Old System Of Management Based Largely On Empirical Data

At the turn of the XIX and XX centuries production nature has changed significantly.First of all, sharply increased its scale and concentration. There were giant enterprises, which employed thousands, and sometimes tens of thousands of workers and engineers used expensive equipment, complicated processes based on the latest achievements of scientific thought. In these circumstances, it has become necessary to radically change the model of production management, the implementation of other organizational structures, reporting lines, strict observance of technology, precision assignments, reasonable incentives, and so on. Old system of management based largely on empirical data could not provide most of these aspects.Absence of knowledge of the organization of production processes, the optimal sequence of operations and modes of operation of equipment, technical and other standards, personal empowerment of people, workers themselves were not sufficiently trained and prepared yet. As a result of factors above ,introduction of any innovations did not bring the desired effect, and a huge technical and economic potential remained undiscovered. Prerequisites for changes were : industrial management experience gained in the 19th century, and developments in economics, sociology and psychology.They helped to create the concept of scientific management.Practical basis of its formation became mass experiments on industrial enterprises, which had the goal to prevent losses from theShow MoreRelatedMoneyball: Lessons for Business1245 Words   |  5 Pages(and proof) those measures that are valid indicators of future successful performance. He managed by using the right empirical data. This makes me wonder if rigorous statistical analysis (i.e. like sabermetrics in baseball) can be used in any industry or situation to determine the factors most associated with true value to the company. The old way of evaluating players was based on naked eye observation and using 5 measurable indicators, which turned out to not be really connected to future performanceRead MoreUsing Teacher Evaluation Tools For Teaching And Learning Essay1524 Words   |  7 Pagesopportunity cost for teachers as well as students (Iqbal, 2013). Notably, in 2009, a report by the name The Widget Effect was released by The New Teacher Project (TNTP). The report exposed the prevailing teacher evaluations as both infrequent and largely subjective (Jerald, 2012). Similarly, the attention towards the effectiveness of teacher evaluation is fairly new after decades of using teacher evaluation tools that have been noted to provide little or no useful information regarding the technicalRead MoreE-Business St rategy Development: an Fmcg Sector Case Study8643 Words   |  35 PagesCase study E-business strategy development: an FMCG sector case study M. Webster, R. Beach and I. Fouweather University of Bradford School of Management, Bradford, UK Abstract Purpose – This paper sets out to discuss the development of an e-business strategy by a UK soft drinks company. It is based within the Fast Moving Consumer Goods (FMCG) sector (also known as Consumer Packaged Goods), which is characterised by powerful retailers, tier-1 suppliers of industrial end-products and ingredient/rawRead MoreEffect of Corruption on Kenyas Economoc Growth6642 Words   |  27 PagesTheoretical Framework†¦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‚¬ ¦.. 10 2.3 Empirical Review 10 2.3.1 Foreign aid†¦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‚¬ ¦ 11 2.3.2 Government Policy†¦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‚¬ ¦..†¦ 13 2.4 Conceptual Framework 13 Figure 1.2 Conceptual Framework 13 CHAPTER THREE: METHODOLOGY 14 3.1 Introduction 14 3.2 Research design 14 3.3 Data Type and Sources 14 3.4 Model Specification 3.5Assumptions of our Model 15 3.6 Validity and reliability 15 3.7 Data analysis and presentation 16 REFERENCES 17 CHAPTERRead MoreThe Impact of Hrm Polices on Turnover and Productivity16908 Words   |  68 Pages © Academy of Management Journal 1995, Vol. 38, No. 3, 635–872. THE IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON TURNOVER, PRODUCTIVITY, AND CORPORATE FINANCIAL PERFORMANCE MARK A. HUSELID Rutgers University This study comprehensively evaluated the links between systems of High Performance Work Practices and firm performance. Results based on a national sample of nearly one thousand firms indicate that these practices have an economically and statistically significant impact on both intermediateRead MoreThe Effective Impacts Of Diversity And Why Managers Need For Affirmative Action2272 Words   |  10 PagesIntroduction: 2 Discussion: 2 Present Situation: 2 Need of global implications: 2 Strategic Benefits of Divrse Workforce: 2 Age-diverse Workforce: 2 Gender-Diverse Workforce: 2 Ethnic and Races Based Diversity: 2 Intellectual Abilities: 2 Role of Human Resource Department: 2 Conclusion: 2 Recommendations: 2 Bibliography 2  Introduction: Social discrimination has been a vexing issue throughout the world. A huge part of the society is a victim of social discrimination. Conversely, reforms and effortsRead MoreA Study of the Barriers of Implementation of Accounting Information System: Case of Listed Companies in Tehran Stock Exchange5251 Words   |  22 PagesFeb 2011 A study of the barriers of implementation of accounting information system: Case of listed companies in Tehran Stock Exchange 1Accounting Mahdi Salehi1 Abdoreza Abdipour2 and Management Department, Islamic Azad University, Takestan Branch, Iran, 2Payame Noor University, Andimeshk Branch, Iran mahdi_salehi54@yahoo.com Abstract: Accounting information system is one of subsystems in management information system that is very important in all companies. The current study reviews barriersRead MoreManagement Control Systems as a Package13705 Words   |  55 PagesManagement Accounting Research 19 (2008) 324–343 Operation of management control practices as a package—A case study on control system variety in a growth ï ¬ rm context Mikko Sandelin âˆâ€" Helsinki School of Economics, Department of Accounting and Finance, P.O. Box 1210, FIN-00101 Helsinki, Finland Abstract This empirical case study examines the operation of management control practices as a package in a growth ï ¬ rm context by paying particular attention to the couplings among cultural, personnelRead MoreApplication of Management Theories1814 Words   |  8 Pages1.Scientific Management Theory: Frederick Winslow Taylor (1856-1915), the Father of Scientific Management, assumed that labor is not the cause of most problems in business and it is only the management which can provide solutions to the problems of the business. His principles were: 1. Develop a science for each element of an individual’s work to replace the old rule-of-thumb method. 2. Scientifically select and then,teach and develop the worker. 3. Heartily co-operate with the workers so asRead MoreForeign Exchange Risk Management14141 Words   |  57 Pagessurvey of foreign currency risk awareness and management practices in Tanzania REVIEW OF LITERATURE Foreign exchange risk management Foreign currency exchange risk is the additional riskiness or varience of a firm’s cash flows that may be attributed to currency fluctuations (Giddy, 1977, Brigham and Ehrhardt, 2005). Normally, foreign currency risk exists in three forms; translation, transaction and economic exposures. Foreign currency risk management involves taking decisions which aim at minimizing

The Kite Runner Betrayal Essay example - 944 Words

In â€Å"The Kite Runner,† Amir and Baba both betray the servants most loyal to them. Hassan and Ali both do everything in their power to please their masters and remain loyal to them. Hassan and Ali differ from their masters in numerous ways but both pairs have similar differences. The master servant relationship between Baba, Ali and Amir, Hassan both differ in the characters’ attitudes, relationships, loyalty and courage. Although Baba and Ali grew up together, they grow to be very distinct people. Baba is a respected Afghan businessman who constantly gives to the community. Baba also stood up for himself and others when he felt that something was unjustified. Ali on the other hand is very reserved and doesn’t do anything when people make†¦show more content†¦Amir felt this way because in the end he was a Pashtun and Hassan was a Hazzara. When guests would come over to play with Amir he would Exclude Hassan. Amir would only play with Hassan when no one else was around. Despite Ali and Hassan’s loyalty they are still betrayed by their masters. Baba’s betrayal is much worse than what Amir did to Hassan. Baba intentionally betrayed Ali who he claimed to be his friend. Baba even said that he felt Ali was like a brother to him. But Baba caused what happened and directly harmed Ali because of what he did. Amir didn’t directly harm Hassan and he also didn’t cause what happened to his friend like Baba did. But Amir didn’t do anything about what was happening to Hassan either. Baba broke his own rule; he robbed Amir and Hassan of their brotherhood by not telling them they were related. He robbed Ali of his honor by sleeping with Sanaubar. And he robbed his own wife of the truth by cheating on her while she was pregnant. He also robbed Amir of his innocence because while trying to make Baba proud he became guilty for what happened to Hassan. Amir could have run home to tell Baba what was happening to Hassan but he hid and waited so that his kite would be brought to him. Not only that but Amir goes to great lengths to try and get rid of Hassan so that his guilt can leave with Hassan. Both masters betray their best friends and â€Å"brothers;† but later on in life they try to compensate for it by doing good deeds. Baba builds anShow MoreRelatedTheme Of Betrayal In The Kite Runner1148 Words   |  5 Pagespeople. However, actions ca n change the course of that relationship based on one decision. Throughout the novel, the readers get a glimpse of how choices the characters make can change the outcome of their lives. Throughout The Kite Runner, Khaled Hosseini uses the theme of betrayal to demonstrate the domino effect it can have on relationships. Everything that happened in the novel started with Baba and the decisions he made a long time ago. Ali was Babas servant, forcing them to grow upRead MoreTheme Of Betrayal In The Kite Runner745 Words   |  3 Pages Betrayal is breaking a trust between a person or group, it can happen when one least expects it. In the novel, The Kite Runner, By Khaled Hosseini, irony is utilized to represent betrayal. There are two different situations in the novel where betrayal is present, in which two different characters do so but they face a difficult challenge to manage the guilt that is brought behind the betrayal. Betrayal is something hard to cope with, whether you are the one that betrayed or you being the victimRead MoreThe Themes Of Betrayal And Redemption In The Kite Runner1858 Words   |  8 Pages The Kite Runner by Khaled Hosseini is a historical fiction novel set mostly in Kabul, Afghanistan and Fremont, California. The novel spans the time periods before, during, and after the reign of the Russians (1979-1989) and the Taliban’s takeover (1996) of Afghanistan. It is told through the first person perspective of Amir alongside his father, Baba, his half-brother, Hassan, and Baba’s c ompanions Ali and Rahim Khan. Growing up, Amir and Hassan are practically inseparable, as they are always playingRead MoreActs of Betrayal in Hosseinis The Kite Runner Essay886 Words   |  4 PagesThe Kite Runner Nobody can believe that the innocent activity of kite flying could ever lead to betrayal and eventually redemption yet, in the novel The Kite Runner, Hosseini manages to mend one man’s path through betrayal and ultimately to his redemption. Throughout this novel you will see many acts of betrayal between enemies, loved ones and strangers. When you do something wrong and you know you shouldnt have done it you feel guilty, right ? Well so does Amir, at least his own kindRead MoreThe Betrayal and Loyalty in Macbeth and Kite Runner2948 Words   |  12 Pagesbecause he wanted the blue kite, which he thought would prove to Baba that he was a winner like him, earning him Baba’s love and approval. The price of the kite, as Amir says, was Hassan, and this is why Amir calls Hassan the lamb he had to slay. He draws a comparison between Hassan and the lamb sacrificed during the Muslim holiday of Eid Al-Adha to commemorate Abraham’s near sacrifice of his son to God. In this context, Hassan was the sacrifice Amir had to make to get the kite and ultimately to gainRead MoreAnalysis Of The Kite Runner And Oedipus Rex 1309 Words   |  6 Pagesworks conceived and written by very different authors and in distinctly separate timeframes. Even as The Kite Runner is written as a work of historical fiction and Oedipus Rex develops a well known and praised Greek tragedy, a theme of betrayal places itself throughout both. Literature demonstrates that morals can genuinely be learned through any method. In both pieces of literature, betrayal is a shared and understood theme throughout, the character’s discourse and their contemplations magnifiesRead MoreHistory Now1070 Words   |  5 PagesDue Date Tasks Friday, 2/3/2012 Begin Unit: Loyalty and Betrayal, Section A, Order and Chaos Order and Chaos: Introduction Section Warm-Up: Product Loyalty Loyalty vs. Betrayal Literary Elements: Symbolism Tutorial: Symbols and Symbolism Reading 1: Two Kinds, by Amy Tan Practice: Symbolism Loyalty and Betrayal Theme Quiz, 40 points Friday, 2/10/2012 Begin Unit: Loyalty and Betrayal, Section B, Context Context: Introduction Section Warm-Up: A Context Riddle Reading 2: from CommunistsRead MoreAn Outline of The Kite Runner1602 Words   |  6 PagesKite Runner Outline Thesis: Betrayal leads to feeling of guilt which forces the person in search of redemption either directly or through indirect actions and gestures. What truly constitutes forgiveness? Forgiveness has a different context depending on where the person is from or what he believes. Religion places a great emphasis on the view of forgiveness. Love is the major reason why people want to forgive and thus move on to normalize their relationships. In the Kite Runner, RahimRead MoreAnalysis Of Khaled Hosseini s The Kite Runner 1161 Words   |  5 PagesKhaled Hosseini reveals the subject of friendship and loyalty in The Kite Runner. Khaled Hosseini advocates that in friendship, there must be loyalty, kindness, and trust. The theme of loyalty plays a tremendous role in The Kite Runner through Hassan and Amir. Amir and Hassan grow up together in Kabul, Afghanistan. Amir lives in a house with his father, Baba. Hassan and his father, Ali, live on the same piece of property as Amir and Baba because Hassan and Ali are their servants. Although HassanRead MoreAnalysis Of The Kite Runner By Khaled Hosseini1422 Words   |  6 PagesPranav Dantu Mr. Bal Honors English 10 20 December 2017 The Kite Runner by Khaled Hosseini Summary: The Kite Runner is a historical fiction novel written by Khaled Hosseini. The novel is written in a first-person point of view tracing the journey of redemption of an Afghan native named Amir. Amir grows up wealthy and privileged by Afghan standards and is surrounded mostly by his father and his friend, Hassan. Hassan was a less fortunate boy who belonged to the lower caste of the Afghanis, the Hazaras

Aligning IT Components To Achieve Agility In Globally Distributed Free Essays

In GDSD project there three interdependent components of agility that include; the agile IT strategy which is used to suit changing needs, the agile IT infrastructure that enables the formulation and performance of flexible It strategies, and agile IT project management that is concerned with enabling coordination and control in the system development project. According to the author, the work of IT strategy to explore and exploit new technologies can result to agile IT infrastructure that facilitates the firms to realize business strategies in new different ways. Alternatively, agility in organizational IT infrastructure is important to the formulation of IT enabled corporate or local business strategies. We will write a custom essay sample on Aligning IT Components To Achieve Agility In Globally Distributed or any similar topic only for you Order Now This article shows that IT infrastructure is vital because it contributes to the agility of project management by enabling fast and flexible integration of multiple system components. In my view, it is important to for a firm to have good relationship with external partners because they provide awareness and opportunities that enables a firm to explore new technologies, which then leads to deployment of appropriate of IT infrastructure to suit local needs. In conclusion, this article states that global business environment provides firms with business opportunities where by as they are developing global business strategies, they should also support them with information systems aligned with these strategies. This brings need to the firma having good relationship with the external partners so that they can be able to explore the new technologies that lead to local targeted needs. References Lee O., Lim, K., Banerjee P., Hillegersberg, J., Kumar K. Wei K.   (2006). Aligning IT   Components to Achieve Agility in Globally Distributed System Development.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Hong Kong: City University of Hong Kong.    How to cite Aligning IT Components To Achieve Agility In Globally Distributed, Papers

Business Accounting

Question: Writereport is to determine and evaluate the accounts of the financial statements in order to evaluate the actual value of the company. Answer: The most important aim of the statement is to assess the significant accounts of the company in order to determine the material misstatement. The auditor should understand the client by determining and analyzing the internal environment and external environment of the company. The financial report of the organization shows the expense, income, liabilities, assets, shareholders equity and cash flow statement of the company. The auditor plays a significant role in the preparation and presentation of the financial statements of the company for the accounting year. The facts, figures and other factors will help to gain the understanding of the client and focusing on the material misstatement during the preparation and presentation of the financial statements. The internal and external auditors has to focus on the important accounts that are most at the highest risks of being material misstatement with the appropriate planning of the materiality. The assessment of the risk in the audit pr ocess will help to determine and evaluate the misrepresentation in the financial statements. The risk assessment program will help to evaluate the audit risk and analyzing the accounts of the financial statements. Introduction The Pacific Star Network Limited is Media Company in Australia. The business operation of the company includes broadcasting, digital assets and publishing which includes www.morrisonmedia.com.au, www.frankiepress.com.au and www.sen.com.au. The organization commonly operated two segments publishing and broadcasting. The company has amplitude modulated commercial broadcasting license in Melbourne and broadcasts on 1116 SN and 1377 MyMp (www.bwired.com.au, 2016). It operates two digital radio stations KOOOL and AUSSIE. The organization has subsidiaries which include Morrison Media Services Pty Ltd that publishes White Horses, Smith Journal, SEN inside Football, Frankie and Spaces. The auditors play an important in the preparation of the financial statement and analyzing the errors and omission in the financial statements. The report focus on the risk assessment with the help of audit process and gaining an understanding of the business of the client that would also help to evaluate the financial statement of the organisation. Therefore, the auditors has the responsibility to perform and plan the audit in order to assess whether the financial statements are appropriate and are free of misstatement that caused by fraud or error (Elliott and Elliott, 2008). Key information Gain an understanding the client The auditors should gain the accepting of the customer of Pacific Star Network Limited. The main purpose of the procedure is to evaluate the risk that financial statement includes the material misstatements due to: Nature of the business of the client The client operates its business in the industry Competition within the industry Suppliers and customers of the client The policies and regulations in which the business is operated by the client The auditors can gain the understanding of the client by evaluating its stages entity level, industry level and economic level. At entity level, the details of the organization can be gained through interview with the client and asking question about what the client do, how the functions are managed, ownership structure and its finance source (Epstein and Lee, 2011). This is a detailed process and time consuming. The customers are identified whether the customer have good reputation and paying the client timely. The suppliers are identified whether they are supplying quality products and services. Whether the client is an exporter or importer of the products identified. It is also to assess the capacity of the client to adapt to the changes in the technology and other trends (Fifield and Power, 2011). If the client does not adapt to these changes then there would be a risk of losing the market share and falling behind the competitors. At the industry level, the auditors can understand the client by evaluating level of the competition, level of the demand of the product and services, client reputation, support level of the government and level of rules and regulation of the government (Gough, 2002). The auditor should be interested in the position of the client within the industry, competition level and size of the client in relative to the competitors. The more competition within the industry means more pressure are placed on the profits of the client and the key issues is the position of the client and ability to withstand the downturns in economy (Holton, 2012). Apart from this, the issues faced by the client due to competition in the international market and evaluating the support of the government. At economic level, the economic conditions that affect the business operations of the client. The economic conditions include changes in interest rates, financial crisis and expectation of the shareholders to increase the profits (Kieso, Weygandt and Warfield, 2011). The economic downturns and upturns, currency fluctuations and changes in the rate of interest affect all the organizations. Therefore, the auditor is concerned with the susceptibility of the client to the following changes and ability to tackle the economic pressures. During the economic upturn, organizations are under pressure as they have to perform well than its competitors and improvements in the profits of the shareholders (Kimmel, Weygandt and Kieso, 2007). During the economic downturn, organizations may understate its profits and to maximize its write offs as it falls in the profits. The financial report of the company should be anal analyzed in order to evaluate the actual value of the company. The income statement shows the expense, income, profit or loss of organization (Sharma, 2010). The financial position statement shows the assets and liabilities of the company. The statement of cash flow provides the inflow and outflow of cash within the accounting year. Significant accounts most at risk The significant accounts that are most at the risk of being misstated are operating expenses, debt issue, current liabilities, intangible assets and current assets. Therefore, it is the liability of the assessor to estimate the material misstatement in the accounts in order to avoid fraud (Spiceland, Sepe and Nelson, 2011). The consequences of misstatement are increase or decrease in the expenses, increase or decrease in the debt level, increase or decrease in the assets and liabilities and increase or decrease in the total value of the company. The risk can be analyzed by evaluating the ratios such as profitability ratios and liquidity ratios. The changes in the ratio will helps to evaluate the accurate values of the accounts and if it varies a lot then there can be risk of the material misstatement (Stittle and Wearing, 2008). The false presentation of the overall value of the company can affect the decisions of the investors and other stakeholders. The significant accounts of Paci fic Star Network can be at risk and that may result in liquidity risk or solvency risk. The intangible assets can be misrepresented that can affect the current assets worth of the organization (Turtledove, 2007). The misrepresentation of the debt issue can affect the capital structure of the organization. The debt equity ratio provides the level of equity and debt of the organization. The increase in the material misstatement can lead to fraud. Therefore, it is the duty of the auditor to examine and assess the actual value of the accounts as well as determining the misstatement in the accounts. The in service expenses increase or decrease will influence the net income of the organisation that will also affect the value of return on assets, return on capital employed and return on equity as well as the net profit and gross profit margin of the organization (Warren, Reeve and Fess, 2005). The profit margin can be affected by the misstated figure and facts and thus affecting the financ ial position of the company. The auditors should analyze the value of the accounts and mitigating such risks. The financial report comprises of income statement, cash flow statement and balance sheet of the company. The profitability ratios show the ability of the company to generate earnings and cash requirement to pay off the debts, future expansion and meet other obligations. The profit margin and gross profit shows the sales proportion turned into the profit (Wolf, 2008). The gross profit margin shows whether the seller of products has appropriate mark of on the products sold to pay for the other expenses. The diminishing ratio determines that the client may be paying additional for the inventory or less charging to their clients. The profit margin shows the profitability of the organization and the auditor would be able to find the variability in profit earning capacity of the client (Zopounidis, 2008). The profit margin varies too much then it shows uncertainty and volatility that makes difficult to assess the fairness and truth of the financial report. The return on assets provides th e capability of the organization generate returns from the assets and return on the shareholders equity shows the ability of the organization to generate return from the invested funds of the shareholders. If the ROE and ROA are decreasing then it would be difficult of the company to pay interests and dividends and repay loans. The auditor would make comparison between the previous year and current year to identify the trends or differences in the profitability of the company. The comparison can also be made with the competitors and budget. Any changes when compared to competitors or budget, previous years can be investigated by the auditor to indicate that there can be risk of the material misstatement. The liquidity ratios show the capability of the entity to compensate off the obligations. The relation above one means that the entity will be capable to reimburse off the short term obligations. An auditor will compare the trends the rates in order assess the liquidity situation of the company. Set planning materiality The setting materiality helps the auditor to use the professional judgment equipment for the creation of the useful situation to the primary users for the financial report. For the case of the listed companies, the primary users also help the owners for lending the major funds and thus it also helps the primary users to lend the funds of the lenders (Berk and DeMarzo, 2007). Audit firms vary their methods with the purpose to set the materiality in order to carry out the risk assessment in the organization. Therefore the guidelines are created by the AASB 1031 for the creation of the materiality and thus it also helps in calculating the percentage of the appropriate base. Thus for the selection of an appropriate base, the auditor chooses an point from the financial position statement or the appropriate base (Elliott and Elliott, 2008). In selecting the appropriate base, the auditor also helps in the creation of the suitable base that are requisite for the enlargement of the judgment t hat is based on the knowledge of the client and thus the needs of the financial report users helps them in the process of decision making. For instance, if the client is listed in the security exchange, the profit lies before the tax is likely to be important as it drives the dividends and return on the investment for the process of decision making. The base was selected for the creation of the profit before the tax (Fifield and Power, 2011). Thus for profit organization, the assets or the revenue are generally used as a base. Thus this also helps the client to take the professional judgment for the development of the auditors knowledge and thus it also helps in the development of the preferred, the choices are also helps in the auditors knowledge for their client and thus it also helps in the professional judgment. The AASB 1031 also helps in the provision of the guideline for the appropriate calculation and thus it also helps in calculating the materiality. Thus the material perce ntage also helps in the creation of the item and thus the five percent tax also being increased to the 10 percent of the profit. When the setting is lower than the planning materiality, the auditor then increases the quality and the quantity of the evidences also needs to be gathered (Gough, 2002). When the gathering of the evidences successfully satisfies the criteria, then lowering the materiality level set also helps in the gaining the potential misstatements and thus it also helps in appropriate analysis and thus it also helps in the concluding the potential misstatement and thus it also helps in the creation of the auditors access for planning the materiality (Holton, 2012). With the support of the arrangement of the materiality, the administration also helps to create a center of attention for the investors for the investment and thus it helps the auditor for knowing the financial statements. The materiality also helps in the materiality echelon of the Pacific Star Network is considered at the 1% of the entirety proceeds of the organization. The material echelon is calculated as the Materiality Level= 1% * 20.86 million dollar = $20.86 million*0.01 =$208,860 million Therefore, the amount determined by the auditors also creates the financial levels of the risk managements that are required for the proper enhancement of the materiality of the financial statements (Kimmel, Weygandt and Kieso, 2007). When the materiality amount considered being necessary for the reduction of the appropriate low levels then the aggregated and the undetected financial statements are also helpful for the establishment of the lower limit of the planning and thus it also helps in the misstatement and thus it also helps in accessing the planning of the materiality (Sharma, 2010). At this level of the acceptable error for the creation of the setting and thus it also helps in the enabling the auditors to determine the significant terms and hence, the material matters are also taken into considerations. Audit risk assessment The manipulation of current assets, current liabilities, debt issue, along with the in service expenses can change the worth of the corporation; the value can be changed in either improving or declining. Thus, the auditor detects misstatement or manipulation in the financial records of Pacific Star Network by the accountant that be able to improve or reduce the worth of the organisation (Spiceland, Sepe and Nelson, 2011). The presentation of incorrect cost can influence the judgment of the investors as well as even it is the illegal act by the accountants of the company, who manipulate the accounting information of the company in order to provide incorrect information to the users of the financial statements of the company to influence them to invest in the company. The misstatement of the information of current liabilities can influence the debt level of firm and the total worth of firm (Stittle and Wearing, 2008). The misstatement of the information of current assets can affect the asset of firm and the overall cost of the firm. The misstatements of the information of intangible assets as well affect the level of asset of the firm as well as overall cost of the firm. The misinformation in debt issue will involve the echelon of debt of the firm also financial responsibilities of firm. The misinformation in operating expense can affect the cost of expenditure of the firm the overall revenue of firm. The misinformation in these can influence the economic ratios of firm like current ratio, profitability ratio, efficiency ratio, as well as solvency ratio (Turtledove, 2007). The alteration in profitability ratio can influence the degree of profitability of the firm like net margin ratio as well as gross profit ratio. The alteration in the debt issue can influence debt equity ratio as well as the financial leverage of the firm. The alterations in the financial ratio can affect the debt level, asset level, profitability level, along with overall presentation of the f irm. The alteration in the worth of the expenditure of the operating can affect the ratio of the firm. The alteration in these specific accounts can alter the capital, structure of the company, profitability as well as overall of firm (Warren, Reeve and Fess, 2005). The misstatement of the financial statement of the firm can manipulate the decisions of the users of the financial statements such the shareholders of the company investors and other stakeholders of the company. The accountant of company prepares the financial statement of the company and in case of the accountant manipulate with the financial data of the company then the information on the financial health and financial performance of the corporation will be changed that can misled the investors and shareholders of company and influence the decision of the investors (Wolf, 2008). The auditors play important role in detecting the misstatements in financial statements and in case of an auditor has been bribed and support the misstatement of the financial report of the company then it will be cheating with the investors and shareholders. Conclusion The main focus of the report is to determine and evaluate the accounts of the financial statements in order to evaluate the actual value of the company. The auditor determines and evaluates the significant accounts, for example, current assets, intangible assets, current liabilities, debt issue and operating expenses that are risk of being material misstatement. The variation in the value will influence the value of the organization as it will affect the assets, profitability and liabilities of the organization. The auditor plays an significant role in the accurate and fair demonstration of the financial report of the company. 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