The Audit Expectation Gap Analysis - 1922 Words

The audit expectation gap The meaning of the expectation gap involves argument concerning the contradictory meaning of what an audit is to user of financial statement, the public and the audit profession. Expectation gap is the difference between what the public assumes to be the role of audit and what the audit profession claim their role is in carrying out the audit function. . All the theories above describe the expectations the stakeholders have of the auditors, including protection against fraud, warning of future insolvency, general re-assurance of financial well-being, safeguards for auditor independence and understanding of audit reports. Although these expectations seem to be rather natural, however, an audit expectations gap does exist based mostly on the diversity of views about the audit function. The gap exists between what the public expects the auditor to do and what the auditor can and should do. Several suggestions were made to narrow the expectations gap, as well as providing statutes in ord er to describe audit functions especially concerning the responsibility to detect and report errors and fraud. Component of audit expectation gap Reporters have credited the expectations gap to mean that users of financial statement are confused, ignorant or lack education. Porter in his analyses divided the expectation gap into three different component which includes a) sub-standard performance b) deficient standards and c) unreasonable expectations. a) TheShow MoreRelatedA Critical View of the Audit Expectation Gap and Audit Rotation1828 Words   |  7 PagesAudit Expectation Gap Audit Rotation A Critical View Auditing is one of the most critical fields where the external auditors are always subjected to criticism and legal regulations which are mostly directed against them. Mostly this criticism arises because of lack of sufficient understanding of how the company law and auditing standards work and also due to related misconception about the actual role of an auditor (Porter, 1993). This lack of understanding is called expectation gap where theRead MoreData Analytics, An Integral Part Of Modern Audit Practices1202 Words   |  5 PagesData analytics in audit Introduction: It is interesting to know how modern technology has helped auditors to become efficient with respect to time and resources. Not only that, auditors of late have become heavily dependent on technology for their easy and efficiency. 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Claypool, (1999),Audit disaster futures: antidotes for the expectation gap?, Managerial Auditing Journal, Vol. 14 Iss: 9 pp. 468 - 478 Permanent link to this document: http://dx.doi.org/10.1108/02686909910301556 Downloaded on: 04-12-2012 References: ThisRead MoreMeasuring a Hotels Quality of Customer Service Essay479 Words   |  2 Pagesquite difficult to measure the quality of a service, because the satisfaction of the customer depends on many intangible factors and psychological features. The principal methods to evaluate services are: SERVQUAL, Gap Analysis, Tolerance zone and Walking Audits. We are going to explain this methods and study if we could apply them to the hotel.  § SERVQUAL It is a multiple-item scale named SERVQUAL, which measures the five dimensions of service quality.9 Read MoreWorldcom Case Response1280 Words   |  6 Pagesacceptable to hold expenses for a later date when you have excess revenue and can afford to recognize held back expenses. 3. On the topic of capitalizing line costs, critique the rationale included in CEO Scott Sullivans White Paper. Based on your own analysis of GAAP, explain the propriety or impropriety of capitalizing line costs in the telecom industry. Sullivan explained his rationale in a report to the Board of Directors referred as the â€Å"white papers.† In order to meet the customer demand for

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Confucianism and Contemporary Issues Confucianism and Contemporary Issues This essay will illustrate the history of Confucianism and the background of Master Kong (Confucius) in the early beginnings of the religion. The purpose of the paper is to discuss the common characteristic of Confucianism with other eastern religions, the contemporary issues it faces, and the interaction between the modern world and Confucianism. Also the paper list the nine most common text of literature used by the religion and it includes the role of women and the five bonds also known as the five great relationships. History Confucius was born August27, 551 BC in a small state called Lu. His birth name is Kong Qui or K’ung Fu-tzu. â€Å"The modern†¦show more content†¦Some of the advances today scientifically such as DNA genetics, reproducing of children, and major organ transplant surgery are all questions that men and women in the earlier times didn’t have to worry about. They are many eastern cities that are the home base for certain religions. At one point these religions were thought of as foreign. We now live in a world where every place to visit and Remote Island in the world is may be featured on the travel channel. Television exposes all humans in the world the different cultures and diversity as well as the different religions. Every day this world we live in is constantly evolving. It makes you think of where this world would be in the future. The writer started to question in what ways would religion change. From the beginning when religion was first introduced just take a moment to think about how much it has changed. There is no way possible to predict that far into the future, but we can make an educated guess based on the things that are transpiring today in religion. There are many different influences that make up religions and how they continue to evolve throughout the years. It was not long ago, the majority of most human beings in the world lived as farmers, and in small villages, and monarchs ruled the majority of the countries. As timeShow MoreRelatedIbm Decade of Transformation13401 Words   |  54 PagesBusiness School. 805-130 IBMs Decade of Transformation: Turnaround to Growth In March 2002, Gerstner passed the reins of power to Sam Palmisano, a 31-year company veteran, to complete the transformation. Palmisano and the senior executive team were committed to returning the company to greatness. â€Å"[Our problems in the late 1980s and early 1990s] were our own fault,† Nick Donofrio, senior vice president, Technology and Manufacturing, explained. â€Å"We are driven by a passion that says: ‘NeverRead MoreExploring Corporate Strategy - Case164366 Words   |  658 PagesFriday and Saturday night my door was taking  £30,000 and the security team was making  £40,000 on Ecstasy. It happens everywhere in the UK leisure business. There are all these fat bastards running chains of discos and bowling alleys, and none of them admits it. We went through a really traumatic time at the club.1 Palumbo changed his security team, bringing in security professionals from the North of England 1 New Statesman, 5 September (1997). This case study was prepared by Professor RichardRead MoreAccounting 1-4 Chapter100452 Words   |  402 Pageschapter 1 INTRODUCTION TO FINANCIAL STATEMENTS ââ€"  the navigator ââ€"  ââ€"  ââ€"  ââ€"  âÅ"“ Scan Study Objectives Read Feature Story Scan Preview Read Text and Answer Do it! p. 5 p. 11 p. 18 p. 20 Work Using the Decision Toolkit Review Summary of Study Objectives Work Comprehensive Do it! p. 23 Answer Self-Test Questions Complete Assignments Go to WileyPLUS for practice and tutorials Read A Look at IFRS p. 42 study objectives After studying this chapter, you should be able to: 1 Describe the primaryRead More_x000C_Introduction to Statistics and Data Analysis355457 Words   |  1422 Pagesto use material from this text or product, submit a request online at http://www.thomsonrights.com. Any additional questions about permissions can be submitted by e-mail to thomsonrights@thomson.com. Printed in the United States of America 1 2 3 4 5 6 7 11 10 09 08 07 ExamView  ® and ExamView Pro  ® are registered trademarks of FSCreations, Inc. Windows is a registered trademark of the Microsoft Corporation used herein under license. Macintosh and Power Macintosh are registered trademarks of AppleRead MoreMedicare Policy Analysis447966 Words   |  1792 Pagesfor other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE; TABLE OF DIVISIONS, TITLES, rmajette on DSK29S0YB1PROD with BILLS 4 5 AND SUBTITLES. (a) SHORT TITLE.—This Act may be cited as the 6 ‘‘Affordable Health Care for America Act’’. VerDate Nov 24 2008 12:56 Oct 30, 2009 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3962.IH H3962

Rationale and Methodology Free Essays

The biblical account of the battle between David and Goliath is a story which offers inexhaustible life-lessons. For instance, when seen within the context of problem solving, one can put on the shoes David and say, â€Å"Goliath is so big, I don’t stand a chance†, or â€Å"Goliath is so big, I can’t miss. † Suffice it to say that these perspectives sufficiently determine whether one ends up as triumphant or looser in life. We will write a custom essay sample on Rationale and Methodology or any similar topic only for you Order Now This paper presents an analysis of the rigors involved in ensuring the continued presence and progressive expansion of BAE Systems in Kava, an island in the South Pacific which, by right of analogy, is one humungous Goliath both literally and figuratively. As such, this paper is not so much concerned with providing concrete alternatives as prospective solutions in view of the aforesaid goal, as this is more an attempt to firstly identify the issues and problems that the company presently faces. It is also to be expected that the norms governing critical thinking shall be employed herein in as many instances as possible. Circumscribing Goliath: Challenges and Opportunities in Kava Alex’s candid but straightforward assessment of the conditions in Kava clearly states the need for a lot of brainstorming. As in the case for most strategic planning, one sits on a problem with thoughtful consideration to determine all contributing causes in order to address them with correct solutions. Simply put, to solve a problem means to first identify it, give it a name, determine its enormity, measure its impact, and even anticipate its damage. In fact, the rules governing scientific investigation (and even correct logic for that matter) also suggest the same thing. Solving problems, it maintains, â€Å"begins when (one) is confronted with something that appears to need explanation† (Copi and Cohen, p. 552). Unless one is willing to take time in studying the intricate details of the problem, one is most likely to ‘miss’ the target in the process. Besides, most psychologists have noted that â€Å"most people’s spontaneous and intuitive approaches to problems† end up â€Å"frequently wrong† (Halpern, 1996, p. 6). Taking time to map subsequent courses of action truly starts with going into the problem with much thought and consideration. After all, having a â€Å"well defined† or â€Å"ill-defined† problem determines the success rate of anyone who tries to get into the bottom of a given crisis (Halpern, 1996, p. 317) The first task in slaying the Kava-Goliath therefore lies in this: circumscribe it. On the one hand, one can look at Kava with eyes fixed on the challenges it poses; i. e. , one needs to isolate the problems (Sofranac, 2006). First, the problem of geography. Kava is an island; and most likely, its being separated from mainland economies can mean that transporting goods to and from the place will be more costly than doing business in an easily accessible land. Not only would it mean higher budgetary allocation for transport of BAE Systems goods, it can also spell delays and – in times of typhoons, tornadoes or volcanic eruption – suspension of business all together. Second, the problem of demography and its influence on Kava’s economy. It was said that nearly 50% of the island’s population are 15 years and below. If one were to translate it in economic transcripts, it would be safe to assume that only 40% of the population, or less, are working to fuel the economy. A portion, say 5-10% of the population must be regarded as incapacitated and/or elderly. Thus, the younger composition of Kava’s demography means that its economy more consumptive than productive. This does not yet consider the state of health of the working populace. In an island – contained as it were – where HIV or Avian flu is reported, the rate of business expansion is most likely to be affected by the workforce either suffering from, or fearing the spread of the diseases thereof. Third, on the viability of return investment for BAE. There is a need to consider the nature of the business the BAE Systems is engaged with, in relation to the needs of the island. These factors properly determine the health of the supply and demand market which BAE needs to handle. It must be noted well that BAE supplies products which are not so much accessible to, or are needed by general public consumers. BAE Systems deliver products which include, but not limited to communication and identification devices, â€Å"navigation and warfare solutions†, warfare systems, fighters and missiles, â€Å"countermeasure for both military and commercial aircraft†, among others (Wikipedia). On the other hand, one may also need to look at Kava with eyes fixed on opportunities; i. e. , one needs to also explore alternatives (Sofronac, 2006). While Kava may be an island full of challenging conditions for the company, it is not an utterly hopeless place to conduct business with. One should also consider that its economy is driven by production of Petroleum, a lucrative and profit generating business to say the least. Surely, this type of business needs to protect itself from threats of terrorism, which the country is not unfamiliar with. Second, one should consider too the cheap but quality cost of labor throughout the island. It is something that the company can capitalize from, in order to create an excellent workforce for the company. One may also explore the cheaper operation costs for the company as the island seems to produce an array of crop-produces for its own consumption. Preliminary Recommendation: First things first To be sure, the process of formulating problems does not end up with the identification of forces involved only. There is a need to further classify them. At the very least, one needs to see which problems are urgent – and therefore needs immediate attention – as against which ones need long term attention due to complexity. The continued presence of BAE in Kava demands that it first focus on squaring with the urgent problems at hand: the high cost of having to weather geographical and environmental difficulties, the equally costly transport of goods and services (because it is an island), the need to establish cheap but competent workforce, and the tall prospect of having the business survive the supply-demand market. Since in most decision making process, one would find being confronted with a multitude of goals given a limited number of resources (Betsch and Haberstroh, 2004, p. 1), ensuring that these aforementioned priorities are first met will be fundamental l to the achievement of such goal BAE sets. Critical thinking dictates that in a decision making process, â€Å"maximizing payoffs and minimizing risks† is a rule of prime importance (Betsch and Haberstroh, 2004, p. 1). While there are other smaller, but legitimate concerns to address – such as logistics, difference in time frame, re-supply issues, among others – contemplating seriously on solving the most fundamental concerns pertinent to doing business is an essential ingredient to savoring success. References Betsch, T. and Haberstroh, S, eds. (2004). The Routines of Decision Making. New Jersey: Lawrence Erlbaum Associates. Copi, I. and Cohen, C. Introduction to Logic (Tenth Edition). Prentice Hall International Editions. Halpern, D. (1996). Thought and Knowledge: An Introduction to Critical Thinking. New Jersey: Lawrence Erlbaum Associates. Sofronac, R. (2006). Preparing Business Scenario Analyses. University of Phoenix: Unpublished Reprinted with permission. www. wikipedia. com. Retrieved 09 June 2008. How to cite Rationale and Methodology, Papers