First semester essay Example | Topics and Well Written Essays - 2000 words

First semester - Essay Example In other words, whether the reports are prepared in conformity to all the material respects or not. The information is considered material if it has significant impact on the decision making process. If the omission of the information from the financial report can influence economic decision then the information is believed to be material (Williams, 2002). Materiality in auditing is the key concept to understand and evaluate for all the auditors. The job of auditors, whether internal or external, is to identify the materiality while making the audit report of the company. Materiality can be determined using qualitative aspects of the business. The qualitative aspect refers to the significance of a particular transaction which may not look big in size but may have importance because of the nature of the transaction (Zadek & Merme, 2003). There are various qualitative factors that are approached by the auditors to make realistic and authentic decisions. Some of the factors are (1) Likelihood of earning management, (2) Misstatement of share price, (3) Misstatement on projected earnings, (4) Likelihood of financial statement fraud, (5) Ineffective audit control culture, (6) Litigation risk, (7) Fraud detection or its symptoms etc. (Zabihollah & Riley, 2009) The nature of transaction can also be explained in terms of the disclosure regarding the financial transaction, which may not be significant in terms of size but lack of proper disclosure may have significant impact on the presentation of the business structure (Gupta, 2004). Now the question arises, how much the concept of materiality is important in audit process? The answer is explained using the literature review on materiality. The increase in requirement of information in more civilized financial market requires that more stringent audit process must be conducted to identify the facts on which the quality of the business process can be judged (Puncel, 2007). Therefore,

Journal #2 Assignment Example | Topics and Well Written Essays - 1000 words

Journal #2 - Assignment Example The wallet might communicate a message that I love and feel proud of my name, since I have its initials inscribed on my wallet. My wrist watch hold a special place amongst my personal items, since it was given to me as a birthday present by my childhood friend who relocated from our state after our high school graduation, and his friendship spot has never been filled to present day. The wrist watch might communicate that I highly value gold watches, even though the real reason I always have it is because I loved my childhood friend very much and it always reminds me of him. The family photograph in my wallet reminds me of my loving family and helps me to always keep emotionally attached to them. The photograph might communicate that I love and value my family very much, that is why I always have their photograph with me. The ‘Thank You’ card reminds me of the voluntary services I offered at a hospice during my sophomore summer holiday, where I helped attend to old and terminally ill patients in a local hospital. The local hospital in turn sent me the ‘Thank You’ card as an appreciation of my effort and services. a. Self-disclosure refers to a communication approach that entails an individual revealing personal information related to his/her history and the present, more so as related to emotions and thoughts (Zur, 2011). b. I regularly self-disclose to my childhood friend almost every issue that affects my life no matter how much confidential it might seem to be, since he does the same with me. The reason for self-disclosing to my friend is because we have grown up together and he knows virtually everything about my life, my family background and all the childhood activities and memories that I cherish. Having been of the same age, I and my childhood friend spent most of the times together since we hailed from the same