Planning the Audit Coursework Example | Topics and Well Written Essays - 500 words

Planning the Audit - Coursework Example rly attributed to the fact that fraud is often strategic in nature rather than random and the auditors may sometimes fail to detect potential fraud in the low risk audit areas when there is no sufficient audit procedure. One of the major findings of the paper is that the undetected misstatements among low risks accounts are significantly more common than what is suggested by the traditional risk assessment procedures. However, the results of the research particularly suggest that prompting the auditors to consider the how the organizational management may anticipate or exploit the risk assessments of the auditors may significantly help in the reduction of the number of incidences of undetected misstatements. The other important findings of the research include that the management are often more likely to act strategically by targeting the low risk accounts in order to conceal misstatement and auditors normally fail to detect misstatements in low risk accounts. This is largely based on the assumption that auditors would override the already existing process to personally include the misstatement in the low-risk account. This research paper is critically important to the upcoming or the already established auditors in the understanding of risk based instruct in financial statements preparations. This paper instructs the auditors to focus audit attention and resources majorly on the accounts that are preferably considered to be high-risk oriented for a specified audit engagement (Bowlin 2011). One of the implications of this paper to accounting profession is induction measure into strategically low-risk accounts to disguise misstatement. The research methodology used in the research as a basis for the conclusion involved subjecting 123 participants derived from accounting students enrolled in upper-division classes to computer based simulations related to audit engagement. The students were then paired in such a way that one represented an auditor while the other a

Supermercados Disco Joining Up with Royal Ahold Case Study

Supermercados Disco Joining Up with Royal Ahold - Case Study Example It is also a growing market. The countries in consideration in Latin America are Argentina, Brazil, Chile, Ecuador, Mexico, Peru and Venezuela. These countries have fairly stable governments and political environment and it is possible to do business here on long term basis although the economic and geographical conditions vary from country to country. The immediate problem is future strategy. It is the course of action needed to increase profitability and market penetration in Latin America. There are several options before Supermercados Disco. However, the main options are whether the company should choose to go ahead with a joint venture with Royal Ahold or continue independently. Other than this problem, there are choices to do with pestel analysis. There was strong economic growth in the 1990s, making it vital for the political dispensation to frame policies to maintain the growth curve. Economic prosperity made it imperative for political factors to go along with economic parameters and shun despotic influences. Argentina and Brazil became the favored destinations for retailers in the 1990s. Argentina was favored because of its wealth and Brazil because of its purchasing power due to its large middle class population. Brazil, Chile, Mexico, and Venezuela were roughly equal in terms of disposable income, but they had unequal distribution of wealth excluding up to 40% of these countries' populations from normal consumer activity. The region was projected to growth continually in the ensuing decades producing increase in the size of the working population. Due to foreign investments, there was also the fact that cities would grow disproportionately in size and wealth improving communications and infrastructure. These changes were bound to favor retailers. State-owned enterprises were thrown open for privatization. Most of the steel mills, chemical, petrochemical, shipping and aircraft companies were sold to private parties. Price controls were lifted in 1993. In Chile, tariffs were cut down from 75% in 1975 to just 11% currently. Social factors Improving economic conditions had an effect on social factors. In the six largest countries of Latin America viz. Argentina, Brazil, Chile, Columbia, Mexico, and Venezuela, the population was over 80% urban. Brazil faced the biggest social problems due to poverty and lack of education. The country had to resort to credit schemes to allow poorer members of society to buy consumer durables, food and clothing. Brazil has the sixth largest population in the world. Hence, although Brazil has good middle class population, she has her share of poverty problems. Other than the Brazil factor, social factors in other Latin American countries showed improvement financially. People had money to buy what they needed. Technological factors Attraction of foreign investment