been allocated to each jobs by reviewing the working paper and other document maintained by the client. Thomas will also ensure that the quantity entered must tally with the customer order for each job other and should review each and every job card. All the raw material and quantity used in the completion of the jobs has been properly recorded and if any quantity has been cut from the normal practice of the production procedure, then the same must be noted and authorized. Further, Thomas. Should also check what procedure is following by the company to record such situation and how quality assurance team should be aware of such practice. Thomas should then check the company procedure for valuation of the WIP, that is to say which method is followed by the company to value the company WIP and the method adopted should not differ from its accounting policy. Thomas while valuing the work in Progress MTI has taken correct rate for its material and labour. Mr. Thomas should ensure that the valuation is done as per the company changed costing and allocation method of absorption costing. Mr. Thomas should ensure that all the overhead cost has been absorbed by using absorbtion costing method rather than any other method. Thomas should understand the company procedure to record the actual hours worked by the workers on particular jobs and how these hours are being recorded and who authorize the total hours worked by the worker in particular jobs. Then the hours worked by the worker need to cross tallied from the cost sheet and the pay register along with the rate of payment. Further Mr. Thomas should also ensure that proper accounting entry has been done in the accounts department regarding booking of the wages expenses. Thomas Should ensure that each job order should sale at a price which ahs been approved as per the quotation. Further, Mr. Thomas should also ensure that the payment from the buyer has also been received as per the agreed time limit without any delay. And in case of any major delay penal interest will be charged by the company as per the company policy. Currently MTI has the policy not to take advance from the customer. However, if the customer is new and the jobs require substantive material to be purchased, then advance may be taken from the customer and the company used to make progress billing, This progress billing is then deducted from the closing WIP. Mr. Thomas should check that in case of progress billing the amount has been actually received and the same should be shown as advance in the accounts department. Thomas should also check the company policy regarding how the completion of the work has been decided and who decided the percentage of the work completion. Further, Mr. Thomas should also check the calculation done by Isabella as per the given formula to ensure that the correct calculation has been done and the closing figure of work in progress inventory has been arrived correctly. Bibliography: Board, A. a. (2011). Auditing Standard ASA 300. Planning an Audit of Financial Statement , 35. Board, A. a. (2013). Auditing Standard ASA 315. Idntifying and Assessing the risk of Material Misstatement , 48. Board, A. a. (April 2006). Auditing Standard ASA 501. Existenance and valuation of Invntory , 13. Board, A. a. (2011). Guidance Statement 007. Audit Implication of the use of Service organoztion , 45. James. (2011). Test of Control and Test of Details. 12. Not for Profit Orgnisation. (2009). SA , 10.

Jane Is Twelve Years Old, And She Has A Younger Sister. She Is Your Av

Jane is twelve years old, and she has a younger sister. She is your average student from what seems to be your average family. Last night, she held her little sister back as they watched their mother being beaten black and blue because their father had had a hard day at work. Jane has seen this before, but this time her mother does not make it out of the fight. Jane and her little sister are sent to live with a relative, while their father goes to jail. Jane vows that the situation that killed her mother will never happen to her. Do you know Jane? Have you seen her smile? Do you know that her teachers say she has potential? Or are you familiar with the terror she faces everyday reliving the night when her Dad, who had promised the week before that the violence was over, put an end to her mother's life? It started with verbal abuse, then it progressed with pushing, next the kicking began, and we now know how it ended. Those are the steps in the progression of domestic violence. In the beginning stages of domestic violence it is verbal abuse. Simple seeming name calling and joking that severely lowers the victims self - esteem. At the moderate level begins the physical abuse, kicking, hitting, pushing, usually only with hands or feet. When the ravager reaches the severe level weapons come into the picture: belts, guns, sticks, even hot pots off the stove. In this stage there is choking and rape. Jane's mother had plenty of chances to escape, but why didn't she leave? First, she was embarrassed. Her husband was a pretty ?good? guy to the community, and even though it seemed petty, really, what would her friends say if she told them? It is important to remember if someone comes to you with a problem like this, the didn't do anything to deserve it. She, also, knew that 3/4 of domestic assaults reported were inflicted after separation. She was afraid to stay and afraid to leave. After all, women are most likely to be murdered when attempting to report the violence or while they are trying to leave the environment where the abuser is. So, you ask, why leave if he's probably going to get me anyway? My answer is simple, for the children. One third of the children who witness the battering of their mothers demonstrate significant behavioral and emotional problems. These include stuttering, anxiety and fears, sleep disruption, excessive crying and school problems. Do not let the violence continue by showing young girls that when he needs a punching bag to let out his anger, she should be the one. Because no young man has the right to hit his girlfriend for any reason. Because the only way to teach that hitting is wrong is by example, by leaving. By showing the person who thinks they are in control with fists, that really they are only cowards. The negative effects can be diminished if the child benefits from intervention by the law and domestic violence programs, most times children enrolled in such programs remain anonymous. Jane has two wonderful children, a beautiful home, and a successful career at a job she loves. Jane has warm blue tears falling from a cold, aching black eye. Jane's husband has a great career to, except his is a lot more stressful, and that is what he told her last night when he shoved his fists full of rage into her delicate body. Once again, it won't happen anymore. He promised, but he's promised before. This time Jane's leaving. She takes her two beautiful children and she puts them in the car. She doesn't say good - bye, she just leaves a note that reads ?I'd rather die standing than live on my knees.?

Negligent Tort Concept

Questing Asians ambiguities essays

Questing Asians ambiguities essays Ever since Asian Americans had arrived in the United States, they had also been conceptually misrepresented and interpretive. The general misconception and way of thinking is often that all Asians look the same. Yet when distinctions are made between the ethnic groups, they are usually indistinguishable generalizations or ruthless definitions. When Americans usually see a human being with slanted eyes, they automatically assume that person is Chinese. If not Chinese, they would call them by their stereotypical names such as flips, gooks, chinks, etc. They may not know it but these miscontraceptions hurt Asian Americans. More recently, Abercrombie and Fitch, a popular department store has taunted the image of Asians by saying that all Asians own laundry stores. In their quest to change and ultimately eliminate these misconceptions, Asian American writers, actors, athletes, and artists have worked their way into the mainstream media of the United States to portray positive and accurate images of Asian Americans and finding their own ways to express how they feel about being Asian American. Coincidentally, the past decade has emerged into a full-blown Asian epidemic in America due to the growing popularity of famous and rising Asian American entertainers. For example, actors and actresses such as Rick Yune, Nicole Bilderback, Kelly Hu, and Lucy Liu are in high demand right now. In Portraits of Asian-Pacific Americans by Kim Sakamoto Steidl stated, the entertainment industry has become more sensitive to these ethnic stereotypes. One purpose of having racially diverse actors is to educate people about the negative effects of these stereotypes and to insure that Asian Americans have access to a range of acting roles(p63). Mako, a 30-year-old veteran of stage, film and television was nominated for an Oscar as best supporting actor. His performance in the film The Wash was a strong and realistic portray...

What is on the Internet Assignment Example | Topics and Well Written Essays - 250 words

What is on the Internet - Assignment Example Its questions are open ended, allowing respondents the freedom of choice and expression (Storm Front, 2010). A survey by Quibblo is another example on pop culture and it focuses on possible association between the culture and self-image. Its questions cover significance of the culture among teenagers, possible effects of the on teenagers’ self-image and participants’ perception of pop culture (Quibblo, n.d.). The ‘pop culture’ survey’s design is characterized by closed questions, whose choices stimulate response. It also has few questions, presented in a single page, a property that helps to stimulate response rate because of time convenience. Another design factor in the questionnaire is use of bold for questions and normal print for choices and this makes the questions conspicuous (Pop culture, n.d.). The ‘pop culture’ survey identifies similarities with the SERVQUAL that is a tool for collecting qualitative data. SERVQUAL is based on attitude and expectation, which are the bases of responses to questions in the ‘pop culture’ survey. Like the SERVQUAL, the ‘pop culture’ questionnaire aims at collecting qualitative data such as attitude towards types of music and expected utility from different forms of entertainment (Parasuraman, Zeithaml, & Berry,

The Nature and Effect of Superbug H1N1 Coursework

The Nature and Effect of Superbug H1N1 - Coursework Example HA molecules are particularly important in the development of the disease as they cause the preferential attachment to lung epithelial cells and the insertion of the virus contents into the host cell. Each protein in the virus has multiple subtypes. In human-infecting Influenza virus strains, there are three HA subtypes, H1, H2 and H3, while NA has two, N1 and N2. The different combinations of HA and NA make possible the multiple subtypes of Influenza viruses (Kimball, 2009). With the elucidation of the viral structure, it has since been discovered that there are multiple strains of the virus, and that they continually mutate and cross-infect swine, birds and humans. As commonly seen among viruses, HA, together with NA, genes mutate at a high rate, causing new strains to be seen infecting humans almost yearly. This phenomenon is referred to as the antigenic shift. In addition, Influenza virus strains undergo gene reassortment, in which two strains infecting the same bird or swine exc hange RNA strands to develop a new virus subtype that the human population has not been exposed before. Thus, this antigenic shift usually causes severe pandemics. For example, the 1957 H2N2 Asian flu pandemic after the 1918 H1N1 Spanish flu pandemic is believed to be caused by the simultaneous infection of a human-infecting subtype and a bird-specific H2N_ resulting to the reassortment of their genes that produced a new bird-specific subtype that can infect humans. In effect, this new H2N2 subtype is something the human population at that time has not been exposed before, causing many to have no immunity against the virus and to be susceptible to infection (Kimball, 2009). Because of the unique features of Influenza virus, current prophylaxis still involves multiple vaccinations, with the composition of multivalent shots varied annually to confer protection against strains guessed to be most infective during the coming season. Thus, prolonging and ensuring the effectiveness has bee n the focal point of many researches. A promising approach is the development of vaccines that can induce the production of antibodies that are specific against multiple HA subtypes. Throsby and his colleagues (2008) paved the way for such approach when they identified human antibodies that can bind to H1, H2, H5, H6, H8, and H9. They referred to this antibody as CR6261 (Eckiert et al., 2009). CR6261 AGAINST H1N1 AND OTHER SUBTYPES What makes CR6261 different from other antibodies that confer resistance to only one subtype of Influenza? Eckiert et al. (2009) tried to elucidate the 2.2 and 2.6A crystal structure of the antigen-binding portion (Fab) of CR6261, as well as the CR6261 Fab complexed with heterotypic HAs from human 1918 H1N1 pandemic virus and avian H5N1 virus. Although it was not mentioned in the study if there is any purpose in choosing H1 and H5 instead of the other subtypes, the choices probably served the most purpose because H1 has a history in causing a pandemic (19 18 H1N1 Spanish flu), and H5 has a likelihood to infect and cause death among humans, who are mostly unexposed to such type of Influenza (Kimball, 2009). However, it is most ideal if the study

Cheating and plagiarism for my religion class Essay Example for Free

Cheating and plagiarism for my religion class Essay The movie we watched was very interesting. I felt like I could definitely relate to most of the situations they brought up. In particular, the point about how you felt the need to cheat nowadays to keep up with the cheaters. Their information was very accurate and it really gives you a look into what life is like as a student. When watching it I really felt like what they were saying was pro-cheater. The only problem with the movie was the give a lot of great reasons why there is such a high percentage of cheaters out there, but the never offered any ways to fix the problem. Then the movie switched to the problem of plagiarism. They addressed the issue and showed some of the difficulties of trying to detect it. They then went into the only way of detecting it and how to avoid detection. Afterward they showed an example of a class and how bad plagiarism has gotten. Still they never offered any way to solve the problem. I really enjoyed the movie we watched in class it was very interesting. Through out the movie I felt could relate to the students telling their experiences. For example, one girl talked about how she feels the need to cheat to keep up with all the other cheaters out there. From my experience, I have tried studying long hours for tests and then going in the next day, taking the test and then having the person next to me cheat and get a higher grade. I myself cheat because nowadays it is all about grades and getting into the best colleges and getting the highest grade point average (g.p.a.), and with out a good g.p.a., you cannot get into a good college. So to get into a good college and get a good paying job some people are willing to do what ever it takes and to keep up with them we have to do the same things. Through out the movie I got the sense that they were taking a pro-cheater standpoint. I noticed that they really didnt show you anyone who got anywhere in life by not cheating and so I got the feeling that they wanted us to walk away with better knowledge and methodologies on how to cheat. By the end of the movie, I really felt like cheating was no longer a bad thing and in fact it had actually become almost necessary to succeed in life and everyone is doing it. They also gave only examples of people who cheat all the time and easily get away with it. Once again, they never offered any solution to the problem. Next, they talked about plagiarism. They did an experiment with a World History class and had the kids write a paper on their favorite explorer. Then the teacher took all the papers and used the one tool out there that can check for plagiarism, turnitin.com. She submitted all the papers to this website and got them back with all the plagiarized portion of each students paper underlined. When she got the papers back, more than half the papers were plagiarized and some only had a few original sentences. It just goes to show how big of a problem plagiarism is these days. Then they said that the website only detects plagiarism if eight of the words are an exact match so to avoid detection all you have to do is change every eighth word and to be on the safe side you could play around with that number. Even though the movie never offered any way of solving either problem, they still informed you of the problem. I really enjoyed the movie. I left wanting to cheat and plagiarize. In the movie, they talked about a person who would write papers for you for $25 a page. Though I dont know anyone that would do that for me, if I did, after watching the movie, I probably would have enlisted for his help. However, I dont know anyone who would so I guarantee that this paper is completely original.