About and for the death penalty Essay

The idea of your life for a life; the vast majority of our population is in favor of the death penalty. For thousands of years it has been used as a punishment for crimes. Through government for crimes against the State to churches for crimes against their religions, â€Å"Impositions of the death penalty is extraordinarily rare. Since 1967 there has been one execution for every 1600 murders or 0.06%. There have been approximately 560,000 murders and 358 executions from 1967-1996.† (UCR) As we continue the war on crime, two factors stand out: Ending all crime is impossible but controlling it is a must. Regardless of the voices of the Anti-Death Penalty Movement, the only control is deterrence, the only deterrence is control. With all the statistics on deterrence, economic ramifications and secure limitation on allowed appeals. The death penalty should remain the United States primary weapon against capital crime. Is the death penalty a successful deterrent and does it save the lives of innocent citizens? A question raised and argued for years in the past and still in the spotlight. For justice to be deterring, the severity of the punishment must outweigh the crime. With life in prison without the possibility of parole an inmate has no care if he kills again. This is very evident considering, â€Å"at the roughly 52,000 state prison inmates serving time for murder in 1984, an estimated 810 had previously been convicted of murder and had killed 821 persons and following their previous murder convictions. Executing each of these inmates would have saved 821 lives.† (41, 1 Stanford Law Review, 11/88, Pd 153) We can then look at the number of convicted murderers that are either released too soon due to cases being overturned based on past conviction. New laws brought on by judicial decisions in other cases or even escape. It’s not the executions that reduce murder rates but the reduction of the number of murders. See more: Unemployment – problems and solutions essay Many other factors are argued about the death penalty including but not limited to the cost of life without parole â€Å"LOWP† vs. the death penalty. Opponents present, as facts, that the death penalty is so expensive (at least $2 million per case), that we must choose life without parole at a  cost of $1 million for 50 years. Without a doubt the up front costs of the death penalty are higher than for an equivalent LWOP cases. There is also no question that over time â€Å"LWOP† cases become much more expensive. JFA states that in these estimates â€Å"It should be noted that we were intentionally generous in minimizing life costs within our analysis†¦JFA. As you have seen here more controversy on why opponents feel the death penalty should be abolished but when totaled up and a limitation being established for how long an inmate can stall his execution then that cost would be lower. Here it is shown that the death penalty is also an economically balanced way to deal with those who commit capitol crimes (JFA). In our United States Constitution an individual whose trial resulted in a guilty verdict has the right to appeal his case. Our system at this time has no limits on the amount of appeals an individual is entitled to, and this is why the average death row inmate sits with hopes of an overturned appeal to change their sentence to life imprisonment instead of death. What kind of deterrence is the sentence of death when a convicted felon has so many opportunities to delay or lessen the punishment for the crime they committed? In 1996 President Clinton signed the Effective Death Penalty and Anti-terrorist Bill. â€Å"It is designed to limit the appeal time frame after a death sentence verdict†Ã‚  (DeRienzo). The Opponents bring up Amendment rights in the Constitution and thus this is still under debate but what about the rights of the victim? Where is the justice giving a convicted murderer the rights they took away from another. In the years since the Supreme Court re-instituted th e death penalty through 1994, there have been approximately 467,000 homicides in the United States. Based on that number, 2.8 people will die every hour at the  hands of another person. (JFA) Death row inmates are often on death row for years, some upwards of twenty years. This is paid for with the taxpayers’ money. While in prison, inmates have many privileges, including cable television, the chance to pursue a college degree, and free health care, all at our expense. It is appalling to think these people have a life of leisure while in prison. There are even some death penalty opponents who believe that these convicts serving â€Å"LWOP† aren’t treated fair and deserve better living conditions and more rights. Lost in this passionate pursuit of human rights are the rights of the dead victim and those of that victim’s family. The appeal process is lengthy and time-consuming. The death penalty informs society that by committing capital crimes, your rights do change and you will suffer the same fate. Through out time many aspects of the death penalty have proven that it can be a deterrent for would-be murderers where by it does save lives. Not possible for all but some families get a sense of closure from the grief and anger brought forth by the loss of a loved one. â€Å"Those who commit vicious crimes destroy the basis on which a moral community rests and forfeit their rights to citizenship and even life itself† (Cauthen) Simply put locking a murderer up for life doesn’t do the trick. The laws change, people forget and parole boards’ change too, this seams to deteriorate with a life in prison sentence. As long as a murderer lives no matter how small a chance, he will probably strike again. Expediting the execution process gives the family of the victim’s closure. To have the process drawn out for years only keeps the pain fresh and life for them is on  hold until justice is served. Furthermore it is an insult to them to put the rights of a  murderer over the rights of the victim. The convict demonstrated a lack of regard for human life by taking the life of another. The basic premise of human intelligence is the  ability to reason and make decisions. This person made a conscious decision to take a life. Regret and remorse will not change the outcome of those actions. This person does not deserve the life comfort found in today’s prisons. As you have read here today’s judicial system seems to forget about the victims in these heinous crimes to humanity by criminals and almost reward them by supporting them for the rest of their lives. Justice is in the eyes of those that are law abiding not those that break the law. This is why I feel that the death penalty is the best deterrent, it is pro-economic and with limits on appeals, Innocent people will live and capitol crime will have capital punishment.

Psa 200

Auditing and Assurance Standards Council Philippine Standard on Auditing 330 (Redrafted) THE AUDITOR’S RESPONSES TO ASSESSED RISKS PSA 330 (Redrafted) PHILIPPINE STANDARD ON AUDITING 330 (REDRAFTED) THE AUDITOR’S RESPONSES TO ASSESSED RISKS (Effective for audits of financial statements for periods beginning on or after December 15, 2009) CONTENTS Paragraph Introduction Scope of this PSA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Effective Date†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Objective†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Definitions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ RequirementsOverall Responses†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Audit Procedures Responsive to the Assessed Risks of Material Misstatement at the Assertion Level†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Adequacy of Presentation and Disclosure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Evaluating the Sufficiency and Appropriateness of Audit Evidence†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Documentation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 1 2 3 4 5 6-24 25 26-28 29-31 Application and Other Explanatory M aterial Overall Responses†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. A1-A3 Audit Procedures Responsive to the Assessed Risks of Material Misstatement the Assertion Level†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.A4-A54 Adequacy of Presentation and Disclosure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ A55 Evaluating the Sufficiency and Appropriateness of Audit Evidence†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. A56-A58 Documentation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. A59 Acknowledgment Philippine Standard on Auditing (PSA) 330 (Redrafted), â€Å"The Auditor’s Responses to Assessed Risks† should be read in the context of the â€Å"Preface to the Philippine Standards on Quality Control, Auditing, Review, Other Assurance and Related Services,† which sets out the authority of PSAs. 2 PSA 330 (Redrafted) IntroductionScope of this PSA 1. This Philippine Standard on Auditing (PSA) deals with the auditor’s responsibility to design and implement responses to the risks of material misstatement identified and assessed by the auditor in accordance with PSA 315, â€Å"Identifying and Assessing Risks of Material Misstatement Through Understanding the Entity and Its Environment† in a financial statement audit. Effective Date 2. This PSA is effective for audits of financial statements for periods beginning on or after December 15, 2009. Objective 3.The objective of the auditor is to obtain sufficient appropriate audit evidence about the assessed risks of material misstatement, through designing and implementing appropriate responses to those risks. Definitions 4. For purposes of the PSAs, the following terms hav e the meanings attributed below: (a) Substantive procedure – An audit procedure designed to detect material misstatements at the assertion level. Substantive procedures comprise: (i) Tests of details (of classes of transactions, account balances, and disclosures), and ii) Substantive analytical procedures. (b) Test of controls – An audit procedure designed to evaluate the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the assertion level. Requirements Overall Responses 5. The auditor shall design and implement overall responses to address the assessed risks of material misstatement at the financial statement level. (Ref: Para. A1-A3) 3 PSA 330 (Redrafted) Audit Procedures Responsive to the Assessed Risks of Material Misstatement at the Assertion Level 6.The auditor shall design and perform further audit procedures whose nature, timing, and extent are based on and are responsive to the assessed risks of material misstatement at the assertion level. (Ref: Para. A4-A8) 7. In designing the further audit procedures to be performed, the auditor shall: (a) Consider the reasons for the assessment given to the risk of material misstatement at the assertion level for each class of transactions, account balance, and disclosure, including: (i) The likelihood of material misstatement due to the particular characteristics of the relevant class of transactions, account balance, or disclosure (i. . , the inherent risk); and (ii) Whether the risk assessment takes account of relevant controls (i. e. , the control risk), thereby requiring the auditor to obtain audit evidence to determine whether the controls are operating effectively (i. e. , the auditor intends to rely on the operating effectiveness of controls in determining the nature, timing and extent of substantive procedures); and (Ref: Para. A9-A18) (b) Obtain more persuasive audit evidence the higher the auditor’s assessment of risk. (Ref: P ara. A19) Tests of Controls 8.The auditor shall design and perform tests of controls to obtain sufficient appropriate audit evidence as to the operating effectiveness of relevant controls when: (a) The auditor’s assessment of risks of material misstatement at the assertion level includes an expectation that the controls are operating effectively (i. e. , the auditor intends to rely on the operating effectiveness of controls in determining the nature, timing and extent of substantive procedures); or (b) Substantive procedures alone cannot provide sufficient appropriate audit evidence at the assertion level. Ref: Para. A20-A24) 9. In designing and performing tests of controls, the auditor shall obtain more persuasive audit evidence the greater the reliance the auditor places on the effectiveness of a control. (Ref: Para. A25) 4 PSA 330 (Redrafted) Nature and Extent of Tests of Controls 10. In designing and performing tests of controls, the auditor shall: (a) Perform other audit procedures in combination with inquiry to obtain audit evidence about the operating effectiveness of the controls, including: (i) How the controls were applied at relevant times during the period under audit. ii) The consistency with which they were applied. (iii) By whom or by what means they were applied. (Ref: Para. A26-29) (b) Determine whether the controls to be tested depend upon other controls (indirect controls), and if so, whether it is necessary to obtain audit evidence supporting the effective operation of those indirect controls. (Ref: Para. A3031) Timing of Tests of Controls 11. The auditor shall test controls for the particular time, or throughout the period, for which the auditor intends to rely on those controls, subject to aragraphs 12 and 15 below, in order to provide an appropriate basis for the auditor’s intended reliance. (Ref: Para. A32) Using audit evidence obtained during an interim period 12. When the auditor obtains audit evidence about the operatin g effectiveness of controls during an interim period, the auditor shall: (a) Obtain audit evidence about significant changes to those controls subsequent to the interim period; and (b) Determine the additional audit evidence to be obtained for the remaining period. (Ref: Para.A33-A34) Using audit evidence obtained in previous audits 13. In determining whether it is appropriate to use audit evidence about the operating effectiveness of controls obtained in previous audits, and, if so, the length of the time period that may elapse before retesting a control, the auditor shall consider the following: 5 PSA 330 (Redrafted) (a) The effectiveness of other elements of internal control, including the control environment, the entity’s monitoring of controls, and the entity’s risk assessment process; b) The risks arising from the characteristics of the control, including whether it is manual or automated; (c) The effectiveness of general IT-controls; (d) The effectiveness of the control and its application by the entity, including the nature and extent of deviations in the application of the control noted in previous audits, and whether there have been personnel changes that significantly affect the application of the control; (e) Whether the lack of a change in a particular control poses a risk due to changing circumstances; and f) The risks of material misstatement and the extent of reliance on the control. (Ref: Para. A35) 14. If the auditor plans to use audit evidence from a previous audit about the operating effectiveness of specific controls, the auditor shall establish the continuing relevance of that evidence by obtaining audit evidence about whether significant changes in those controls have occurred subsequent to the previous audit. The auditor shall obtain this evidence by performing inquiry combined with observation or inspection, to confirm the understanding of those specific controls, and: a) If there have been changes that affect the continu ing relevance of the audit evidence from the previous audit, the auditor shall test the controls in the current audit. (Ref: Para. A36) (b) If there have not been such changes, the auditor shall test the controls at least once in every third audit, and shall test some controls each audit to avoid the possibility of testing all the controls on which the auditor intends to rely in a single audit period with no testing of controls in the subsequent two audit periods. (Ref: Para. A37-39) Controls over significant risks 15.When the auditor plans to rely on controls over a risk the auditor has determined to be a significant risk, the auditor shall test those controls in the current period. 6 PSA 330 (Redrafted) Evaluating the Operating Effectiveness of Controls 16. When evaluating the operating effectiveness of relevant controls, the auditor shall evaluate whether misstatements that have been detected by substantive procedures indicate that controls are not operating effectively. The abse nce of misstatements detected by substantive procedures, however, does not provide audit evidence that controls related to the assertion being tested are effective. Ref: Para. A40) 17. When deviations from controls upon which the auditor intends to rely are detected, the auditor shall make specific inquiries to understand these matters and their potential consequences, and shall determine whether: (a) The tests of controls that have been performed provide an appropriate basis for reliance on the controls; (b) Additional tests of controls are necessary; or (c) The potential risks of misstatement need to be addressed using substantive procedures. (Ref: Para. A41) 18.The auditor shall evaluate whether, on the basis of the audit work performed, the auditor has identified a material weakness in the operating effectiveness of controls. 19. The auditor shall communicate material weaknesses in internal control identified during the audit on a timely basis to management at an appropriate lev el of responsibility and, as required by PSA 260 (Revised), â€Å"Communication with Those Charged with Governance,† 1 with those charged with governance (unless all of those charged with governance are involved in managing the entity). Substantive Procedures 0. Irrespective of the assessed risks of material misstatement, the auditor shall design and perform substantive procedures for each material class of transactions, account balance, and disclosure. (Ref: Para. A42-A47) Substantive Procedures Related to the Financial Statement Closing Process 21. The auditor’s substantive procedures shall include the following audit procedures related to the financial statement closing process: (a) Agreeing or reconciling the financial statements with the underlying accounting records; and 1 Close off document approved May 2006. 7PSA 330 (Redrafted) (b) Examining material journal entries and other adjustments made during the course of preparing the financial statements. (Ref: Para. A48) Substantive Procedures Responsive to Significant Risks 22. When the auditor has determined that an assessed risk of material misstatement at the assertion level is a significant risk, the auditor shall perform substantive procedures that are specifically responsive to that risk. When the approach to a significant risk consists only of substantive procedures, those procedures shall include tests of details. Ref: Para. A49) Timing of Substantive Procedures 23. When substantive procedures are performed at an interim date, the auditor shall cover the remaining period by performing: (a) Substantive procedures, combined with tests of controls for the intervening period; or (b) If the auditor determines that it is sufficient, further substantive procedures only, that provide a reasonable basis for extending the audit conclusions from the interim date to the period end. (Ref: Para. A51-A53) 24.If misstatements that the auditor did not expect when assessing the risks of material missta tement are detected at an interim date, the auditor shall evaluate whether the related assessment of risk and the planned nature, timing, or extent of substantive procedures covering the remaining period need to be modified. (Ref: Para. A54) Adequacy of Presentation and Disclosure 25. The auditor shall perform audit procedures to evaluate whether the overall presentation of the financial statements, including the related disclosures, is in accordance with the applicable financial reporting framework. Ref: Para. A55) Evaluating the Sufficiency and Appropriateness of Audit Evidence 26. Based on the audit procedures performed and the audit evidence obtained, the auditor shall evaluate before the conclusion of the audit whether the assessments of the risks of material misstatement at the assertion level remain appropriate. (Ref: Para. A56-57) 27. The auditor shall conclude whether sufficient appropriate audit evidence has been obtained. In forming an opinion, the auditor shall consider all elevant audit evidence, regardless of whether it appears to corroborate or to contradict the assertions in the financial statements. (Ref: Para. A58) 8 PSA 330 (Redrafted) 28. If the auditor has not obtained sufficient appropriate audit evidence as to a material financial statement assertion, the auditor shall attempt to obtain further audit evidence. If the auditor is unable to obtain sufficient appropriate audit evidence, the auditor shall express a qualified opinion or a disclaimer of opinion. Documentation 29. The auditor shall document: a) The overall responses to address the assessed risks of material misstatement at the financial statement level, and the nature, timing, and extent of the further audit procedures performed; (b) The linkage of those procedures with the assessed risks at the assertion level; and (c) The results of the audit procedures, including the conclusions where these are not otherwise clear. (Ref: Para. A59) 30. If the auditor plans to use audit eviden ce about the operating effectiveness of controls obtained in previous audits, the auditor shall document the conclusions reached about relying on such controls that were tested in a previous audit. 1. The auditors’ documentation shall demonstrate that the financial statements agree or reconcile with the underlying accounting records. *** Application and Other Explanatory Material Overall Responses (Ref: Para. 5) A1. Overall responses to address the assessed risks of material misstatement at the financial statement level may include: †¢ Emphasizing to the audit team the need to maintain professional skepticism. †¢ Assigning more experienced staff or those with special skills or using experts. †¢ Providing more supervision. †¢Incorporating additional elements of unpredictability in the selection of further audit procedures to be performed. 9 PSA 330 (Redrafted) †¢ A2. Making general changes to the nature, timing, or extent of audit procedures, for examp le: performing substantive procedures at the period end instead of at an interim date; or modifying the nature of audit procedures to obtain more persuasive audit evidence. The assessment of the risks of material misstatement at the financial statement level, and thereby the auditor’s overall responses, is affected by the auditor’s understanding of the control environment.An effective control environment may allow the auditor to have more confidence in internal control and the reliability of audit evidence generated internally within the entity and thus, for example, allow the auditor to conduct some audit procedures at an interim date rather than at the period end. Weaknesses in the control environment, however, have the opposite effect; for example, the auditor may respond to an ineffective control environment by: †¢ †¢ Obtaining more extensive audit evidence from substantive procedures. †¢ A3.Conducting more audit procedures as of the period end rathe r than at an interim date. Increasing the number of locations to be included in the audit scope. Such considerations, therefore, have a significant bearing on the auditor’s general approach, for example, an emphasis on substantive procedures (substantive approach), or an approach that uses tests of controls as well as substantive procedures (combined approach). Audit Procedures Responsive to the Assessed Risks of Material Misstatement at the Assertion Level The Nature, Timing, and Extent of Further Audit Procedures (Ref: Para. 6) A4.The auditor’s assessment of the identified risks at the assertion level provides a basis for considering the appropriate audit approach for designing and performing further audit procedures. For example, (as appropriate and notwithstanding the requirements of this PSA)2, the auditor may determine that: (a) Only by performing tests of controls may the auditor achieve an effective response to the assessed risk of material misstatement for a p articular assertion; (b) Performing only substantive procedures is appropriate for particular assertions and, therefore, the auditor excludes the effect of controls from the relevant risk assessment.This may be because the auditor’s risk assessment procedures 2 For example, as required by paragraph 20, irrespective of the approach selected, the auditor designs and performs substantive procedures for each significant class of transactions, account balance, and disclosure. 10 PSA 330 (Redrafted) have not identified any effective controls relevant to the assertion, or because testing controls would be inefficient and therefore the auditor does not intend to rely on the operating effectiveness of controls in determining the nature, timing and extent of substantive procedures; or c) A combined approach using both tests of controls and substantive procedures is an effective approach. A5. The nature of an audit procedure refers to its purpose (i. e. , test of controls or substantive procedure) and its type (i. e. , inspection, observation, inquiry, confirmation, recalculation, reperformance, or analytical procedure). The nature of the audit procedures is of most importance in responding to the assessed risks. A6. Timing of an audit procedure refers to when it is performed, or the period or date to which the audit evidence applies.A7. Extent of an audit procedure refers to the quantity to be performed, for example, a sample size or the number of observations of a control activity. A8. Designing and performing further audit procedures whose nature, timing, and extent are based on and are responsive to the assessed risks of material misstatement at the assertion level provides a clear linkage between the auditors’ further audit procedures and the risk assessment. Responding to the Assessed Risks at the Assertion Level (Ref: Para. 7(a)) NatureA9. The auditor’s assessed risks may affect both the types of audit procedures to be performed and their comb ination. For example, when an assessed risk is high, the auditor may confirm the completeness of the terms of a contract with the counterparty, in addition to inspecting the document. Further, certain audit procedures may be more appropriate for some assertions than others. For example, in relation to revenue, tests of controls may be most responsive to the assessed risk of misstatement of the completeness ssertion, whereas substantive procedures may be most responsive to the assessed risk of misstatement of the occurrence assertion. A10. The reasons for the assessment given to a risk are relevant in determining the nature of audit procedures. For example, if an assessed risk is lower because of the particular characteristics of a class of transactions without consideration of the related controls, then the auditor may determine that substantive analytical procedures alone provide sufficient appropriate audit evidence.On the other hand, if the assessed risk is lower because of inter nal controls, and the auditor intends to base the substantive procedures on that low assessment, then the auditor performs tests of those controls, as required by paragraph 8(a). This may be the case, for 11 PSA 330 (Redrafted) example, for a class of transactions of reasonably uniform, non-complex characteristics that are routinely processed and controlled by the entity’s information system. Timing A11.The auditor may perform tests of controls or substantive procedures at an interim date or at the period end. The higher the risk of material misstatement, the more likely it is that the auditor may decide it is more effective to perform substantive procedures nearer to, or at, the period end rather than at an earlier date, or to perform audit procedures unannounced or at unpredictable times (for example, performing audit procedures at selected locations on an unannounced basis). This is particularly relevant when considering the response to the risks of fraud.For example, the auditor may conclude that, when the risks of intentional misstatement or manipulation have been identified, audit procedures to extend audit conclusions from interim date to the period end would not be effective. A12. On the other hand, performing audit procedures before the period end may assist the auditor in identifying significant matters at an early stage of the audit, and consequently resolving them with the assistance of management or developing an effective audit approach to address such matters. A13. In addition, certain audit procedures can be performed only at or after the period end, for example: †¢ †¢Examining adjustments made during the course of preparing the financial statements; and †¢ A14. Agreeing the financial statements to the accounting records; Procedures to respond to a risk that, at the period end, the entity may have entered into improper sales contracts, or transactions may not have been finalized. Further relevant factors that influence the auditor’s consideration of when to perform audit procedures include the following: †¢ The control environment. †¢ When relevant information is available (for example, electronic files may subsequently be overwritten, or procedures to be observed may occur only at certain times). The nature of the risk (for example, if there is a risk of inflated revenues to meet earnings expectations by subsequent creation of false sales agreements, 12 PSA 330 (Redrafted) the auditor may wish to examine contracts available on the date of the period end). †¢ The period or date to which the audit evidence relates. Extent A15. The extent of an audit procedure judged necessary is determined after considering the materiality, the assessed risk, and the degree of assurance the auditor plans to obtain.When a single purpose is met by a combination of procedures, the extent of each procedure is considered separately. In general, the extent of audit procedures increases as the risk of m aterial misstatement increases. For example, in response to the assessed risk of material misstatement due to fraud, increasing sample sizes or performing substantive analytical procedures at a more detailed level may be appropriate. However, increasing the extent of an audit procedure is effective only if the audit procedure itself is relevant to the specific risk.A16. The use of computer-assisted audit techniques (CAATs) may enable more extensive testing of electronic transactions and account files, which may be useful when the auditor decides to modify the extent of testing, for example, in responding to the risks of material misstatement due to fraud. Such techniques can be used to select sample transactions from key electronic files, to sort transactions with specific characteristics, or to test an entire population instead of a sample. Considerations specific to public sector entities A17.For the audits of public sector entities, the audit mandate and any other special auditin g requirements may affect the auditor’s consideration of the nature, timing and extent of further audit procedures. Considerations specific to smaller entities A18. In the case of very small entities, there may not be many control activities that could be identified by the auditor, or the extent to which their existence or operation have been documented by the entity may be limited. In such cases, it may be more efficient for the auditor to perform further audit procedures that are primarily substantive procedures.In some rare cases, however, the absence of control activities or of other components of control may make it impossible to obtain sufficient appropriate audit evidence. Higher Assessments of Risk (Ref: Para 7(b)) A19. When obtaining more persuasive audit evidence because of a higher assessment of risk, the auditor may increase the quantity of the evidence, or obtain evidence that is more relevant or reliable, e. g. , by placing more emphasis on obtaining third 13 PS A 330 (Redrafted) party evidence or by obtaining corroborating evidence from a number of independent sources.Tests of Controls Designing and Performing Tests of Controls (Ref: Para. 8) A20. Tests of controls are performed only on those controls that the auditor has determined are suitably designed to prevent, or detect and correct, a material misstatement in an assertion. If substantially different controls were used at different times during the period under audit, each is considered separately. A21. Testing the operating effectiveness of controls is different from obtaining an understanding of and evaluating the design and implementation of controls.However, the same types of audit procedures are used. The auditor may, therefore, decide it is efficient to test the operating effectiveness of controls at the same time as evaluating their design and determining that they have been implemented. A22. Further, although some risk assessment procedures may not have been specifically desig ned as tests of controls, they may nevertheless provide audit evidence about the operating effectiveness of the controls and, consequently, serve as tests of controls. For example, the auditor’s risk assessment procedures may have included: Inquiring about management’s use of budgets. †¢ Observing management’s comparison of monthly budgeted and actual expenses. †¢ Inspecting reports pertaining to the investigation of variances between budgeted and actual amounts. These audit procedures provide knowledge about the design of the entity’s budgeting policies and whether they have been implemented, but may also provide audit evidence about the effectiveness of the operation of budgeting policies in preventing or detecting material misstatements in the classification of expenses. A23.In addition, the auditor may design a test of controls to be performed concurrently with a test of details on the same transaction. Although the purpose of a test of cont rols is different from the purpose of a test of details, both may be accomplished concurrently by performing a test of controls and a test of details on the same transaction, also known as a dual-purpose test. For example, the auditor may design, and evaluate the results of, a test to examine an invoice to determine whether it has been approved and to provide substantive audit evidence of a 14 PSA 330 (Redrafted) ransaction. A dual-purpose test is designed and evaluated by considering each purpose of the test separately. A24. In some cases, as discussed in PSA 315, the auditor may find it impossible to design effective substantive procedures that by themselves provide sufficient appropriate audit evidence at the assertion level. This may occur when an entity conducts its business using IT and no documentation of transactions is produced or maintained, other than through the IT system. In such cases, paragraph 8(b) requires the auditor to perform tests of relevant controls.Audit Evid ence and Intended Reliance (Ref: Para. 9) A25. A higher level of assurance may be sought about the operating effectiveness of controls when the approach adopted consists primarily of tests of controls, in particular where it is not possible or practicable to obtain sufficient appropriate audit evidence only from substantive procedures. Nature and Extent of Tests of Controls Other audit procedures in combination with inquiry (Ref: Para. 10(a)) A26. Inquiry alone is not sufficient to test the operating effectiveness of controls.Accordingly, other audit procedures are performed in combination with inquiry. In this regard, inquiry combined with inspection or reperformance may provide more assurance than inquiry and observation, since an observation is pertinent only at the point in time at which it is made. A27. The nature of the particular control influences the type of procedure required to obtain audit evidence about whether the control was operating effectively. For example, if oper ating effectiveness is evidenced by documentation, the auditor may decide to inspect it to obtain audit evidence about operating effectiveness.For other controls, however, documentation may not be available or relevant. For example, documentation of operation may not exist for some factors in the control environment, such as assignment of authority and responsibility, or for some types of control activities, such as control activities performed by a computer. In such circumstances, audit evidence about operating effectiveness may be obtained through inquiry in combination with other audit procedures such as observation or the use of CAATs. Extent of tests of controls A28.When more persuasive audit evidence is needed regarding the effectiveness of a control, it may be appropriate to increase the extent of testing of the control. As well as the degree of reliance on controls, matters the auditor may consider in determining the extent of tests of controls include the following: 15 PSA 330 (Redrafted) †¢ The frequency of the performance of the control by the entity during the period. †¢ The length of time during the audit period that the auditor is relying on the operating effectiveness of the control. †¢The expected rate of deviation from a control. †¢ The relevance and reliability of the audit evidence to be obtained regarding the operating effectiveness of the control at the assertion level. †¢ The extent to which audit evidence is obtained from tests of other controls related to the assertion. PSA 530, â€Å"Audit Sampling and Other Means of Testing† contains further guidance on the extent of testing. A29. Because of the inherent consistency of IT processing, it may not be necessary to increase the extent of testing of an automated control.An automated control can be expected to function consistently unless the program (including the tables, files, or other permanent data used by the program) is changed. Once the auditor determi nes that an automated control is functioning as intended (which could be done at the time the control is initially implemented or at some other date), the auditor may consider performing tests to determine that the control continues to function effectively. Such tests might include determining that: †¢ Changes to the program are not made without being subject to the appropriate program change controls, The authorized version of the program is used for processing transactions, and †¢ Other relevant general controls are effective. Such tests also might include determining that changes to the programs have not been made, as may be the case when the entity uses packaged software applications without modifying or maintaining them. For example, the auditor may inspect the record of the administration of IT security to obtain audit evidence that unauthorized access has not occurred during the period. Testing of indirect controls (Ref: Para. 10(b))A30. In some circumstances, it ma y be necessary to obtain audit evidence supporting the effective operation of indirect controls. For example, when the auditor decides to test the effectiveness of a user review of exception reports detailing sales in excess of authorized credit limits, the user review and related follow up is the control that is directly of relevance to the auditor. Controls over the accuracy of 16 PSA 330 (Redrafted) the information in the reports (for example, the general IT controls) are described as ‘indirect’ controls. A31.Because of the inherent consistency of IT processing, audit evidence about the implementation of an automated application control, when considered in combination with audit evidence about the operating effectiveness of the entity’s general controls (in particular, change controls), may also provide substantial audit evidence about its operating effectiveness. Timing of Tests of Controls Intended period of reliance (Ref: Para. 11) A32. Audit evidence perta ining only to a point in time may be sufficient for the auditor’s purpose, for example, when testing controls over the entity’s physical inventory counting at the period end.If, on the other hand, the auditor intends to rely on a control over a period, tests that are capable of providing audit evidence that the control operated effectively at relevant times during that period are appropriate. Such tests may include tests of the entity’s monitoring of controls. Using audit evidence obtained during an interim period (Ref: Para. 12) A33. Relevant factors in determining what additional audit evidence to obtain about controls that were operating during the period remaining after an interim period, include: †¢ †¢The specific controls that were tested during the interim period, and significant changes to them since they were tested, including changes in the information system, processes, and personnel. †¢ The degree to which audit evidence about the oper ating effectiveness of those controls was obtained. †¢ The length of the remaining period. †¢ The extent to which the auditor intends to reduce further substantive procedures based on the reliance of controls. †¢ A34. The significance of the assessed risks of material misstatement at the assertion level. The control environment.Additional audit evidence may be obtained, for example, by extending tests of controls over the remaining period or testing the entity’s monitoring of controls. 17 PSA 330 (Redrafted) Using audit evidence obtained in previous audits (Ref: Para. 13) A35. In certain circumstances, audit evidence obtained from previous audits may provide audit evidence where the auditor performs audit procedures to establish its continuing relevance. For example, in performing a previous audit, the auditor may have determined that an automated control was functioning as intended.The auditor may obtain audit evidence to determine whether changes to the autom ated control have been made that affect its continued effective functioning through, for example, inquiries of management and the inspection of logs to indicate what controls have been changed. Consideration of audit evidence about these changes may support either increasing or decreasing the expected audit evidence to be obtained in the current period about the operating effectiveness of the controls. Controls that have changed from previous audits (Ref: Para. 4(a)) A36. Changes may affect the relevance of the audit evidence obtained in previous audits such that there may no longer be a basis for continued reliance. For example, changes in a system that enable an entity to receive a new report from the system probably do not affect the relevance of audit evidence from a previous audit; however, a change that causes data to be accumulated or calculated differently does affect it. Controls that have not changed from previous audits (Ref: Para. 14(b)) A37.The auditor’s decision on whether to rely on audit evidence obtained in previous audits for controls that: (a) Have not changed since they were last tested; and (b) Are not controls that mitigate a significant risk, is a matter of professional judgment. In addition, the length of time between retesting such controls is also a matter of professional judgment, but is required by paragraph 14(b) to be at least once in every third year. A38. In general, the higher the risk of material misstatement, or the greater the reliance on controls, the shorter the time period elapsed, if any, is likely to be.Factors that may decrease the period for retesting a control, or result in not relying on audit evidence obtained in previous audits at all, include the following: †¢ A weak control environment. †¢ Weak monitoring of controls. †¢ A significant manual element to the relevant controls. 18 PSA 330 (Redrafted) †¢ †¢ Changing circumstances that indicate the need for changes in the control. â₠¬ ¢ A39. Personnel changes that significantly affect the application of the control. Weak general IT-controls.When there are a number of controls for which the auditor intends to rely on audit evidence obtained in previous audits, testing some of those controls in each audit provides corroborating information about the continuing effectiveness of the control environment. This contributes to the auditor’s decision about whether it is appropriate to rely on audit evidence obtained in previous audits. Evaluating the Operating Effectiveness of Controls (Ref: Para. 16-19) A40. A material misstatement detected by the auditor’s procedures may indicate the existence of a material weakness in internal control.A41. The concept of effectiveness of the operation of controls recognizes that some deviations in the way controls are applied by the entity may occur. Deviations from prescribed controls may be caused by such factors as changes in key personnel, significant seasonal fluct uations in volume of transactions and human error. The detected rate of deviation, in particular in comparison with the expected rate, may indicate that the control cannot be relied on to reduce risk at the assertion level to that assessed by the auditor.Substantive Procedures (Ref: Para. 20) A42. Paragraph 20 requires the auditor to design and perform substantive procedures for each material class of transactions, account balance, and disclosure, irrespective of the assessed risks of material misstatement. This requirement reflects the facts that: (i) the auditor’s assessment of risk is judgmental and so may not identify all risks of material misstatement; and (ii) there are inherent limitations to internal control, including management override.Nature and Extent of Substantive Procedures A43. Depending on the circumstances, the auditor may determine that: †¢ Performing only substantive analytical procedures will be sufficient to reduce audit risk to an acceptably low l evel. For example, where the auditor’s assessment of risk is supported by audit evidence from tests of controls. †¢ Only tests of details are appropriate. †¢ A combination of substantive analytical procedures and tests of details are most responsive to the assessed risks. 19 PSA 330 (Redrafted) A44.Substantive analytical procedures are generally more applicable to large volumes of transactions that tend to be predictable over time. PSA 520, â€Å"Analytical Procedures† establishes requirements and provides guidance on the application of analytical procedures during an audit. A45. The nature of the risk and assertion is relevant to the design of tests of details. For example, tests of details related to the existence or occurrence assertion may involve selecting from items contained in a financial statement amount and obtaining the relevant audit evidence.On the other hand, tests of details related to the completeness assertion may involve selecting from items that are expected to be included in the relevant financial statement amount and investigating whether they are included. A46. Because the assessment of the risk of material misstatement takes account of internal control, the extent of substantive procedures may need to be increased when the results from tests of controls are unsatisfactory. However, increasing the extent of an audit procedure is appropriate only if the audit procedure itself is relevant to the specific risk. A47.In designing tests of details, the extent of testing is ordinarily thought of in terms of the sample size. However, other matters are also relevant, including whether it is more effective to use other selective means of testing. See PSA 530 for additional guidance. Substantive Procedures Related to the Financial Statement Closing Process (Ref: Para. 21(b)) A48. The nature, and also the extent, of the auditor’s examination of journal entries and other adjustments depends on the nature and complexity o f the entity’s financial reporting process and the related risks of material misstatement.Substantive Procedures Responsive to Significant Risks (Ref: Para. 22) A49. Paragraph 22 of this PSA requires the auditor to perform substantive procedures that are specifically responsive to risks the auditor has determined to be significant risks. For example, if the auditor identifies that management is under pressure to meet earnings expectations, there may be a risk that management is inflating sales by improperly recognizing revenue related to sales agreements with terms that preclude revenue recognition or by invoicing sales before shipment.In these circumstances, the auditor may, for example, design external confirmations not only to confirm outstanding amounts, but also to confirm the details of the sales agreements, including date, any rights of return and delivery terms. In addition, the auditor may find it effective to supplement such external confirmations with inquiries of non-financial personnel in the entity regarding any changes in sales agreements and delivery terms. Substantive procedures related to 20 PSA 330 (Redrafted) ignificant risks are most often designed to obtain audit evidence with high reliability. Timing of Substantive Procedures (Ref: Para. 23-24) A50. In most cases, audit evidence from a previous audit’s substantive procedures provides little or no audit evidence for the current period. There are, however, exceptions, e. g. , a legal opinion obtained in a previous audit related to the structure of a securitization to which no changes have occurred, may be relevant in the current period.In such cases, it may be appropriate to use audit evidence from a previous audit’s substantive procedures if that evidence and the related subject matter have not fundamentally changed, and audit procedures have been performed during the current period to establish its continuing relevance. Using audit evidence obtained during an interim period (Ref: Para. 23) A51. In some circumstances, the auditor may determine that it is effective to perform substantive procedures at an interim date, and to compare and reconcile information concerning the balance at the period end with the comparable information at the interim date to: a) Identify amounts that appear unusual, (b) Investigate any such amounts, and (c) Perform substantive analytical procedures or tests of details to test the intervening period. A52. Performing substantive procedures at an interim date without undertaking additional procedures at a later date increases the risk that the auditor will not detect misstatements that may exist at the period end. This risk increases as the remaining period is lengthened. Factors such as the following may influence whether to perform substantive procedures at an interim date: †¢The control environment and other relevant controls. †¢ The availability at a later date of information necessary for the auditorâ€℠¢s procedures. †¢ The purpose of the substantive procedure. †¢ The assessed risk of material misstatement. †¢ The nature of the class of transactions or account balance and related assertions. 21 PSA 330 (Redrafted) †¢ A53. The ability of the auditor to perform appropriate substantive procedures or substantive procedures combined with tests of controls to cover the remaining period in order to reduce the risk that misstatements that may exist at the period end will not be detected.Factors such as the following may influence whether to perform substantive analytical procedures with respect to the period between the interim date and the period end: †¢ Whether the period end balances of the particular classes of transactions or account balances are reasonably predictable with respect to amount, relative significance, and composition. †¢ Whether the entity’s procedures for analyzing and adjusting such classes of transactions or account balances at in terim dates and for establishing proper accounting cutoffs are appropriate. Whether the information system relevant to financial reporting will provide information concerning the balances at the period end and the transactions in the remaining period that is sufficient to permit investigation of: (a) Significant unusual transactions or entries (including those at or near the period end), (b) Other causes of significant fluctuations, or expected fluctuations that did not occur, and (c) Changes in the composition of the classes of transactions or account balances.Misstatements detected at an interim date (Ref: Para. 24) A54. When the auditor concludes that the planned nature, timing, or extent of substantive procedures covering the remaining period need to be modified as a result of unexpected misstatements detected at an interim date, such modification may include extending or repeating the procedures performed at the interim date at the period end. Adequacy of Presentation and Discl osure (Ref: Para. 25) A55.Evaluating the overall presentation of the financial statements, including the related disclosures, relates to whether the individual financial statements are presented in a manner that reflects the appropriate classification and description of financial information, and the form, arrangement, and content of the financial statements and their appended notes. This includes, for example, the terminology 22 PSA 330 (Redrafted) used, the amount of detail given, the classification of items in the statements, and the bases of amounts set forth. Evaluating the Sufficiency and Appropriateness of Audit Evidence (Ref: Para. 6-28) A56. An audit of financial statements is a cumulative and iterative process. As the auditor performs planned audit procedures, the audit evidence obtained may cause the auditor to modify the nature, timing, or extent of other planned audit procedures. Information may come to the auditor’s attention that differs significantly from the information on which the risk assessment was based. For example, †¢ The extent of misstatements that the auditor detects by performing substantive procedures may alter the auditor’s judgment about the risk assessments and may indicate a material weakness in internal control. The auditor may become aware of discrepancies in accounting records, or conflicting or missing evidence. †¢ Analytical procedures performed at the overall review stage of the audit may indicate a previously unrecognized risk of material misstatement. In such circumstances, the auditor may need to reevaluate the planned audit procedures, based on the revised consideration of assessed risks for all or some of the classes of transactions, account balances, or disclosures and related assertions. PSA 315 contains further guidance on revising the auditor’s risk assessment. A57.The auditor cannot assume that an instance of fraud or error is an isolated occurrence. Therefore, the consideration of how the detection of a misstatement affects the assessed risks of material misstatement is important in determining whether the assessment remains appropriate. A58. The auditor’s judgment as to what constitutes sufficient appropriate audit evidence is influenced by such factors as the following: †¢ Significance of the potential misstatement in the assertion and the likelihood of its having a material effect, individually or aggregated with other potential misstatements, on the financial statements. Effectiveness of management’s responses and controls to address the risks. †¢ Experience gained during previous audits with respect to similar potential misstatements. †¢ Results of audit procedures performed, including whether such audit procedures identified specific instances of fraud or error. 23 PSA 330 (Redrafted) †¢ Source and reliability of the available information. †¢ Persuasiveness of the audit evidence. †¢ Understanding of the entit y and its environment, including the entity’s internal control. Documentation (Ref: Para. 29) A59.The form and extent of audit documentation is a matter of professional judgment, and is influenced by the nature, size and complexity of the entity and its internal control, availability of information from the entity and the audit methodology and technology used in the audit. Acknowledgment This PSA is based on International Standard on Auditing 330 (Redrafted), â€Å"The Auditor’s Responses to Assessed Risks,† issued by the International Auditing and Assurance Standards Board. There are no significant differences between this PSA 330 (Redrafted) and ISA 330 (Redrafted). 4 PSA 330 (Redrafted) This PSA 330 (Redrafted), â€Å"The Auditor’s Responses to Assessed Risks,† was unanimously approved for adoption on January 29, 2007 by the members of the Auditing and Assurance Standards Council. Benjamin R. Punongbayan, Chairman Felicidad A. Abad Antonio P. Ac yatan Erwin Vincent G. Alcala Froilan G. Ampil David L. Balangue Ma. Gracia Casals-Diaz Amorsonia B. Escarda Manuel O. Faustino Eliseo A. Fernandez Nestorio C. Roraldo Joaquin P. Tolentino Editha O. Tuason Jaime E. Ysmael 25

Change Rosabeth Moss Kanter

Change Rosabeth Moss Kanter Change Management Organisations Must Change and Change quickly INTRODUCTION Rosabeth Moss Kanter is the professor in business at Harvard Business School, where she holds the Ernest L. Arbuckle Professorship. She is known for her classic 1977 study of Tokenism. As a business leader and expert on strategy and leadership for change, she was nominated as the top ten on the list of the â€Å"50 most influential business thinkers in the world†, and she is on the list of the â€Å"100 most important women in America† and the â€Å"50 most powerful women in the world†. Her main concepts include changing organisations, bureaucracy and characteristics of resistance to change. (drfd.hbs.edu, 2007) In 1989, she argues that: â€Å" today’s corporate elephants must learn how to dance as nimbly and speedily as mice â€Å". (Burnes, 2004) In other words, she points out that big organisations should change and change quickly to meet the changing environment. This repo rt is going to analyse the key drivers for this statement and find out the reason behind change. This report contains three sections. Section 1 will give definitions to change management and the importance of change. Section 2 is discussions, which is divided into two sub-categories, first part is concerned with the models of change management, and part 2 goes on to show examples of how big organisations keep up with change and the possibilities of failure. This section contains examples of big organisations successfully changed to meet their goals and objectives, while some other organisations stay the same and fail to maintain their strong market position. Section 3 is conclusions. CHANGE MANAGEMENT â€Å" Today’s corporate elephants must learn how to dance as nimbly and speedily as mice if they are to survive in our increasingly competitive and rapidly changing world† (Burnes, 2004) According to Paton it is no surprise that change is also a fact of life within huma n systems. Recent developments in the global economy have catapulted this fact to the forefront of management concerns as well. Therefore, even though Professor Kanter’s statement was mentioned about 18 years ago, it is still valued today. Additionally, Kanter (1989) mentioned that in order for organisations to change, it requires faster action, more flexibility and closer partnerships with employees and customers than typical in the traditional corporate bureaucracy. To quote from her, â€Å"Corporate giants, in short, must learn how to dance†. Therefore, the â€Å" corporate elephants † represents big companies while â€Å" mice â€Å", on the other hand, represents small firms. To summarise her statement above, we could conclude that small firms are more flexible in changing compare with big organisations, because big organisations have more management levels and more bureaucracy; therefore, corporate giants should adapt this ability to change and change qu ickly. More over, the most important reason for organisations to change, is to keep pace with the ever changing business environment and give a good company image to the public that they are keep up dating themselves and stay competitive.

Why did the First World War have such a disruptive effect on the Essay

Why did the First World War have such a disruptive effect on the international trading and financial system - Essay Example Only the USA have won. From the beginning of the 20-th century the pure market (besides it was in many respects an abstract theoretical structure) began to be supplemented and partly to be replaced with the new public institutes. These institutes had various origin and nature. All of them operated, however, in one direction, reducing a degree of capitalism spontaneity with its destructive consequences in the form of periodic mass ruins. Besides these new institutes have allowed realizing the rights to the best life, have raised the workers’ share, actually creating public riches, in distribution of a product created by all society (Ashworth, 1962, p65). Then there was the First World War. It has occurred because of the impetuous aspiration of the private capital to the profit and has brought many sufferings to the nations of the world. After the First World War there were the significant changes for capitalism. The so-called system of ‘free trade’ has been reorganized in system of interstate agreements. In the frames of national economies the top was taken by healthy forces, which understood the banefulness of the impetuous competition for domestic economic structure, first of all for new, progressive industries. The archaic system of the gold standard, which leaned to the prejudices concerning value of gold, has been replaced with more modern international monetary system assumed close coordination of national banks. The impetuous competition has received a worthy counterbalance in the form of the antimonopoly law and, in some cases, elements of economy planning. The social rights of workers became better protected - the role of trade unions has amplified, in some countries the elements of social protection, the forerunner of the modern systems ‘welfare state’ began to appear (Aldcroft, 1978, p68). Then there was the most destructive economic crisis for all world history. It occurred because the out-of-date system ‘laissez

Global Industries experience with the then Pension Fund Manager Essay

Global Industries experience with the then Pension Fund Manager - Essay Example According to his analysis the funds represent a small fraction of the U.S.-managed fund industry, but despite this their net assets grew by 262% from 1998 to 2005, compared to a 10.8% increase in U.S. high-yield bond funds. There was significant public attention but academic research did not give much attention to the emerging market bond funds. So did the Pension Fund Manager who also did not pay proper attention to this fund. I would have gone deeper in my research as Pension Fund Manager and would take correct and patient decision before shifting from the fund. I would also for a diversified fund investment rather than concentrating on single fund and suffering. Similarly, if we study carefully the Lazard’s Emerging Market Equity Market Returns annually from 1993 to 2008 we can note of certain emerging markets doing very well. In 1997 Turkey, Hungry and Mexico returned more that 50% from the equity market. In 1998 Korea and Greece returned more than 50%; in 1999 Russia and Turkey returned more than 200% % and Indonesia, India and Korea returned more than 75% from this market. 2000 was a poor market but from 2001 the equity market again started looking up. By 2002 the return was very lucrative: Pakistan returning 150% and Check Republic and Indonesia returning about 40% and above. Minimum five important emerging markets continued yielding sound returns till 2007 The main problem concerns about reading the market trends correctly and selecting the target market with the help of proven experts in the market. Perhaps the Pension Manager could not foresee the correct trends in the market and his decision about investment yielded losses. In 2003 the loss incurred was due to wrong reshuffling of his portfolio to US Treasury Bills for two years and Treasury notes yielding only 1% to 3% return.  

Human Behavior in Organizations Assignment Example | Topics and Well Written Essays - 2000 words

Human Behavior in Organizations - Assignment Example at leadership based theories became well-known around 1950s and during the same period leadership interaction, implication and classification was done. It was also determined that so far significant research has been pursued for establishing relationship between leadership and performance (Allio, 2012). The paper is a critical assessment of leadership as a concept and its classifications. Moving on, the role of various kind of leadership has been elaborately discussed in the paper with respect to organizational behavior. Similarities and dissimilarities between various leadership styles have also been discussed followed by an overview of charismatic leadership, its features and implications in organizational framework. Leadership, especially charismatic leadership was considered appropriate for this paper because the study will help in developing a clear understanding of roles and characteristics of leaders played within an organizational framework. It has already been highlighted that the concept of leadership is highly subjective and as a result, several definitions has been developed thereof. Leadership has been defined as the technique of influencing other individuals for developing agreement and understanding regarding things that are to be done and the process of achieving these objectives in a collaborative manner. Other definition suggests that leadership is to influence an individual or a group to achieve common goals by means of shared objectives. Based on these definitions, several components of the phenomenon of leadership can be recognized, such as, it is a process, it involves influencing individuals logically and it provide shared goals and objectives to them (Allio, 2012). Regarding leadership and leader, different authors have presented a variety of views some of which are also conflictive in nature. For instance, a group of researchers argued that leadership qualities are acquired by leaders since birth while other group of researchers argued

The Making of the American Revolution in Virginia Research Paper

The Making of the American Revolution in Virginia - Research Paper Example According to the research the people of Virginia were reluctant to sever their ties with Great Britain. Having been governed and influenced by a traditional and affluent group of farmers for much of the 18th century, the people of Virginia viewed their cultural and economic wealth at the mercy of favorable affiliations with the mother country. However, with the drastic changes after the Indian and French War, such as unfair British taxes, rapid swelling of multicultural and heterogeneous population, settlement growth in the interior, and the effect of an oppressive labor system, a large number of Virginians became disappointed with the colonial government. According to Woody Holton, the author of Forced Founders: Indians, Debtors, Slaves, and the Making of the American Revolution in Virginia, the colonial aristocracy of Virginia, which is the most renowned nobility in America, did not rashly take part in the revolution but was provoked by other groups and individuals. The historical account of Holton celebrates the Ohio Indians, whose efforts in supporting a wide-ranging confederation forced Britain to implement the 1763 Proclamation Line and abiding by it, thus spoiling the desires of land opportunists like Thomas Jefferson and George Washington. Holton puts the slaves of Virginia into the picture, who were persuading Governor John Dunmore to accept their services prior to his release of the well-known 1775 declaration and whose pursuit of independence drew the attention of a vast population throughout the colony, encouraging loyalists like William Byrd to join the patriots’ cause.... hites, renters, and smallholders whose choice to hold back the selling of tobacco in 1773 set off the campaign for non-exportation and whose claims for freedom reinforced the ultimate separation from the colonial government. It was the resistance and struggle of these people against the newly developed and unequally organized minuteman—members of squads of chosen individuals during the American Revolution—businesses that presented the first notion of a different political system in the colony and that alongside occupant conflicts and rebellions over poverty and other hardships to generate a grassroots revolution. Holton’s Virginia Holton (1999) discusses how the motives of the affluent Virginian nobility collided with the interests of the British traders and the Indians. The nobility had long aimed to enlarge their land holdings and thereby riches to comprise the region of Kentucky, a source of subsistence for numerous Indian populations. In order to resist the i ncursion of the White people, the Cherokee, the Delaware, and the Shawnee triumphed over their past conflict and cleverly collaborated to build a union. Great Britain, frightened of a disastrous pan-Indian conflict, initially released the 1763 Proclamation which disallowed every effort toward further colonialism and afterward, ratified in Quebec Act in 1774, giving all contested territories to the region of Quebec. The conflict of the nobility with British traders emanated from the Navigation Acts. This decree obliged Virginians to sell their tobacco only to the mother country. The settlers were deeply indebted to the traders somewhat due to their own extravagance, but they also attributed their huge debts to the decrease in earnings from selling tobacco (Holton 1999). The House of Burgesses proposed a

Prepare a proposal to the CEO of ZExpress Coursework

Prepare a proposal to the CEO of ZExpress - Coursework Example They need to understand their role and others as well to put the overall administration in perspective. It’s only then they shall optimize the resources and take full advantage of the M&A which has taken place. If there is a communication gap between management or structural deficiencies, it will directly effect the business and hence its profitability. SMART objectives Specific: What exactly do I want to achieve Create a structure which is acceptable to all top management of merged companies. Who reports to whom? Why? Who is senior to whom? Why? Is single reporting structure better or should there be dual reporting? How about dotted reporting? Should companies still consider their staff separate from other companies? These are few of the questions which can be asked in order to achieve this project, because I believe that its only a healthy management team which can fulfill your target of increasing revenue and decreasing costs by correct delegation and reporting. Measurable: How will I know I have got it? Seamless flow of administrative instructions with 99% accuracy will be a point where one can say that the structure is running smoothly. There can be staff members identified from the top management who shall be responsible in implementing the whole plan and giving feedback to overall management team about its progress and improvements required if any. Since time in hand to revamp the whole system is only 6 months, keeping in mind the Bonsai business, this needs to be done on priority and within 6 weeks or so. Achievable: How do you know you are capable of reaching this goal? A step is already taken by identifying the CEO, 3 VPs and 3 GMs all from different erstwhile companies. The rest of the structure should fall in place whereby the remaining Ex GMs and VPs and COOs of the merged companies find their best fit in the organization. There are innumerable examples of good and bad management structures available by research on other companies where one can learn from in case of such M&As. Hence its certainly achievable, but its success depends on its planning and execution. Realistic: How realistic is this goal? Putting a structure in place for better organizational management is achievable with correct information and cooperation from all team members. This is a prerequisite and there is no question of it being non realistic. Timed: How long will it take me to reach this goal? Time is of essence here, but that should not lead to a haphazard structure or strategy. Huge effort has to go into this, within a significantly small time frame. 6 weeks is what I have set with scope of 2 weeks delay. This is assuming that its not only the restructuring work being carried out but other projects being implemented side by side in operations, logistics and administration. Contribution to your goals This project will be the hidden secret to your success if its well executed. Team work specially between staff of different merged companies is key to success of the united entity. Your goal to make UPE a company which is most exciting to your staff and suppliers and eventually become best distribution and Logistics Company worldwide can be possible if this goal is achieved in early stages of new company. It is these joint teams which will enable the company to be agile and responsive to customer’s business needs across the world. Challenge 1 - Relatively less cooperation from management team of either of the merged com

Effects of hoarding on market prices Essay Example | Topics and Well Written Essays - 750 words

Effects of hoarding on market prices - Essay Example As a basic economic rule, whenever a supply of a particular item is less than the quantity demanded, the former puts inflationary pressure on the price of the goods and prices increase, if the quantity supplied could not match the quantity demanded. This can be shown through pictorial representation: The above diagram shows how hoarding affects the equilibrium condition in the market and increases the market prices. If we explain the above diagram, we can easily see that the Indian food is at a point e, where demand and supply equal at market price p1 and at quantity Q. However, as soon as the hoarding activity, this results in supply curve being shift to s1 from initial supply curve of S. As a result of this a new equilibrium is formed at the point e1. At this point the quantity is below the initial quantity of Q at Q1. (Sloman, 2004) Similarly, due to this a shortage has been created and people with more money are ruling the market by the virtue of being able to pay higher prices. As a result the market price of food items increases high and now the food stuff is available at a higher market price of p1. As a result this hoarding decreases the supply and increases the market prices. ... Now, let's assume that at the time when hoarding activities are going and due to poor crop the going market prices are set at the price p. However, due to effective government action against hoarders and release of buffer stock into the market, the supply of food items in the market will now increase to a new supply position of Se. We can clearly see that Se is rightward of the supply curve at the time hoarding that is Sh. This shows that the supply in the market has increased. This increase in supply means that there is more food stuff now available in the market at quantity Qe. This will reduce the market prices from previous prices which at the time of hoarding were at ph to pe. This analysis clearly shows how effective action by the government against hoarders can reduce the market prices and bring inflation of food items under control. Thus, we can assume that the article is suggesting the right ploy by which the Government of India can bring prices under control. (Clermont, 200 9) Another issue that has been raised in the article is how India is using measures to reduce their trade deficit by introducing export benefits for businesses in India which will increase their competitiveness in the international market. This means that government will give them tax holidays. As a result of which cost of production in India will reduce which will lower the prices of "Made In India" products. As a result of which imported goods for Indians will become expensive and hence Indians will prefer domestic production and hence reduce imported goods. This will means that India will have a lower cash outflow and hence this will improve the foreign trade situation in India.

IP - English Essay Example | Topics and Well Written Essays - 500 words

IP - English - Essay Example ulcates a drive in me to achieve success in the course, challenges that I encounter in the way of achieving my goals include but are not limited to my laziness, and occasional lack of ability to draw a balance between my work life and my social life. Sometimes, I spend too much time studying because of which I cannot find any time for leisure activities to refresh myself mentally and physically. At other times, I hang out with my friends for too long to be left with any time for studies. However, my desire for having a bright future keeps me on the track most of the time. One needs motivation in order to develop good writing skills in academic and professional life. Motivation comes from realization of the benefits of good writing skills. I derive the motivation to develop good writing skills from imagining how well I would be able to perform in my studies and at work when I develop good writing skills. I imagine myself writing essays, participating in essay-writing contests, writing and winning debate competitions, and writing long passages in short time thus saving time for other questions in the exams. I also imagine myself being able to convince the employers to hire me through my professional email writing and resume building. Winning such competitions and jobs builds one’s confidence which is very essential for living a happy life. I have noticed a lot of improvement in my writing skills over the passage of time. My writing skills have improved particularly since I started writing essays. I have realized that one needs to practice a lot in order to develop good writing skills. Reading essays from professional writers also helps develop the concept of writing and understand its various genres. In addition to that, watching movies and reading books helps one develop a good sense of phrases and styles of language that are used in everyday life. In the start, I found it hard to write long essays and keep my thoughts focused on a certain topic, but with time,

U.S. History of Building Construction and Fire Safety Essay Example for Free

U.S. History of Building Construction and Fire Safety Essay The construction of modern buildings has been constantly improving in providing world class architectural designs and durable construction materials that can help buildings withstand earthquakes and even fire hazards. It is the prime responsibilities of engineers and architects to ensure the building’s safety. Presence of skyscrapers and other high-rise buildings have become symbols of urban landscape. In planning the construction of buildings the safety of the occupants should always be consider. That is why there are building codes and specific safety measures and devices to make the buildings safe from danger. Building disasters usually comes from natural cause like earthquakes that is why earthquake proof buildings were constructed. Others are due to human factors brought by neglect or by terrorist attacks which can cause fire explosions inside building infrastructures. The U. S. history of building constructions had undergone necessary improvements and adjustments to their construction and planning in the passage of years to meet the safety standards of buildings therefore reducing the casualties in times of disasters. Fire safety and preservation of people’s lives are now the main focus in building structures and has been the greatest challenge for engineering firms. It is the goal of developers, architects, engineers and safety officials to conform to safety codes to prevent lost of lives due to fire and earthquake hazards. Building fires and structure failure are investigated and analyzed to understand the factors that contribute to the catastrophe. The investigations will establish the likely technical causes of the building failures and evaluate the technical aspects of emergency response and evacuation procedures in the wake of such failures. The goal is to encouraged improvements to the way in which buildings are designed, constructed, maintained and used. (National Institute Of Standards and Technology, 2008) History of Building Construction Changes in the Context of Fire Safety and Prevention Fire protection engineers with the help of science and technology develop means to protect people and property from fire. In designing new buildings or renovations to existing buildings, fire protection engineers develop the plan for fire protection. Fire protection engineering has evolved significantly over the past several centuries. Early application of fire protection engineering was intended to prevent conflagrations that could destroy whole cities. In the early 1900s, the primary objective of fire protection engineering was to limit fire to its building of origin. As fire protection engineering advance, this objective was refined to limit a fire to its object or room of origin. However it wasn’t until the later part of the 20th century that fire protection engineering had matured to the point that it included the fundamental tenets of professional and personal discipline. (Hurley, 2008) In 1800 English inventor John Carry designed the first crude automatic sprinkler but it went underdeveloped for a long period of time. In 1852 a patent was issued for first sprinkler-perforated pipe system which was the first recognized installation of fire protection equipment. In 1921 California passed a law forbidding wooden shingles on roofs but pressure from the roofing industry brought repeal. (Aurora Regional Fire Museum, 2008) A comparison of the 1968 and the 2003 New York City building code was conducted where the reference standards, compartmentation, construction, means of egress, fire suppression systems, fire alarm detection, signaling systems, emergency power and smoke and heat venting are analyzed. Reference standards include the standard method of fire test for construction materials, standards test for surface burning characteristic of building materials, installation of fire doors and windows. It also dealt with installation of air-conditioning and ventilating systems, installation of sprinkler systems, standpipe, water supplies, smoke detection, alarm and extinguishing systems. Safety codes for elevators, dumbwaiters, escalators and moving walks are also improved continuously. Occupancies are classified if they are primary occupants or secondary. Occupancy separation is also important. Roof construction including beams, trusses and framing, arches, dome, shells, cable that supported roofs and roof decks also. Fire and smoke dampers are also important. Means of egress is also evaluated. The required width of the means of egress should not be obstructed or reduce in any manner. Every floor area should also be provided with at least two approved independent exits. (NIST, 2008) Examples of Major Cases in U. S. History That Led To Changes in Building Construction Major cases of fire incidents happen in different settings like hotel, industrial areas, hospitals, warehouses, restaurants, night clubs, and high-rise buildings. High-rise building fires differ from low-rise building fires. A high rise building can be described as structure more than 75 feet high while aerial ladder reaches only 75 feet. People trapped in a burning high rise building who cannot be reached by the highest ladder will usually leap to their deaths or remain trapped inside the buildings. (High-rise Fires, 2008) Interstate Bank Building Fires in Los Angeles, California The Interstate Bank Building Fire in Los Angeles, California that happened May 4, 1988 was one of the most destructive high-rise fires in recent United States history. The fire presented the greatest potential for a â€Å"towering inferno† scenario of any U. S. fire experience and was controlled through massive and manual fire suppression efforts. It demonstrated the absolute need for automatic sprinklers to provide protection for tall buildings. The fire destroyed four floors and damaged fifth floor of the modern 62 story First Interstate Bank Building in L. A. , claimed one life, injured approximately 35 occupants and 14 fire personnel, and resulted in property loss of over $50 million. The interior design was found to be a large open area with readily combustible contents that contributed to quick fire growth. The sound-power emergency phone system was also ineffective. Radio communication were overtaxed and disrupted by building’s steel frame. (High-Rise Fires, 2008) One Meridian Plaza Fire One Meridian Plaza Fire document was one of the most significant high-rise fires in the United States’ history. The fire claimed the lives of three Philadelphia firefighters and gutted eight floors of a 38 story fire resistive building causing an estimated $ 100 million in direct property loss and business interruptions. This fire was a large scale realization of fire risks that have been identified on other similar occasions. The most significant new information from this fire relates to the vulnerability of the systems that were installed to provide electrical power and the support fire protection effort. In this incident there was an early loss of normal electric power, a failure of the emergency generator and a major problem with the standpipe system, which all contributed to the final outcome. (High-rise Fires, 2008) Rockefeller Center High-Rise Fire On October 10, 1996, an electrical fire in the landmark Rockefeller Center in New York City required a five alarm response by FDNY to control the fire. The damage was cause by five separate fires in various electrical rooms that caused significant disruption to a major television network. At approximately 4 a. m. on Thursday October 10, 1996 an electrical fire occurred at 30 Rockefeller Center Plaza in New York City. Several fires broke out in five remote locations, filling many areas of the building with smoke. The fires presented a challenge for the New York City fire department because of the varied locations of simultaneous fires and the confusing layout of the building. The Rockefeller Center is actually a complex building that is interconnected. This incident as analyzed by the NFPA has inadequate circuit protection, failure of the building alarm system to transmit the alarm, lack of smoke detection in the areas of the fire. If the fires have been detected earlier, they probably would have been easier to extinguish. The confusing building layout made the fire fighters to have a difficult time locating the fires. (High-Rise Fires, 2008) The World Trade Center Fire The collapse and fire incidence of New York’s City’s World Trade Center structures following the terrors attacks of September 11, 2001 was the world’s worst building disaster in recorded history killing about 2,800 people. More then 350 fire and emergency responders were among those killed, the largest lost of life for this group in a single incident. In response to the WTC tragedy, the National Institute Of Standards And Technology conducted a 3-year building and fire safety investigation to study the factors contributing to the probable cause of post impact collapse of the WTC towers (WTC 1 and ) and WTC 7 expanded its research in areas of high priority need such as prevention of progressive collapse, fire resistance and retrofit of structures, and fire resistive coatings for structural steel and is reaching out to the building and fire safety communities to pave the way for timely expedited considerations of recommendations stemming from the investigation. (NIST, 2008) 9/11 Terrorist Attacks Impact to Building Construction The goal of NIST or National Institute of Standards And Technology was to investigate the building construction, the material used, and the technical conditions that contributed to the outcome of the World Trade Center (WTC) disaster. It will serve as the basis for improvements in the way buildings are designed, constructed, maintained and used. The revision of codes, standards, practices and improved public safety are recommended. The primary objectives of the NIST-led technical investigation of the WTC disaster are to determine why and how WTC 1 and 2 collapsed following the initial impact of the aircraft and why and how WTC 7 collapsed. Determining the reason why the injuries and fatalities where so high or low depending on the location, including all technical aspects of fire protection, occupant behavior, evacuation, and emergency response. Identify as specifically as possible areas in building and fire codes, standards and practices that are still in use and needed revisions. (NIST, 2008) The eight major groups of recommendations included are: 1. ) Increased structural integrity, 2. ) Enhanced fire resistance of structures, 3. ) New methods for fire resistance design of structures 4. )Improved active fire protection 5. ) Improve building evacuation 6. )Improve emergency response 7. ) Improve procedures and practices and lastly 8. )Continuing education and training for fire safety. The standard for estimating the load effects of potential hazards like progressive collapse or winds and the design of structural systems are observed. Enhanced fire resistance of structures involves procedures and practices used to ensure the fire resistance of structures. It is enhanced by improving the technical basis for construction classification and fire resistance ratings. New methods for fire resistance design of structures includes practices used in fire resistance design of structures. Performance based methods are an alternative to prescriptive design methods. (NIST, 2008) This effort should include the development and evaluation of new fire resistive coating materials and technologies. Evaluation of the fire performance of conventional and high performance structural materials was conducted. Improved active fire protection systems like sprinklers, standpipes/hoses, fire alarms, and smoke management systems should be enhanced thorough improvements to design, performance and reliability. Improve building evacuation should be improved to include system designs that facilitate safe and rapid egress. Methods of ensuring clear and timely emergency communications to occupants are encourage together with better occupant preparedness for evacuation during emergencies. Incorporation of appropriate egress technologies was observed. Improved emergency response technologies and procedures should be improved to enable better access to buildings, response operations, emergency communications, and command control in large scale emergencies. Improve procedure and practices are used in the design, construction, maintenance, and operation of buildings. (NIST, 2008) Conclusion Analyzing the factors that cause building fires is necessary to help reduce the number of casualties and loss of property. There are many organizations responsible in supporting engineers and building construction firms to ensure the safety of their buildings from fire hazards. These include NFPA (National Fire Protection Association), NIST (National Institute of Standard and Technology), ASTM (American Society for Testing and Materials), ICC (International Code Council) and UL (Underwriter’s Laboratories) a product safety testing and certification organization and the Skyscraper Safety Campaign. Different incidence of high-rise building disasters provides firefighters with knowledge of the extent of damage and how to prevent the disasters to happen again. Safety measures and upgrade of fire safety equipment in building construction should be prioritized. The lessons learned from various building fire cases can provide background knowledge of the factors contributing to fire incidence. The most recent and the worst building fire case is the World Trade Center fires which exposed the vulnerability of public buildings to uncontrolled fires, explosions and other terrorist attacks. (NIST, 2008) Firefighters and building developers should keep in mind the factors that contribute to success or failure of fire disaster prevention and response. This include basic things like firefighter extinguishment, emergency response, heating and ventilation and air conditioning systems (HVACs), standpipe system, portable radios, building construction and evacuation strategy. These factors contribute to the quality and standard of building construction’s fire safety and prevention. There are many threats to buildings safety but there are applicable means to reduce the destructive impact of building fire hazards and collapse. Coordination between the government officials, inspectors, fire protection engineers and developers limits the chances for building fires and accident. Buildings safety is achievable by reducing the risks of fire and danger to people’s lives. References Grosshandler, W. , (2003). â€Å"Abstract: Research and Development for the Safety of Threatened Buildings.† Building and Fire Research Laboratory. Retrieved October 8, 2008, from http://www. fire. nist. gov/ Hurley, M. , P. E. S. F. P. E. , (2008). â€Å"Fire Protection Engineering. † National Institute Of Building Sciences. Retrieved October 8, 2008, from http://www. wbdg. org/ â€Å"Construction Organizations. † (2008). Dezignare. com. Retrieved October 6, 2008, from http://www. dezignare. com/ â€Å"Executive Summary: Final Report of the National Construction Safety Team on the Collapses of the World Trade Center Towers (Draft). † (2004). NIST And the World Trade Center Publications. Retrieved October 4, 2008, from http://wtc. nist. gov. / â€Å"Final Plan: Federal Building and Fire Safety Investigation. †(2008) National Institute of Standards and Technology Retrieved October 4, 2008, from http://wtc. nist. gov/ â€Å"Fire through the Ages: A Timeline. † (2008). Aurora Regional Fire Museum. Retrieved October 8, 2008, from http://www. auroregionalfiremuseum. org/ â€Å"High-Rise Fires. † (2008). Special Fires. Retrieved October 8, 2008, from http://www. iklimnet. com/

Effectiveness of Quality and Systems Management within ASDA

Effectiveness of Quality and Systems Management within ASDA In this assignment I will look at the business performance and do an evaluation for my chose organisation. For this purpose I decide to choose the ASDA. ASDA is recognised as the private company and this company has owned by the American PLC organisation commonly known as the WAL-MART. The thing is that WAL-MART bought all the shares of ASDA and ASDA in now recognized as the ASDA WAL-MART PLC LTD. ASDA is well known for its services of retailer and goods selling to the general community. There are the examples of some services and products given by my organisation are as follow. Drinks Clothing Food Home and leisure Cutlery DIY Equipment like paint, paint brush nails and others etc. Identify and explain the role and importance of effective operations management. IMPORTANCE OF OPERATIONS MANAGEMENT The area of Operations management has focused mainly on the on the process to manage carefully to the distribution and sales of the product and to produce them. This is common that very small business do not involve in the process of operation management however for the medium size and large sized organisation this is very important and essential to run the organisation carefully and in an effective way. In any organisation the related activities are involved in the management of the purchasing power, quality control, inventory control, logistic, storage and evaluation. The main point to be considered here is the effectiveness and efficiency of the processes involved. A great deal of focus is on efficiency and effectiveness of processes. Due to this, the area of operations management is very important for an organisation. ASDA is a popular name in the category of household retails in the UK. As this is renowned by the international market it is very successful in his business in the UK. This is recognised as the well-known chain in the supermarket.   This organisation has his branches all over the world as under the nationwide supermarkets. The ASDA is public ltd. organisation and is open for public and they (stakeholders) are allowed to buy the shares in the organisation. This supermarket of ASDA is mainly aimed to provide the best and possible excellent service and food products to their customers. Even is organisation is successful in beating his competitors by sticking with their price strategy which is probably lower than that of the other organisation in the competition. ASDA is supermarket, which aims to provide its customers with the best possible goods and service with its permanently low prices. Identify the strategic objectives of your chosen Organization and analyze them with the help of appropriate tools. As I choose ASDA as my organisation of research, it has entry with his mission stamen as, To be the worlds leading supermarket.  Ã‚   This organisation has many strategic aims and objectives and by following that aims and objectives organisation can effectively turn their mission statement into practice, it has many aims and objective.  The aims and objectives of the ASDA are followed as under in detailed explanation. Aims of ASDA As ASAD is the fastest growing supermarket in the UK retail and grocery business in relation to the other supermarket in the market. There are some main aims are here mentioned that are in continuous way to strive to achieve. These aims are listed as follow: To maximise sales through competitive pricing and heavy advertising campaigns To make the supermarket a happy and an enjoyable place for the staff to work together in harmony To ensure complete customer satisfaction and minimise any complaints about their products or prices. To make shopping at Asda a completely new, unique experience which provides customers and their children with a convenient, warm, welcoming, happy and safe shopping environment. To keep the customers happy and satisfied by providing them with the best and latest products and services at the lowest prices, without having to compromise on quality To provide as much relevant information about products and services throughout the store, in a manner that is understandable to the customer Be as environmentally friendly as possible Objectives Unquestionably and unescapably, the greatest noteworthy aim of Asda same as to any other organisation is to become profitable extremely. So for the achievement of above aims and to get the increase in the profit turnover of the organisation there are some strategic objectives of the ASDA which are intended to show that how it can achieve and accomplish the aims and targets of the company.  Ã‚  Following is the explanation of the main strategic objectives of the organisation given with their explanation: As the organisation has its main aim to increase the profit like to increase its sale and maximization of the profit of the organisation, there is use of different kind of media devices like newspaper, radio, magazine and mainly television for the heavy advertisement of the organisation. This even aided and used for the promotion of their campaigns related to their latest promotions, cut in prices, services and line of new products. This kind of strategic objective has repent the ASDA a base for the loyal customers and even help to attract the new customers as well as this promotion envied the reputation for the products at their lower prices. The organisation has its objective to make the area of supermarket enjoyable and happy visits for the staff of the company and to work with each other in a friendly way, Asda is well known about the fact that the attitude of the staff has direct influence over the customers and their performance, if the staff will be the happy they will work with more enthusiasm and power to gain the competitive advantages. As they aimed to provide pleasant and happy working environment to their workers also by providing various incentives, bonuses and benefits like staff discount, pension from the company, share packages and various opportunities for the promotions in the job as well as in the salary. for the purpose to achievement of the customer satisfaction and even for the minimisation of the complaints from the customers and consumers about the various services and products or staff there is endurance provided by the Asda to their customers through the customers service section at each supermarket stores of Asda and at that services customers can communicate about their problems and unsatisfied services and if they want they can register any comments in relation to the services and products provided to them in the book of comment log. The organisation has pride themselves for this commitment with their customers.   For making the experience of shopping and buying products at Asda as safe, profitable warmth, welcoming, happy pleasurable and even easier as possible there is provision of all American style shopping mostly in all the stores of the Asda and at there the product and services provided to the customers usually by the help of local businesses. The service and product customers received through them under the suitability of one roof.   Ã‚  In the large branches of Asda now there is addition of in built house cafes, opticians, laundry, dry cleaner, fast food, bakeries and take away etc. and even their own petrol pumps and car washes centre there.  Many of them are now furnished with the retail electrical, clothing, home wares with the services of branches have now diversified into the retail electrical, home ware and clothing market in addition to providing financial and insurance services.  Ã‚  Ã‚  Ã‚  Ã‚   To keep the customers happy and satisfied with the products, prices, services and staff.  Ã‚  In order to ensure a loyal customer base and continue to attract new customers, Asda ensures they take advantage of their massive buying power and leading position in the supermarket industry in order to purchase the best quality goods and latest products at the most competitive prices.  Ã‚  These savings and product promotions and price-cuts are heavily advertised both through the national media and throughout its branches nationwide.  Ã‚  Furthermore, as an additional precaution, Asda prides itself on the fact that customer satisfaction with its products and prices are always maintained as its staff continually checks prices locally on a weekly basis, in order to ensure the supermarket always provides the lowest prices around Asda strives to provide as much relevant information about products and services throughout the store, in a manner, which is understandable to the customer.  Ã‚  It intends to achieve this by communicating various types of information such as public safety notices, new promotions and products and services, price reductions, charity fund-raising events through its regular customer magazines, leaflets, posters, customer information desk and staff. Where possible, Asda attempts to remain as globally welcoming friendly as possible as they can.  Ã‚  This contains lessening the packaging of the products and use of recycling papers for the making of their magazines, receipts and even for their leaflets and for the building up of new supermarkets as over the existing sites of the industry. Identify the performance operations objectives of the same company and analyze how successful the operations are in meeting strategic objectives of a company. Your discussion need to be focused on Quality, Cost, Speed, Flexibility and/or Dependability Task 2: Design and monitor appropriate systems to ensure quality of product and services Define resources, tools and systems required to support business process to improve the quality of products and services There are many resources, tools and systems are present that are used to ensure the quality of the services and products. For Asda there is constant evaluation of these standards of quality and there are regular checks that if they meet the conditions of good quality provide to the customers regarding the services and products offered to them. There are staff as well as the managerial procedures are taken for the monitoring of the high standards of quality in Asda. The following procedure is followed for the quality assurance in Asda. As first when the goods reach at Asda there is product evaluation test at the first, for the evaluation of the services and products. Even there is monitoring and testing of the taste and quality of the product so that organisation come to know we there that particular product is acceptable for the consumption and can be used by the customer. This procedure is called assurance of quality i.e. quality assurance.    For the next step they carried out the following tests during  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Production of new products that are presently under progress  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Test of products, when there is decision about the changing of the suppliers to Asda  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Test of their own products and brand against their competitors.  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Organisation also involved in the product evaluation test. These tests are used to monitor quality and safety standards When they update information on the packaging The packaging information may need to be altered because of legislation that the government have implemented and that Asda have to abide by, or there maybe changes in the nutritional concepts or advances in cooking or food preservations method.  Ã‚  An example of when Asda may use quality assurance to add value to their products is when a product may have its packaging information changed to inform the consumers that it is acceptable to cook or use this product in the microwave.   For the further procedure the products are taken to the laboratory for the testing of the quality and validation of the products. In laboratory there is fibre optic probe placed into them and to each the temperature of the cooking so that there can be assurance of product to reach at required temperature for the safe use of the products.   These tests of quality control are applied to all new and existing products even if these are produce by Asda itself.  These quality tests are conducted in the centre of customer advice, head office and in the laboratory of Asda. The assurance of quality is implemented at all levels of the organisations and employees of the company are convinced to provide the best services to their customers and quality standards are set by the organisation for the better implementation of the quality products by the organisation. This set of high standards is taken as the SWOT i.e. strength, weakness, opportunity and threats to the organisation regarding the environment in which it works. The follow up of SWOT lets the organisation to check if the quality of the products and service meet the standard and are in the good competition with their rivals in the industry. Following are the tools used in the organisation to check the quality of their products. These tools are as follow: Just in time (JIT): in just in time the Asda usually order the products and when they are in need of them. Even product are prepared when they are needed and after production these products are then delivered to the store and those product are produced which are needed. This mainly save the money and even save the time, place for the storage for keeping the raw material and results in the beneficial for the organisation. Even this adds good value to the company and deliver fresh and best of the products and services to the customers to make them happy. Products are then prepared and delivered to the store, which requires the products. This will help save money, storage space required and the number of raw materials kept in stock. Machine utilisation control; In Asda this system is usually put into consideration as the machinery is very important part of the production process. So there is a proper provision of engineer that used to check and maintain the machinery time it time so that the process will not stop in between the work and they might not get the problem in the production system of the organisation, this help to ensure them to complete their task to complete and be in time to provide their services to their stakeholders. Stock control: Stock control is very crucial and organisation put good efforts in maintaining the stock control. In this [procedure there in checking by the senior staff regarding the stock and they decide for the order to make for the organisation. The raw material needed is checked that how much is needed and how much they had in their stock. This help to avoiding the running of low stocks. Quality control: This is very important and in this there is use of a machine that is linked to the computer system. This machine tests the products at every stage during the production development. This adds to improve the quality and help to add the value to the product as there is checking of products at every stage of the production in the organisation. Food additives: There is provision of food additives also. These additives are those chemicals that are natural and made especially for the use Asda also uses food additives. These additive are used to keep the food save and to make them last for long time. This also makes the taste of food good and stops them to get poisoning. These additives used are first approved by government and health care bodies and are allotted with their E-numbers. Asda used to put the names of the labels over the packing to avoid the confusion to the customers. There are some steps that are followed by the organisation for the improvement of the quality standards. Define quality audit systems/practice to manage and monitor quality to standards specified by the organization and process operated. Also suggest ways as to how quality audit systems can be implemented in an organization. Quality audit  is defined as the process of systematic examination of a  quality system  carried out by an internal or external quality auditor or an audit team. It is an important part of organizations  quality management system  and is a key element in the  ISO  quality system standard,  ISO 9001 (Wikipedia.com). Quality audits are usually those time intervals that are performed in a typical way and are predefined. They are used to ensure about the working of organisation as internal systems which are clearly defined in order to monitor those procedure linked to the effective measures. This basically help in the organisation to compiles with the system of quality processes and tends to improve the procedural and assessment criteria based on results. The audits are necessary tools for the management of the in order to verifying and used the objectives and evidences for the processes and even they used to assess the effectiveness and success of the processes and how they has to be implemented in the judgement of the achieving and defining the target s of the organisation. They provide evidences for the elimination and reduction of the problems and their areas. Audits are an essential management tool to be used for verifying objective evidence of processes, to assess how successfully processes have been implemented, for judging the effectiveness of achieving any defined target levels, to provide evidence concerning reduction and elimination of problem areas. [4] Audit Committee of ASDA For the ASDA the audit committee is maintained by the agency and this agency was appointed by the Agency maintained an Audit Committee that was appointed by the board of the ASDA. In this committee there are 2 non-executive members and chief executive executives. There is invitation given to ANAO by the Audit for the observation that financial service to provide the meeting and strengthening of the companys accountability and transparency. Following helps are given to the ASDA by Audit committee improving the quality of accounting and financial control; providing greater accountability and oversight of ASDAs financial management; independently overseeing probity within ASDA; Providing a forum where ASDA Board, executive management, internal audit and ANAO issues could be discussed. Strategic and Operational Plans There is organisation of new plans by the Asda that was endorsed by sports Minister and tourism. The 2005-2009 Strategic Plan prescribes ASDAs: future direction (vision); operating environment (mission); strategic breakthrough issues (goals); Strategies (objectives); Values (operating ethos); and key performance indicators (measures) Highlight the ways to introduce quality culture in your organization to ensure continuous monitoring and development of the process. The term of quality culture is that typical method used by the organisation, this approach is referred to the quality assessment and the implementation of strategic plans and operation for the organisation.   It follows the policies and procedures used to determine the shared beliefs and procedure for the development of the quality assurance in the business and for the solving of different problems and to minimise the risk.   There is interrelationship between the structure of organisation, quality culture and management style and this interrelationship have shown in the following diagram below:   Description: http://www.coursework.info/document/4/3/1/134806/134806_files/image002.jpg Asdas  interconnected its organisational structure and quality culture which is based upon the hierarchical structure power of the company. The diagram below shows quality standards from a consumers point of view. Description: http://www.coursework.info/document/2/1/7/71293/71293_files/image002.gif Consumer  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Description: http://www.coursework.info/document/2/1/7/71293/71293_files/image003.gif  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Creating Standards involve  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  customer satisfaction Description: http://www.coursework.info/document/2/1/7/71293/71293_files/image004.gifExceeding  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Delighting Consumer expectations  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  the consumer There are basically three stages of the quality development as follow: QUALITY CONTROL (QC) QUALITY ASSURANCE (QA) TOTAL QUALITY MANAGEMENT (TQM) Quality Control  (QC) looks at the flow of production. They have to look and see what falls below standards. Quality Control is carried out by quality control inspectors. Inspection and testing are common ways of doing quality control. Quality Assurance  (QA) is concerned with making sure there are no faults before and after the production flow. Quality Assurance also has to make sure all products that are produced are up to standards and have zero defects. Quality Assurance is responsible for a workforce, working in teams rather than an inspector. Total Quality Management  (TQM) goes beyond Quality Assurance. TQM is designed to make every employee delight a customer. Customers are at the centre of the production process. (Reference sources: Heinemann AVCE Advanced Business 2000 edition Dave Needham Rob Grandfield). TQM is a form of operations management. TQM is associated with every worker in a work place and tries to persuade them to consider quality in everything they do. All the employees aim to please customers, as the customers are one of the most important resources they have. Task 3: Improve organizational performance Monitor systems and work activities in your organization and identify problems and opportunities for improvement. SWOT analysis of ASDAà ¢Ã¢â€š ¬Ã‚ ¦ Here I follow up the SWOT analysis of ASDA. A SWOT analysis demonstrates the  strengths, weaknesses, opportunities and threats  of ASDA. Strengthsà ¢Ã¢â€š ¬Ã‚ ¦ Lots of shareholders Asda have 2nd largest supermarket chain in UK Part of WAL MART Best value for the retailer regarding the money High profits wall- mart ASDA have a lot of shareholders Weaknessesà ¢Ã¢â€š ¬Ã‚ ¦ Not as comparative to Tesco - Britains 1st  biggest supermarket chain More brand products of ASDA, no selling of high brand products. Tend to sell more ASDA brand products rather than big named products e.g. Nestle, Cadbury etc. Generally be contingent on George clothing sales for great profits Less number of stores as Tesco and Sainsbury has. Opportunitiesà ¢Ã¢â€š ¬Ã‚ ¦ Offer Gorge clothing stores as Leeds and Croydon Good job developments offer. Equal chancer Threatsà ¢Ã¢â€š ¬Ã‚ ¦ High competition in the market. Decrease in the number of shareholders. Selling fear by the WAL MART. ASDA HQ might pick at any stretch to become free of the range of George clothing. Develop an Implementation Plan for the evaluated recommendations and evaluated the possible changes within an organization. Following is an implementation plan which has to be followed by ASDA so that it might get the competitive advantages by providing good quality standards. There are many quality control systems that should be followed as under: There are numerous quality control and assurance systems which include:- Quality circles Total quality management ISO 9000 Self-checking or inspection Training and development Bench marking These systems of quality control and assurance are suitable for the different condition within the organisations. In this according to me the total quality management and benchmarking will be the best approach to be followed so to ensure the good quality assurance. The main objective of TQM is to make all the employee so trained that they ensure to make the every customer happy and satisfied with their services and products. Following is the graph for the total quality management for the ASDA. As customers intend to pay high for the attainment of the high quality standards Asda could to be build up the under-one-roof 24 hour shopping strategy by following the new stagey and convenience like store banks, travel agents, takeaways, cafes etc. experience by introducing new services and convenience such as in store banks, travel agents, take away etc.; following is the graph   Conclusion From the above report it is concluded that ASDA has good strategic plan but no plan is perfect there must be need have improvement is all plans and strategies. So in the same way the ASDA has to do some improvements for the purpose to get the good competitive advantages by providing the better quality and services to their stakeholders. For this the organisation has to follow up the tools of total quality management and benchmarking in order to keep its position in the market and for the implementation of good plans regarding the development of the quality systems. References