Rama in Ramayana Essay Example for Free

Rama in Ramayana Essay In the epic story of Ramayana, one of the foundations of the story is where Rama endeavors to protect Sita. In the story, Rama is viewed as the most courageous among all the characters absolutely due to his commitment to the guidelines of dharma. In any event, during the occasions when still he was little, Rama was viewed as the ideal child, up to the moment that he wedded Sita along these lines thinking of him as further as the ideal spouse. All the more critically, Rama readily and energetically acknowledged the request for his dad, ruler Dasharatha, to forsake the realm and be exiled, subsequently expelling him from the situation as beneficiary to the seat.  â â â â â â â â â â The strong piece of the story where Rama’s information and recognition are additionally improved is where he experienced Ravana who tailed him in the backwoods. Ravana is the more youthful sibling of Rama who was enthroned as the lord of Ayodhya after Rama was ousted from the realm. The experience featured the limit of Rama to comprehend the human circumstance that twirled around him and his family by understanding the assessment of Ravana. Ravana very surely knew that Rama is the legitimate ruler as lord of Ayodhya, and in the wake of following Rama to the timberland, Ravana revealed to Rama that until the day Rama returns, Ravana will rather put the shoes of Rama on the seat as an indication of regard and as a sign that Rama is the real leader of the realm. That was one path for Ravana to mean that he is essentially the ‘caretaker’ of the seat while Rama, the legitimate ruler, is away.  â â â â â â â â â â Rama’s experience with Ravana in the woods means that despite the fact that he eagerly acknowledged the expulsion that was forced upon him by his dad, he was all the while ready to confront the bigger obligation of serving his kin as their lord. That demonstrates that Rama was happy to confront the two closures of the circumstance, or that he was eager to confront any circumstance that he is stood up to with. That is so in light of the fact that, having lived with the principles of dharma, Rama very surely understands the outcomes that anticipated all his choices. This time around, his choice to return as the lord of Ayodhya can be said as a major aspect of his obligation as the oldest child of the lord, thus the legitimate ruler, and part of his acknowledgment that the graciousness of Ravana brings forth his benevolence to acknowledge not just the way that he is the legitimate lord yet additionally the eagerness of Ravana to grant Rama his legitimate situation in the realm.  â â â â â â â â â â Eventually, Rama eagerly acknowledged the proposal of Ravana which isn't just an indication of regard to an offer which is legitimately his but at the same time is an indication of tolerating the affinity of administering a whole realm under his supervision. Very separated from the way that tolerating such a tremendous duty requires assurance and the ability to lead, it additionally requires the capacity to follow. That capacity to follow has been without a doubt showed by Rama not just during when he acknowledged his destiny to be exiled yet additionally during when Ravana met with him. That event is when Ravana made Rama the offer which he followed with everything that is in him. Rama’s choice best exemplified his ability to follow decisively and disarray on his part accurately due to the knowledge that he has because of his exacting adherence to the guidelines of dharma.  â â â â â â â â â â basically, the experience of Rama with Ravana in the woodland is one of the numerous scenes in the story which shows the advancement of the information on Rama just as the development of his character all through the story. It brings into mind his ability to show others how its done and to follow the things which he without a doubt ought to legitimately follow. It drives home the point that Rama is even more deserving of being revered by his kin due to the ideals which he has and of being lifted up as a ruler who very surely knows the standards and lessons of the dharma. Reference Pollock, S. (1993). Ramayana and Political Imagination in India. The Journal of Asian Studies, 52(2), 262.

Prevention of mother to child Hiv transmission Essay

Anticipation of mother to youngster Hiv transmission - Essay Example Quantitative research is the orderly logical evaluation of noticeable marvels through computational, scientific, or factual strategies. For instance, the noticeable marvels in wellbeing and social consideration may remember HIV predominance for hopeful moms, pace of mother to youngster HIV transmission, and newborn child passings coming about because of mother to kid HIV transmission. Quantitative utilizations a methodical methodology through real information assortment and investigation as opposed to making suppositions on describable marvels. The reason for the quantitative methodology is to create speculation about the recognizable wonders. The examination method goes far in testing the speculations or hypotheses so created so as to learn their veracity or something else. In social and nursing care, researchers may utilize quantitative research to create speculations around mother to youngster HIV transmission. The testing and evidence of such speculation can carry noteworthy adva ntage to the nursing clique (Daly, Speedy, and Jackson 2009, pp. 135-140). Wellbeing and social consideration requests proof based practice, which quantitative research gives in hard information. Basically, proof based practice (EBP) or Evidence-based medication (EBM) is where the patient qualities and inclinations, best research proof, and clinical ability meet. Proof based practice (EBP) includes the judicious use of the most solid contemporary proof in settling on basic choices about the soundness of patients.

Study On Malcolm X Little

Study On Malcolm X Little Malcolm X was conceived Malcolm Little in May 1925 in Omaha, Nebraska, USA. His dad Earl Little was a Baptist instructor who was candid on the Back to Africa development. This was a development of Black Nationalist pioneer Marcus Garvey. Malcolms father was killed in 1937 by white fear monger in light of his political and social bluntness. The passing of Earl Little had a seriously negative impact on Malcolms adolescence and the whole Little family. Malcolms mother went frantic under the heaviness of attempting to raise eight kids alone in extraordinary destitution. His family was separated and Malcolm went to live in a gathering foster home. In 1941, he went to live with his relative in Boston. There he before long entered the edges of the black market and at 17 years old, he moved to Harlem where he went to an existence of wrongdoing, including drug managing and outfitted theft. He was condemned to 10 years in jail for equipped theft at 20 years old. In jail, Malcolm found an enthusiasm for the Nation of Islam, a Black Nationalist strict development whose individuals are known as the Black Muslim. He became and approach adherent of the pioneer of the Nation of Islam; Elijah Muhammad who was a solid supporter of the Black Independent state. His lessons were established on conventional Islamic lessons, Black Nationalism as educated by Marcus Garvey and self improvement programs that provided food for the need of African American living in destitution. The country of Islam pronounced that the whites were shrewd naturally and anticipated that sooner rather than later an incredible war would occur and all the whites would be decimated and dark individuals would run the world. In anticipation of this new world, the Nation of Islam focused on close to home poise from medications and liquor, and sorted out financial self improvement undertakings. The country of Islam enrolled among the most unfortunate of urban blacks and in jail which w as were Malcolm Little changed over to the Islamic confidence and joined the Nation of Islam. Malcolm X turned into a minster and an enrollment specialist for the Nation of Islam and was named boss minster by Elijah Muhammad in 1954. Inside five years of joining the Nation of Islam, Malcolm X had become a progressively conspicuous spokes individual for the Nation of Islam than Elijah Muhammad. Malcolm X was a major figure in his age battling against racial oppression against the blacks in America. He accepted that the western social orders were bigot commonly and that African Americans should manufacture their own social orders and worth frameworks. His course in life was from mistreatment and exploitation to resistance and progressive freedom. His excursion was from protection from an educated radicalism. It was an excursion from which he eventually accumulated political and authentic knowledge which, joined with his devices of influence and aptitudes at administration, made him at the hour of his passing apparently the most perilous figure in Americas history to stand up to its decision class. Authority AND ITS THEORIES Authority is tied in with adapting to change. Pioneers build up a strategy; build up a dream of things to come and adjust the devotees by conveying that vision and moving them to defeat obstacles. Initiative can likewise be said to be rousing individuals to accomplishing a lot of objective or vision. Extraordinary pioneers have consistently been related with certain characteristic and characteristics which separate them from supporters. The attribute hypothesis endeavors to recognize the qualities that recognize pioneers from supporters by concentrating on their own characteristics and qualities. Such attributes incorporate mystique or appeal, desire, drive, mental fortitude among others. These qualities and attributes have been related with extraordinary pioneers from time ever. T Utilizing the Big Five character hypothesis, the characteristics of desire and vitality in pioneers are a piece of extroversion which has been distinguished as the most significant attribute of successful pioneers. Anyway extroversion has been distinguished as related emphatically to administration rise as opposed to initiative viability. Good faith and receptiveness to encounter likewise are unequivocally corresponded to administration anyway not as solid as extroversion. Appropriateness and enthusiastic strength then again were not all that firmly connected with administration. The Trait Theory propose that pioneers who like being around individuals and can advocate for themselves, who are trained and keep their responsibilities made, who are inventive and adaptable are in a superior situation to be acceptable and viable pioneers. Another characteristic that viable pioneers have as indicated by this hypothesis is enthusiastic knowledge. At the center of passionate knowledge is comp assion. Empathic pioneers can detect others needs, tune in to their adherents and demonstrate compassion to their predicament. Malcolm X we have seen and seen that he had essential instruction in view of his race and he was an indicted criminal. Be that as it may, this didn't influence his degree of viability as a pioneer. He had the option to progress from a criminal to a spokes man for his kin. He showed extroversion, good faith, enthusiastic knowledge (sympathy) towards to the individuals and the vision of the gathering. After joining the Nation of Islam, Malcolm X wasnt the most dynamic or longest serving part, he wasnt even high up in the pecking order of things; nonetheless, he recognized and exhibited himself as a pioneer through his control, responsibility, energy as a supporter and his capacity to advocate for himself on the devotees of the vision of a Black Nation. These were the characteristics that were distinguished by Elijah Mohammed that prompted the determination of Malcolm X as Chief Minister for the Nation of Islam. There were two recommendations made by the Ohio State Studies on administration conduct which they labeled starting structure and thought. Starting structure incorporates practices that endeavor to compose work, work relations and objectives, giving structure in the association. It includes task of errands to individuals from the gathering and anticipates a specific degree of execution from adherents. Thought has to do with having work relations portrayed by common trust, regard for adherents sentiments. A pioneer with high thought is amicable, receptive and worried about his adherents individual issues. In the life of Malcolm X there were qualities of a pioneer high in starting structure in his association of the kindred individuals, appointing assignment to them in their lead of gatherings and preparation of new individuals for the country of Islam. He likewise demonstrated significant levels of thought as he instructed a great deal of regard from individuals as he was agreeable and congenial and had certifiable worry for their prosperity as exemplified on account of a part being brutalized by the police. Malcolm X activated individual individuals from the gathering to the police headquarters and encouraged the arrival of the part and guaranteed that he got clinical consideration. This self conciliatory conduct and worry for the devotees ascribes to his adequacy in authority. Pioneers who have certain attributes and show thought and start organizing practices seem, by all accounts, to be increasingly compelling. Malcolm X had the option to discover a harmony between taking care of business and caring for the government assistance of the individuals from the Nation of Islam. This is known as transformational initiative. The embodiment of Transformational Leadership Theory is the change of the mentalities, inspirations and the practices of devotees. Transformational administration attempts to raise the awareness of adherents by speaking to their personal circumstance, virtues, preparing them to change the foundation they get themselves and in return give advantages to the individuals by taking care of their government assistance. Such was the situation of Malcolm X and the Nation of Islam with the African Americans that were mistreated in United States. Malcolm X was helpful and visionary, he was mentally invigorating, he gave consideration, regard and obligation to his adherents. Anyway transformational administration hypothesis alone can't be utilized to clarify the initiative style of Malcolm X, a further hypothesis that can be utilized is the Charismatic Leadership hypothesis. This is regularly thought of a kin of transformational initiative or as a part of transformational authority. This sort of administration is most appropriate into political initiative This Leadership hypothesis depends on the impression of the devotees that the pioneer is a remarkable person. The supporters ready to comply with their pioneer, now and again they love their pioneer and are profoundly genuinely included to the strategic the gathering. Anyway dependent on Self idea hypothesis, the above are not an important condition for Charismatic Leadership Appealling administration creates expanded confidence and self-esteem for the pioneer, expanded self viability and aggregate adequacy of the entire gathering, recognizable proof with the pioneer and the entire gathering and the disguise of the estimations of the pioneer. Alluring initiative relies upon the entire circumstance encompassing the pioneer, the pioneers character, conduct, the way of life, the adherents personality and the gatherings all weaved. Allure is likely credited to pioneers that have a dream that is profoundly disputable however for a definitive advantage of the supporters. These pioneers must act in offbeat manners so as to intrigue the supporters. This may incorporate taking a chance with their lives for the course and vision they have for the individuals. Magnetic authority can be utilized to portray Malcolm X style of initiative since he straightforwardly tested the decision class and talked in a way that was viewed as a risk to the American culture. Malcolm X was generous and wasnt spurred by money related prize however the vision of the Nation of Islam which was the reason his devotees confided in him since he was focused on the reason. This initiative style of Malcolm X was affected by his apparent pioneer Elijah Mohammed who was an appealling pioneer. Malcolm X encou

Top Reflective Essay Topics Secrets

Top Reflective Essay Topics Secrets The Importance of Reflective Essay Topics Writing quality research proposals has at all times been a herculean undertaking for many students. Just take a look here, the ideal research papers writing site is going to do your assignment from scratch punctually. There's no such student who's permitted to submit papers after the deadline. The papers are lots more difficult to write. Often the issue with low-quality papers is that students lack the crucial writing abilities. Students lead busy lives and frequently forget about an approaching deadline. They don't know how to start such type of writing. A whole lot of students are way too preoccupied to devote their days reflecting. First you should begin with an intro paragraph and chat about some areas you are likely to cover. In the introduction section you want to convince the readers about this issue you are likely to describe about. Many teachers wish to see a minumum of one principal idea with two supporting details in every one of your body paragraphs. Before starting to write, take into consideration the ideal order to talk about the significant sections of your report. Once you are all set to begin your paper, you must create a reflective essay outline. Outlining is vital to your writing process. In a reflective essay you want to be sure your reader knows where you stand on the problem. Persuasive essay, expository essay and there are many other forms of essay that you could write on these topics. When you're writing a reflective essay you should make sure you explain why it is you are writing the essay on this subject. Quality essay writing help will be given to you by talented essay writers. Reflective essays are a few of the most fascinating academic assignments in college. Self reflective essay do not need much research such as other sort of research. A fantastic reflective essay may be fantastic reflective essay with the appropriate planning. When you're writing an academic reflective essay demands a more direct strategy. Locate a quiet location where you can write down your private reflection. Finally, be sure to write down any proof you need to back your thoughts. All but among the children is sacrificed. It's needful to keep a personal diary for your life. When you are trying to learn to compose a reflective essay, you will should prepare to delve within these feelings and learning experiences. Such assignments require you to be honest and open about emotions, ideas and events to be in a position to depict an actual picture of a personality, story or another matter. To conclude, the 2 worlds have much more in common than the reader experiences at first. You will need to keep a consistent tone of what it is you're writing. The Basic Facts of Reflective Essay Topics Make a decision as to what life experience or life situation you'd like to reflect upon. All too often in life you can get so busy and distracted that you neglect to concentrate on yourself. In Panem girls get complete body polishes so there aren't any imperfections. It's really simple to use together with self explanatory. Reflective Essay Topics - Dead or Alive? The ideal way to speed your writing is to do just a little planning. Your purpose is to reflect upon y our own personal growth. Write down what you should do to get back on the right track. Each paragraph needs to be devoted to another facet of your learning experience. Based on the subject of your article, you may use different techniques. When starting in a mental journey the internet page is not merely a companion.

C for Beginners - Learn About C

C is a general purpose programming language invented in the early 1980s by Bjarne Stroustrup at Bell Labs. It is similar to C, invented in the early 1970s by Dennis Ritchie, but is a safer language than C and includes modern programming techniques such as object-oriented programming. You can read more about object-oriented programming. C was originally called C with Classes and is so compatible with C that it will probably compile more than 99% of C programs without changing a line of source code. This was a deliberate design feature by the designer. Here are a short overview and history of C. The purpose of C is to precisely define a series of operations that a computer can perform to accomplish a task. Most of these operations involve manipulating numbers and text, but anything that the computer can physically do can be programmed in C. Computers have no intelligence- they have to be told exactly what to do and this is defined by the programming language you use. Once programmed they can repeat the steps as many times as you wish at very high speed. Modern PCs are so fast they can count to a billion in a second or two. What Can a C Program Do? Typical programming tasks include  putting data into a database or pulling it out, displaying high-speed graphics in a game or video, controlling electronic devices attached to the PC or even playing music and/or sound effects. You can even write software to generate music or help you compose. Is C the Best Programming Language? Some computer languages were written for a specific purpose. Java was originally devised to control toasters, C for programming Operating Systems, Pascal to teach good programming techniques but C is a general purpose language and well deserves the Swiss Pocket Knife of Languages nickname. Some tasks can be done in C but not very easily, for example designing GUI screens for applications. Other languages like Visual Basic, Delphi and more recently C# have GUI design elements built into them and so are better suited for this type of task. Also, some scripting languages that provide extra programmability to applications like MS Word and even Photoshop tend to be done in variants of Basic, not C. You can find out more about the other computer languages and how they stack up against C. Which Computers Have C? This is better stated as which computers dont have C! The answer- almost none, it is so widespread. It is a nearly universal programming language and can be found on most microcomputers all the way up to big computers costing millions of dollars. There are C compilers for just about every type of operating system.   How Do I Get Started With C? First, you need a C compiler. There are many commercial and free ones available. The list below has instructions for downloading and installing each of the compilers. All three are completely free and include an IDE to make life easier for you to edit, compile and debug your applications. Download and Install Borlands Turbo C ExplorerDownload and Install Microsofts Visual C 2005 Express EditionDownload and Install Open Watcom C/C Compiler The instructions also show you how to enter and compile your first C application. How Do I Begin Writing C Applications? C is written using a text editor. This can be notepad or an IDE like those supplied with the three compilers listed above. You write a computer program as a series of instructions (called statements) in a notation that looks a little like mathematical formulas. This is saved out in a text file and then compiled and linked to generate machine code which you then can run. Every application you use on a computer will have been written and compiled like this, and many of them will be written in C. Read more about compilers and how they work. You cant usually get hold of the original source code unless it was open source. Is There Plenty of C Open Source? Because it is so widespread, much open source software has been written in C. Unlike commercial applications, where the source code is owned by a business and never made available, open-source code can be viewed and used by anyone. Its an excellent way to learn coding techniques.   Could I Get a Programming Job? Certainly. There are many C jobs out there and an immense body of code exists that will need updating, maintaining and occasionally rewriting. The top three most popular programming languages according to the quarterly Tiobe.com survey, are Java, C, and C. You could write your own games but youll need to be artistic or have an artist friend. Youll also need music and sound effects. Find out more about game development. Perhaps a professional 9-5 career would suit you better- read about a professional career or perhaps consider entering the world of software engineering writing software to control nuclear reactors, aircraft, space rockets or for other safety-critical areas. What Tools and Utilities Are There? Well if you cant find what you want, you could always write it. That is how most of the tools around came into existence.

A Study Of Human Social Relationships And Organisations Essay

Bowles and Gintis( 1976)† stated schools are agents for socialistation but only because it helps produce the right kind of workers for a capitalist business(p.147). This would appear to suggest that according to both social theorists there is a connection between education and social inequilty. The educational system helps ypung people to prepare for the ecomnice system. The structure of the education system helps them with displaine and to prepare them to enter the workforce. As regards to my CA brief I will be discussing what sociologh is. Before I will addressing my main topic which is ,I have been asked to look at the early years sector from a socioligal prepesctive and give the view of 3 leading sociological thinkers and to conclude my essay I will discuss brieftly my personal prepective from carring out my research for this topic. The department of Sociology Unc (2016) indicates sociology is the study of human social relationships and organisations. Sociology can range from crime to religion it is a very diverse subject. It refers to the family to the state, diversity of race and social class to the beliefs in common cultures. The study of sociology is to understand how human action and consciousness both shape and are shaped by surrounding cultural and social structures. Sociology you do not realise how much the subject covers and it explains important matters in our own personal lives, our communities and the world. At personal level, sociology looks at the socialShow MoreRelatedAnalysis Of The Experiment Management And The Worker 1485 Words   |  6 PagesHawthorne studies have been playing an important role in management, psychology and sociology. Hawthorne studies were the foundation for the modern day management thinking. Hawthorne studies have been subject to many criticisms but it produced the funda mental changes in the development of management thoughts. 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Strategic Business Risk Assessment One.Tel Australia †Free Samples

Question: List and discuss several factors that would have contributed to an increased inherent risk assessment at the financial report level. Also identify which of these factors may be identified during the strategic business risk assessment? Answer: There are various factors that have contributed to the overall increase in the inherent risk associated with the reporting at the financial level. The risk increased because of many factors like increase in market competition, reduction in the overall prices of the services, and the exchange rates violates. As the smaller companies will try to penetrate the market of telecommunication it will affect the overall standing of the company and the profitability index of the company. It increases the overall risks that are associated with the lower level of revenues. Basically in case the competition increases the customers will have more choices from the different variety of services, hence in that case the overall price that are offered by the company will also get hampered. Thus there is an increase in the inherent risk at the financial statement level because there is a decline in the overall revenue because of the increase in the risks. Since the operations of a company are widespread in so many countries starting from as Australia, UK, France, Netherlands and Hong Kong among others, the company faces the risk of fluctuations in the exchange rates between the countries. The inherent risk is that the exchange rate might affect the overall foreign sales of these countries. These may lead to low exchange losses being reported in the financial statements. There is also an inherent risk that is associated with abnormal items and losses associated with the same. (O'Keefe, T.B., Simunic, D.A. and Stein, M.T., 1994) The main risk factor may be associated with strategy formulation, and the overall business risk associated with the entry of new players in the market and increment in the risk associated with increased level of competition and also changes in the overall exchange rates and its fluctuation that may be resulted from violates and operations between the various countries that may be involved in the same. When we conduct a SWOT analysis, based on the principles of as Porters Five Forces analysis and also on the internal and external analysis of the overall environment. In case of abnormal items the companies faces a lot of problem because their occurrence is uncertain and also the level of risk associated with the same may be difficult to obtain. In order to ascertain these abnormal items, the company needs to carry on with the audit of the financial statements so inherent risks associated with the abnormal losses may be indentified and can be properly reported. This audit of financial s tatements will help the company inserting with the risk associated with the financial statements and also helps in reducing the level of such inherent risks. In relation with the other factors associated with the foreign exchange volatilities, the company may conduct a review of the overall work done by the company, and with the exchange rates of the various operation done in the different countries to ascertain the overall fluctuation loss that might be associated with the same. Then it may enter the hedging positions which may entered by the company that were exchange rate volatilities.( Eilifsen, A., Knechel, W.R. and Wallage, P., 2001) One of the main risk that might be associated with a company at the account level, might be the overall susceptibility of frauds.. Frauds may occur if the management of the company fails to establish proper control in the company and in the maintenance and operations of the financial statements and the assertion of the overall account balance with respect to the company. In the given company, most of the customers are paying in cash and cash equivalents. A review of the cash flow statements indicates the overall flow of cash from the various operating activities of the company. ( Inherent risk assessment and audit firm technology: A contrast in world theories. Accounting, Organizations and Society, 16(1), pp.61-90) It exposes the company to various risks of fraud because cash can be easily stolen by the employees and also that will cause lose to the company. This is one of the major risks that are associated with the company at the inherited level of the company at the accounts balance. The company has taken huge amount of loans; hence the company suffers from the inherent risk of paying interest on high payments from various borrowings. The payments of interest are a factor of risks because it asserts outflow of cash from the company. These are few of the risk that is associated with the overall inherent risk at the accounts level of the company. There is also a risk of the accounts not being audited properly because of which the overall inherited risk that is caused to non-discovery of misstatements in the books of accounts by the auditor. It is important the management established efficient control so that accounts are prepared properly and no risk is associated with the same. (Houston, R.W. , Peters, M.F. and Pratt, J.H., 1999) If we do a proper analysis, we can say that going concern of the company can be accessed as a low one. The main factors on which this outcome is based is the overall decline in the operating profit of the company both parent and the subsidiary company between the financial periods between 1999 and 2000. The overall operating profit has been decreasing at an alarming rate, such decrease shows that there is a decline in the going concern of the company, and the company may not have sufficient funds in the future to keep its operation going. The operating profit of the parent entity declined from an operating profit of $ 7.9 million in 1999 to a loss of $ 78.2 million in 2000 while the operating profit of the consolidated entity declined from $ 7.0 million in 1999 to a loss of $ 291.1 million in 2000. This sharp decline is great risks to the company and puts a huge question mark on the overall going concern assumption of the company. In case of retained profit also there has been a shar p decline for the parent entity from $ 9.6 million to accumulate losses of $ 68.7 million, while there has been decline in the retained profit of the subsidiary company from $ 9.1 million in 1999 to accumulated losses of $ 282.1 million, which indicates that the company is not having the required amount of funds to carry its operation and also puts a question mark on the ability of the shareholder and the future of the investors of the company , all this has largely affected the going concern ability of the company , making it to be seen as a low level of certainty for the company to continue its operations. (Brumfield, C.A., Elliott, R.K. and Jacobson, P.D., 1983.) The overall decline in the financial results of the company also indicates a decline in the popularity of the company and that of the companys products. It shows how the company is losing its stand in the society and thus that is hampering the overall credibility of the company to a large extent. The ability of the company to offer its products in the future is low, and that does affect the going concern assumption of the company to large extent. If the company wants to prosper and to save itself from this situation, it need to focus on better development of controls, so that the overall risk may be diminished, reduction in risks will lead to reduction in the overall losses of the company. And the company will grow and prosper. (Hogan, C.E. and Wilkins, M.S., 2008) References: Evidence on the audit risk model: Do auditors increase audit fees in the presence of internal control deficiencies?. Contemporary Accounting Research, 25(1), pp.219-242. The audit risk model, business risk and audit-planning decisions. The Accounting Review, 74(3), pp.281-298. Application of the business risk audit model: A field study. Accounting Horizons, 15(3), pp.193-207. The production of audit services: Evidence from a major public accounting firm. Journal of Accounting Research, pp.241-261. Business risk and the audit process. Journal of Accountancy, 155(4), pp.60-68

The bridge loan was part free essay sample

In the spring of 1990, the firm of Kohlberg Kravis Roberts Co. (KKR) was in negotiation with lenders regarding the refinancing of a $1.2 billion bridge loan due to be repaid in full by February, 1991. The bridge loan was part of the $24 billion financing of KKRs leveraged buyout of RJR Nabisco in early 1989. Originally, KKR had planned to retire the loan with the proceeds of a $1.25 billion public offering of senior debt. However, in December, 1989, Moodys failed to give the issue an investment-grade rating. Moodys also down-graded RJRs other debt, a move that triggered substantial declines in the market prices of RJRs securities. Faced with an unreceptive public market, KKR withdrew the debt offering and began discussions with RJRs lending banks. For the banks, a major concern was the uncertainty surrounding the upcoming interest rate reset on $7 billion of RJRs pay-in-kind (PIK) bonds. Indentures required that on or before April 28, 1991, RJR reset the rate so that the bonds would trade at par (see Exhibit 1). We will write a custom essay sample on The bridge loan was part or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In the spring of 1990, the bonds were selling at steep discounts to par (Exhibit 3). The market obviously saw substantial risk that the reset would fail, which would put RJR in violation of its bond covenants. The reset bonds came into being as the cram-down securities in the RJR buyout. The distinctive feature of these bonds was the reset provision, which at the time of the buyout was a key factor in KKRs victory over a management group led by then-RJR Nabisco CEO, F. Ross Johnson.1 Weeks of escalating bidding, which had begun with a $75 per share all-cash bid by the management group, ended with the RJR board of directors having to choose between two final bids: KKRs offer of $81 per share in cash plus PIK reset bonds it valued at $28 per share versus the management groups offer of $84 per share in cash plus PIK bonds it valued at $28 per share. The latter PIK bonds did not have a reset feature, however. The boards financial advisors, Dillon, Read and Lazard Frà ¨res, concluded that the two offers were substantially equivalent, in effect valuing the management groups PIK bonds at only $25 per share. 2 They reasoned that the KKR bonds were effectively guaranteed. If the market didnt judge the securities to be worth $28, the interest rate would be reset to make them worth $28. KKR had put its money where its mouth was, something the management group had been unwilling to do. With a substantially equivalent opinion from its financial advisors, the board felt free to evaluate the offers based on other considerations. The board declared KKR the winner on the basis of the firms pledge not to effect large layoffs and in view of the fact that KKR Burrough, Bryan, and Helyar, John, Barbarians at the Gate, 1990, Harper Row, New York, pp. 441–442, 485, 493, 497–498. 2 Burrough, Bryan, and Helyar, John, How Underdog KKR won RJR Nabisco Without Highest Bid, The Wall Street Journal, 12/2/88. Reearch Associate Joel Barber prepared this case under the supervision of Professor Andrà © F. Perold as the basis for class discussion rather that to illustrate either effective or ineffective handling of an administrative situation. Copyright  © 1990 by the President and Fellows of Harvard College. To order copies, call (617) 495-6117 or write the Publishing Division, Harvard Business School, Boston, MA 02163. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School offered stockholders the option to acquire up to 25% of the new company at a point in the future, whereas the management group offered them an option for only 15%.3 As a consequence of the buyout, RJRs total debt ballooned to $29 billion. KKRs strategy for servicing this debt rested on asset sales and improved internal cash flow. Except for the stumbling block created by Moodys downgrade, the plan had proceeded as forecast: through March 31, 1990, asset sales (Exhibit 2) and cash flow met or exceeded targets and all required debt payments were made.

Film Auterism essays

Film Auterism essays Auter is defined as a French term for the film director who places a personal style on his or her films. It was first coined by Francois Truffaut to describe the mark of a film director on his films. A director can be considered an auteur if about five of his films depict a certain style that is definitely his own. In other words, much like one can look at a painting and tell if it is a Monet, a Renoir, or a Degas, if a film director is an auteur, one can look at his film and tell by style and recurring themes that it was made by a certain director. In auteur films, the director is many times what brings an audience to the theater, instead of the actors or storyline. Often famous directors are more highly billed in advertisements than the actors that the film stars. To further prove the importance of directors styles on films three directors and their films will be analyzed. Three such auteurs are Frederico Fellini, Satyajit Ray, and Alfred Hitchcock, and it will be effective to discuss these particular directors work. The Master of Suspense, Hitchcock, blends the traditional thriller with comedy and a dreamlike aspect. Nearly all of Hitchcocks movies contain several themes and aspects which enrich the viewers enjoyment of the film. It appears that emotion is the most important feeling he is trying to get across. His mise-en-scene is perhaps the most recognizable of his contemporaries. They all include a very tense feeling throughout most of the film which is strengthened through his camera angles, zooms, and the soundtrack. Take for example the dream sequence in Vertigo. The colors and music during his dream keep the audience on the edge of their seat and it finally culminates in a long close up of a very frightened Scotty played by Jimmy Stewart. The score is deathly haunting, the type of music perfect for a Hitchcock thriller. Most of his films also include terror inflicted upon the ...

Diamonds Industry of South Africa Essay Example | Topics and Well Written Essays - 5000 words

Diamonds Industry of South Africa - Essay Example It discusses the cartel's behavior during the apartheid era, specifically its observance of human rights and corporate responsibility under a fascist and racist regime. Chapter V discusses the agreement reached between the ANC government and the De Beers cartel on the status of diamond mines and mining industry in South Africa, and how the cartel can help in the country's development program. It also contains recommendations on how the agreement can help in promoting black economic empowerment, and economic and political democratisation throughout South Africa. De Beers is a monopoly and the cartel of the diamond world. Monopoly is a term that translates literally into "single seller,"1 which means a corporation that dominates the production and distribution of a particular service or product (such as diamonds). There are various forms of monopolies and a cartel is just one of them. A cartel (such as De Beers) is a formal or informal group of corporations that have agreed to avoid and minimise non-productive or destructive competition among them in order to dominate the market and maximise profits. that maximum strictly, to avoid flooding the market with products which usually results in a decrease of their prices. To guarantee their profits, members of the cartel can either agree on a common product price for their entire area of operation or set up local Diamonds of South Africa 4 monopolies where they may or may not apply a common price structure.2 The price is of course higher than what it would be if production was not regulated by the cartel, and if prices were determined, not by the cartel, but by genuine competition and the interests of the consumer. De Beers for instance set an artificially high price for its diamonds despite the fact that there was already a large supply of diamonds in the mines of South Africa (which were discovered as early as 1867) and other African countries. The supply increased astronomically following the discovery of mines in Russia, Canada and Australia. De Beers kept prices high by cultivating the myth that diamonds are valuable and scarce and should be priced accordingly. The cartel has not lowered the prices of its diamonds in its entire existence. Many countries have legislated against price fixing cartels to encourage competition, which theoretically should lower prices and improve product quality. The European Diamonds of South Africa 5 Commission, in its 2005 Report on Competition Policy, proclaimed that "(c)ompetition is crucial for the whole partnership for growth and jobs."3 In fact, "the fight against international price-fixing and market-sharing cartels has become a top political priority in Europe."4 B. The Birth of De Beers De Beers can be viewed as an exceptionally innovative and long-lived cartel. On the other hand, it has been criticised and even condemned as "the most

Gun Control Research Paper Example | Topics and Well Written Essays - 2000 words - 1

Gun Control - Research Paper Example And there are people, who support the laws, which give them permission to use the guns to protect themselves or for other purposes, as they believe that it will be safer to live in such environment. Today more than 60% of all crimes and murders are performed with the help of guns. However, the gun control issue became urgent in late 1960s, when the crime rate significantly increased. Murders and assaults were increasing in number for about 30 years. People believed that introducing the laws, which will restrict the gun sale, would improve the situation. According to statistics, 70% of US population believed in this idea and supported it. However, starting from 1994 the crime rate started to decrease (at present the crime rate in the US is 17%  less than 10 years ago), and today only roughly half of the population (about 49%) support strict gun control (Barret "Why Gun Control Is Basically Dead"). Recent accidents, which deal with mass shooting and killings of people in the US, are the reasons why common citizens worry. The accidents at Virginia Tech University (33 deaths), the American Civic Association in Binghamton, New York (14 deaths), elementary school in Newtown, Connecticut (28 deaths), movie theater in Colorado (12 deaths) and other places (Barret "Firearm Sales Up + Crime Down = Gun Control Dead", Barret "Why Gun Control Is Basically Dead", "Gun Control vs. Gun Rights"), make people worry about their own lives and lives of their children, relatives and close friends. The misuse of small weapons is also considered to be one of the vital safety problems in the world. The number of small arms, used by people, significantly increased after the end of the  Cold War. Small weapons are available everywhere in the world, easy to buy and easy to keep unnoticed. Some experts state, that more than 60% of all crimes are committed with the help of small

Owens Dulce et Decorum Est Essay Example for Free

Owens Dulce et Decorum Est Essay Writing in a similar style to Owens Dulce et Decorum Est, Siegfried Sassoon also decided to attack figures of authority and those with no direct experience of trench warfare via Base Details. Base Details is entirely speculative. The word base in the title has two distinct meanings. It could be used as a noun, to mean place, as in a centre of operation; or you could interpret the word as an adjective meaning morally low or unacceptable. Sassoon has used play on words in the title so that the reader may more adequately perceive the irony and sarcasm expressed in this poem. The adjectives used in the first two lines of Base Details reflect the authors perception of his superiors: If I were fierce, and bald, and short of breath, Id live with Scarlet Majors at the Base, The first line indicates that Sassoon is contemptuous of these officers. He has classed the Majors as unpleasant stereotypes, to be criticised and jeered at. In the following line, the word scarlet has a double meaning. On face value, it could be taken to mean that the officers have bright red cheeks. However, Sassoon has used the word as a metaphor, meaning that the Majors have been metaphorically splattered with the blood of the young men they had sent to the front line to die. The stanza continues: And speed glum heroes up the line to death. Here, speed indicates haste. The Majors are unnecessarily rushing soldiers to their deaths. The soldiers are referred to as glum heroes because that is exactly what they are. Their country is expecting them to be noble, intrepid and courageous. Instead they are despondent because they know that as soon as they are out of the trenches their grisly demise could come about at any second. All the hope, joy and energy that is a part of youth has vanished from these men. Sassoon then regales us with further speculation thus: Youd see me with my puffy petulant face Guzzling and gulping in the best hotel, The first thing we notice about these two lines is that Sassoon has used alliteration in order to make more of an impact on the reader, and to vary his writing style. Also worth noting is the fact that Sassoon uses rhyme throughout Base Details to good and memorable effect. Saying that the Majors are puffy and petulant indicates incredulity on Sassoons part, similar to that conveyed in the first lines of the poem. The phrase guzzling and gulping indicates greed, and animal-like actions. The Majors are inhuman. Then, we are told that the Majors stay in the best hotel. This brings home the stark contrast between the lives of the soldiers in the vermin-infested trenches, and the sedentary lives of their superiors. Sassoon continues: Reading the Roll of Honour. Poor young chap, Id say. I used to know his father well: Yes, weve lost heavily in this last scrap. The Roll of Honour referred to here was an official list of those who died in the war. The Majors words regarding one of the deceased are not at all heartfelt. They are meaningless, detached and emotionally void. He is unconcerned and he has placed himself above feelings of pity for those lost and their families. Each new death is just another name on the register and another letter to be dispatched. In the last line of the stanza, the Major refers to trench warfare as a scrap or game, which is identical to Jessie Popes view of war. This is a direct reflection of how little the Major knows about the fighting going on outside his quarters; and similarly, how unequipped he is for his job of directing troops. Base Details closes with the following: And when the war is done and youth stone dead, Id toddle safely home and die in bed. By using the words stone dead to describe the deceased soldiers, Sassoon makes a brutal and graphic impression on the reader. It is a cold and unfeeling phrase, and seems to render those who died as useless and unimportant. The Major wishes to die peacefully, and in bed unlike those he sends out to the front. The Major considers himself superior in all aspects, even in death. Base Details attempted to show the ignorant public back in Britain the hypocritical attitudes of many of these Majors; and how soldiers in the trenches were being treated in comparison to those who had obtained top jobs merely on the basis of their public schooling. Whilst Base Details depicts the life of a typical Major serving during World War One, another of Sassoons poems, The Hero, depicts the sequence of events on the home front following the death of a soldier. The poem Base Details by Siegfried Sassoon is a sarcastic attack against the army generals who view the war as a game similar to checkers. It is therefore evidence of why Siegfried Sassoon is known as the voice of protest. The first noticeable thing about the text is the title. The word base is a pun for the fact that base means headquarters as well as dishonourable or cowardly, which implies that he will talk about the dishonourable activities at the Army headquarters. Secondly, Sassoon appeared to have blamed the officers for the purposeless deaths of his fellow men, while they were behind the front line and had no idea what it was like. Sassoon uses many adjectives to describe his generalisation of those at the top fat and bald and short of breath which shows the hatred that he has. In this poem, Sassoon writes poor young chapI used to know his father well. This statement alone is typical of an army general. To show the fact that army generals can not comprehend what war is like he uses the phrase we lost heavily in this last scrap. The army generals are calling this a scrap like its a fight between boys at school. Sassoon calls the army generals Finally, Sassoon rounds the poem of with a phrase by reinforcing that they are unfit and fat. He also shows that those at the front line could die any moment by saying When the war is done and youth stone dead, Id toddle safely home and die, in bed which is a good ending because it says that the generals will die in a nice warm peaceful place, while the soldiers will die among the rats. Sassoons feelings towards the officers are best described in the poem Base Details. In this poem, Sassoon shows his resentment towards the officers by describing them drinking in the best hotels, and reading the names of those who died, saying poor young chap I used to know his father well and saying yes, weve lost heavily in this last scrap. The poem is finished with the lines and when the war is done and youth stone dead, Id toddle safely home and die in bed This poem truly shows the bitterness and resentment Sassoon felt towards the officers. He felt that they didnt really care about those who died, because they were safe themselves and had no idea of what was going on at the front line calling the battle that was fought a scrap, like it was nothing more than a small fight. In the last two lines of the poem, Sassoons feelings are clearer than ever, the way he says that theyll toddle home and then die in bed shows that he thought that the officers were safe and living comfortably while the soldiers, who were actually fighting the war, were living in shocking conditions, where they would die at any moment. Sassoon uses many different ways to convey his feelings, and particularly his bitterness and resentment towards the war and the officers, but in all his poems, his true meanings are clear and he writes in such a way that shows us clearly what he thinks and feels about the war. BASE DETAILS ESSAY In the poem, Base Details, SiegFried Sassoon expresses his great disgust towards the majors in the military. He is horrified and appalled at the way the majors act while men are dying out in the battle field. Mr. Sassoon is so furious towards the majors that it takes more than just one word to describe how indignified Sassoon is. These great feelings of anger are derived from the fact that the majors are living a life of luxury while sending young men up the line out into the battle field. This is all suggested in the title of the poem with the word base suggesting a military base, and/or a base person. And the word details suggesting a command, an assignment, and something or someone lowly. Base Details is a poem which expresses the feelings of the author towards military majors using differentiable types of imagery. The poem begins by Sassoon describing the majors as demanding, mean, and belligerent men. Bald, out-of-shape and full of gluttony. Sassoon categorizes the majors under the word scarlet signifying childless, bright redness from excessive drinking and yelling of anger. Sassoon presents to us the fact of the majors sending up the young men as soon as they are drafted up the line to death. This attitude taken from the majors is what angers Sassoon to the point of hatred. To convince the reader of such horrific truth, Sassoon describes how disrespectful the majors are with their puffy petulant faces from eating and drinking excessively. Sassoon states how the majors are stuffing their faces and Reading the Roll of Honor in safe luxurious hotels while men are dying out on the field

Grapes Of Wrath :: essays research papers

Okies Vs. Californians   Ã‚  Ã‚  Ã‚  Ã‚  The Grapes of Wrath, by John Steinbeck, is a novel depicting the Okies migration to California during the period in history known as The Dustbowl. In this novel Steinbeck attempts to display the tensions between the Okies and the Californians. This display can be closely compared to today’s tensions between citizens born in the US and the Immigrants. Great pieces of literature are timeless in the lessons they teach and the controversy they portray.   Ã‚  Ã‚  Ã‚  Ã‚  The tensions between the Okies and the Californians were heated, as are most tensions dealing with land and immigration. The Okies wanted only two things: food and land. â€Å"†¦the new barbarians wanted only one thing – land and food: and to them the two were one.† The â€Å"barbarians† only moved out to California to escape the treacherous conditions of Oklahoma and surrounding states suffering from the Dustbowl; the were attempting to create a better life for their families. The Californians wanted all the luxuries in life, they were living in a land free of Dustbowl worries. â€Å"†¦the Californians wanted many things, accumulation, social success, amusement, luxury, and a curious banking security†¦Ã¢â‚¬  The Californians had already established the conditions that the Okies were in search of. They were now attempting to attain extras, and feared that the arrival of the Okies would halt this endeavor. The Okies motives wer e much nobler than the Californians’; but the Californians still felt that the Okies had no right to invade their land. â€Å"And whereas the wants of the Californians were nebulous and undefined the wants of the Okies were beside the roads, lying there to be seen and coveted†¦Ã¢â‚¬  The Californians did not know what they wanted; their dreams were very unclear. The Okies intentions, on the other hand, were very clear and important.   Ã‚  Ã‚  Ã‚  Ã‚  This tension still exists today between Immigrants and US born citizens. Immigration is a constant topics of discussion among politicians, and the US population as a whole. US born citizens become tense with the arrivals of Immigrants; the US citizens are attempting to achieve their American Dream; these Immigrants are, in their minds, and obstacle on their path to success. Like the Californians in the Grapes of Wrath; the Americans have already attained their needs and are attempting to secure luxuries.

Control risk Essay

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