Financial audit Essay Example for Free

Financial audit Essay A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A deficiency in design exists when (a) a control necessary to meet the control objective is missing, or (b) an existing control is not properly designed so that, even if the control operates as designed, the control objective would not be met. A deficiency in operation exists when a properly designed control does not operate as designed or when the person performing the control does not possess the necessary authority or competence to perform the control effectively. * Material weakness. A deficiency or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entitys financial statements will not be prevented, or detected and corrected, on a timely basis. * Significant deficiency. A deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance. AU-C Â §265 also claims that the auditor should communicate to management at an appropriate level of responsibility, on a timely basis. in writing, significant deficiencies and material weaknesses that the auditor has communicated or intends to communicate to those charged with governance, unless it would be inappropriate to communicate directly to management in the circumstances. * in writing or orally, other deficiencies in internal control identified during the audit that have not been communicated to management by other parties and that, in the auditors professional judgment, are of sufficient importance to merit managements attention. If other deficiencies in internal control are communicated orally, the auditor should document the communication.

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When one looks at their life, at any stage in which they live, it is pivotal to see clearly how they are finding meaning, purpose and direction within their daily decisions. As I’ve learned to value the role of community and covenant relationships in my life, it has been a challenge to continually commit myself to overcoming my flesh and correctly align myself with God’s intentions for my life. As part of this transformative process in centering my worldview on Christ’s love, I’ve concluded that all of life’s ultimate questions are found to have been correctly answered in the Bible; repeatedly in Scripture, and specifically in one verse, I have found that it sources everything in life to the glory of God. Romans 11:36 centers our attention on Christ, from whom we derive all answers to origins, meaning, morality, destiny and identity for our lives: â€Å"For from him and through him and to him are all things. To him be glory forever. Amen. (ESV).à ¢â‚¬  Not only does the most credible book ever written support this thesis, but in â€Å"Making Sense of your World,† it is strongly communicated that â€Å"God alone is the ultimate reality and everything else is derived from him (Phillips, Brown, Stonestreet, 2008, p. 44).† Every living creature on this earth exists becuase of God’s will. Regardless if an individual refuses to accept the truth that our entire world was created by a creator or not, it is obviously proven that all creatures on this earth have a beautiful design that did not originate from ourselves. We exist because of â€Å"God’s free decision to create† as it is argued by Phillips et al. (2008), and furthermore is reiterated that â€Å"my existence is not by chance, but the result of a purposeful choice.† In response to this proven fact, as po... ... inner being, so that Christ may dwell in your hearts through faith—that you, being rooted and grounded in love, may have strength to comprehend with all the saints what is the breadth and length and height and depth, and to know the love of Christ that surpasses knowledge, that you may be filled with all the fullness of God. Now to him who is able to do far more abundantly than all that we ask or think, according to the power at work within us, to him be glory in the church and in Christ Jesus throughout all generations, forever and ever. Amen.† References W. Gary Phillips, William E. Brown, John Stonestreet. (2008). Making Sense of Your World: A Biblical Worldview, 2nd ed. Salem, WI: Sheffield Publishing Company. ESV Text Edition: 2011. The Holy Bible, English Standard Version (ESV). Wheaton, IL: Crossway, a publishing ministry of Good News Publishers.

Ratio Analysis of Hcl Tech Essay

It provides software-led IT solutions, remote infrastructure management and BPO services, focused mainly on transformational outsourcing. The company leverages its extensive offshore infrastructure and global network of offices in 31 countries to deliver solutions across selected verticals including financial services, retail and consumer, life sciences, aerospace, automotive, semiconductors, telecom, media publishing and entertainment. HCL takes pride in its philosophy of â€Å"Employees First, Customers Second† which empowers their 84,403 employees to create a real value for the customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 4. 5 billion, as on 31st March 2013. HCL Leadership team 2. Objectives of Study Development of industries depends on several factors such as financial, personnel, technology, quality of product and marketing. Financial aspects assume a significant role in determining the growth of industries. All the company’s operations virtually affect its need for cash. Most of these data covering operations area are however outside the direct responsibility of the financial executives. The firm whose present operations are inherently difficult should try to makes its financial analysis to enable its management to stay on top of its working position. In this context I am undertaking financial ratio analysis of HCL Technologies to examine and understand financial performance of the company. Using ratio analysis this project will provide the insights of – * The growth and development of HCL Technologies for last 5 years (FY 08-12) * The behavior of liquidity and profitability of HCL Technologies * The factors determining the liquidity and profitability of HCL Technologies Scope The scope of the study is limited to financial data published in the annual reports of the company every year. The analysis is done to suggest possible solutions for financial growth of the organization. This study is carried out for 5 years (2008-2012). Also data provided by external agencies are used for analysis of future predication. 3. Concept of Financial Statement & Ratio Analysis 2 3. 2 Financial Statement To understand the information contained in financial statements with a view to know the strength or weaknesses of the organization, to make forecast about future prospects and thereby enabling the management and external parties to take different decisions regarding the operations. Fundamental analysis has a very broad scope. One aspect looks at the general (qualitative) factors of the company. The other side considers tangible and measurable factors (quantitative). This means crunching and analyzing numbers from the financial statements if used in conjunction with other methods, quantitative analysis can produce excellent results. Ratio Analysis Ratio analysis is the method or process by which relationship/group of items in the financial statement are computed, determined and presented. Ratio analysis is an attempt to derive quantitative measure or guides concerning the financial health and profitability of business enterprises. Ratio analysis can be used both in trend and static analysis. Purpose of several ratios depends on the objective of analysis. A financial ratio measures a company’s performance in a specific area. For example, you could use a ratio of a company’s debt to its equity to measure a company’s gearing. By comparing the gearing ratios of two companies, you can determine which company uses greater debt per equity. You can use this information to make a judgment as to which company is better investment risk. However, you must be careful not to place too much importance on one ratio. You obtain better indication of the direction in which a company is moving when several ratios are taken as a group. Ratios are worked out to analyze the following aspects of an enterprise: a. Solvency: i. Long term ii. Short term iii. Immediate b. Profitability c. Operational Efficiency d. Credit standing e. Effective utilization of resources f. Investment Analysis 3. 4 Significance of Ratio Analysis in Financial Statement Ratio analysis is very important in revealing the financial position and soundness of the business so used by various parties * Management: The group that has the most interest in financial statement analysis is management. Management needs to discover quickly any area of mismanagement so that corrective action can be quickly taken. It mainly helps in: * Decision making: Ratio analysis helps in making decision from the information provided in these financial Statements. Financial forecasting and planning: Planning is looking ahead and the ratios calculated for a number of years a work as a guide for the future. * Communicating: The financial strength and weakness of a firm are communicated in a more easy and understandable manner using ratios. * Co-ordination: Better communication of efficiency and weakness of an enterprise result in better co-ordination in the enterprise * Control: The weaknesses are otherwise, if any, come to the knowledge of the managerial, which helps, in effective control of the business. * Investors or Shareholders Investors are interested in financial statements to evaluate current earnings and to predict future earnings. Financial statements influence greatly the price at which stock is bought and sold. * Lenders: Bankers before granting loans usually require that financial statements be submitted. Whether or not a loan is made depends heavily on a company’s financial condition and its prospects for the future. * Employees: Employees are mainly concerned about the profitability. Their salaries and increments are dependent on the profit made by the company. * Government:

Measuring The Knowledge Of Students Assessments Are Needed

When gauging the knowledge of students assessments are needed, however they must ensure that the assessing the actual abilities of the student not just the ability to remember and recall information. All too frequently, students are given assessments too often that do not measure their knowledge level, but instead emphasizing concepts that administrators find useful. These concepts are normally too vague and not relatable to the student and the knowledge he/she needs to continue to learn throughout life. Simply, administering assessments that are based on numbers, words, and vague concepts is not a useful practice for measuring the knowledge level of students. The standard base test are too confusing for even the teachers, they must†¦show more content†¦Administrators need to remember that the time it takes to establish a strategy to deploy the needed materials to the students, can be better utilized within the classroom. The monetary values that the schools are placing on test scores, are unfair and undeserving to the students. It is seeming that their efforts are becoming dollar values, this factor places undo stress on administrators, teachers, and students to reach objectives that may be unrealistic for their environment. Assessments should build upon the strengths of the student and assess the new concepts and abilities, the student has ascertained throughout the duration of the school year. By creating such rigorous standards, assessment makes have established a system of failure that no student should have to endure. Based upon my understanding of assessments, students do not always have to be assessed using paper and pencil. There are other methods that will give the student and the teacher a better gauge of what the student knows. There are several manners in which students’ knowledge can be evaluated. The normal prescriptive lesson plan that schools require teachers to teach on specific days, is no longer useful.(site, pg 22) Today’s classroom needs innovative teaching strategies and assessments that utilize non-prescriptive manner of teaching. Ones that allows the student to explore deeper