Internet Essay Example | Topics and Well Written Essays - 1500 words

Internet - Essay Example The living standards of the public increased a lot as a result of the introduction of internet. Nobody has any doubt about the contributions of internet in enhancing communication. No other medium is capable of communicating with people as quickly as internet does. Social networking services like facebook, myspace, orkut etc are helping the people to share information instantly and effectively in a virtual world. When it comes to instant communication, internet always gets priority over other channels of communication. Communication is an area in which internet brought revolutionary changes in the society. Earlier, print sources, television, radio etc were the prominent media of communication in the society. However, these media are incapable of delivering instant information to the public as internet does. Newspapers and televisions require enough time to collect news, edit it, and print/transmit it to the readers/viewers. On the other hand, internet is capable of delivering the new s instantly to the public. ... The difficulties and problems associated in locating specific information in newspapers or printed sources have been eliminated with the introduction of electronic media like internet. It is easy for the readers to eliminate unwanted information quickly so that they can concentrate more only on the specific information they were searching for while using internet. It is a fact that most of the newspapers contain large number of advertisements and the retrieval of specific information from newspaper is difficult. Internet provides answer to such messed up reading styles; it helps the readers to avoid unwanted things instantly and to locate the required information instantly. The enhancement of communication using internet resulted in the development of new life styles in the society. Earlier, people visit the houses of their friends and relatives to exchange their regards and greetings. Now all such things are happening in the virtual world. For sending, birth day greetings, wedding i nvitations and greetings etc people are making use of internet. It is a fact that virtual socializing gives enough flexibility in sending greetings and conveying ideas. The introduction of internet and the subsequent development of social networking services helped the people to increase their virtual socializing activities more than their real face to face socializing activities. It is possible to communicate with anybody through internet even when a person travels from one place to another. Audio and video conferencing facilities provided by internet help people to communicate with others just like a face to face meeting. â€Å"The mobile workforce requires people to travel more frequently for work, leaving friends and family behind, and

Society of Kenya Essay Example for Free

Society of Kenya Essay The Tourism industry in Kenya operates within a liberalized economic environment that is characterised by active partnership between the Government and the private sector. While the private sector is expected to be the motive force, the Ministry of Tourism is charged with the responsibility of formulation and implementation of policies a kin to tourism as well as co-ordination of planning, development, promotion and marketing of tourism. The functions of the Government may be summarized as follows:- (i) Formulation and implementation of general policy guidelines for the tourism industry; (ii) Setting the required targets such as:- increasing the contribution of the sector to the National Gross Domestic Product, through increased foreign exchange earnings and retention from the sector; increase the sectors employment generating capacity. conserving and protecting the environment; diversification of the tourism product range and source markets; developing sustainable tourism; and the development of all facets of tourism. (iii) Planning, development and regulation of tourism activities; (iv) Licencing, classifying and upholding the quality of tourism facilities and services; (v) Co-ordination and Consultation with other government Ministries and departments in order to facilitate tourism development by providing the necessary enabling environment; (vi) The Ministry has also the responsibility of overseeing the operations of such State Corporations as:-   The Kenya Tourism Development Corporation, which lends to and advises investors in the tourism industry. The Kenya Utalii College which trains all cadres of manpower for the hotel and tourism sub sectors. The Catering Levy Trustee, which collects training levy on the sale of food, drinks and accommodation for purposes of funding training programmes for the hotel and tourism sub-sectors.   The Bomas of Kenya which is the national conservatory of Kenyas diverse cultural heritage where traditional rituals, dance and music are performed for the benefit of both visitors and the local people.   The Kenya Tourist Board which is charged with promotion and marketing of the destination both locally and internationally. The Kenya Wildlife Service which is not an integral part of the Ministry of Tourism, is vested with the responsibility of conservation and management of wildlife, and the maintenance of infrastructure, within the National Parks and Game Reserves. (vii) The Ministry co-ordinates Kenyas Tourism Promotion worldwide; and (viii) Co-ordinates bilateral and multilateral relations in tourism with other Governments, Non-governmental Organisations as well as other Donor Agencies. In addition, the Government provides such basic infrastructure for tourism development, as roads, educational programmes and the requisite security. It should also be noted that the Government is responsible for demarcating, protecting and gazetting all protected areas. COUNTY COUNCILS Most areas and communities where tourism is developed are under the authority of local County Councils. These Councils therefore play an important role in tourism development and are responsible for the following:- provision of incentives for tourism investment and management as well as provision of the requisite amenities for tourism development;   development of visitor management systems through zoning and land use policies aimed at securing participation by the local communities; Formulation and implementation of enforcement programmes pertaining to proper and ethical use of protected areas;   investing in improved tourism infrastructure such as roads and rural electrification;   developing consistent concession policies which are meant to enhance visitor management within the National Parks and Game Reserves;   liaising with communities on development projects to be funded by the tourism sector. (c) The Kenya Wildlife Service: The organisation is important since it is the primary custodian of the countrys flora and fauna. Its active participation has ensured reasonable resolution of human/wildlife conflict. However a lot remains to be done in this area. (d) The National Environmental Secretariat: The Secretariat co-ordinates the activities of the various Non-Government Environmental Organisations. Its contribution is important in the provision of vital environmental data and guidelines as required by the key players in the development of eco-tourism as and when required by the key players. (e) The Eco-tourism society of Kenya: This is a voluntary association of individuals and corporate bodies with mutual interest in tourism. It provides a platform for the resolutions of conflicts pertaining to conservation and the operations of tourism industry through:-   bringing together commercial, conservation and the local communities interested in sustainable tourism development;   promoting responsible and sustainable tourism; protecting the integrity of the natural and cultural attractions which are the bedrock of the industry. The Eco-tourism society of Kenya and its members aim at improving and promoting the image an ideal eco-tourism Kenya as a tourist destination by:-(i) Fostering tourism practices which can contribute to the conservation of Kenyas natural environment and thereby improve the lives of the communities living in close proximity to the protected areas; (ii) Developing suitable framework of Environmental Management standards relating to both tourist attractions and facilities; (iii) Devising and publishing eco-tourism regulations and codes of conduct; (iv) Increasing environmental awareness as well as developing strategies appropriate to mitigate negative ecological, cultural, social and economic impact of tourism; (v) Carrying out empirical research and pilot tests relating to new approaches and initiation and promoting projects which conform to the dictates of eco-tourism; (vi) Providing professional, advisory and consultancy services in policy, formulation research, planning and management of eco-tourism; (vii) Participation in relevant educational and training programmes as well as developing professional standards, certification and licensing systems that are in sync with Eco-tourism. (f). INDIVIDUAL AND GROUP WILDLIFE SANCTUARIES. In Kenya both individuals and groups are encouraged to host wildlife on their lands under the Kenya Wildlife Service Programme known as Winning space for Wildlife. When Promoted hand in hand with nature based tourism, the programme enhances conservation and also ploughs back benefits to the host community. Other features of Winning Space for Wildlife programme include non-interference with land ownership and such other traditional economic activities as crop farming. (g). NON-GOVERNMENTAL ORGANISATIONS (NGO). There is a large number of resident conservation oriented Non-Governmental organizations which promote eco-tourism through: (i) Public education on conservation (ii) Developmental studies, position papers and codes for sustainable use of natural resources (iii) Publication of tourist information literature. (iv) Organizing annual workshops on conservation and environmental management. (v) Organizing seminars and workshops to promote community input into the management of nature and cultural tourism. THE KENYA ASSOCIATION OF TOUR OPERATORS (KATO) The Kenya Association of Tour Operators is an Association of the leading and most experienced tour operators in Kenya. Its members are governed by a code of conduct which requires them to conduct business in an ethical and responsible manner. The Association works closely with the Ministry of Tourism and other stakeholders for the promotion of eco-tourism. These other players include:- The Kenya Wildlife Service on the beach management programme and the development of park use rules. The Ministry of Tourism, Kenya Wildlife Service and Safari Guides Association on the development and observance of a code of conduct for visitors and tour operators. Eco tourism Society of Kenya and other Non-Governmental organisations on identifying and advising on the potentials of nature based tourism among various communities.   Local communities on capacity building and maximization of revenue generation. For example with the help of the Kenya Association of Tour Operators assistance, two groups adjacent to the Mara Reserve were able to raise their revenues from US$ 83,000 to US$ 2 Million within a year. Organising annual workshops on the conservation and environmental management for sustainable tourism development. Organizing seminars and workshop to promote community input in the management of nature and cultural tourism. In addition other notable stakeholders include established trade Associations that serve both as lobby groups and active participants in the overall development and marketing of Kenya as a tourist destination. These include:- Kenya Association of Hotel Keepers and Caterers (KAHC);   Kenya Budget Hotels; Kenya Association of Travel Agents (KATA); Mombasa and Coast Tourist Association (MCTA);   Kenya Budget Hotels Association;   Kenya Air Charter Operators Association; and   The Board of Airlines Representatives. An active partnership exists between the Associations and the Government with optimum performance of the tourism industry being the common goal. Consultation and dialogue among all the stakeholders is a guiding principle in Kenyas tourism development. SUSTAINABLE CONSUMPTIVE WILDLIFE UTILIZATION AND ECO-TOURISM. The concept of sustainable consumptive wildlife utilization has been formulated so as to counter the negative trends that were inherited from the wildlife based tourism and wildlife management policies that existed during and soon after the colonial period up to late 1970s. By then, conservation and tourism policies overlooked the interests of the local people by emphasizing control and regulations while neglecting incentives that would contribute to the success of wildlife conservation and management programmes in the country.

Effects of trade barriers

Effects of trade barriers Chapter 1 Introduction Trade is an exchange of services and goods for other services and goods or for money, Trade ( 2010). The paper discusses about the effects of trade barriers on international trade, i.e. to identify one or more variables (inflation, transportation cost, tariff, remittances, population, GDP deflator and exchange rate) in the study that effect international trade the most. A trade barrier is a general term that describes any government policy or regulation that restricts international trade (Trade barrier, 2010). The problem discussed is the effect of trade barriers on international trade. In order to address the problem, two hypotheses have been developed and tested. Each hypothesis explains the effect of variables as barrier to international trade. Secondary data of three years comprised on year 2005-2007, collected from the source World Trade Organization (WTO). The statistical tool applied to test the hypothesis is multi-variate regression model as there are more than one independent variable and one dependent variable. The independent variables identified in this paper are (Inflation, Exchange Rate, Remittances, GDP, Tariff, Population and Transportation Cost) the dependent variable are (Imports and Exports). The statistical result of the hypothesis testing can be seen in the following chapters. Inflation Generally inflation is defined as a rise in the general level of prices of goods and services over time, where as most of the economist define inflation as a rise in the prices of some specific set of goods or services, it is important to understand that the rise in prices is for specific set of goods and services and it should be constant, as well as a rise in price of one good or service as compared to other does not mean an increase in inflation it should be increased for every product or service. Inflation is measured as the percentage rate of change of a price index (Haq Hussain, 2008). Measures of Inflation There are many measures of inflation each for different sector, Consumer Price Indices (CPI) CPI measures the price of goods and services purchased by a consumer (Haq Hussain, 2008). Cost-of-Living Indices (COLI) Are indices similar to the CPI which is often used to adjust fixed and contractual incomes (Haq Hussain, 2008). Producer Price Indices (PPIs) measures the prices acknowledged by producers. This differs from the CPI in that price subsidization, income, and taxes may cause the amount acknowledged by the producer to differ from what the buyer paid. Producer price inflation measures the pressure being put on producers by the costs of their raw materials. This could be passed on as consumer inflation, or it could be absorbed by profits, or offset by increasing productivity (Haq Hussain, 2008). Commodity Price Indices (CPI) measures the price of a selection of commodities. In the present commodity price indices are weighted by the relative importance of the components to the all in cost of an employee (Haq Hussain, 2008). GDP Deflator GDP deflator is a measure of the price of all the goods and services included in Gross Domestic Product (GDP) (Haq Hussain, 2008). Capital Goods Price Index So far (CGPI) has not been established, where as several economists have recently pointed out the necessity of measuring capital goods inflation (inflation in the price of stocks, real estate, and other assets) separately. Indeed a given increase in the supply of money can lead to a rise in inflation (consumption goods inflation) and or to a rise in capital goods price inflation. The growth in money supply has remained fairly constant through since the 1970s however consumption goods price inflation has been reduced because most of the inflation has happened in the capital goods prices, Haq Hussain (2008), where as there are two common known measures widely reported in many countries, i.e. CPI and GDP Deflator. The above chart shows the trade of world developed countries in terms of exports and imports, the amount is in US billion dollars, the next chart is of inflation of the developed countries of the world, the purpose is to compare and analyze the countries inflation rate and trade in order to examine the impact caused by inflation on countries trade. As it can be seen that each country has different impact of inflation on its imports and exports, for instance Australia inflation rate was 2.30% in year 2007 where as its exports were 142 billion dollars and its imports were 160 billion dollars, similarly for Canada its inflation rate was 2.10% and its exports were 431.1 billion dollars and its imports were 386.4 billion dollars, therefore if a comparison is made between these countries it can be seen that every country has a different impact of inflation on its trade, hence it can be said that the reason for this difference of change is the size of countrys economic and financial structure. Tariff A tariff is a tax forced on an imported or exported commodities. In general dialect, however, it has come to mean import duties charged at the time goods are imported (Parkin, 1996). According to Japans customs tariff law a tariff a tax based on the standard of assessment of prices or volume of imported goods (Tariff, 2010). Functions of Tariff There are three major functions of tariffs: To serve as a basis of income; To protect domestic industries; and To remedy trade distortions (corrective function) (Functions of Tariff, 2010). The Income Function The income function simply means that the income from tariffs provides governments with a source of tax revenue. In the past, the income function was indeed a major reason for applying tariffs, for instance Japan generates about 845 billion yen in tariff revenue per year, which represents approximately 1.9 percent of total tax revenue (Meti, 2010). Protection of Domestic Industries Tariffs are also used as a policy tool to protect domestic industries from competition of importing goods, as well as tariffs are also used as a source of protection of market access from foreign exporters (Meti, 2010). Remedy to Trade Distortions Corrective tariffs are used as a remedy for trade distortions caused by companies to injure domestic industry, for instance anti-dumping agreement is used to impose duties on companies exporting goods that are specifically banned and cause damage to domestic industry of importing country (Meti, 2010). Remittance Remittance can be defined as sums of money that a migrant worker sends back to his or her country of origin (Wimaladharma, Pearce Stanton, 2004). Remittance plays a vital source of income for developing country economies, as well as millions of individual households, predominantly poor women and their children. Unlike aid or concealed investment flows, remittance reaches the poor directly, and the poor decide how the money is spent. Importantly, remittance services also offer a means for monetary institutions to increase their outreach and significance to poor clients (Wimaladharma, Pearce Stanton, 2004). For instance the largest remitting countries in terms of volume are the United States with remittances amounting to $28.4 billion, Saudi Arabia with remittances amounting to $15.1 billion and Germany with remittances amounting to $8.2 billion (Wimaladharma, Pearce Stanton, 2004). In the study, Ratha (2003), it was found that more than three-quarters of remittances go to lower mid-income and low income developing countries. India receives the largest volume of remittance mounting to $10 billion, then Mexico with $9.9 billion, followed by the Philippines with $6.4 billion (Wimaladharma, Pearce Stanton, 2004). Exchange Rate The price of one countrys currency expressed in another countrys currency. In other words, the rate at which one currency can be exchanged for another. For instance, the higher the exchange rate for one euro in terms of oneyen,the lower the relative value of the yen (Investopedia , 2010). Exchange Rate and Trade Exchange rate is one of the important factors in an open economy since it affects so many business, investment and strategic decisions. Various empirical studies have been conducted to assess the influence of exchange rate on trade balance, with the objective of providing valuable inputs to policy makers on the usefulness of exchange rate policy such as devaluation-based alteration policies (effected through nominal exchange rate) to balance a countrys foreign trade for instance, Greenwood (1984), Himarios (1989), Rose Yellen (1989) provided the evidence of relationship between exchange rate and trade balance. In a study, Oskooee (2001) stated that appreciation of exchange rate directly affects a country trade as it can be used as an effort to increase international competitiveness and help to improve its trade balance. On the other hand it was also reported in the study that depreciation of exchange rate increases exports by making exports fairly cheaper, and daunt imports by making imports fairly more expensive, thus improving trade balance(Liew, Lim, Hussain, 2000). Japan and ASEAN A study conducted using trade balance data from year 1986 to 1999 between Japan and 5 ASEAN countries to examine the impact of exchange rate on countries trade balance. It was found in the study that the role of exchange rate changes in initiating changes in the trade balances has been overstated. It is widely expected that the decrease of ASEAN-5 exchange rates with respect to Japanese yen would improve these economies trade balances with Japan during the sample period of study (Liew, Lim, Hussain, 2000). Gross Domestic Product Gross domestic product is the value of collective or total production of goods and services in a country during a given time period (Parkins, 1996). Measures of GDP There are two common measures of GDP namely: Expenditure Approach. Factor Income Approach. Expenditure Approach In expenditure approach the GDP is measured by adding consumption expenditure, investment, government purchase of goods and services and net exports (Parkins, 1996). Factor Income Approach In factor income approach the GDP is measured by adding all the incomes paid by the firms to household for the services of factor of production, for example compensation of employees, net interest, rental income, and profits paid for entrepreneurship (Parkins, 1996). Chapter 2 Literature Review Transportation Cost Europe A comparative study, Conlon (1981), was conducted in 1981 between Australia and Canada to investigate the role of transportation cost as a trade barrier in trade flow of both the countries. It was found in the study that in Australia nominal transport costs contribute over 40 per cent of the trade barrier in its trade flow, where as in Canada transport costs provide over 17 per cent of the total barriers. In the study by, Casas choi (1985), it was found that transportation cost being the trade barrier has two affects on the country economy 1) implicit tariff effect, 2) resource cost effect. The Implicit Cost Effect In the implicit cost effect, Casas choi (1985) an increase in transportation costs affects the trade flows by increasing the domestic comparative price of the imported goods. Resource Cost Effect In the resource cost effect, Casas choi (1985) an increase in transportation cost, shifts productive resources from traded goods to the transport sector, i.e. in case of increase in transportation cost, the resources used to produce goods domestically were allocated for payments of transportation bills due to which production of domestic goods suffered. United Kingdom Similarly an empirical study, Binkley Harrer (1981), conducted in the United Kingdom to examine the role of transportation cost as trade barrier, it was found that Transportation costs between countries pose a formidable barrier to trade, similar to other trade barriers such as tariffs. This study was further supported by the study of Sampson and Yeats in which it was concluded that transport costs to be a more significant trade barrier for United Kingdom exports than tariffs, (Sampson Yeats: Binkley: 1978 Harrer: 1981). Similarly another study conducted in the United Kingdom also concluded that transportation cost is more effective trade barrier as compared to tariffs (Sampson yeats, 1978: Binkley Harrer: 1981). United States A similar study by, Finger Yeats (1976), conducted in the United States gave the similar conclusion that that effective shield through international transportation costs is at least as high as that due to tariffs, Geraci Prewo (1977). In a study it was concluded by the author that progressive reduction in the transportation cost resulted in the growth of trade between United States and Europe, Shiue (2002). Similarly another study conducted in the United States also concluded that transportation cost is more effective trade barrier. Africa A study conducted in Africa to examine the effect of transportation cost on African trade, the results indicated that there is a very little trade flow within the Africa and the rest of the world, due to strict trade policies, for example according to, Collier (1995), Collier Gunning (1999), Limà £o and Venables (2001), There is a common belief that Africa trades too little both with itself and with the rest of the world. The poor performance is typically attributed to protectionist trade policies and high transport costs. Similarly another study concluded that the reason behind the low trade is the poor infrastructure and inappropriate transport policies (Amjadi Yeats 1995: Limà £o Venables, 2001). Australia A study conducted in Australia, Sampson Yeats (1977) to identify the trade barriers causing decline in Australian exports, it was found in the study that transportation cost is a major contributor to decline in export as compared to tariffs, in other words it can be said that 66 percent of the total Australian exports are decline due to transportation cost. China A study conducted in china by studying various trends in trade barriers, the purpose of the study was to identify trade barriers affecting Chinese exports, and it was found in the study that transportation cost is a major trade barrier as compared to tariffs and local markups (Li, 2007). Tanzania An empirical study, Kweka (2001) conducted for developing countries such as Tanzania it was found in the study that transportation cost as a trade barrier have two impacts on the economy: It reduces the export competitiveness, Kweka (2001), since the cost incurred by the producer and cost paid by the buyer is widens by the high transportation cost. In other words it can be said that due to the increase in transportation cost most of the export orders to developing countries such as Tanzania are declined. The second impact, Kweka (2001) on the economy of developing countries is a positive impact, due to high transportation cost the trade of locally produced goods increases, this is due to the fact that the gap between the prices of locally produce goods and imported goods become so wide that it becomes nearly impossible for the people of importing country to buy imported goods as a result 95 percent of the purchases are made off locally produce goods. Ultimately leading a growth in the overall economy. Tariff There are number of studies conducted to examine the impact of tariff as a trade barrier, for instance in a study it has been found that tariff and capital controls lead to trade deformation. Where as on the other hand it has also been that found tariff barriers in the importing countries tend to have a negative, though insignificant, effect on exports of countries (T. Tamirisa, 1999). Another study examining the impact of tariff as barrier on trade found that tariff has a significant negative effect on mutual exports, in part because of significant trade cost, where as in presence of tariff barrier the impact on imports is comparatively weak (T. Tamirisa, 1999). One more study examining the impact of tariff as a barrier in trade found that tariff is one of the significant factor of mutual trade in-between countries, as compared to country size wealth, exchange and capital controls, while tariff rate significantly reduce export of developing and transition economy (T. Tamirisa, 1999). A study conducted to examine the relationship between trade barriers and trade flow. The study identified number of barriers such as exchange control, tariff, NTBs, it has been found that tariff is one of the major trade barrier as compared to exchange control and NTBs. The study also concluded that tariff with other barriers of trade tend to reduce the volume of trade, as well as tariff alone have a depressing impact on the mutual trade of countries (Lee Swagel, 1997). The study also provided the evidence that country having bi-lateral trade is affected by tariff charges as a result it does not only have a strong negative effect imports but it acts as a substantial barrier to export also. Final study concluded that tariff act as a barrier to both imports and exports of a country (Lee Swagel, 1997). Another study conducted in year 1993 by lee to examine the distortion caused by tariff in international trade found that tariffs charges lower the long-run growth rates more significantly in a country that needs to import more under a free trade regime. As well as government intervention in terms of imposing a tariff on the imports of foreign goods leads to the increase in price paid by the domestic purchaser i.e. (1 + 7) times the price received by foreign exporters (lee, 1993). Therefore it can be said that, tariff has two effects on the economy, namely the deformation of resource distribution and the transfer of income, distortion effect of tariffs always decrease the steady-state levels of the capital stock, output, and consumption. Where as transfer of income help to retain the income earned through exports within the country, in presence of tariff where as in absence of tariff same income earned through export is used to settle import bills. On the other hand the study also concluded that when the tariff rates are high, the productivity of public input diminishes; thus, higher tariffs always lead to lower growth rates (lee, 1993). Empirical studies have found that tariff liberalization would transfer trade from the rich to the poor and from the local to the global. It has been estimated that the elimination of tariffs would create more trade for poor countries than for richer countries. They also imply that tariff elimination would divert trade away from continental preferential trading areas (lai zhu, 2004). The study provided the evidence that tariffs, and distance-related barriers and production costs are important factors affecting bilateral trade flow, where as tariff being the major element affecting the trade flow (lai zhu, 2004). For instance the trade among OECD countries is free form tariff charges where as non OECD countries have the highest tariff charges. As a result, the impact of tariffs on trade within OECD countries is likely less than 3.7% whereas the impact of tariffs on trade among non-OECD countries likely exceeds 3.7% (lai zhu, 2004). Population There are number of studies conducted to examine the impact of population on trade. These studies discussed various questions regarding the benefits of openness of trade between countries for instance, who gains from an opening of the borders between two neighboring countries? Will any country lose as borders are opened? Is it the small country or the large country that benefits most? (Shachmurove Spiegel, 2004) It is general perception that countries with large populations having no trade tend to have larger profits at the expense of consumers i.e. since there is no foreign producer in the country all the profits earned through production is solely taken by the country it self in simple words it can be said monopoly. Where as if the same country having trade with other countries or foreign producers are trading in the country tends to reduce its profits, as part of the profit is taken by foreign exporter. On the other hand keeping the same scenario for a country with small population tend to have lower profits in the absence of trade and it will further see a decline in its profits with the presence of foreign producer (Shachmurove Spiegel, 2004). There are number of studies conducted that provided the evidence that countries having population aging problems have direct impact on the country trade, for instance a study by, Kenc Sayan (2001), showed that changes in age composition of population are likely to affect saving and expenditure patterns, the resulting changes in composition of demand are expected to affect comparative prices between expenditure and investment goods. On the supply side, the decline in labor supply and the slow down in capital formation associated with population aging had cause changes in capital-labor ratios. As a result it alters relative factor prices and leads to second-round effects on resource allocation. Furthermore, since the changes in the relative capital intensities across traded and non-traded sectors affect real exchange rates and trade patterns, they are expected to create additional effects on partner country economies as well (Sayan Uyar, 2002). On the other hand if the countries experiencing population aging are large in the international trade, where as their partners are small and have not yet faced a population aging problem themselves. In other words, commodities and capital traded at the terms set by large economies may make these small countries vulnerable to the effects of population aging even if they have relatively young populations (Sayan Uyar, 2002). Gross Domestic Product (GDP) There are number of studies conducted to examine the impact of gross domestic product (GDP) on trade (imports exports) of a country, for instance a study conducted using gravity equation to examine the impact of gdp on exports of a country, the study classified the sample into three categories a) homogeneous goods, b) differentiated goods, and c) an in-between category (Feenstra, Markusen Rose, 2001). It found in the study that if a trade of one country with another move from homogeneous goods to differentiated goods, then the stretch of exports with respect to GDP rises considerably (Feenstra, Markusen Rose, 2001). The finding of the study is empirically strong and significant both economically and statistically, as well as the study also stated that the GDP of the exporting country is found to be a powerful illustrative variable in the comparative strength of bilateral trade relations (Feenstra, Markusen Rose, 2001). Another study conducted in India to examine the impact of various economic variables such as (distance, GDP, population, tariff, and exchange rate) on Indian trade flows. Previous studies have also been conducted using gravity model to examine the impact of economic variables on trade flows, it was reported in the previous studies that distance has a negative and significant impact on trade where as GDP and population have a positive and significant impact on trade flows (Srinivasan Archana, 2008). Likewise the previous studies, the study conducted in India reported the similar findings, i.e. larger distance reduces mutual trade and a larger GDP and population of the trading countries increase trade. It was also found in the study that size of the economy is an important influential factor explaining the inflow and outflow of goods and services. A study similar to previous studies was conducted to examine the impact of gdp on trade flows of a country. The study supported the findings of the previous studies that tariff barrier of importing country have a negative and significant impact on exporting countries, where as the study also reported that the larger gdp and population have a positive impact on bilateral exports of countries (Tamirisa, 1999). A study conducted by, Ghartey (1993), using economic data of three countries (United States, Japan and Taiwan) to examine the impact of gdp of each country on its trade flows, it was found in the study that United states GDP promoted its exports, where as for Japan and Taiwan the impact was opposite (Chen, 2009). Similarly another study conducted by, Jung Marshall (1985), to examine the relationship between GDP and exports, the study used thirty one years of GDP and exports data from year 1950 to year 1981 for 37 developing countries, it was found in the study that there is no relationship between GDP and exports of 37 developing countries except Israel (Chen, 2009). China A study conducted in china by, Shen (1999) to examine the relationship between exports and GDP, the study used twenty one years of exports and GDP data from year 1977 to year 1998, the study found that there is a short term relationship between the Chinese GDP and exports, where there is no long term relationship between the two variables (Chen, 2009). Pakistan A study conducted in Pakistan to examine the impact of GDP on Pakistan trade flows, it was found in the study that an increase in GDP i.e. increase in domestic income results in increase in imports, for instance a one-percent increase in Pakistan GDP increases imports from US and Japan by an equivalent percent. Where as if compared to UK and Germany the trade flow is positive and small but not significant (Akhtar Malik, 2000). Inflation What exactly is inflation? A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services. Inflation occurs when the price level rises from one period to the next (Robinson, 2007). The Impact of Inflation on International Trade A study conducted in U.S, Robinson (2007) to investigate the impact of inflation on international trade and small business. It was found that inflation creates uncertainty that discourages productive activity, savings and investing and ultimately reduces the competitiveness of a country in international trade. It was also found that if inflation is not offset by a nation with a less valuable currency, the U.S.s exports become more expensive and less attractive. This makes other countries imports more attractive. As a result this forms an economy of unbalanced trade with more reduced U.S. economy and international trade (Robinson, 2007). Inflation has many disadvantages; it creates uncertainty, in that people do not know what the money they earn today buy tomorrow. This uncertainty discourages productive activity, saving and investing. Inflation reduces the competitiveness of the country in international trade. If inflation is not offset by a nation with a less valuable currency, the U.S.s exports become more expensive and less attractive. This makes other countries imports more attractive. This forms an economy of unbalanced trade which results in a much more reduced U.S. economy (Robinson, 2007). Inflation and Trade A study conducted, Fitoussi (2007), to investigate the impact of inflation on trade found that in the last 15 years or so, disinflation and the increase of world trade seem to have gone hand in hand. It was found that in the past three decades a downward trend in inflation caused an inward trend in world trade (Fitoussi, 2007). The first fact that can be observed is that the past three decades were characterized both by an upward trend in world trade (measured as exports over GDP) and a downward trend in inflation (measured as yearly change in CPI) (Fitoussi, 2007). Remittances In general remittances are defined as a portion of the earnings a migrant sends to relatives back home, IMF (2010). It has been estimated that workers migrated to different countries send home between US$ 2000 to US$ 5000 a year, i.e. in terms of percentage around 20% to 30% of their income. It has been found in the previous researches that poor countries receive larger amount of remittances as compared to high income countries for instance In 2007, the top three recipients of remittances India, China, and Mexico-each received over $25 billion. But smaller and poorer countries tend to receive relatively larger remittances when the size of the economy is taken into account. Expressing remittances as a share of GDP, the top recipients were Tajikistan (36 percent), Moldova (36 percent), Tonga (32 percent) and Kyrgyz Republic (27percent). Remittances as a share of GDP amounted to 3.6 percent of GDP in low-income countries in 2006 compared to 1.7 percent in middle-income countries (Ratha Mohapatra, 2007). Numbers of studies have been conducted to examine the impact of remittances on the trade of a country; these studies provided a mix of evidence regarding the impact of remittances on countries trade, for instance some studies provided the evidence that remittances can improve a countrys creditworthiness and thereby enhance its access to international capital markets for financing infrastructure and other development projects, in other words it can be said that increase in inflow of remittances increase the foreign reserves of a country, hence it enhances the ability of a country to meet its foreign trade obligations (paying of import bills). This enhancement of country ability indicates a sign of increase in its economic activity as a result it attracts foreign investors and foreign export orders (Ratha Mohapatra, 2007). For instance the ratio of debt to exports of goods and services, a key indebtedness indicator, would increase significantly if remittances were excluded from the denominator. Exchange Rate Turkey A study conducted, Vergil (2001), to investigate the impact of exchange rate volatility on Turkish trade flows comprising on 10 years data from year 1990 to year 2000. It was found in the study that exchange rate volatility has a negative impact on Turkish trade flows. Africa A study conducted to analyze the impact of exchange rate volatility on African countries trade flows. The study used 33 sub-Saharan African countries exchange rate macro-economic performance indicators data. It was found in the study that exchange rates contributed a great deal towards Africas poor economic performance, Ghura Grennes (1993), i.e. overvaluation in exchange rate resulted in lower level of exports, lower level of real GDP per Capita and lower level of Savings (Shatz Tarr: 1990). G-7 Countries A study conducted by international monetary fund to investigate the impact of exchange fluctuation on world trade, in the study the G-7 countries trade was taken as world trade. The purpose of the study was to compare the results of IMF 1984 study a

Spain Essay -- essays research papers

Spain   Ã‚  Ã‚  Ã‚  Ã‚  Spain, a country occupying the greater part of the Iberian Peninsula, and bounded on the north by the Bay of Biscay, France, and Andorra, and on the east by the Mediterranean Sea. The Balearic Islands in the Mediterranean and the Canary Islands in the Atlantic Ocean off the coast of Africa are governed as provinces of Spain. Also, Spain administers two small exclaves in Morocco—Ceuta and Melilla. The area of Spain, including the African and insular territories, is 194,885 sq mi. Madrid is the capital and largest city. Population The Spanish people are essentially a mixture of the indigenous peoples of the Iberian Peninsula with the successive peoples who conquered the peninsula and occupied it for extended periods. These added ethnologic elements include the Romans, a Mediterranean people, and the Suevi, Vandals, and Visigoths, Teutonic peoples. Semitic elements are also present. Population Characteristics The population of Spain at the 1991 census was 38,872,268. The estimate for 1995 is 39,276,000, giving the country an overall density of about 202 per sq mi. Spain is increasingly urban, with more than 80 percent of the population in towns and cities. Principal Cities The capital and largest city is Madrid (population, greater city, 1991, 3,010,492), also the capital of Madrid autonomous region; the second largest city, chief port, and commercial center is Barcelona, capital of Barcelona province and Catalonia region. Other important cities include Valencia, capital of Valencia province and Valencia region, a manufacturing and railroad center; Seville, a cultural center; Saragossa, and Bilbao (369,839), a busy port. Religion Roman Catholicism is professed by about 97 percent of the population. The country is divided into 11 metropolitan and 52 suffragan sees. In addition, the archdioceses of Barcelona and Madrid are directly responsible to the Holy See. Formerly, Roman Catholicism was the established church, but the 1978 constitution decreed that Spain shall have no state religion, while recognizing the role of the Roman Catholic church in Spanish society. There are small communities of Protestants, Jews, and Muslims. Higher Education Spanish institutions of higher education enrolled nearly 1.3 million students in the early 1990s. The major universities of Spain include the University of Madrid, the Polytech... ...ed the ETA, which stepped up its terrorist activities. Meanwhile, Catalans pushed for greater control over local affairs, and demanded greater language rights. The use of Catalan and nationalist sentiments increased in and around Barcelona. The Galicians consistently distanced themselves from Madrid, though ethnoregionalism remained weaker in Galicia than in either Catalonia or Basque Country. Suà ¡rez governed through consensus, consulting all nonextremist parties when formulating basic policy. Catalonia and the Basque Country were granted home rule, and their languages were officially recognized. The constitution extended similar privileges to 15 other regions. Thus, the movement toward political centralization begun by Ferdinand and Isabella some 500 years earlier was reversed, and a â€Å"Spain of autonomous communities† was created. In recent years, concerns over Spain's environmental problems have grown. The country has experienced increased air-pollution problems in Madrid and along the northeastern coast, water pollution in agricultural and coastal areas, and soil erosion. Controversies arose over rapid development along the Mediterranean coast and threats to scenic attractions.

Assurance Hand Note in Kl

Mahedi 01914919285 Subject: Assurance Level: Knowledge Chapter: 1 (Concept of & Need for Assurance) Assurance: a conclusion of an opinion designed to enhance the degree of confidence of the intended users by evaluating or measuring of a subject matter. Assurance engagement: is a process by which a practitioner can obtain the authority to express a conclusion opinion about the outcome of the evaluation or measurement of a subject matter against criteria to enhance the degree of confidence of the intended users. Key elements of assurance engagement: †¢ †¢ †¢ †¢ †¢ Three parties A subject matter Suitable criteria Sufficient criteria ReportReasonable assurance: is the high but not absolute level of assurance, depends on evidence obtaining during the time of audit. Importance and benefits of assurance: †¢ †¢ †¢ †¢ †¢ †¢ Independent professional opinion Confidence Prevention of error and fraud Acceptance Recognition/reliability Credibi lity True: that id factual, confirmation and reality Fair: free from discrimination and bias Assurance never be absolute: assurance provider never obtain the absolute level of assurance due some limitations. So assurance never be absolute. Limitations of assurance engagement: †¢ †¢ †¢ †¢ †¢ †¢ Over see the preparation of F.S. Inherent limitation Evidence obtain Test basis checking Estimates Nature of assurance report Tarek 01712-049032 †¢ †¢ Short time Shortage of man power Assurance engagement process: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Obtaining the engagement Continuous risk assessment Engagement acceptance Scope of the engagement Planning the engagement Obtaining evidence Evaluation the result of assurance work Concluding and reporting on the engagement Reporting to the engagement parties Keeping record Audit: the objective of an audit of F. S. is to enable the auditor to express an opinion whet her the F. S. re prepared, in all material respects, in accordance with an applicable financial reporting framework. There are many issues users want assurance on: * Value for money studies †¢ Circulation report †¢ Cost/benefit report †¢ Due diligence †¢ Review of specialist business activities †¢ Internal audit †¢ Report on website security †¢ Fraud investigations †¢ Inventories and receivables report †¢ Internal control report †¢ Reports on business plans or projections Examples of assurance engagement †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Local authority audit Bank audit Insurance audit Pension scheme audit Charity audit Solicitors audit Environmental audit Branch auditExpectation gap: difference between expectation level and practical audit performance. Tarek 01712-049032 Company Act: 1994 Chapter: 2 (Process of Assurance) Scope/step/process of assurance engagement: †¢ †¢ †¢ †¢ †¢ Source of information of new client Enquiries from other source Document review Previous auditor Review rules, regulation and standards Assurance engagement letter: 1. Starting: †¢ †¢ Flow of communication auditor Vs client Address- To responsible parties/client 2. Body: †¢ †¢ †¢ †¢ Introduction/reference Management and auditors responsibility to F. S. Scope of audit work-test limitation Other responsibilities . Conclusion: †¢ †¢ Audit fees and other charges Conclusion Para (depend on nature of business) Audit accepting an engagement: †¢ †¢ †¢ †¢ Proposed auditor must communicate with previous auditor (on the permission of client). If their audit engagement date is valid Refusal reasonable cause If any fraud/error in the client Assurance appointment considerations: †¢ †¢ †¢ †¢ Ensure professionally qualified Ensure existing resources are adequate Obtain reference Communicate with previous auditor. Tare k 01712-049032 ** Read interactive questions and self test from manual. Chapter: 3 (Planning and Assignment)Planning: is a process by which assignment will be performed in an effective manner. Audit plan: is a process by which auditor will perform all activities regarding audit in an effective manner. Audit strategy: is a technique which sets scope, timing and direction of the audit and guides the development of the audit plan. Importance/requirements of audit plan: †¢ †¢ †¢ †¢ †¢ †¢ Appropriate attention to important areas Identify potential problems and resolve timely Ensure the audit work done properly and organized way Assigned the audit work to the member of audit team Direction and supervision of audit work Facilitate review of workStructure of audit plan: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Ethical requirements Ensure team of engagement Establishing audit strategy Development audit plan including risk assessment proced ure/audit test Determining the relevant characteristics Discovering key dates for reporting & others Determining materiality & preliminary risk assessment Consideration team members availableTarek 01712-049032 Key elements of an overall audit strategy: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Understanding the entities environment Understanding the accounting & internal control system Risk and materiality Consequent nature, timing and extent of procedures Co-ordination, direction, supervision and review Other matters Budget and fees StaffingProfessional skepticism: An attitude of professional skepticism means the auditor makes a critical assessment with questioning mind, of the validity of audit evidence obtained and is alert to audit evidence that contradicts or bring into question, the reliability of documents and responses to enquiries and other information obtain from management and those charged with governance. Analytical procedure: means evaluation of f inancial information made by a study of possible relationship among financial and non-financial data.Sources for risk assessment by using analytical procedure: †¢ †¢ †¢ †¢ †¢ †¢ †¢ Interim financial information Budget Management information Non-financial information Bank and cash records VAT returns Board minutes Show ratio analysis formula (manual page 50) Materiality: relates to the level of tolerable error that affects the decision of users and accountant. Tolerable error: the maximum error that an auditor is accept in a class of transactions or balances in the F. S. Tolerable error percentage (%): On sales 0. 5-01% Gross profit 0. -1% Total asset 1-2% Net asset 2-5% Profit before tax 5% Profit after tax 5-10% Tarek 01712-049032 Audit risk: the risk is define, that auditors give an inappropriate opinion on the F. S. Audit risk: material misstatement risk (for co. ) + detection risk (for auditor) Material misstate risk = inherent risk + control r isk Inherent risk: the susceptibility of an account balance or class of transaction to misstatement that could be material individually or when aggregated with misstatements in other balances or classes assuring there where no related internal controls.Characteristics of inherent risk: †¢ †¢ †¢ †¢ †¢ Estimates of balances If co. is in trouble Seeking for fund raising Motivation of director/management (profit related issue) Choices of methods for financial transactions Control risk: the risk that a material misstatement would not be prevented, detected or corrected by accounting and internal control systems. Detection risk: the risk that, auditors procedure will not detect or misstatement that exits in an account balance or class of transaction that could be material.Steps for assessing the audit risk: †¢ †¢ †¢ †¢ Step 1: identify the risks throughout the process of obtaining and understanding the entity. Step 2: relate the risk to what ca n go wrong the assertion level. Step 3: consider whether the risks are magnitude that could result in material misstatement. Step 4: consider the likelihood of risk considering material misstatement. Chapter: 4 (Evidence and reporting) Documents: All information which obtain/gathered by the auditor during audit period is documents. Audit evidence: all information/documents gathered by the auditor and on which based auditor conclude the opinion.Tarek 01712-049032 Test of control: audit evidence obtains evaluating the effectiveness of controls in preventing/detecting and correcting material misstatement at the assertion level. Substantive procedure: test of details of classes of transactions account balance and disclosure substantive analytical procedure. Quality/source of evidence: †¢ †¢ †¢ †¢ †¢ external auditor entity written oral F. S. assertion level: A) Class of transaction †¢ †¢ †¢ †¢ †¢ Occurrence Completeness Accuracy Cut-off Classification B) A/C balance: †¢ †¢ †¢ †¢ Existence Rights and obligations Completeness Valuation and allocationC) Presentation and disclosure: †¢ †¢ †¢ †¢ Occurrence Completeness Classification and understandability Accurate and valuation Sufficiency: is the measure of quantity of audit evidence. Appropriateness: is the measure of quality or reliability of audit evidence. F. S. assertion: the presentations by management, explicit or otherwise that are embodied in the financial statement. Audit opinion: Tarek 01712-049032 A) qualified B) non-qualified Qualified opinion: 1. 2. 3. 4. modified scope of limitations adverse disclaimer Read self test and interactive question. Chapter: 5 (introduction to internal controlBSA 315: internal Control Internal control: is the process designed and effect by those charged with governance, management and other parts to provide reasonable assurance about the entities objectives with record to reliability of f inancial reporting, effectiveness and efficiency of operations and compliance with applicable laws and regulations. Reason for internal control: †¢ †¢ †¢ Minimizing business risk Ensuring the continuing effective function of the company Ensuring Co. complies with relevant laws and regulations. Limitation of internal control: †¢ †¢ †¢ †¢ †¢ Expense Human elements Unusual transaction Management oversee Regular monitoringComponents of internal control: †¢ †¢ †¢ †¢ †¢ The control environment Risk assessment process Information system Control activities All system should be monitored Tarek 01712-049032 Control environment: the control environment includes the governance and management functions and the attitudes, awareness and actions of those charged with governance and management concerning the entities internal control and its importance in the entity. Audit committee: a subsection of the board of directors which has a p articular interest in the finance and accounting activities of the Co.Function/duties of audit committee: †¢ †¢ †¢ †¢ †¢ †¢ †¢ To review the integrity of the F. S. To review the Co. internal financial control Monitor the effectiveness of the Co. internal audit function To make recommendations to the board in relation to the external auditor Monitor the independence of the internal auditor To implement policy on the provision of non-audit service by the external auditor Entities risk assessment process: the process by which management in a business identifies business risk relevant to financial reporting objectives and decides what actions to take to address those risks.Business risk: The risks inherent to the Co. in its operations. It is risk at all levels of the business. Control activities: The policies and procedures that help ensure that management directives are carried. Business risk assessment process: †¢ †¢ †¢ †¢ Identif y relevant business risk Estimate the impact of risks Asses the likelihood of occurrence Decide upon controls Reporting objectives: includes the procedures and records designed to initiate, record, process and report entity transactions and to maintain accountability for the related assets, liabilities and equities.Types of control activities: †¢ †¢ †¢ †¢ †¢ Authorizations Performance review Information processing physical control Segregation of duties IT control: the internal control in a computerized environment includes both manual procedures and procedures designed to computer programs. Tarek 01712-049032 Application control: are manual or automated procedures that apply to the processing of individual applications to ensures that transactions occurred, are authorized and are completely and correctly recorded and processed.General controls: are policies and procedures that relate to many applications and support the effective function of application cont rols by helping to ensure the continued proper operation of information systems. General control examples: †¢ †¢ †¢ †¢ †¢ Development of computer applications Prevention or detection of unauthorized changes to programs Testing and documentation of program Controls to prevent unauthorized amendments to data files Controls to ensure continuity of operationsExamples of application control: †¢ controls over input: completeness †¢ controls over input: accuracy †¢ authorization control †¢ processing control †¢ control over master file and standing data Steps to recording of internal control: †¢ †¢ †¢ Narrative (short note, background information) Questioners/checklist Diagrammed (flow chart, organization chart, family trees and record of related parties) Internal control procedure: †¢ Initiative †¢ Authorization †¢ Accuracy †¢ Recording †¢ Documentation Tarek 01712-049032Chapter: 6 (Revenue System) R isk objective on selling goods: †¢ †¢ †¢ Order may be taken from customer who are not able to pay Order may be taken from customer who are paid after long time Order may not recorded properly Taking steps to prevent this risk: †¢ †¢ †¢ Goods and services are only supplied to customers with good credit rating Customers are encouraged to pay promptly Chapter: 9 (Internal Audit) Internal Audit: A monitoring activities established within an entity as a service to the entity.Its function includes, amongst other things, examining, evaluating and reporting to management and the directors on the adequacy and effectiveness of components of the accounting and internal control system. External Audit: An audit carried out by an external. The objective of an external audit of financial statements is to enable auditors to express an opinion on whether the F. S. is prepared in accordance with the applicable financial reporting framework. Difference between internal an d external audit: Subject Definition Reason Internal Audit †¦Ã¢â‚¬ ¦.Is an activity design to add value and improve an organizations operation Audit report to the board of director or audit committee Audit works relate to the operations of the organization He/they are the employees of the Co. except some exception External Audit †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. To express an opinion on F. S Reporting Relating to Relationship with the Co. Auditors report to the shareholder to Co. on the truth and fairness of the F. S Audits works to the F. S They are independent not the employee of the co. Internal Audit functions: †¢ Monitoring internal controlTarek 01712-049032 †¢ †¢ †¢ †¢ Examining financial and operating information Review of the economy, efficiency and effectiveness of operations Review of compliance with laws and regulations Special investigations, for instance into suspected fraud Operational Audit: Operational Audit is the review of operational process of the organization. They are also known as management or efficiency audit. Their prime objective is the monitoring if management performance, ensuring Co. policy is adhered to. Function of Operational audit: †¢ †¢ Ensuring policies is adequate Ensuring policies work effectivelyChapter: 10 (Documentation) Audit evidence: Working paper with relevant evidence to draw opinion and helping assurance provider for assurance report. Audit Documentation: Audit documentation is the record of procedures performed, relevant audit evidence obtained and conclusion related. Form and content/work of documentation: †¢ †¢ †¢ †¢ †¢ †¢ Procedure of audit Risk identification Judgment Significance Problem/expectation Audit methodology Automated working paper: Working paper package have been developed which can make the documenting audit work much easier.Advantages of evidence: Tarek 01712-049032 †¢ †¢ †¢ Risk and error reduce Key of analytical informat ion Less time consuming Permanent audit filing: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Engagement letter Questioner Memorandum of Article and A/A Legal documents Detail history of business Board minutes of continuing relevant Previous F. S. Accounting system notes Current audit file: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ F. S. Checklist Management details Review notes Letter of representation Budget and summarized Management letter Notes of board minutes Communication with 3rd partiesWorking paper decoration: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Name of client Balance sheet date Name of the preparer Date of preparation Subject of the working paper Name of reviewer Date of review Object of the work done Source of information Sample size determine The work done The result obtained Analysis of error Other significant observation The conclusion dr awn Tarek 01712-049032 Tarek 01712-049032 Chapter: 11 (Evidence and Sampling) Evidence: All of the information used by auditor to drawn an opinion. Source to obtain evidence: †¢ †¢ †¢ †¢ †¢ †¢ †¢ Inspection Observation Inquiry Confirmation Re-calculation Re-performance Analytical procedureTest of control: Perform to obtain audit evidence about the effectiveness of controls in preventing or detecting and correcting material misstatement at the assertion level. Substantive procedure: Audit procedure to detect material misstatement at the assertion level test of details of transactions. * Account balance * Substantive analytical procedure Computer assisted audit technique: †¢ †¢ †¢ Dummy data Rent data Dummy data against verified copy Quality of audit evidence: †¢ †¢ †¢ †¢ †¢ External Auditor Entity Written OriginalTarek 01712-049032 Analytical Procedure – BSA 320 Audit reliability factors: †¢ Analyz ed †¢ Availability of information †¢ Accuracy †¢ Frequency †¢ Relevant of the information †¢ Comparability of the information †¢ Previous auditor Source of information about client: †¢ Interim financial information †¢ Budgets †¢ Management accounts †¢ Non-financial information †¢ Bank and cash records †¢ Sales tax returns †¢ Board minutes †¢ Client/3rd party Audit sampling: Involve the application of audit procedure to less then100% of the items within an account balance or class transactions such that all sampling units have a change of selection.Population: Is the [entire set of data from which a sample is selected and about which an auditor wishes to draw a conclusion. Statistical sampling: Is any approach to sampling that involves random selection of a sample, and use a probability theory to evaluate sample results, including measurement of sampling risk. Non-statistical sampling: Is a substantive approach to inference, in that mathematical terms are not used consistently in determining sample size, selecting the sample, or evaluating sample result.Error: Means either control deviations, when performing test of controls, or misstatements, when performing substantive procedure. Tarek 01712-049032 Expected Error: Is the error that an auditor expects to be present in the population. Sampling units: Are the individual items constituting in a population. Tolerable error: Is the maximum error in the population that the auditor would be willingly to expect. Random selection: Ensures that all items in the population have an equal chance of selection, e. g. y use of random number tables or computerized generator. Sequence or block selection: It may be used to check whether certain items have particular characteristics. Monetary unit sampling: This is a selection method that ensures that, every CU1 in a population has an equal chance of being selected for testing. Anomalous error: Means an error t hat arise an isolated event that has not recurred other than on specifically identifiable occasions and is therefore not representative of errors in the population.Sampling method: †¢ random selection †¢ systematic selection †¢ haphazard selection †¢ sequence block selection †¢ monetary unit sampling Name of some data analytical software for auditor: †¢ ACL (Audit Command Language) †¢ IDEA †¢ ESCORT computer audit †¢ Active data for Excel †¢ Top CAAT for Excel †¢ ACL service Ltd †¢ Case ware international †¢ Intra com IT service Tarek 01712-049032 †¢ †¢ Information active Inc Reinvent data Tarek 01712-049032 Chapter: 12 (Management Representation) Management: Means officer (director and Co. secretary) and others who perform senior managerial functions.Elements of management representation letter: †¢ †¢ †¢ Entity letter head To auditor and date Tarek 01712-049032 Chapter: 13 (Substantive Procedu re) Key issues/risk of non-current assets: †¢ †¢ †¢ †¢ †¢ Right and obligations assertion Existence assertion Completeness assertion Valuation assertion Presentation and disclosure assertion Source of information/observation matters: †¢ †¢ †¢ †¢ †¢ †¢ †¢ The non-current asset register Purchases invoices for assets during the year Valuation carried out by 3rd party Purchases deeds or receipt documents Hire purchases documents of assets Physical inspection Depreciation calculationIntangible non-current asset: means the assets which cannot touch or show but has a market value. Examples of intangible non-current assets: †¢ †¢ †¢ Goodwill Patent right License and development cost etc. Key issues and sources of information of intangible non-current assets is as like as tangible non-current assets. Key issues/risk of inventory: †¢ †¢ †¢ †¢ †¢ †¢ Existence Completeness Obsolete or damage goods Miscalculation Rights and obligations Cut-off dates Prevent risk of inventory: †¢ The Co. control over inventory countingTarek 01712-049032 †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Auditors regular physical counting Check inventory register Physical verification from warehouse Check purchases invoices Check work-in-progress records for inventory Post-year-end sales invoices for inventory Post-year-end price lists for inventory Post-year-end sales Sources of information for non-current assets: †¢ †¢ †¢ †¢ Invoices 3rd party valuation Auditors inspection Client schedule and calculation Source of information for inventory: †¢ †¢ †¢ †¢ †¢ Auditors attendance at count Invoices 3rd party confirmation Client control over count Clients production scheduleInventory count procedure/various types of inventory count: 1. organization of count: †¢ †¢ †¢ †¢ Supervision by senior staff Tidying and ma rking Restriction and control movement during counting Identification of damaged, obsolete, slow moving and returnable goods 2. Counting: †¢ †¢ systematic counting independence counting 3. Recording: †¢ †¢ †¢ †¢ †¢ Serial numbering Information count records Quality, controls and work in progress counting Inward and outward counting Reconciliation with recordsTarek 01712-049032 Key issues of receivables: †¢ †¢ Rights and obligations Valuation Source of information of receivables: †¢ †¢ 3rd party confirmation Cash payment after date Key issues of bank: †¢ †¢ †¢ †¢ Completeness Existence Rights and obligations Valuation Source of information about parties bank A/c: †¢ †¢ †¢ †¢ Confirmation from bank Bank statement Client schedule Reconciliation with cash book Payable key issues: †¢ †¢ †¢ Completeness Rights and obligations Correct valuation Source of information of A/P: †¢ †¢ †¢ Suppliers statements Payable ledger records Payment documentsKey issues of long term liabilities: †¢ †¢ †¢ †¢ Completeness Accuracy Disclosure Particular papers Source of information of long term liabilities: †¢ Loan documents Tarek 01712-049032 †¢ †¢ †¢ †¢ †¢ Statutory books Confirmations from lenders Client schedule Board minutes Client calculation Key issues of income statement: †¢ †¢ Completeness Accuracy Steps for observing long term liabilities: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Compare opening balances to previous years working paper Test clerical accuracyCompare balance to nominal ledger Check nominal ledger Trace additions and repayments to entries in the cash book Confirm repayments with loan agreement Examine cancelled cheques Verify the borrowing limits Examine sign of board minutes Obtain direct confirmation from lenders Verify inter est check Review any correspondence review minutes, cashbook and loan books. Chapter: 14 (Codes of Professional Ethics) Fundamental principles of code of ethics: †¢ †¢ †¢ †¢ †¢ Integrity Objectivity Professional competence and due care Confidentiality Professional behaviorIndependence of mind: The state of mind that permits the expression of a conclusion without being affected by influence that comprise professional, allowing an individual to act with integrity. Independence in appearance: Tarek 01712-049032 The avoidance of facts and circumstances that are so significant that a reasonable and informed 3rd party, having knowledge of all relevant information, including safeguard applied, would reasonably conclude a firms, or a member of the assurance teams, integrity, objectivity or professional skepticism have been compromised.Threats of code of ethics: †¢ †¢ †¢ †¢ †¢ †¢ Self interest threat Self interest threat Advocacy threat Familiarity threat Intimidation threat Management threat Safeguards of code of ethics: †¢ †¢ †¢ †¢ †¢ †¢ Ethical training and experience Continuing professional development requirement Corporate governance regulation Professional standards Regulatory monitoring and disciplinary procedure External review Chapter: 15 Integrity: Means that an accountant must be straightforward and honest. It implies fair dealings and truthfulness.Objectivity: State of mind that exclude bias, prejudice and compromise and that gives fair and imperial consideration to all matters that are relevant to the task in hand, disregarding those that are not. Independence: Is related to and underpins objectivity, it is freedom from situations and relationships. Self-interest threats are: †¢ †¢ Financial interests Close business relationship Tarek 01712-049032 †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Employment with assurance client Partner on c lient board Family and personal relationship Gift and hospitality Loans and guarantees Overdue fees Percentage and contingent fees High percentage of fees Low-ballingFinancial interest: Exits where an assurance firm has a financial interest in a client. Direct financial interest: Exits where an assurance firm has a directly financial interest in a client. Immediate family: means a spouse (or equivalent) or a dependent. Assurance team: means all member of the engagement team for the assurance engagement and all others within the firm who can directly influence the outcome of the assurance engagement. Safeguards from interest: †¢ †¢ †¢ †¢ Disposing the interest Removing the individual from the team if required.Informed the client audit committee of the situation. Using an independent partner to review work if necessary Close business relationship: will involve a commercial financial interest, which in addition to a self-interest threat, could cause an intimidation threat. Dual employment: means the same person being employed by both an assurance firm and a client is not permitted. Safeguard from dual employment: †¢ †¢ †¢ Modifying the audit strategy Involving an additional professional accountant Carrying out a quality control review of the engagementPartner on a client board: mean a partner or employee of an assurance firm is also serve on the board of an assurance client. This is not permitted. This can also cause of self-review threat or a management threat. Tarek 01712-049032 Close family: means parent, child or sibling who is not an immediate family member. Contingent fees: fees calculated on a predetermined basis relating to the outcome or result of a transaction or the result of the work performed. Safeguards from high percentage of fees: †¢ †¢ †¢ †¢ Discussing the issues with audit committee Taking steps to reduce the ependency on the client Obtaining internal/external quality control review Consulti ng a 3rd party such as ICAB Self-review threat: †¢ †¢ †¢ †¢ †¢ †¢ †¢ Service with assurance client Preparing accounting records an F. S Valuation service Tax service Internal audit service Corporate finance Other service Advocacy threat: †¢ †¢ †¢ Legal service Corporate finance Contingent fees Familiarity threat: †¢ †¢ †¢ †¢ †¢ Family and personal relationship with client Employment with assurance client Recent service with assurance client Long association with assurance client RecruitmentIntimidation threat: †¢ †¢ †¢ †¢ Close business relationship Family and personal relationship Assurance staff members move to employment with client Litigation The ICAB code sets out a framework that professional accountant can follow when seeking to resolve ethical problems. It states that the professional accountant should consider: Tarek 01712-049032 †¢ †¢ †¢ †¢ †¢ †¢ The relevant facts The relevant parties The ethical issues involve The fundamental principles related to the matter in question Established internal procedure Alternative course of actionChapter: 16 (Confidentiality) The following security procedures are probably wise to prevent accidental disclosure of information: †¢ †¢ †¢ †¢ †¢ †¢ Don’t discuss client matter with any party of outside Don’t discuss client matter in a public place Don’t leave audit files un-attendant Don’t leave an audit file in a car or unsecured place Don’t remove audit working papers from the office unless strict necessary Don’t work on electronic working papers on systems that do not have the requisite protectionInformation only be disclosed where consent has been obtained from the client, employer or other proper source: †¢ †¢ If there is a public duty to disclose If there is a legal or professional right or duty to disclose Safegua rds of confidentiality: †¢ †¢ †¢ †¢ †¢ †¢ Disclosure of the circumstances of the conflict Obtaining the informed consent of the client to act Establishing information barriers Regular review of the application of safeguards by a senior individual not involve with the relevant Ceasing to act Physical separation of teams. Show interactive questions and self-test. The End

Becoming a Knight essays

Becoming a Knight essays Knights lead very difficult and burdensome lifes, but becoming a knight was a greater honor than being a knight. Knights began thier training at the age of seven when they were sent off to a local castle to become pages. These pages spent seven years training thier bodies for the trials yet to come. They were taught how to properly use weapons by the lord of that castle and how to dance and sing by the lady of the castle. At the age of fourteen the page was promoted to a squire, they became well versed in all aspects of combat and helped the knight on a daily basis. At the age of eighteen on through twenty one the squire was knighted at a local church by the priest of that church or his own lord thus completing the process of becoming a knight. Knights were also made when normal soldiers preformed great feats of valor on the field of combat. They were also made before battles to give men a boost in moral for the coming melee. Becoming a knight was a process of honor and presteige for the nobles and only the most bravest of men. The first step in the knightly process was the page. The page was a boy of some seven or eight years of age. The young child was most likely the son of a noble or aristcracy of the time or he was of a person of great importance. Jeffery Singman, an expert on the medeival time period says that the pages were trained to develop thier muscles by practiceing with a wooden dummy that when struck properly would rotate and strick the page if he did not move out of the way quick enough. Pages were also used to run errands and do humble tasks for the lord and lady of the house. Singman also says in his book that they were taught reading, writing, math, manners, singing, and riding horses. The next stage for the knight in training was a promotion from lowely page to slightly elevated squire. The squire was almos ...