Have a look! Tell me which is your favourite picture by putting your comments below the article.
Enjoy!
Showing posts with label CAT. Show all posts
Showing posts with label CAT. Show all posts
Monday, August 26, 2013
Which is your favourite Picture?
Reader's digest said that Laughter is the Best Medicine. Yes, to de-stress from a regime of jamming ideas into our over-loaded grey matter.
Have a look! Tell me which is your favourite picture by putting your comments below the article.
Enjoy!
Have a look! Tell me which is your favourite picture by putting your comments below the article.
Enjoy!
Sunday, April 5, 2009
WONDERFUL TO BE WIVES OF STATESMEN
- Relevant to P1 and partially P3. Also of interest to all Malaysians.
PIC 01: DISNEY, THE HAPPIEST PLACE ON EARTH
PIC 02: PRACTICE GOOD GOVERNANCE?
Author’s official political stand: As an independent observer and politically neutral, the article below is intended to demonstrate practical knowledge and application of ACCA Professional Papers, P1 & P3. The author does NOT endorse, support or recommend affiliation to any political party.
10) What about us, the rakyat? There is no public outrage? Is RM1.65million an insignificant sum for us to voice out? Bear in mind, the trips made aren’t illegal but could be deemed as Benefits in Kind accorded to top executive statesmen. Usually this is justified if stakeholders feel that the Board has done a tremendous job for Selangor state. Such benefits are ‘earned’. Justified? Travel back to end-2007 and early 2008. You will recall USA sub-prime property sector bubble burst, oil prices were sky high and local food prices were inching up due to record high commodities prices. Trying and nervous economic times. I cannot say that the Board of Selangor has done a splendid job to manage such external shocks, can I?
11) RM1.65 million is an opportune sum! In INTI College Subang, full tuition fee for 9 CAT subjects is RM6,300 per candidate. The amount could provide scholarships to 262 students! That brings financial relieve to 262 families. Think of the economic benefit of developing intellectual capabilities. Education brings bright future! But was spent instead on roller coaster rides – in foreign lands. Why lack of public reaction? Likely as private individuals, we lack the resource, time and voice to speak up. Weak we are as Keep Informed" stakeholders.
12) Conclusion: this article focuses on Corporate Governance through use of Committees and Stakeholders’ influence. The article strives to take an objective view evaluating the effectiveness of both the Federal Government and Selangor’s Opposition Ruling Government.
13) Final statement :
PIC 05: Fikiran Gadis Jelita, "Manalah saya dapat cari suami yang baik? Yang berupaya bawa saya ke Disney land?"
PIC 01: DISNEY, THE HAPPIEST PLACE ON EARTH
PIC 02: PRACTICE GOOD GOVERNANCE?Author’s official political stand: As an independent observer and politically neutral, the article below is intended to demonstrate practical knowledge and application of ACCA Professional Papers, P1 & P3. The author does NOT endorse, support or recommend affiliation to any political party.
Corporate Governance at Play
1) Balkis was the welfare and charity organization set up by the wives of Selangor’s elected representatives during Barisan Nasional (BN) rule. RM10million was transferred to Bakti, the charity organization for wives of federal government ministers.
2) The Selangor Select Committee on Competency, Accountability and Transparency (SELCAT) concluded its public inquiry into the expenses of the now-defunct Balkis on Wednesday, March 31, 2009.
Here are a few interesting facts found on Balkis:
3) State investment agency Permodalan Negeri Selangor Bhd (PNSB) spent almost RM1m on a Dec 2004 Eurodisney trip for then Selangor Menteri Besar Datuk Seri Dr Mohd Khir Toyo, his wife, their three children and maid.
4) If that is not enough, Datuk Seri went to Disneyland in Orlando, Florida, in Jan 2008 with his entourage of advisors- his wife, their three children and again the maid. Cost him nothing but taxpayers of RM650,000 for their entire USA trip.
5) PNSB CEO Datin Khairiyah Abu Hassan defended the expenditure was justified as this was on a fact finding mission in preparation for setting up an 10 acres theme park in Bagan Lalang. I wonder how the children, wife and of course the maid is useful in contributing to the project evaluation program which involves a proper study of feasibility, acceptability and suitability analysis.
6) Obviously, a mega project such as this, any company or project team will meet with Disney top management, CEO Steve Jobs, to discuss strategic collaboration opportunity. But a closer look at the receipt expenditures for the trip showed that the team only ‘went as far as’ buying ordinary entry tickets into the park as ordinary public visitors. No meetings with Disney senior management, none whatsoever. But I must admit, the team must have met Mickey Mouse and friends.
7) Perhaps they are on secret finding mission. But at Malaysian base, PNSB Board has received no progress and evaluation report based on both trips to Disney.
PIC 03: RECENT CHARGE AGAINST SELCAT's INITIATOR, TAN SRI KHALID, FOR MISUSE OF TAXPAYERS FUND IN BUYING 46 COWS AS GIFTS TO LOCAL COMMUNITIES. IRONICALLY THE WHISTLE-BLOWER IS DATUK SERI DR. MOHD. KHIR!
8) SELCAT has practice good corporate governance in making public or being transparent about Balkis. The only downside is the body is not an independent body as it is the initiative of Pakatan Rakyat that controls Selangor state. For SELCAT is to be an effective watchdog, then its committee members should comprise of independent Non Executive Directors selected from various sectors such as:
- Inland Revenue Department to audit expenditures,
-Industry captains of Trade Associations to offer business advise,
-University Professors specialising in research of Economic Development and Regional Strategic Planning and perhaps
'
-NGO of green environment movements to win over CSR investors.
9) Now on UMNO's Corporate Governance. UMNO, a monopoly power in Barisan Nasional owing to the fact that they control largest number of Parliament seats has had single handedly selected Datuk Seri Dr Mohd Khir Toyo as Selangor’s leader. The very senior UMNO politician has not denied spending RM1.65m of public money on a private family holiday. What happened to their governance, or the lack of it? Their leader is accused of gross misconduct and poor accountability to the rakyat. Spending RM1.65 million with no feasibility reports to show? No disciplinary actions are suggested nor did the Nomination Committee reject the application of Datuk Seri Dr Mohd Khir Toyo as an election candidate for supreme council position. (By the way, he lost. Two possible explanations : (i) UMNO 2800+ division heads rejected his poor performance(ii) A rival candidate successfully swing the votes to his favour through money politics.
PIC 03: THE NEWLY ELECTED UMNO YOUTH HEAD.
9) Now on UMNO's Corporate Governance. UMNO, a monopoly power in Barisan Nasional owing to the fact that they control largest number of Parliament seats has had single handedly selected Datuk Seri Dr Mohd Khir Toyo as Selangor’s leader. The very senior UMNO politician has not denied spending RM1.65m of public money on a private family holiday. What happened to their governance, or the lack of it? Their leader is accused of gross misconduct and poor accountability to the rakyat. Spending RM1.65 million with no feasibility reports to show? No disciplinary actions are suggested nor did the Nomination Committee reject the application of Datuk Seri Dr Mohd Khir Toyo as an election candidate for supreme council position. (By the way, he lost. Two possible explanations : (i) UMNO 2800+ division heads rejected his poor performance(ii) A rival candidate successfully swing the votes to his favour through money politics.
PIC 03: THE NEWLY ELECTED UMNO YOUTH HEAD.10) What about us, the rakyat? There is no public outrage? Is RM1.65million an insignificant sum for us to voice out? Bear in mind, the trips made aren’t illegal but could be deemed as Benefits in Kind accorded to top executive statesmen. Usually this is justified if stakeholders feel that the Board has done a tremendous job for Selangor state. Such benefits are ‘earned’. Justified? Travel back to end-2007 and early 2008. You will recall USA sub-prime property sector bubble burst, oil prices were sky high and local food prices were inching up due to record high commodities prices. Trying and nervous economic times. I cannot say that the Board of Selangor has done a splendid job to manage such external shocks, can I?
11) RM1.65 million is an opportune sum! In INTI College Subang, full tuition fee for 9 CAT subjects is RM6,300 per candidate. The amount could provide scholarships to 262 students! That brings financial relieve to 262 families. Think of the economic benefit of developing intellectual capabilities. Education brings bright future! But was spent instead on roller coaster rides – in foreign lands. Why lack of public reaction? Likely as private individuals, we lack the resource, time and voice to speak up. Weak we are as Keep Informed" stakeholders.
12) Conclusion: this article focuses on Corporate Governance through use of Committees and Stakeholders’ influence. The article strives to take an objective view evaluating the effectiveness of both the Federal Government and Selangor’s Opposition Ruling Government.
13) Final statement :
“A statesman is a politician who places himself at the service of the nation. A politician is a statesman who places the nation at his service.” - Georges Pompidou
PIC 05: Fikiran Gadis Jelita, "Manalah saya dapat cari suami yang baik? Yang berupaya bawa saya ke Disney land?"Tuesday, November 18, 2008
The Power of Focus - Habits Determine Your Future (Part 2)
- relevant to all who wants progress in life. I recommend and encourage you to spread this information to your juniors and friends.
Pic 01 : Highest paid athlete in USA. Was he simply taking a swing with the golf stick that puts him top of the game?
Pic 02 & Pic 03: Can you do the stunts above on first try? Take a week? a month? Hmmm... I think it takes a lifetime of good discipline and successful habits.
How much time does it actually take to change a habit? The most common response is 21 days. Studies have shown that if you practice a new habit for an average of 21 days or longer in some cases, it actually becomes easier to do the new habit then it is NOT to do the new habit.
This is just a baseline. For any habit you want to change you must ask yourself how long you've owned that habit. Some habits will take longer to change depending on how long and how often they have been practiced. Give yourself reasonable time to adopt new belief systems and new success habits. If you have been dealing with low self esteem for 15 years, it may take you longer than 21 days to change that belief system (yes, belief systems are habits also). On the other hand you could break the bad habit of thinking poorly about yourself in an instant and create your brand new life overnight. There aren't any limits but you must be fair and objective about your rate of change.
Your habits and beliefs systems are a product of your environment. Birds of a feather, flock together as the saying goes. This is true! Ever heard of the saying, "Tell me who your friends are and I will tell you who you are." You will pick up and practice those habits and beliefs that are common to your environment. But when you decide to change there is no stopping you. Reach out for and study the successful habits of those who've attained the success you desire. Practice what they do and elevate yourself. Read inspirations stories, visit this blog often to remind yourself what is your purpose in College, watch documentaries on success and the successful.
Here is the three step successful habits formula :
1. Clearly identify your bad or unproductive habits.
2. Define your new successful habit.
3. Create a 3 Part Action Plan. Decide on 3 immediate actions that you will take to replace your old habit and establish your new successful habit. Start with one habit and take action. You must know exactly what actions you will take to create your new success. It could be reading a book, establishing an accountability partner, going to a support group, or joining a coaching club.
Pic 01 : Highest paid athlete in USA. Was he simply taking a swing with the golf stick that puts him top of the game?
Pic 02 & Pic 03: Can you do the stunts above on first try? Take a week? a month? Hmmm... I think it takes a lifetime of good discipline and successful habits.
CHANGING HABITS TAKE TIME
You will turn your negatives into positives by changing your habits now. Change takes an instant to occur and time to mature. Your change goes into effect the moment you choose to change. That very instant! But it will take some time to see your changes mature to where you can enjoy the fruit of your improvements. Your change will take time because developing success habits takes time.
Of course, with ongoing exams currently, you may say that its bit too late to change. While I agree with you but don't forget you need this quality to succeed in career, higher ACCA paper levels (Professional Stage) and life.
How much time does it actually take to change a habit? The most common response is 21 days. Studies have shown that if you practice a new habit for an average of 21 days or longer in some cases, it actually becomes easier to do the new habit then it is NOT to do the new habit.
This is just a baseline. For any habit you want to change you must ask yourself how long you've owned that habit. Some habits will take longer to change depending on how long and how often they have been practiced. Give yourself reasonable time to adopt new belief systems and new success habits. If you have been dealing with low self esteem for 15 years, it may take you longer than 21 days to change that belief system (yes, belief systems are habits also). On the other hand you could break the bad habit of thinking poorly about yourself in an instant and create your brand new life overnight. There aren't any limits but you must be fair and objective about your rate of change.
NOT REGRESS
The important thing above all will be to remain committed to establishing new habits that build a better future and not falling back into old habits that will only produce the same unhappiness and failure that you may be trying to move away from.
A powerful quote says:
"If you keep on doing what you've always done, then you will keep on getting what you've always got."
This is awesome! By systematically changing one behavior at time you can dramatically improve your overall lifestyle! Once your new habit becomes well developed, it becomes your new normal behavior.
The important thing above all will be to remain committed to establishing new habits that build a better future and not falling back into old habits that will only produce the same unhappiness and failure that you may be trying to move away from.
A powerful quote says:
"If you keep on doing what you've always done, then you will keep on getting what you've always got."
This is awesome! By systematically changing one behavior at time you can dramatically improve your overall lifestyle! Once your new habit becomes well developed, it becomes your new normal behavior.
HABITS FORMING STRATEGY
Identify Bad Habits and Replace Them , so if success is based on successful habits you be asking, "How do I identify bad habits?". Bad habits on those actions that cause you to be unproductive and hold you back from realizing your best life now. Examine yourself and ask others about bad habits you have. Only ask people you respect and admire and know you well. You need to hear from people that are for you and not against you.
Identify Bad Habits and Replace Them , so if success is based on successful habits you be asking, "How do I identify bad habits?". Bad habits on those actions that cause you to be unproductive and hold you back from realizing your best life now. Examine yourself and ask others about bad habits you have. Only ask people you respect and admire and know you well. You need to hear from people that are for you and not against you.
Your habits and beliefs systems are a product of your environment. Birds of a feather, flock together as the saying goes. This is true! Ever heard of the saying, "Tell me who your friends are and I will tell you who you are." You will pick up and practice those habits and beliefs that are common to your environment. But when you decide to change there is no stopping you. Reach out for and study the successful habits of those who've attained the success you desire. Practice what they do and elevate yourself. Read inspirations stories, visit this blog often to remind yourself what is your purpose in College, watch documentaries on success and the successful.
PRACTICE AND REPEAT
Develop the habit of changing your habits. Change will be you always. Adapt and implement habits that will continually reward with the life you desire. If a habit no longer yields success motivation and positive change, replace with a new habit. Just with thoughts, habits cannot be dropped. Habits are displaced through replacement.
Develop the habit of changing your habits. Change will be you always. Adapt and implement habits that will continually reward with the life you desire. If a habit no longer yields success motivation and positive change, replace with a new habit. Just with thoughts, habits cannot be dropped. Habits are displaced through replacement.
Pic 04: Do you think his culinery skills were developed overnight?
Here is the three step successful habits formula :
1. Clearly identify your bad or unproductive habits.
You at your behavior for now and in the future to get a realistic and objective understanding of how a habit may be unproductive or bad for you. Some habits have a slow burn effect and the results aren't realized until years later. Smoking is a classic example. If you looking at a smoking habit one day at a time, it may not seem as damaging as it actually is. If you view this habit over a lifetime then you can begin to appreciate the the consequences for choosing to change this habit or not change this habit.
2. Define your new successful habit.
Identify your new habits and describe in vivid detail the "benetifs" of acquiring this new habit. You will boost your success motivation when you can clear envision the rewards for successful change. Remember that to obtain the success you desire you must be will to do things today that will create your desire changed for tomorrow. The clearer a vision you have of your rewards and benefits for change, the more likely you are to take action.
Pic 05: KPMG Tower in Sao Paolo, Brazil. Do you have successful habit to be there at the top (CAREER)?
3. Create a 3 Part Action Plan. Decide on 3 immediate actions that you will take to replace your old habit and establish your new successful habit. Start with one habit and take action. You must know exactly what actions you will take to create your new success. It could be reading a book, establishing an accountability partner, going to a support group, or joining a coaching club.
Conclusion
The bottom line is that nothing will change in your life until you do. To learn more about the how you obtain successful habits that will create a successful future for your life I recommend reading The Power of Focus by Jack Canfield, Mark Victor Hansen and Les Hewitt and Seven Highly Effective Habits by Steven Covey
Useful links:
- The Power of Focus - Habits Determine Your Future (Part 1), http://marcusong88.blogspot.com/2008/11/power-of-focus-habits-determine-your_19.html
- http://marcusong88.blogspot.com/2008/10/how-to-cope-with-stress.html
- http://marcusong88.blogspot.com/2008/09/bill-gates-bad-role-model.html
- http://marcusong88.blogspot.com/2008/08/life-as-student.html
Thursday, October 2, 2008
HOW TO COPE WITH STRESS?
- relevant to 21st century living
Pic 01: "Oh Boy! I am so dead."
Last week has been a hectic and stressful filled activities with classes that last longer than baking a cake in an oven to last-minute cramping of facts in preparation of internal tests. The internal exams are both unnecessary and unfortunate to say the least as it has an attached condition that if you fail them, you face an over-hanging threat of expulsion from Sunway College. How can one be prepared for internal exams when its scheduled back to back with series of almost uninterrupted lectures?? Well, I am stressed too. The time table is something that I neither agree or can control nor decide. So I focused on remedial solutions namely how to cope with stress. The following are from a medical and scriptural advise which I believe you benefit if you apply them.
MEDICAL PERSPECTIVES (NON-DRUG prescriptive approach)
Pic 02 : Stress is toxic to your body, believe me, I was a student before.
Possible signs of stress
· -Anxiety
· -Back pain
· -Constipation or diarrhea
· - Depression
· - Fatigue
· -Headaches
· -High blood pressure
· -Insomnia
· -Problems with relationships
· -Shortness of breath
· -Stiff neck
· -Upset stomach
· -Weight gain or loss
What can I do to manage my stress?
The first step is to learn to recognize when you're feeling stressed. Early warning signs of stress include tension in your shoulders and neck, or clenching your hands into fists.The next step is to choose a way to deal with your stress. One way is to avoid the event or thing that leads to your stress--but often this is not possible. A second way is to change how you react to stress. This is often the best way.
Tips for dealing with stress
· Don't worry about things you can't control, such as the weather.
· Prepare to the best of your ability for events you know may be stressful, such as a exams
· Try to look at change as a positive challenge, not as a threat.
· Work to resolve conflicts with other people.
· Talk with a trusted friend, family member or counselor.
· Set realistic goals at home and at work.
· Exercise on a regular basis.
· Eat well-balanced meals and get enough sleep.
· Participate in something you don't find stressful, such as sports, social events or hobbies.
Why is exercise useful?
Exercise is a good way to deal with stress because it's a healthy way to relieve your pent-up energy and tension. It also helps you get in better shape, which makes you feel better overall
SCRIPTURAL SOLUTIONS : Healthy Ways to Face Stress
Pic 03: Have a heart to heart talk with someone you trust.
Stress is a modern-day fact of life; you cannot avoid it. You can, however, learn to cope with it. Following the principles of the Bible can help. For example, if you feel overwhelmed by some situation, remember that “there exists a friend sticking closer than a brother.” (Proverbs 18:24) Talk things over with a mature friend. “Don’t bottle it up,” says sociologist Ronald L. Pitzer. “Confide your feelings and worry to some level-headed person who is likely to understand and care.”
Pic 04: Enjoy solitude
Setting aside some time for yourself can do wonders—even if it is just a few minutes in the early morning so you can enjoy a cup of tea, read, pray, or enjoy solitude of peace.
Pics 05 & 06: Stretch the stress out. Side effect - a great body, guys!
Moderate exercise and a healthful diet are also helpful. A book on parenting reminds us: “When you spend some of your valuable time and energy on yourself, you are, in essence, filling your personal-resource bank. . . . Constantly giving means that you’ve got to be sure there’s something going back in as well, or you’ll risk becoming emotionally short-changed, if not actually bankrupt.”
In addition, the Bible helps one to develop qualities needed to cope with stress, such as “mildness of temper,” patience, and kindness. (Galatians 5:22, 23; 1 Timothy 6:11)
My thoughts:
The encouraging thing about the article is that all of us face stress but we can cope. The motivation of this article is because I care. Do try them and my sincerest wish you will come out stronger.
RELATED LINKS (PLEASE re-visit them):
http://marcusong88.blogspot.com/2008/09/bill-gates-bad-role-model.html
http://marcusong88.blogspot.com/2008/08/life-as-student.html
Pic 01: "Oh Boy! I am so dead."Last week has been a hectic and stressful filled activities with classes that last longer than baking a cake in an oven to last-minute cramping of facts in preparation of internal tests. The internal exams are both unnecessary and unfortunate to say the least as it has an attached condition that if you fail them, you face an over-hanging threat of expulsion from Sunway College. How can one be prepared for internal exams when its scheduled back to back with series of almost uninterrupted lectures?? Well, I am stressed too. The time table is something that I neither agree or can control nor decide. So I focused on remedial solutions namely how to cope with stress. The following are from a medical and scriptural advise which I believe you benefit if you apply them.
MEDICAL PERSPECTIVES (NON-DRUG prescriptive approach)
Pic 02 : Stress is toxic to your body, believe me, I was a student before. Possible signs of stress
· -Anxiety
· -Back pain
· -Constipation or diarrhea
· - Depression
· - Fatigue
· -Headaches
· -High blood pressure
· -Insomnia
· -Problems with relationships
· -Shortness of breath
· -Stiff neck
· -Upset stomach
· -Weight gain or loss
What can I do to manage my stress?
The first step is to learn to recognize when you're feeling stressed. Early warning signs of stress include tension in your shoulders and neck, or clenching your hands into fists.The next step is to choose a way to deal with your stress. One way is to avoid the event or thing that leads to your stress--but often this is not possible. A second way is to change how you react to stress. This is often the best way.
Tips for dealing with stress
· Don't worry about things you can't control, such as the weather.
· Prepare to the best of your ability for events you know may be stressful, such as a exams
· Try to look at change as a positive challenge, not as a threat.
· Work to resolve conflicts with other people.
· Talk with a trusted friend, family member or counselor.
· Set realistic goals at home and at work.
· Exercise on a regular basis.
· Eat well-balanced meals and get enough sleep.
· Participate in something you don't find stressful, such as sports, social events or hobbies.
Why is exercise useful?
Exercise is a good way to deal with stress because it's a healthy way to relieve your pent-up energy and tension. It also helps you get in better shape, which makes you feel better overall
SCRIPTURAL SOLUTIONS : Healthy Ways to Face Stress
Pic 03: Have a heart to heart talk with someone you trust. Stress is a modern-day fact of life; you cannot avoid it. You can, however, learn to cope with it. Following the principles of the Bible can help. For example, if you feel overwhelmed by some situation, remember that “there exists a friend sticking closer than a brother.” (Proverbs 18:24) Talk things over with a mature friend. “Don’t bottle it up,” says sociologist Ronald L. Pitzer. “Confide your feelings and worry to some level-headed person who is likely to understand and care.”
Pic 04: Enjoy solitudeSetting aside some time for yourself can do wonders—even if it is just a few minutes in the early morning so you can enjoy a cup of tea, read, pray, or enjoy solitude of peace.
Pics 05 & 06: Stretch the stress out. Side effect - a great body, guys!
Moderate exercise and a healthful diet are also helpful. A book on parenting reminds us: “When you spend some of your valuable time and energy on yourself, you are, in essence, filling your personal-resource bank. . . . Constantly giving means that you’ve got to be sure there’s something going back in as well, or you’ll risk becoming emotionally short-changed, if not actually bankrupt.”
In addition, the Bible helps one to develop qualities needed to cope with stress, such as “mildness of temper,” patience, and kindness. (Galatians 5:22, 23; 1 Timothy 6:11)
My thoughts:
The encouraging thing about the article is that all of us face stress but we can cope. The motivation of this article is because I care. Do try them and my sincerest wish you will come out stronger.
RELATED LINKS (PLEASE re-visit them):
http://marcusong88.blogspot.com/2008/09/bill-gates-bad-role-model.html
http://marcusong88.blogspot.com/2008/08/life-as-student.html
Thursday, September 25, 2008
F8: Illustrative case study
- relevant to F8
Arnold Scwarzenegger was blur (just about everything) about how to explain to his nephew Donald Duck on audit of payroll section in his Californian government departments. The muscle man has asked you:
a) ummmm... duh* what should auditors look to achieve in audit assertion work relating to payroll? [4]
b) Descibe the procedures that can be used to ensure for a better payroll system. Demonstrate situations on improving the system. [4]
SUGGESTED ANSWER GUIDELINES
a) auditors seek to :
- wages are properly calculated
- employees are paid ensuring no phantom employees
-proper recordings are made and accounted for in the ledger payroll and correct classification
- proper deductions that are authorised and approved by employees and required by government
b) Exam approach : state on controls systems can be improved looking at Control Environment
state on control objectives / procedures to have stronger internal operations that is correct, accurate, appropriate, segregation of duties, authorised.
Demonstrations:
Control environment :
Competence match to employees salary
Application to PAYMENT : compare specific employee salary to industry average by enquiring of managers or industry expert for reasonableness test.
Control objectives :
Correct amount are paid to the respective employees.
Application to SETTING SALARIES & WAGES: check that all amount paid to employees that are banked in correspond with the payroll summary sheet generated from payroll department.
Arnold Scwarzenegger was blur (just about everything) about how to explain to his nephew Donald Duck on audit of payroll section in his Californian government departments. The muscle man has asked you:
a) ummmm... duh* what should auditors look to achieve in audit assertion work relating to payroll? [4]
b) Descibe the procedures that can be used to ensure for a better payroll system. Demonstrate situations on improving the system. [4]
SUGGESTED ANSWER GUIDELINES
a) auditors seek to :
- wages are properly calculated
- employees are paid ensuring no phantom employees
-proper recordings are made and accounted for in the ledger payroll and correct classification
- proper deductions that are authorised and approved by employees and required by government
b) Exam approach : state on controls systems can be improved looking at Control Environment
state on control objectives / procedures to have stronger internal operations that is correct, accurate, appropriate, segregation of duties, authorised.
Demonstrations:
Control environment :
Competence match to employees salary
Application to PAYMENT : compare specific employee salary to industry average by enquiring of managers or industry expert for reasonableness test.
Control objectives :
Correct amount are paid to the respective employees.
Application to SETTING SALARIES & WAGES: check that all amount paid to employees that are banked in correspond with the payroll summary sheet generated from payroll department.
ISA 315 : Understanding Control Environment and Control Activities
- relevant to F8 (ACCA)
WARRIOR :
Macro approach (Control Culture) : Alert to dangers. Suspicious of enemies
Micro approach (Control activities) : He puts many guard soldiers, spies and dispatchers to secure his army
ISA 315 Understanding the entity and its environment and assessing the risks of material misstatement deals with the whole area of controls. It requires that auditors 'obtain an understanding of the entity and its environment, including its internal control, sufficient to identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, and sufficient to design and perform further audit procedures'.
The ISA states that internal control has five elements:
1. The control environment
2. The control activities
3. The entity's risk assessment process
4. The information system
5. Monitoring of controls
control environment above looks at the management "CULTURE" as to controls assessing management's toleration level of poor controls
contrasts with
control activities are "PROCEDURES" which are micro managing internal controls
CONTROL ENVIRONMENT – management’s attitude and firm’s culture toward controls
Control environment is governance and management functions and the attitudes, awareness and actions of those charged with governance and management concerning the entity's internal control and its importance in the entity.
The ISA requires auditors to 'obtain an understanding of the control environment'.
CONTROL ENVIRONMENT
COMMUNICATION ENFORCEMENT - ethical values
Essential elements which influence the effectiveness of the design, administration and monitoring of controls
COMMITMENT COMPETENCE
Management's consideration of the competence levels for particular jobs and how those levels translate into requisite skills and knowledge
GOVERNANCE
Independence from management, their experience and stature, the extent of their involvement and scrutiny of activities, the information which they receive, the degree to which difficult questions are raised and pursued with management and their interaction with internal and external auditors
MANAGEMENT'S PHILOSOPHY
Management's approach to taking and managing business risks, and management's attitudes and actions toward financial reporting, information processing and accounting functions and personnel
ORGANISATIONAL STRUCTURE
The framework within which an entity's activities for achieving its objectives are planned, executed, controlled and reviewed
AUTHORITY AND RESPONSIBILITY
How authority and responsibility for operating activities are assigned and how reporting relationships and authorisation hierarchies are established
POLICIES AND PRACTICES
Recruitment, orientation, training, evaluating, counselling, promoting, compensating and remedial actions
CONTROL ACTIVITIES - POLICIES AND PROCEDURES
PURPOSE : Control activities include those designed to prevent or to detect and correct errors. Examples include activities relating to authorisation, performance reviews, information processing, physical controls, segregation of duties.
CONTROL
Transactions should be approved by an appropriate person.
For example, overtime should be approved by departmental managers.
CONTROLS
The ISA requires the auditor to 'obtain an understanding of how the entity has responded to risks arising from IT'. We shall look at computer controls
CHECKING & ACCURACY
checking to see if individual invoices have been added up correctly.
MAINTAINING REVIEWING
Control accounts bring together transactions in individual ledgers. Trial balances bring together unusual transactions for the organisation as a whole. Preparing these can highlight unusual transactions or accounts.
RECONCILIATIONS
Reconciliations involve comparison of a specific balance in the
accounting records with what another source says the balance should be, for example, a bank reconciliation. Differences between the two figures should only be reconciling items.
COMPARING the results of cash, security and inventory counts with accounting records
in a physical count of petty cash, the balance shown in the cash book should be the same as the amount in the tin.
COMPARING internal data with external sources of information
For example, comparing records of goods dispatched to customers with customers' acknowledgement of goods that have been received.
AUTHORISED physical access to assets and records
Only authorised personnel should have access to certain assets
(particularly valuable or portable ones).
-ensuring that the inventory store is only open when the store personnel are there and is otherwise locked.
This can be a particular problem in computerised systems.
SEGREGATION OF DUTIES
(a) Segregation of function. The key functions that should be segregated are the carrying out of a transaction, recording that transaction in the accounting records and maintaining custody of assets that arise from the transaction.
(b) Segregation of various steps in carrying out the transaction should also be segregated.
(c) Segregation of accounting operations - the same staff should not record transactions and carry out the reconciliations at the period-end.
the above are crucial to APPLY say in a payroll environment :
1. auditors need to assess if the control [culture] is appropriate when handling cash payment for wages
2. auditors need to assess if the control policies of say in
(i) PAYMENT OF WAGES : all total hourly wages paid are verified by supervisors, hours claimed overtime are authorised, time sheets reviewed and reasonable hours claimed.
(ii) DEDUCTIONS : review of pay deductions printouts and checked and casted for accurate deductions
Note that the control activities are applied in the context of the 4 boxes of logical payroll sequence. Alan Lewin can easily apply the same control environment and control activities in other scenarios like client's receivables and payables sections .
CONCLUSION
exam could test you on what AUDIT PROCEDURES i need to take as in "TESTING OF CONTROLS" ensuring that you are satisfied that wages processes are adequately carried out like you are satisfied with degree of authorisation and segregation of duties to reduce fraud and minimise errors. In short, what steps should an auditor do to assert the payroll system adequacy?
However, another question style is "Can you investigate if you are satisfied with its current internal controls which is this case tell me what is the management culture and the type of policies they use?" examiner takes a step further as "Now you found so many weaknesses in the (lazy and lousy) management, can you suggest improvements?" This type of question is on test of controls based on ISA 315. (please see notes 9 & 10).
Please practice questions on Test of Controls on Payroll, Purchases and Sales system that we have done in our tutorials
WARRIOR :
Macro approach (Control Culture) : Alert to dangers. Suspicious of enemies
Micro approach (Control activities) : He puts many guard soldiers, spies and dispatchers to secure his army
ISA 315 Understanding the entity and its environment and assessing the risks of material misstatement deals with the whole area of controls. It requires that auditors 'obtain an understanding of the entity and its environment, including its internal control, sufficient to identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, and sufficient to design and perform further audit procedures'.
The ISA states that internal control has five elements:
1. The control environment
2. The control activities
3. The entity's risk assessment process
4. The information system
5. Monitoring of controls
control environment above looks at the management "CULTURE" as to controls assessing management's toleration level of poor controls
contrasts with
control activities are "PROCEDURES" which are micro managing internal controls
CONTROL ENVIRONMENT – management’s attitude and firm’s culture toward controls
Control environment is governance and management functions and the attitudes, awareness and actions of those charged with governance and management concerning the entity's internal control and its importance in the entity.
The ISA requires auditors to 'obtain an understanding of the control environment'.
CONTROL ENVIRONMENT
COMMUNICATION ENFORCEMENT - ethical values
Essential elements which influence the effectiveness of the design, administration and monitoring of controls
COMMITMENT COMPETENCE
Management's consideration of the competence levels for particular jobs and how those levels translate into requisite skills and knowledge
GOVERNANCE
Independence from management, their experience and stature, the extent of their involvement and scrutiny of activities, the information which they receive, the degree to which difficult questions are raised and pursued with management and their interaction with internal and external auditors
MANAGEMENT'S PHILOSOPHY
Management's approach to taking and managing business risks, and management's attitudes and actions toward financial reporting, information processing and accounting functions and personnel
ORGANISATIONAL STRUCTURE
The framework within which an entity's activities for achieving its objectives are planned, executed, controlled and reviewed
AUTHORITY AND RESPONSIBILITY
How authority and responsibility for operating activities are assigned and how reporting relationships and authorisation hierarchies are established
POLICIES AND PRACTICES
Recruitment, orientation, training, evaluating, counselling, promoting, compensating and remedial actions
CONTROL ACTIVITIES - POLICIES AND PROCEDURES
PURPOSE : Control activities include those designed to prevent or to detect and correct errors. Examples include activities relating to authorisation, performance reviews, information processing, physical controls, segregation of duties.
CONTROL
Transactions should be approved by an appropriate person.
For example, overtime should be approved by departmental managers.
CONTROLS
The ISA requires the auditor to 'obtain an understanding of how the entity has responded to risks arising from IT'. We shall look at computer controls
CHECKING & ACCURACY
checking to see if individual invoices have been added up correctly.
MAINTAINING REVIEWING
Control accounts bring together transactions in individual ledgers. Trial balances bring together unusual transactions for the organisation as a whole. Preparing these can highlight unusual transactions or accounts.
RECONCILIATIONS
Reconciliations involve comparison of a specific balance in the
accounting records with what another source says the balance should be, for example, a bank reconciliation. Differences between the two figures should only be reconciling items.
COMPARING the results of cash, security and inventory counts with accounting records
in a physical count of petty cash, the balance shown in the cash book should be the same as the amount in the tin.
COMPARING internal data with external sources of information
For example, comparing records of goods dispatched to customers with customers' acknowledgement of goods that have been received.
AUTHORISED physical access to assets and records
Only authorised personnel should have access to certain assets
(particularly valuable or portable ones).
-ensuring that the inventory store is only open when the store personnel are there and is otherwise locked.
This can be a particular problem in computerised systems.
SEGREGATION OF DUTIES
(a) Segregation of function. The key functions that should be segregated are the carrying out of a transaction, recording that transaction in the accounting records and maintaining custody of assets that arise from the transaction.
(b) Segregation of various steps in carrying out the transaction should also be segregated.
(c) Segregation of accounting operations - the same staff should not record transactions and carry out the reconciliations at the period-end.
the above are crucial to APPLY say in a payroll environment :
1. auditors need to assess if the control [culture] is appropriate when handling cash payment for wages
2. auditors need to assess if the control policies of say in
(i) PAYMENT OF WAGES : all total hourly wages paid are verified by supervisors, hours claimed overtime are authorised, time sheets reviewed and reasonable hours claimed.
(ii) DEDUCTIONS : review of pay deductions printouts and checked and casted for accurate deductions
Note that the control activities are applied in the context of the 4 boxes of logical payroll sequence. Alan Lewin can easily apply the same control environment and control activities in other scenarios like client's receivables and payables sections .
CONCLUSION
exam could test you on what AUDIT PROCEDURES i need to take as in "TESTING OF CONTROLS" ensuring that you are satisfied that wages processes are adequately carried out like you are satisfied with degree of authorisation and segregation of duties to reduce fraud and minimise errors. In short, what steps should an auditor do to assert the payroll system adequacy?
However, another question style is "Can you investigate if you are satisfied with its current internal controls which is this case tell me what is the management culture and the type of policies they use?" examiner takes a step further as "Now you found so many weaknesses in the (lazy and lousy) management, can you suggest improvements?" This type of question is on test of controls based on ISA 315. (please see notes 9 & 10).
Please practice questions on Test of Controls on Payroll, Purchases and Sales system that we have done in our tutorials
AUDITORS' PROCEDURES : TESTS OF CONTROLS ON PAYROLL
-relevant to F8 (ACCA)
If you are asked as to what steps you would take to ensure that payroll system is adequately installed of its internal controls, as an AUDITOR you could systematically take following steps. Remember, use key items like payroll lists, bank statements and specific documents to tailor made in your "application". merely regurgitating the following carries little or no marks.
STEP 1 : SETTING SALARIES & WAGES
AGREEING calculation of gross pay with:
· Authorised rates of pay
· Production records. See that production bonuses have been authorised and properly calculated
· Clock cards, time sheets or other evidence of hours worked.
·Verify that overtime has been authorised
VERIFY that gross salaries and bonuses are in accordance with
· personnel records,
· letters of engagement and
· increases in pay have been properly authorised.
STEP 2 : PAYMENTS
wages paid in cash
• Arrange to attend the pay-out of wages to confirm that the official procedures are being followed
• Examine receipts given by employees: check unclaimed wages are recorded in unclaimed wages book
• Check that unclaimed wages are banked regularly by inspection of bank statements and supporting documentation
• Inspect that unclaimed wages books to check it shows reasons why wages are unclaimed
• Review pattern of unclaimed wages in unclaimed wages book; variations may indicate failure to record
Holiday pay
• Verify a sample of payments with the underlying records and check the calculation of the amounts paid
For salaries, auditors should test that comparisons are being made between payment records and they should themselves examine paid cheques or a certified copy of the bank list for employees paid by cheque of banks transfer.
If you are asked as to what steps you would take to ensure that payroll system is adequately installed of its internal controls, as an AUDITOR you could systematically take following steps. Remember, use key items like payroll lists, bank statements and specific documents to tailor made in your "application". merely regurgitating the following carries little or no marks.
STEP 1 : SETTING SALARIES & WAGES
AGREEING calculation of gross pay with:
· Authorised rates of pay
· Production records. See that production bonuses have been authorised and properly calculated
· Clock cards, time sheets or other evidence of hours worked.
·Verify that overtime has been authorised
VERIFY that gross salaries and bonuses are in accordance with
· personnel records,
· letters of engagement and
· increases in pay have been properly authorised.
STEP 2 : PAYMENTS
wages paid in cash
• Arrange to attend the pay-out of wages to confirm that the official procedures are being followed
• Examine receipts given by employees: check unclaimed wages are recorded in unclaimed wages book
• Check that unclaimed wages are banked regularly by inspection of bank statements and supporting documentation
• Inspect that unclaimed wages books to check it shows reasons why wages are unclaimed
• Review pattern of unclaimed wages in unclaimed wages book; variations may indicate failure to record
Holiday pay
• Verify a sample of payments with the underlying records and check the calculation of the amounts paid
For salaries, auditors should test that comparisons are being made between payment records and they should themselves examine paid cheques or a certified copy of the bank list for employees paid by cheque of banks transfer.
STEP 3: RECORDING
WAGES, reconciliations with:
· The previous week's payroll
· Clock cards/time sheets/job cards
· Costing analyses, production budgets
POINTS TO NOTE:
üThe total of salaries should be reconciled with the previous week/month or the standard payroll.
üconfirm that important calculations have been checked by the clients and re-perform those calculations.
REVIEW wages for a number of weeks:
· Additions of payroll sheets
· Totals of wages sheets selected to summary
· Additions and cross casts of summary
· Postings of summary to general ledger (including control accounts)
· Casts of net cash column to cash book
STEP 4: DEDUCTIONS
RE-PERFORM the calculations of taxation and non-statutory deductions. For income tax they should carry out the following tests.
· Scrutinize the control accounts maintained to see appropriate deductions have been made
· Agree that the payments to the taxation bodies are correct
POINTS TO NOTE
üThey hould agree other deductions to appropriate records.
üFor voluntary deductions, they should inspect the authority completed by the relevant employees.
Saturday, September 13, 2008
MALAYSIANS - CALM DOWN!
- relevant to all CAT & ACCA candidates. (by extension the world)
“ISA invoked! Police detained 3 individuals who reported the truth as messengers but left the perpetrator scott free…” so the report goes. (The Star A, 2008; The Star B, 2008 )
Malaysians (especially CAT and ACCA candidates)! Calm Down! Change is the only constant. The political landscape is shifting. But beware, when the earth opens and shift as if an earthquake, it can swallow (many) victims.
You may not believe this, but Malaysia has good corporate governance with:
1. The Royalty family having ultimate military powers. They can invoke powers of intervention to restore peace. I meant in a good way. If you apply “Game Theory” it makes no sense for such powerful dignitaries to not want peace and order in the country they rule.
2.The police force is merely doing their job. They said racial tension is a biggest threat. That is true! Look at Rwanda where 800,000 lost their lives, World War II saw 6 million Jews snuffed out. That is nothing compared to 6.6 million Poles (Poland) systematically executed.
Police is ethically doing their job. Apply Utilitarianism (Jeremy Bentham) ethics and you will see letting minority suffer for the greater majority well being. What about the perpetrators of racism? I can’t say more as I don’t have the facts to the whole picture. Maybe actions done is unfair, have you considered the possibility “maybe not”.
3.Opposition parties are merely doing their job to oppose, rightly or wrongly, its left to individuals to decide.
There are bigger threats:
x USA is stumbling economically with potential default in US$8trillion in real estate sector. They are our biggest customer. They catch a (economic) flu, we catch pneumonia. Mind you, the twin power house UK, has announced a double digit percentage fall in real estate prices in which Gordon Brown is so nervous. In fact announced that UK faced worst economic prospects in 60 years.
x Commodities rose as fast and fall as fast. The latter is reflected by weak demand in world. China has completed infrastructure development for the Olympics. This means they will not have the heyday frenzy of development that translates to lower demand for steel, oil to name a few.
x Globalization is forcing Malaysian economy to open up to competition. The days of political-commerce ties are almost over. Compete or die. Opposition parties claimed we lost a multi-billion dollar Korean investment because of refusal of federal government to construct certain bridge linking to an island. But do we have all the facts? Could it be the bridge is just a “necessary resource” (Prahalad & Hamel)? Could it be that Philippines have cheaper labour, tax free zones, skilled labour in other words the subsidiary there is a “Contributor” (Bartlett & Ghoshal)? Craig Barrett of Intel founder said that we are losing our “advance factor” of skilled labour.
x THE BIGGEST THREAT : Your future! EXAMS are coming. Have you been putting energy and time studying, grasping concepts and practicing questions? Your career is at stake.
I have frequently openly state I am politically neutral, but when I observed the mass media and blogs, I notice the unease, unrest, anger and even frustration (such as the quote above). Well don’t be. This is change. For better or worse, but stay on sidelines and focus on your future, your studies and pursuit of excellence. President John F. Kennedy: "Ask not what your country can do for you; ask what you can do for your country." Do your bit as law abiding citizens. Life is unfair due to political stakeholders (Mendelow model) strife. Remember “Keep Inform” and “Secondary” quadrants? I know you will say that in P1, you are taught that when “Keep Informed” stakeholders will to combine forces, they can push up to “concentrate” stakeholders. Even so, that is a risk as this is only an “if” they unite. Apply risk management in F8 and P1 (ACCA). But hey, wait a minute, aren’t you arguing so well? See what I mean as to how well educated you are when applying concepts you learnt in ACCA?
I hope you all have the maturity and insight to see the bigger picture. ACCA has already in process of equipping you with such wisdom. You studied corporate governance in P1 (Public Accountant), well guess what, its at play now in this country. Should be shocked? No, it’s a progress. The future is always a hope for the better. Why not build your own future for starters?
So please don’t dwell on politics that incite hatred, unease and worse civil unrest. Spread this message of peace. I know some of you will disagree and say stuff like - “We are the ones who are change agents, if you don’t voice out, who will?” Or equivalent rebuttals. Don’t get me wrong. I am saying "be peaceful (verbally, emotionally, definitely physically)". Don’t add kerosene to fire. Say in civilized manner but don’t cause ill-will to one another. We are ALL world’s citizens. If we are attacked by aliens (good possibility that will happen), humans will set aside differences and unite. Well, why not now?!
Conclusion : CALM DOWN! Our job is study hard, graduate and contribute positively to our own future, as globalisation is indiscriminatory. If you don’t invest intellectually, you will be marginalized by this global force. Example: You don’t want to buy a Proton cars just as much as the (former) East Germans who abhor their Skodas. Both marques famed for poor quality and only sells due to government unsustainable protectionists measures. Will you as a person be another “Proton”?
References:
The Star A, 2008, Raja Petra, Teresa Kok and Sin Chew reporter arrested under ISA, http://thestar.com.my/news/story.asp?file=/2008/9/13/nation/2022362&sec=nation), 13th September.
The Star B, 2008, MCA shocked by arrest of reporter and not perpetrator, http://thestar.com.my/news/story.asp?file=/2008/9/13/nation/2022800&sec=nation, 13th September.
Please visit : http://marcusong88.blogspot.com/2008/08/life-as-student.html for motivational article to study.
“ISA invoked! Police detained 3 individuals who reported the truth as messengers but left the perpetrator scott free…” so the report goes. (The Star A, 2008; The Star B, 2008 )
Malaysians (especially CAT and ACCA candidates)! Calm Down! Change is the only constant. The political landscape is shifting. But beware, when the earth opens and shift as if an earthquake, it can swallow (many) victims.
You may not believe this, but Malaysia has good corporate governance with:
1. The Royalty family having ultimate military powers. They can invoke powers of intervention to restore peace. I meant in a good way. If you apply “Game Theory” it makes no sense for such powerful dignitaries to not want peace and order in the country they rule.
2.The police force is merely doing their job. They said racial tension is a biggest threat. That is true! Look at Rwanda where 800,000 lost their lives, World War II saw 6 million Jews snuffed out. That is nothing compared to 6.6 million Poles (Poland) systematically executed.
Police is ethically doing their job. Apply Utilitarianism (Jeremy Bentham) ethics and you will see letting minority suffer for the greater majority well being. What about the perpetrators of racism? I can’t say more as I don’t have the facts to the whole picture. Maybe actions done is unfair, have you considered the possibility “maybe not”.
3.Opposition parties are merely doing their job to oppose, rightly or wrongly, its left to individuals to decide.
There are bigger threats:
x USA is stumbling economically with potential default in US$8trillion in real estate sector. They are our biggest customer. They catch a (economic) flu, we catch pneumonia. Mind you, the twin power house UK, has announced a double digit percentage fall in real estate prices in which Gordon Brown is so nervous. In fact announced that UK faced worst economic prospects in 60 years.
x Commodities rose as fast and fall as fast. The latter is reflected by weak demand in world. China has completed infrastructure development for the Olympics. This means they will not have the heyday frenzy of development that translates to lower demand for steel, oil to name a few.
x Globalization is forcing Malaysian economy to open up to competition. The days of political-commerce ties are almost over. Compete or die. Opposition parties claimed we lost a multi-billion dollar Korean investment because of refusal of federal government to construct certain bridge linking to an island. But do we have all the facts? Could it be the bridge is just a “necessary resource” (Prahalad & Hamel)? Could it be that Philippines have cheaper labour, tax free zones, skilled labour in other words the subsidiary there is a “Contributor” (Bartlett & Ghoshal)? Craig Barrett of Intel founder said that we are losing our “advance factor” of skilled labour.
x THE BIGGEST THREAT : Your future! EXAMS are coming. Have you been putting energy and time studying, grasping concepts and practicing questions? Your career is at stake.
I have frequently openly state I am politically neutral, but when I observed the mass media and blogs, I notice the unease, unrest, anger and even frustration (such as the quote above). Well don’t be. This is change. For better or worse, but stay on sidelines and focus on your future, your studies and pursuit of excellence. President John F. Kennedy: "Ask not what your country can do for you; ask what you can do for your country." Do your bit as law abiding citizens. Life is unfair due to political stakeholders (Mendelow model) strife. Remember “Keep Inform” and “Secondary” quadrants? I know you will say that in P1, you are taught that when “Keep Informed” stakeholders will to combine forces, they can push up to “concentrate” stakeholders. Even so, that is a risk as this is only an “if” they unite. Apply risk management in F8 and P1 (ACCA). But hey, wait a minute, aren’t you arguing so well? See what I mean as to how well educated you are when applying concepts you learnt in ACCA?
I hope you all have the maturity and insight to see the bigger picture. ACCA has already in process of equipping you with such wisdom. You studied corporate governance in P1 (Public Accountant), well guess what, its at play now in this country. Should be shocked? No, it’s a progress. The future is always a hope for the better. Why not build your own future for starters?
So please don’t dwell on politics that incite hatred, unease and worse civil unrest. Spread this message of peace. I know some of you will disagree and say stuff like - “We are the ones who are change agents, if you don’t voice out, who will?” Or equivalent rebuttals. Don’t get me wrong. I am saying "be peaceful (verbally, emotionally, definitely physically)". Don’t add kerosene to fire. Say in civilized manner but don’t cause ill-will to one another. We are ALL world’s citizens. If we are attacked by aliens (good possibility that will happen), humans will set aside differences and unite. Well, why not now?!
Conclusion : CALM DOWN! Our job is study hard, graduate and contribute positively to our own future, as globalisation is indiscriminatory. If you don’t invest intellectually, you will be marginalized by this global force. Example: You don’t want to buy a Proton cars just as much as the (former) East Germans who abhor their Skodas. Both marques famed for poor quality and only sells due to government unsustainable protectionists measures. Will you as a person be another “Proton”?
References:
The Star A, 2008, Raja Petra, Teresa Kok and Sin Chew reporter arrested under ISA, http://thestar.com.my/news/story.asp?file=/2008/9/13/nation/2022362&sec=nation), 13th September.
The Star B, 2008, MCA shocked by arrest of reporter and not perpetrator, http://thestar.com.my/news/story.asp?file=/2008/9/13/nation/2022800&sec=nation, 13th September.
Please visit : http://marcusong88.blogspot.com/2008/08/life-as-student.html for motivational article to study.
Thursday, September 11, 2008
EMPIRE BUILDER - MOST POWERFUL MAN
-relevant to CAT : T5 & ACCA : F1, P3, P5
(please note that the article should be read in conjunction with my lecture class on Chandler's model on corporate growth)
EXECUTIVE SUMMARY
John Davison Rockefeller (July 8, 1839 – May 23, 1937) was an American industrialist and philanthropist. Rockefeller revolutionized the petroleum industry and defined the structure of modern philanthropy. In 1870, he founded the Standard Oil Company and ran it until he officially retired in 1897.[1] Standard Oil began as an Ohio partnership formed by John D. Rockefeller and partners. Rockefeller kept his stock and as gasoline grew in importance, his wealth soared and he became the world's richest man and first American billionaire, and is often regarded as the richest person in history.
THE MOST POWERFUL INDUSTRIALIST IN HUMAN HISTORY
John D Rockefeller began as a humble oil business book-keeper in Cleveland, Ohio and in just seven years rose to control a tenth of the entire US oil business.
In the late 19th century the oil industry was a free-for-all, the law of the jungle ruled. Rockefeller used this 'individual freedom' to pursue several extremely successful and deceitful tactics to accumulate capital.
EMPIRE BUILDER
He would secretly buy up or create new oil related companies such as engineering and pipeline firms. These seemed to be independent operators. Rockefeller and his close colleagues secretly controlled the firms and gave Standard Oil, Rockefeller's main oil company, hidden rebates.
Another tactic was to buy up a competing oil company, again secretly. Officials from this company could then be used very effectively to spy on, and give advanced warning of, deals being hatched by his real competitors.
Almost certainly the most lucrative secret deals done by Rockefeller and his partners were with the railroads. These 'in harmony' deals meant those refineries and oil traders not 'in harmony' with standard would find that railroads would refuse point blank to move their oil, whatever the price.
Oil, of course, is free at source, so once the investment in refining and extraction plant has been made the only really important cost was transportation. Rockefeller's secret railroad rebates on the transportation of his oil kept his competitors guessing for years. None of them could understand how he kept pump prices so low. They were all bemused that Standard Oil had being growing at such a rate. How he managed to persuade the railroads to give him rebates and keep the deals secret is still not clear.
Allun Nevins has produced an official biography¹ of the Rockefeller empire but even he cannot help but question its morality. Of a railroad contract signed on 17 October 1877 he says, "The commission was excessive for the services performed. It was ethically indefensible." "Today," he says, "we must condemn the misuse of power not only as a crushing blow to the company's competitors but as an indirect tax on the public."
Old film of John Rockefeller shows him moving in a curiously stiff and wooden fashion, expressionless. He proffessed to being a Baptist and went to church regularly, but did he enjoy it? Anthony Sampson in his book 'The Seven Sisters' quotes John Rockefeller as having a favourite maxim; 'Don't let good fellowship get the least hold of you'. Jerome Greene called him, "the most unemotional man I have ever known".
COLLABORATION STRATEGIES
One shadowy deal that Standard Oil of California (or SOCAL) struck back in the 1930's changed the face of urban America for ever. The Firestone Tire and Rubber Company, Phillips Petroleum Co., Mack Truck and General Motors collaborated on a project with SOCAL called National City Lines. The tram systems in the urban US were suffering from under-investment and often crippling debt repayments so National City Lines stepped in across the States to liberate the populous from their cheap and cheerful old 'streetcar' systems. They were replaced with motor buses or they were gradually closed down completely.
The demand for motor cars soared returning massive profits for all involved in the deal. By 1940 General Motors alone had been responsible for the disposal of more than 100 urban streetcar operations. In the late forties the consortium was found guilty by the federal grand jury under anti-trust (anti-competitive) legislation but the $5,000 fine was laughable. It did not even amount to the annual profit returned from the conversion of a single streetcar.
National City Lines sold the dream of the bus and the car to businessmen and politicians right across the continent. In Detroit, even the chairman of the rapid transit company declared the car as the 'magic carpet of transportation for all mankind'. Mayor LeGuardia in NYC said the car represented the best of modern civilisation, whereas the tram was simply an old-fashioned obstacle to progress.
So where are the Rockefellers now? The current head of the family is David Rockefeller, Chairman of the Chase Manhattan Bank and prime mover in the secret 'Bilderberg' and 'Trilateral Commission' elite groups.
GROWTH THROUGH DIVERSIFICATION
They may have moved the core of their interests from Oil to Banking and branched out considerably but the Rockefeller family have not given up the fascination of clandestine operations to keep their business empire beating at the heart of the capitalist machine.
So much for present organisation, and now as to how far through this organisation the Standard Oil Company is able to realise the purpose for which it was organised - the control of the output, and, through that, the price, of refined oil. That is, what per cent. of the whole oil business does Mr. Rockefeller's concern control. First as to oil production. In 1898 the Standard Oil Company reported to the Industrial Commission that it produced 35.58 per cent. of Eastern crude - the production that year was about 52,000,000 barrels...
MONOPOLISTIC CONTROLS
But while Mr. Rockefeller produces only about a third of the entire production, he controls ninety percent of total output; that is, all but about ten per cent. goes immediately into his custody on coming from the wells. It passes entirely out of the hands of the producers when the Standard pipeline takes it. The oil is in Mr. Rockefeller's hands, and he, not the producer, can decide who is to have it. The greater portion of it he takes himself, of course, for he is the chief refiner of the country. In 1898 there were about twenty-four million barrels of petroleum products made in this country. Of this amount about twenty million were made by the Standard Oil Company; fully a third of the balance was produced by the Tidewater Company, of which the Standard holds a large minority stock, and which for twenty years has had a running arrangement with the Standard. Reckoning out of the Tidewater's probable output, and we have an independent output of about 2,500,000 in twenty-four million. It is obvious that this great percentage of the business gives the Standard the control of prices.
John Davison Rockefeller (July 8, 1839 – May 23, 1937) was an American industrialist and philanthropist. Rockefeller revolutionized the petroleum industry and defined the structure of modern philanthropy. In 1870, he founded the Standard Oil Company and ran it until he officially retired in 1897.[1] Standard Oil began as an Ohio partnership formed by John D. Rockefeller and partners. Rockefeller kept his stock and as gasoline grew in importance, his wealth soared and he became the world's richest man and first American billionaire, and is often regarded as the richest person in history.
THE MOST POWERFUL INDUSTRIALIST IN HUMAN HISTORY
John D Rockefeller began as a humble oil business book-keeper in Cleveland, Ohio and in just seven years rose to control a tenth of the entire US oil business.
In the late 19th century the oil industry was a free-for-all, the law of the jungle ruled. Rockefeller used this 'individual freedom' to pursue several extremely successful and deceitful tactics to accumulate capital.
EMPIRE BUILDER
He would secretly buy up or create new oil related companies such as engineering and pipeline firms. These seemed to be independent operators. Rockefeller and his close colleagues secretly controlled the firms and gave Standard Oil, Rockefeller's main oil company, hidden rebates.
Another tactic was to buy up a competing oil company, again secretly. Officials from this company could then be used very effectively to spy on, and give advanced warning of, deals being hatched by his real competitors.
Almost certainly the most lucrative secret deals done by Rockefeller and his partners were with the railroads. These 'in harmony' deals meant those refineries and oil traders not 'in harmony' with standard would find that railroads would refuse point blank to move their oil, whatever the price.
Oil, of course, is free at source, so once the investment in refining and extraction plant has been made the only really important cost was transportation. Rockefeller's secret railroad rebates on the transportation of his oil kept his competitors guessing for years. None of them could understand how he kept pump prices so low. They were all bemused that Standard Oil had being growing at such a rate. How he managed to persuade the railroads to give him rebates and keep the deals secret is still not clear.
Allun Nevins has produced an official biography¹ of the Rockefeller empire but even he cannot help but question its morality. Of a railroad contract signed on 17 October 1877 he says, "The commission was excessive for the services performed. It was ethically indefensible." "Today," he says, "we must condemn the misuse of power not only as a crushing blow to the company's competitors but as an indirect tax on the public."
Old film of John Rockefeller shows him moving in a curiously stiff and wooden fashion, expressionless. He proffessed to being a Baptist and went to church regularly, but did he enjoy it? Anthony Sampson in his book 'The Seven Sisters' quotes John Rockefeller as having a favourite maxim; 'Don't let good fellowship get the least hold of you'. Jerome Greene called him, "the most unemotional man I have ever known".
COLLABORATION STRATEGIES
One shadowy deal that Standard Oil of California (or SOCAL) struck back in the 1930's changed the face of urban America for ever. The Firestone Tire and Rubber Company, Phillips Petroleum Co., Mack Truck and General Motors collaborated on a project with SOCAL called National City Lines. The tram systems in the urban US were suffering from under-investment and often crippling debt repayments so National City Lines stepped in across the States to liberate the populous from their cheap and cheerful old 'streetcar' systems. They were replaced with motor buses or they were gradually closed down completely.
The demand for motor cars soared returning massive profits for all involved in the deal. By 1940 General Motors alone had been responsible for the disposal of more than 100 urban streetcar operations. In the late forties the consortium was found guilty by the federal grand jury under anti-trust (anti-competitive) legislation but the $5,000 fine was laughable. It did not even amount to the annual profit returned from the conversion of a single streetcar.
National City Lines sold the dream of the bus and the car to businessmen and politicians right across the continent. In Detroit, even the chairman of the rapid transit company declared the car as the 'magic carpet of transportation for all mankind'. Mayor LeGuardia in NYC said the car represented the best of modern civilisation, whereas the tram was simply an old-fashioned obstacle to progress.
So where are the Rockefellers now? The current head of the family is David Rockefeller, Chairman of the Chase Manhattan Bank and prime mover in the secret 'Bilderberg' and 'Trilateral Commission' elite groups.
GROWTH THROUGH DIVERSIFICATION
They may have moved the core of their interests from Oil to Banking and branched out considerably but the Rockefeller family have not given up the fascination of clandestine operations to keep their business empire beating at the heart of the capitalist machine.
So much for present organisation, and now as to how far through this organisation the Standard Oil Company is able to realise the purpose for which it was organised - the control of the output, and, through that, the price, of refined oil. That is, what per cent. of the whole oil business does Mr. Rockefeller's concern control. First as to oil production. In 1898 the Standard Oil Company reported to the Industrial Commission that it produced 35.58 per cent. of Eastern crude - the production that year was about 52,000,000 barrels...
MONOPOLISTIC CONTROLS
But while Mr. Rockefeller produces only about a third of the entire production, he controls ninety percent of total output; that is, all but about ten per cent. goes immediately into his custody on coming from the wells. It passes entirely out of the hands of the producers when the Standard pipeline takes it. The oil is in Mr. Rockefeller's hands, and he, not the producer, can decide who is to have it. The greater portion of it he takes himself, of course, for he is the chief refiner of the country. In 1898 there were about twenty-four million barrels of petroleum products made in this country. Of this amount about twenty million were made by the Standard Oil Company; fully a third of the balance was produced by the Tidewater Company, of which the Standard holds a large minority stock, and which for twenty years has had a running arrangement with the Standard. Reckoning out of the Tidewater's probable output, and we have an independent output of about 2,500,000 in twenty-four million. It is obvious that this great percentage of the business gives the Standard the control of prices.
His foundations pioneered the development of medical research, and were instrumental in the eradication of hookworm and yellow fever. He is also the founder of both University of Chicago and Rockefeller University.
Standard Oil was convicted in Federal Court of monopolistic practices and broken up in 1911. Rockefeller spent the last 40 years of his life in retirement. His fortune was mainly used to create the modern systematic approach of targeted philanthropy with foundations that had a major effect on medicine, education, and scientific research.
ROCKERFELLER’S AND BILL GATE’S WEALTH COMPARED
Bill Gates' retirement from Microsoft--the tech goliath now worth $260 billion he founded as a teenager--may not mark the end of a career, but it certainly offers a logical vantage from which to view a most remarkable one. And as do legendary sports heroes, the software king no doubt will invite endless assessments and comparisons.
To be fair, there aren't all that many people one can compare Bill Gates to. Very few entrepreneurs have made such an impact on their society, and very few have made so much money. Still, by any rough measure of the value of money and achievement over time, it seems clear that Gates remains led by at least three ghosts--those of John D. Rockefeller, Andrew Carnegie and Cornelius Vanderbilt.
Start with the oil baron. Rockefeller had accumulated (very) roughly a billion dollars by 1913, a sum that represented 1/65 of the U.S. gross national product. Gates' wealth, $58 billion, is perhaps 1/190 of the current GNP, putting Rockefeller well ahead of Gates--and, for that matter, every other American who ever lived
ADDITIONAL READINGS :
Businessweek, 1998, The Monopoly That Went Too Far , http://www.businessweek.com/archives/1998/b3578093.arc.htm,: May 18, 1998
Randall e. Stross, 2008, Bill Gates: Richest American Ever And You Thought Rockefeller Had Money, http://money.cnn.com/magazines/fortune/fortune_archive/1997/08/04/229712/index.htm, Date visited : 11th September
Richard Snow, 2008, Entrepreneurs For The Ages, http://www.forbes.com/2008/06/24/microsoft-gates-rockefeller-ent-tech-cx_rs_0624entreforagesgates.html, 24th June
Wednesday, September 3, 2008
BILL GATES : A BAD ROLE MODEL
- Relevant to all CAT and ACCA undergraduates
Pic 01 : What has the child and grandfather clock has in common? [read on]
Life is just like time - it's a one-way street. There is no turning back. The past cannot be undone. Only at best be repaired, as one wisen up in future to carefully avoid a repeat of past mistakes. When a student, I observe the playfulness of my classmates. The usual likings like cafes, snooker games or plain hanging about at street corner shops. To put things in perspective, in themselves there is nothing wrong in these activities except that if one make this a primary past time or overindulgence, then one can lose focus as to why we enroll in ACCA in the first place.
Why ACCA? Without a doubt its cheaper than an ordinary degree course but better recognition in terms of getting a job in the Prestigious Big 4 namely PWC, KPMG, E&Y and Touche Deloitte (some pointed out the 4th largest firm is BDO Binder if measured in terms of revenue size) . What is the catch? Well, straight from the gut it requires tremendous discipline to be committed to cramp intense knowledge in a mere 5 months in what would normally take a freshman or sophomore one whole year to complete.
Well learn from Bill Gates – he took ages to complete his degree in Harvard. Well, he didn’t exactly resume classes as he receive an “honorary” degree which means in his working life, he has demonstrated application of theoretical knowledge. Still he took more than 20 years to complete a degree! To be exact he dropped out of school in 1975, and receiving a degree on June 8, 2007. That amounts to 22 years. He graduated at 51 years of age! If your friends graduate now and 22 years from now, you could imagine that they would have a wife, a house(s), kid(s) enrolling in ACCA, car(s), a big belly, maybe even whitening or withering hair. Then only you graduate.
Pic 02: Dad, I finally fulfill your wish! Sorry, I took 22 years to do it.
Of course one would argue that Bill Gates saw an opportunity to develop simple software programs in what today is called “Windows” program. His infamous company Microsoft made him a second richest man on earth, after Warren Bufett – see my earlier article (http://marcusong88.blogspot.com/2008/08/external-strategic-analysis-with.html ). Of course looking at history, his actions are justified considering his achievements today. But one begs the question, how many would-be Bill Gates who dropped out of Harvard to aspire like him failed? Probably 100,000 : 1 ratio. Now, P1 (Public Accountant) syllabus on risk management would tell you that if you can’t see risk in the future and thus unable to quantify it, really the matter is no longer a risk but an uncertainty! Unquantifiable risk!
What Bill Gates has done is what P3 (Business Analysis) paper term it as the “Delta Model”. Briefly this means that a company race to pioneer its technology in an emerging industry to make it the standard accepted format technology in the international market. With more clients using it the likelihood is that through time, they become dependent on it and are “locked-in”.
Pic 03: My nightmare student has returned! Never does homework, miss classes, obsessed with computer games...
So the infamous Microsoft founder is an exception to the rule to drop out of school and still be fabulously rich. For him to drop out and pursue a career and hit 'gold', only to return to complete his earlier task, is rare. We can’t say the same for us, can we? Mr. Bill really is a bad role model for us! Don’t take too long to graduate. Average time to complete is 3.5 years. Stay focus on your purpose in ACCA course and graduate soonest possible according to your personal capability. If in a scenario, we fail a paper or two (dare I say, fail all papers attempted last sitting), buck up. Convert frustration into motivation! If you get 49% for a paper, the message is clear – You are not good enough for ACCA STANDARDS. You have to work ‘doubly’ hard, not 2% more which is a large misconception. And possibly you will get 52% in the next attempt. An 8 hour study regime for 6 days a week is a norm and expected. Its comparable to an office worker working time.
Pic 04: "Break the rules" (C.K. Prahalad and Gary Hamel) : Why not dawn on a "classic" graduate outfit? Cool and differentiated.
I strongly encourage you, be strong and be mature demonstrated by your commitment to pursue your purpose in campus. Study hard, as I am confident you will. (To boost your motivation, please visit http://marcusong88.blogspot.com/2008/08/life-as-student.html)
I have posted a new linkage to ACCA website on the left side bar for your convenience. Visit the site as often as possible.
References :
ACCA, 2008, ACCA subject topics and resources, http://www.accaglobal.com/students/study_exams/qualifications/acca_choose/acca/, Visited on 3rd Spetember.
Time Magazine by Lev Grossman, 2007, Bill Gates Goes Back to School, http://www.time.com/time/health/article/0,8599,1630188,00.html, July 07
Pic 01 : What has the child and grandfather clock has in common? [read on]
Life is just like time - it's a one-way street. There is no turning back. The past cannot be undone. Only at best be repaired, as one wisen up in future to carefully avoid a repeat of past mistakes. When a student, I observe the playfulness of my classmates. The usual likings like cafes, snooker games or plain hanging about at street corner shops. To put things in perspective, in themselves there is nothing wrong in these activities except that if one make this a primary past time or overindulgence, then one can lose focus as to why we enroll in ACCA in the first place.
Why ACCA? Without a doubt its cheaper than an ordinary degree course but better recognition in terms of getting a job in the Prestigious Big 4 namely PWC, KPMG, E&Y and Touche Deloitte (some pointed out the 4th largest firm is BDO Binder if measured in terms of revenue size) . What is the catch? Well, straight from the gut it requires tremendous discipline to be committed to cramp intense knowledge in a mere 5 months in what would normally take a freshman or sophomore one whole year to complete.
Well learn from Bill Gates – he took ages to complete his degree in Harvard. Well, he didn’t exactly resume classes as he receive an “honorary” degree which means in his working life, he has demonstrated application of theoretical knowledge. Still he took more than 20 years to complete a degree! To be exact he dropped out of school in 1975, and receiving a degree on June 8, 2007. That amounts to 22 years. He graduated at 51 years of age! If your friends graduate now and 22 years from now, you could imagine that they would have a wife, a house(s), kid(s) enrolling in ACCA, car(s), a big belly, maybe even whitening or withering hair. Then only you graduate.
Pic 02: Dad, I finally fulfill your wish! Sorry, I took 22 years to do it.
Of course one would argue that Bill Gates saw an opportunity to develop simple software programs in what today is called “Windows” program. His infamous company Microsoft made him a second richest man on earth, after Warren Bufett – see my earlier article (http://marcusong88.blogspot.com/2008/08/external-strategic-analysis-with.html ). Of course looking at history, his actions are justified considering his achievements today. But one begs the question, how many would-be Bill Gates who dropped out of Harvard to aspire like him failed? Probably 100,000 : 1 ratio. Now, P1 (Public Accountant) syllabus on risk management would tell you that if you can’t see risk in the future and thus unable to quantify it, really the matter is no longer a risk but an uncertainty! Unquantifiable risk!
What Bill Gates has done is what P3 (Business Analysis) paper term it as the “Delta Model”. Briefly this means that a company race to pioneer its technology in an emerging industry to make it the standard accepted format technology in the international market. With more clients using it the likelihood is that through time, they become dependent on it and are “locked-in”.
Pic 03: My nightmare student has returned! Never does homework, miss classes, obsessed with computer games...
So the infamous Microsoft founder is an exception to the rule to drop out of school and still be fabulously rich. For him to drop out and pursue a career and hit 'gold', only to return to complete his earlier task, is rare. We can’t say the same for us, can we? Mr. Bill really is a bad role model for us! Don’t take too long to graduate. Average time to complete is 3.5 years. Stay focus on your purpose in ACCA course and graduate soonest possible according to your personal capability. If in a scenario, we fail a paper or two (dare I say, fail all papers attempted last sitting), buck up. Convert frustration into motivation! If you get 49% for a paper, the message is clear – You are not good enough for ACCA STANDARDS. You have to work ‘doubly’ hard, not 2% more which is a large misconception. And possibly you will get 52% in the next attempt. An 8 hour study regime for 6 days a week is a norm and expected. Its comparable to an office worker working time.
Pic 04: "Break the rules" (C.K. Prahalad and Gary Hamel) : Why not dawn on a "classic" graduate outfit? Cool and differentiated.
I strongly encourage you, be strong and be mature demonstrated by your commitment to pursue your purpose in campus. Study hard, as I am confident you will. (To boost your motivation, please visit http://marcusong88.blogspot.com/2008/08/life-as-student.html)
I have posted a new linkage to ACCA website on the left side bar for your convenience. Visit the site as often as possible.
References :
ACCA, 2008, ACCA subject topics and resources, http://www.accaglobal.com/students/study_exams/qualifications/acca_choose/acca/, Visited on 3rd Spetember.
Time Magazine by Lev Grossman, 2007, Bill Gates Goes Back to School, http://www.time.com/time/health/article/0,8599,1630188,00.html, July 07
Thursday, August 28, 2008
EXAM TIPS : AUDIT EVIDENCE & GOING CONCERN
- Relevant to Paper 8 (CAT) and F8 (ACCA)
PIC 01: AUDIT EVIDENCE EXPERIMENTED
AUDIT EVIDENCE & GOING CONCERN
The primary objective of an audit of financial statements is to enable the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework. The audit evidence he has gathered, which enables the auditor to express his opinion.
Auditors obtain sufficient, appropriate audit evidence. Evidence can be in the form of tests of controls or substantive procedures.
ISA 500 AUDIT EVIDENCE
The reliability of audit evidence is influenced by its source and by its nature.
ISA 500 Audit evidence requires auditors to 'obtain sufficient, appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion'.
· Sufficiency is the measure of the quantity of audit evidence.
· Appropriateness is the measure of the quality or reliability of the audit evidence.
The quantity of audit evidence required is affected by the level of risk in the area being audited. It is also affected by the quality of evidence obtained. If the evidence is high quality, the auditor may need less than if it were poor quality. However, obtaining a high quantity of poor quality evidence will not cancel out its poor quality.
Crucial to audit assertion work is that the company does not have evidence of financial distress that risk it as a going concern position.
PIC 02 & 03: Businessman is out of business. Are you aware?
ISA 570 : GOING CONCERN - AUDIT WORK
When planning and performing audit procedures and in evaluating the results thereof, auditors should consider the appropriateness of management’s use of the going concern assumption in the preparation of the financial statements, and consider any relevant disclosures in the financial statements.
– Review management’s plans for future actions based on its going concern assessment.
– Gather additional sufficient and appropriate audit evidence to confirm or dispel whether or not a material uncertainty exists regarding the going concern concept.
– Seek written representations from management regarding its plans for future action.
– Obtain information from company bankers regarding continuance of loan facilities.
– Review receivables ageing analysis to determine whether there is an increase in days which may also indicate cash flow problems.
PIC 01: AUDIT EVIDENCE EXPERIMENTED
AUDIT EVIDENCE & GOING CONCERN
The primary objective of an audit of financial statements is to enable the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework. The audit evidence he has gathered, which enables the auditor to express his opinion.
Auditors obtain sufficient, appropriate audit evidence. Evidence can be in the form of tests of controls or substantive procedures.
ISA 500 AUDIT EVIDENCE
The reliability of audit evidence is influenced by its source and by its nature.
ISA 500 Audit evidence requires auditors to 'obtain sufficient, appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion'.
· Sufficiency is the measure of the quantity of audit evidence.
· Appropriateness is the measure of the quality or reliability of the audit evidence.
The quantity of audit evidence required is affected by the level of risk in the area being audited. It is also affected by the quality of evidence obtained. If the evidence is high quality, the auditor may need less than if it were poor quality. However, obtaining a high quantity of poor quality evidence will not cancel out its poor quality.
Crucial to audit assertion work is that the company does not have evidence of financial distress that risk it as a going concern position.
PIC 02 & 03: Businessman is out of business. Are you aware?
ISA 570 : GOING CONCERN - AUDIT WORK
When planning and performing audit procedures and in evaluating the results thereof, auditors should consider the appropriateness of management’s use of the going concern assumption in the preparation of the financial statements, and consider any relevant disclosures in the financial statements.
– Review management’s plans for future actions based on its going concern assessment.
– Gather additional sufficient and appropriate audit evidence to confirm or dispel whether or not a material uncertainty exists regarding the going concern concept.
– Seek written representations from management regarding its plans for future action.
– Obtain information from company bankers regarding continuance of loan facilities.
– Review receivables ageing analysis to determine whether there is an increase in days which may also indicate cash flow problems.
Wednesday, August 13, 2008
Life As a Student
Life as a student is really challenging. The long hours, frustration of trying to remember countless IAS, loneliness and even the pressure from all people around us – parents, lecturers (I know, I’m guilty as charged), friends with high fever of kia-su syndrome. I share your pain as it is reminiscence of my youthful past. There is always silver lining in dark clouds or after dusk is dawn of bright morning sunshine. Imagine over 180,000 ACCA graduates passed that road of difficulty only to succeed and enjoy the fruitages of their hard labour. You too can have the same path. Why not study hard which means working hours in office kind of schedule i.e. 0800 to 1800 hours from Mondays to Saturdays? If you want this nightmare to end, will the sad news is this life is - it will not go away. However, you can ‘expedite’ the process by passing as quickly exams as you can. I know quite of few students took the express road of studying/working hard and passed fabulously.
A road without destination is like a ship sailing without compass. So set some nice fantasies that can be turned to reality. Walt Disney founder Walter Elias Disney once said, “If you dare to dream, anything is possible!” Promise and reward yourself that you are going to enjoy life for “LIFE IS BEAUTIFUL”. Check out the following excerpts on top destinations such as fascinating Hong Kong where you can get there on Air Asia for as cheap as RM299. Or get a soft loan of RM8000 and visit Stockholm, Sweden, no dine in Paris, French restaurant but what am I saying, visit Milan, Italy the fashion capital of the world. That loan you take is easily paid off with 3-4months equivalent salary as an ACCA affliate. So you are not overly-geared but wonderfully endeared to beautiful, wonderful world. The world is so big and open to your learning. Visit them and it will put a grin to your face and a sweet smile to your heart. You will say “I am glad, I worked hard.”
To achieve that it requires one vital quality – DISCIPLINE! Fixate your mind and tell yourself, I am going to pass ACCA! I am going to work very hard. I can do it! I will so no to all the ‘cheap’ temptations like loitering with friends in food stalls, surfing internet aimlessly, visiting Sunway Pyramid for the 89th time. So No! No! No! Paris is a better. Hong Kong is more fulfilling. New York city? London? Sydney? Don’t let me go out of hand. These are serious places of fun.
A good suggestion, why not find 1-3 friends who share the same goals as you. Girlfriends could get together and be group synergy with the purpose, taste life for “Life is Beautiful, Meaningful and Wonderful!” If your motivation is low, come back to this article and read it many times.
The future is in your hands. JOIN US, 180,000 ACCA graduates! You are in Sunway University College, with close to 3,000 students, you really are the minority. We graduates outnumber you 60 times! Follow the majority, not friends in school that are too playful, irresponsible and even immature with regard to your goals. Reap life’s rewards sowed from sheer sweat and hard work in student life. Its only 2-3 years of investment, but 30 years of enjoyment. Do your math and cost/benefits analysis.
The following are some potential rewards that let your fantasy run wild. Look! It can be yours. Remember, key is DISCIPLINE!
A road without destination is like a ship sailing without compass. So set some nice fantasies that can be turned to reality. Walt Disney founder Walter Elias Disney once said, “If you dare to dream, anything is possible!” Promise and reward yourself that you are going to enjoy life for “LIFE IS BEAUTIFUL”. Check out the following excerpts on top destinations such as fascinating Hong Kong where you can get there on Air Asia for as cheap as RM299. Or get a soft loan of RM8000 and visit Stockholm, Sweden, no dine in Paris, French restaurant but what am I saying, visit Milan, Italy the fashion capital of the world. That loan you take is easily paid off with 3-4months equivalent salary as an ACCA affliate. So you are not overly-geared but wonderfully endeared to beautiful, wonderful world. The world is so big and open to your learning. Visit them and it will put a grin to your face and a sweet smile to your heart. You will say “I am glad, I worked hard.”
To achieve that it requires one vital quality – DISCIPLINE! Fixate your mind and tell yourself, I am going to pass ACCA! I am going to work very hard. I can do it! I will so no to all the ‘cheap’ temptations like loitering with friends in food stalls, surfing internet aimlessly, visiting Sunway Pyramid for the 89th time. So No! No! No! Paris is a better. Hong Kong is more fulfilling. New York city? London? Sydney? Don’t let me go out of hand. These are serious places of fun.
A good suggestion, why not find 1-3 friends who share the same goals as you. Girlfriends could get together and be group synergy with the purpose, taste life for “Life is Beautiful, Meaningful and Wonderful!” If your motivation is low, come back to this article and read it many times.
The future is in your hands. JOIN US, 180,000 ACCA graduates! You are in Sunway University College, with close to 3,000 students, you really are the minority. We graduates outnumber you 60 times! Follow the majority, not friends in school that are too playful, irresponsible and even immature with regard to your goals. Reap life’s rewards sowed from sheer sweat and hard work in student life. Its only 2-3 years of investment, but 30 years of enjoyment. Do your math and cost/benefits analysis.
The following are some potential rewards that let your fantasy run wild. Look! It can be yours. Remember, key is DISCIPLINE!
Location: Eastern Side of Pearl River Delta, China
HONG KONG – METROPOLITAN. PLACE OF LIGHTS, DELICIOUS FOOD AND SHOPPING PARADISE. WHAT A WONDERFUL ESCAPADE! IS LIFE GOOD OR WHAT?!
Language: Cantonese, Mandarin, English
Best Time to Visit: Mid September to February end
Time Zone: +8GMT/UTC
Driving Side: Right
Emergencies: 999
Main Attractions: Hong Kong Disneyland, Giant Buddha, Stanley Market, Ocean Park, Victoria Peak, Lantau Islands, etc.
Where do you get great shopping, sumptuous dining, fascinating culture and heritage and amazing tourist attractions in one place? The answer is Hong Kong. This nation is one of the two administrative regions of People's Republic of China, the other being Macau. Hong Kong has developed from being a colonial possession to one of the leading financial centers in the world. Not just technology, Hong Kong is also a popular destination for tourists. It has everything that a good tourist destination would offer. Hong Kong has salubrious climate throughout the year which makes it ideal to be visited almost any time of the year. So check out various fascinating places to see and tourist attractions in Hong Kong and let the magic take over!
Theme Parks
Hong Kong is well known for its multitude of theme parks. The Hong Kong Disneyland, Ocean Park and Lai Chi Kok Amusement Park, are must visits if you want a wholesome vacation. The rides are completely awesome and not just kids, but adults too will enjoy themselves to the hilt. Along with the rides, you can watch sea creatures in their natural habitats and even trained animals performing amazing feats.
Shopping!
Hong Kong can be called as a shopper’s paradise. Right from the glittering malls where you can get all branded stuff to the famous flea markets, Hong Kong has it all. Check out places like Jade Market, Temple Street Night Market, Ladies' Market, Stanley Market, etc. which sell anything and everything like clothes, cosmetics, knick-knacks, jewelry, souvenirs, silk, artwork, toys, electronic gadgets, etc. If you have a knack for bargaining and eye for unusual things, this is the place to be.
Fascinating Museums
Hong Kong has a fascinating cultural heritage and mystical historical legacy. If you wish to travel back in time, visit the museums of Hong Kong. They provide a magical glimpse of the lifestyle and evolution of this nation. Popular museums include a replica of the famous Madame Tussaud’s that has over 100 lifelike figures of popular celebrities including Jackie Chan and Arnold Schwarzenegger. You can also visit the Ripley’s Believe It or Not Auditorium and be amazed by the mysterious artifacts displayed there. Other good museums include Hong Kong Museum of History and Flagstaff House Museum of Tea Ware.
Victoria Peak
This one deserves a special mention! Victoria Peak is the highest hill in Hong Kong and is one of the most popular and premier tourist attractions here. The peak provides scintillating views from above and one must visit this place to experience sheer bliss. The best time is evening when you get a bird’s eye view of the harbor when it is all lit up! There is a famous tram service at the Peak that has been in service since 1888 for passengers to explore the peak. There are a multitude of restaurants and thrill centers here for you to pamper your stomach and senses!
HONG KONG – METROPOLITAN. PLACE OF LIGHTS, DELICIOUS FOOD AND SHOPPING PARADISE. WHAT A WONDERFUL ESCAPADE! IS LIFE GOOD OR WHAT?!
Language: Cantonese, Mandarin, English
Best Time to Visit: Mid September to February end
Time Zone: +8GMT/UTC
Driving Side: Right
Emergencies: 999
Main Attractions: Hong Kong Disneyland, Giant Buddha, Stanley Market, Ocean Park, Victoria Peak, Lantau Islands, etc.
Where do you get great shopping, sumptuous dining, fascinating culture and heritage and amazing tourist attractions in one place? The answer is Hong Kong. This nation is one of the two administrative regions of People's Republic of China, the other being Macau. Hong Kong has developed from being a colonial possession to one of the leading financial centers in the world. Not just technology, Hong Kong is also a popular destination for tourists. It has everything that a good tourist destination would offer. Hong Kong has salubrious climate throughout the year which makes it ideal to be visited almost any time of the year. So check out various fascinating places to see and tourist attractions in Hong Kong and let the magic take over!
Theme Parks
Hong Kong is well known for its multitude of theme parks. The Hong Kong Disneyland, Ocean Park and Lai Chi Kok Amusement Park, are must visits if you want a wholesome vacation. The rides are completely awesome and not just kids, but adults too will enjoy themselves to the hilt. Along with the rides, you can watch sea creatures in their natural habitats and even trained animals performing amazing feats.
Shopping!
Hong Kong can be called as a shopper’s paradise. Right from the glittering malls where you can get all branded stuff to the famous flea markets, Hong Kong has it all. Check out places like Jade Market, Temple Street Night Market, Ladies' Market, Stanley Market, etc. which sell anything and everything like clothes, cosmetics, knick-knacks, jewelry, souvenirs, silk, artwork, toys, electronic gadgets, etc. If you have a knack for bargaining and eye for unusual things, this is the place to be.
Fascinating Museums
Hong Kong has a fascinating cultural heritage and mystical historical legacy. If you wish to travel back in time, visit the museums of Hong Kong. They provide a magical glimpse of the lifestyle and evolution of this nation. Popular museums include a replica of the famous Madame Tussaud’s that has over 100 lifelike figures of popular celebrities including Jackie Chan and Arnold Schwarzenegger. You can also visit the Ripley’s Believe It or Not Auditorium and be amazed by the mysterious artifacts displayed there. Other good museums include Hong Kong Museum of History and Flagstaff House Museum of Tea Ware.
Victoria Peak
This one deserves a special mention! Victoria Peak is the highest hill in Hong Kong and is one of the most popular and premier tourist attractions here. The peak provides scintillating views from above and one must visit this place to experience sheer bliss. The best time is evening when you get a bird’s eye view of the harbor when it is all lit up! There is a famous tram service at the Peak that has been in service since 1888 for passengers to explore the peak. There are a multitude of restaurants and thrill centers here for you to pamper your stomach and senses!
Location: Italy
Things To Do In Milan – Scenic!
Language: Italian, Insubric
Best Time to Visit: May to September
Driving Side: Right Side
Main Attractions: The Milan Cathedral, the Duomo, Biblioteca Ambrosiana, the Galleria Vittorio Emanuele II, Castello Sforzesco, Santa Maria delle Grazie
Language: Italian, Insubric
Best Time to Visit: May to September
Driving Side: Right Side
Main Attractions: The Milan Cathedral, the Duomo, Biblioteca Ambrosiana, the Galleria Vittorio Emanuele II, Castello Sforzesco, Santa Maria delle Grazie
Milan is one of the largest cities in Italy, with a large metropolitan area. The city is renowned as one of the world capitals of fashion and design. There are a number of fashion houses and shops in the area. Milan is also dotted with shopping malls, providing lucrative deals to the customers. The city hosted the World Exposition in 1906 and will also host the Universal Expo in 2015. Though the city is not the capital of the state, it is still regarded as its business hub. It is also seen as a popular tourist and holiday destinations, offering varied tourist attraction. Check out more on places to see and things to do in Milan.
Sightseeing
There are a number of places to see in Milan. The Milan Cathedral is one of the most striking structures in the city. It is the seat of Archbishop of Milan and even played significant role in the establishment of Catholic traditions. The Duomo houses the largest collection of marble statues and the golden Madonna statue. Biblioteca Ambrosiana is a historical library in Milan, which also houses the drawings and notebooks by Leonardo da Vinci.
Dining & Shopping
Milan has its own regional cuisine, offering sumptuous food to be savored by the visitors. The cuisine includes "cotoletta alla milanese", a breaded veal made of pork and turkey cutlet pan-fried in butter. Another specialty here is the salame milano, salami with very fine grain. It is also best known for its Milanese cheese, known as gorgonzola. You can treat yourself with all these delicacies and much more at the various quality restaurants located within the city. Apart from this, Milan is a paradise for shopaholics. For designer shopping, visit Quadrilatero, around Via Montenapoleone and Via della Spiga. For a stroll, try the Navigli or the Brera, which will give you trendy, arty vibes.
Cultural GaloreMilan has no dearth of options for its visitors, as far as entertainment is concerned. There are a number of opera houses and art galleries in the city. One of the most significant places to be visited is The Teatro alla Scala or La Scala. Inaugurated on 3 August 1778, it is one of the most famous opera houses in the world. The opera house also gives way to the La Scala Museum. It exhibits an extraordinary collection of paintings, drafts, statues, costumes and other documents regarding opera and La Scala's history.
Sightseeing
There are a number of places to see in Milan. The Milan Cathedral is one of the most striking structures in the city. It is the seat of Archbishop of Milan and even played significant role in the establishment of Catholic traditions. The Duomo houses the largest collection of marble statues and the golden Madonna statue. Biblioteca Ambrosiana is a historical library in Milan, which also houses the drawings and notebooks by Leonardo da Vinci.
Dining & Shopping
Milan has its own regional cuisine, offering sumptuous food to be savored by the visitors. The cuisine includes "cotoletta alla milanese", a breaded veal made of pork and turkey cutlet pan-fried in butter. Another specialty here is the salame milano, salami with very fine grain. It is also best known for its Milanese cheese, known as gorgonzola. You can treat yourself with all these delicacies and much more at the various quality restaurants located within the city. Apart from this, Milan is a paradise for shopaholics. For designer shopping, visit Quadrilatero, around Via Montenapoleone and Via della Spiga. For a stroll, try the Navigli or the Brera, which will give you trendy, arty vibes.
Cultural GaloreMilan has no dearth of options for its visitors, as far as entertainment is concerned. There are a number of opera houses and art galleries in the city. One of the most significant places to be visited is The Teatro alla Scala or La Scala. Inaugurated on 3 August 1778, it is one of the most famous opera houses in the world. The opera house also gives way to the La Scala Museum. It exhibits an extraordinary collection of paintings, drafts, statues, costumes and other documents regarding opera and La Scala's history.
Location: Paris, France
DINE, WINE and that is FINE!
- Why not dine in Paris, France with your ACCA graduate friends?
Smiling waiters, "Monsieur, at your service."Bistro Cassis brings a warm touch of Gallic charm and superb French food to Long Island's Huntington Village. Its ambience and décor are reminders of the smoky bistros celebrated in French film noir. Enter the dining room and be transported to the Parisian Left Bank with carved cherry pilasters, ornate tin ceiling, soaring marble pillars and outsize antique mirrors. The intimate atmosphere of this unparalleled French restaurant combines a quiet elegance with a welcoming, unpretentious spirit. Bistro Cassis stage is further set with amber lighting and large vintners posters lining warm custard-toned walls. Be seated at a marble-topped bistro table and select from an authentic selection of French bistro fare crafted from the freshest ingredients available daily- produce, mushrooms, poultry, meats and seafood. Bistro Cassis invites you to enjoy our distinguished selection of vintages by the bottle or glass. Choose from the best of 
French wines, from Bordeaux and Burgundy; aged and rare Cognacs, Armagnacs, ports and dessert wines. Bistro Cassis also invites you to sample unusual vintages from small producers.
Enjoy with your Graduate Friends. Cheers!Dine on authentic classics served in the finest French restaurants as well as simple country fare- Moules Provencales, Salad Nicoise, Soupe a l'Oignon, Steak Frites, Coq au Vin, Boeuf Bourguignon, Crème Brulee and Tart au Citron. Impeccable service and are knowledgeable in every aspect of our food and wine selections.
Why not, bring your loved ones?So for an intimate meal, a special occasion, or just for dessert and coffee after a movie; Bistro Cassis offers the best of the Old World, in today's world. Come by soon for a taste of Gallic charm you'll long remember.
URGENT: SBL Exam Guidance for Dec 2018 Exams
EVERY SUCCESS IN YOUR DECEMBER 2018 EXAMS Change is the only constant. Kasturi Core lecturing team has now moved to 2 new locations. ...
-
DEAR STUDENTS, Results are HERE! Its nervous time for everybody but in reality, its not a hurdle but stepping stone closer to ACCA success. ...
-
A saying goes, "Tell me your who your friends are, and I will tell you who you are". We are defined by our sorroundings. If you li...
-
- related to F8 and P7 this article is purely for educational purposes in relation to classes I conduct. All sources of information are der...
