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.