4 topics to chose from Essay Example | Topics and Well Written Essays - 750 words

4 subjects to looked over - Essay Example He clarifies that in the event that an individual thinks, at that point he/she exists. This he affirmed using the utilization of faculties, he presumes that idea go inseparably with being cognizant. As a show of his standards of thought and uncertainty, he directed an analysis utilizing wax. In his showing, the wax has certain qualities as educated by the mind however the wax loses its attributes once it put before a fire (Descartes 28). The wax however liquefied is as yet something very similar yet the mind through his considerations educates him that the wax attributes are unique. The utilization of this examination intended to expel all questions and vulnerability and therefore to guarantee that considerations are utilized in controlling an individual’s convictions. Descartes was viewed as the dad of current way of thinking since he developed numerous methods of reasoning being used today. Because of his way of thinking of questions, he felt free to develop an arrangement of information. In his arrangement of information, Descartes confessed to ignoring discernment as problematic and just admitting to reasoning as a strategy. Descartes additionally clarified the presence of God through the way that God gave him a working brain and faculties. In his contention, Descartes contends that God gave him a tactile framework that didn't plan to delude him (Descartes 59). Subsequently, the tangible discernments appeared to him were automatic and he utilized his faculties to clarify the outer World. As indicated by Descartes, the outside world was realized by the requirement for material things (Watson 51). Generally, the logical strategy can be considered as a procedure, in which one remedies himself and his past information, through constant assessment of truth, for the last point of discovering answers to questions. This assessment of truth is what is alluded to as uncertainty and wariness by Descartes. Hypothetically, the logical technique for intuition, as rehearsed by renowned masterminds, for example, Galileo and Francis Bacon,

CASE STUDY- DIABETICS Study Example | Topics and Well Written Essays - 1500 words

- DIABETICS - Case Study Example obscured vision, he additionally regularly experiences difficulty doing his day by day exercises like prepping, getting to and from the solace room, perusing, composing, staring at the TV, riding the web, working, and driving. His incessant sentiments of thirst additionally expect him to approach drinking water consistently, which in his work as a craftsman isn't generally conceivable. In addition, his continuous need to pee likewise meddles with his day by day exercises making him every now and again take washroom breaks and to be almost a latrine consistently. His ongoing physical issue has likewise made him limit his social exercises and his investment in the network and other work exercises in light of the fact that the aggravation on his arm is a lot of evident and he feels humiliated by it. An intercession I can apply to this patient to improve and advance his degree of working is to show the patient to deal with his diabetic retinopathy which is causing his visual debilitation. The prescribed administration is diminish the blood glucose levels so as to forestall the movement of the retinopathy (Rodrigues, 2012). Decrease of glucose levels can incorporate eating routine and way of life changes. These progressions must be examined with the customer, for the most part concentrating on the eating routine changes he can make, what his customary suppers can incorporate, what he can eat in the middle of dinners, and the segments he can take for each kind of food (Martinez-Gonzales, et.al., 2008). Ordinary exercise can likewise help. Notwithstanding, practice must be checked by a wellbeing proficient so as to forestall any wounds. So as to advance working for this patient, I would prescribe amplifying focal points so as to permit standard perusing and composing exercises to be completed by the customer (Hume, et.al., 2012). Eye glasses with exceptional focal points which serve to amplify the letters and permit perusing and composing can likewise be fitted to the patient. Amplifying focal points can likewise aid the administration of the sickness permitting the patient to self-oversee

How to Become a Positive Thinker

How to Become a Positive Thinker Happiness Print How to Become a Positive Thinker By Kendra Cherry facebook twitter Kendra Cherry, MS, is an author, educational consultant, and speaker focused on helping students learn about psychology. Learn about our editorial policy Kendra Cherry Medically reviewed by Medically reviewed by Carly Snyder, MD on November 12, 2019 facebook twitter linkedin Carly Snyder, MD is a reproductive and perinatal psychiatrist who combines traditional psychiatry with integrative medicine-based treatments.   Learn about our Medical Review Board Carly Snyder, MD on November 12, 2019 Hero Images / Getty Images More in Self-Improvement Happiness Meditation Stress Management Spirituality Holistic Health Inspiration Brain Health Technology Relationships View All During a busy day, it can become all too easy to focus on the negative. You might feel tired, overworked, and stressed out by all of the conflicting demands on your time. As a result, negative thoughts can creep into your mind. While you know that thinking positively is better for your state of mind, you might be surprised to learn that it can also be good for your health. Research has demonstrated that positive thinking can have a wide variety of benefits, from improving your self-confidence and psychological well-being to actually boost your physical health. So what can you do to eliminate negative thoughts and replace them with a more positive outlook? Even if you are not a natural-born optimist, there are things you can do to develop your positive thinking skills and reap some of the benefits of positive thinking. How Can Positive Thinking Benefit Your Mind and Body? Focus on Your Thoughts In order to be a positive thinker, you need to learn how to really analyze your thoughts. The stream-of-conscious flow of thought can be difficult to focus on, especially if introspection is not your strong suit. When you encounter a challenging situation, try to notice how you think about what is happening. Do you engage in negative self-talk? Do you mentally criticize yourself or others? This negative thinking presents a major obstacle, but identifying such thoughts is the first step in overcoming them. Some of the most common types of negative thinking involve focusing on only the undesirable aspects of a situation. For example, lets imagine that you have just spent a busy day at work. You gave a presentation and completed several tasks ahead of schedule, but you forgot to return an important phone call. Despite the successes of the day, that evening you find yourself ruminating on that one slip-up and worry how it will affect your success at work. Instead of reflecting on the positive and acknowledging the negative, you are ignoring the good and magnifying the bad. Self-blame is another common type of negative thinking. When your department does not reach its sales quota for the month, you blame yourself rather than acknowledging that the slow economy has led to fewer sales overall. This type of negative thinking can be particularly damaging to your psychological well-being. By taking the blame for things that are not your fault or are not in your control, your self-esteem and self-confidence take a serious hit. How to Become a Positive Thinker Changing the negative thought cycle can be a challenge and it is a process that takes time. Positive thinking is not about putting on a pair of rose-colored glasses and ignoring all the negative things you will encounter in life. That approach can be just as devastating as ignoring the positive and only focusing on the negative. Balance, with a healthy dose of realism, is the key. It is important to note that simply repeating empty platitudes  (Im good enough! Im smart enough! People like me!) can sometimes backfire and actually have a negative impact on your self-image. So what can you do when you find yourself overwhelmed with negative thoughts? Start with small steps. After all, you are essentially trying to cultivate a new habit here, and as anyone who has ever tried to change a behavior or keep a resolution can tell you, these things take time. Start by identifying one area of your life that is most affected by negative thinking. Perhaps you tend to think negatively about your personal appearance or your performance in school. By starting with a single and relatively specific area of your life, the changes will be more likely to stick over the long-run. So, lets imagine that you have chosen to focus on your negative thinking with regards to school. The next step is to spend a little bit of time each day evaluating your own thoughts. When you find yourself thinking critical thoughts about yourself, take a moment to pause and reflect. While you might be upset about getting a bad grade on an exam, is berating yourself really the best approach? Is there any way to put a positive spin on the situation? While you might not have done well on this exam, at least you have a better indication of how to structure your study time for the next big test. Watch carefully for negative self-talk. When your inner monologue starts suggesting that you will never get your assignments done on time or that the work is too hard, find a way to take a more positive view of the situation. For example, if you are struggling to finish a research paper on time, look for ways that you can rearrange your schedule to make more time for the project rather than giving in to hopelessness. When a homework assignment seems too difficult to complete, see if taking a different approach to the problem of seeking out assistance from a classmate might help. A Word From Verywell Being a positive thinker is not about ignoring reality in favor of aspirational thoughts. It is more about taking a proactive approach to your life. Instead of feeling hopeless or overwhelmed, positive thinking allows you to tackle lifes challenges by looking for effective ways to resolve conflict and come up with creative solutions to problems. It might not be easy, but the positive impact it will have on your mental, emotional, and physical health will be well worth it. It takes practice; lots of practice. This is not a step-by-step process that you can complete and be done with. Instead, it involves a lifelong commitment to looking inside yourself and being willing to challenge negative thoughts and make positive changes.

Atomic Bombs and How They Work

There are two types of atomic explosions that can be facilitated by Uranium-235: fission and fusion. Fission, simply put, is a nuclear reaction in which an atomic nucleus splits into fragments (usually two fragments of comparable mass) all the while emitting 100 million to several hundred million volts of energy. This energy is expelled explosively and violently in the atomic bomb. A fusion reaction, on the other hand, is usually started with a fission reaction. But unlike the fission (atomic) bomb, the fusion (hydrogen) bomb derives its power from the fusing of nuclei of various hydrogen isotopes into helium nuclei. Atomic Bombs This article discusses the A-bomb or atomic bomb. The massive power behind the reaction in an atomic bomb arises from the forces that hold the atom together. These forces are akin to, but not quite the same as, magnetism. About Atoms Atoms are comprised of various numbers and combinations of the three sub-atomic particles: protons, neutrons, and electrons. Protons and neutrons cluster together to form the nucleus (central mass) of the atom while the electrons orbit the nucleus, much like planets around a sun. It is the balance and arrangement of these particles that determine the stability of the atom. Splitability Most elements have very stable atoms which are impossible to split except by bombardment in particle accelerators. For all practical purposes, the only natural element whose atoms can be split easily is uranium, a heavy metal with the largest atom of all natural elements and an unusually high neutron-to-proton ratio. This higher ratio does not enhance its splitability, but it does have an important bearing on its ability to facilitate an explosion, making uranium-235 an exceptional candidate for nuclear fission. Uranium Isotopes There are two naturally-occurring isotopes of uranium. Natural uranium consists mostly of isotope U-238, with 92 protons and 146 neutrons (92146238) contained in each atom. Mixed with this is a 0.6% accumulation of U-235, with only 143 neutrons per atom. The atoms of this lighter isotope can be split, thus it is fissionable and useful in making atomic bombs. Neutron-heavy U-238 has a role to play in the atomic bomb as well since its neutron-heavy atoms can deflect stray neutrons, preventing an accidental chain reaction in a uranium bomb and keeping neutrons contained in a plutonium bomb. U-238 can also be saturated to produce plutonium (Pu-239), a man-made radioactive element also used in atomic bombs. Both isotopes of uranium are naturally radioactive; their bulky atoms disintegrating over time. Given enough time (hundreds of thousands of years), uranium will eventually lose so many particles that it will turn into lead. This process of decay can be greatly accelerated in what is known as a chain reaction. Instead of disintegrating naturally and slowly, the atoms are forcibly split by bombardment with neutrons. Chain Reactions A blow from a single neutron is enough to split the less-stable U-235 atom, creating atoms of smaller elements (often barium and krypton) and releasing heat and gamma radiation (the most powerful and lethal form of radioactivity). This chain reaction occurs when spare neutrons from this atom fly out with sufficient force to split other U-235 atoms that they come in contact with. In theory, it is necessary to split only one U-235 atom, which will release neutrons that will split other atoms, which will release neutrons ... and so on. This progression is not arithmetic; it is geometric and takes place within a millionth of a second. The minimum amount to start a chain reaction as described above is known as supercritical mass. For pure U-235, it is 110 pounds (50 kilograms). No uranium is ever quite pure, however, so in reality more will be needed, such as U-235, U-238, and Plutonium. About Plutonium Uranium is not the only material used for making atomic bombs. Another material is the Pu-239 isotope of the man-made element plutonium. Plutonium is only found naturally in minute traces, so useable amounts must be produced from uranium. In a nuclear reactor, uraniums heavier U-238 isotope can be forced to acquire extra particles, eventually becoming plutonium. Plutonium will not start a fast chain reaction by itself, but this problem is overcome by having a neutron source or highly radioactive material that gives off neutrons faster than the plutonium itself. In certain types of bombs, a mixture of the elements Beryllium and Polonium is used to bring about this reaction. Only a small piece is needed (supercritical mass is about 32 pounds, though as little as 22 can be used). The material is not fissionable in and of itself but merely acts as a catalyst to the greater reaction.

Rhetorical Analysis Of The Backlash Against Serial And...

Rhetorical Analysis In his passionately written article â€Å"The Backlash Against Serial—and Why It’s Wrong,† author Conor Friedersdorf comes to the podcast’s defense following the harsh criticisms that have been thrown at Serial since its debut. Serial is a spinoff series from parent podcast This American Life, which details the investigation and reinvestigation of a brutal 1999 murder involving high school lovers of the Baltimore area. Friedersdorf’s piece not only comes to defend Serial’s honor, but it also fights back and grapples with these disparagements thrown at the podcast. In particular, the accused transgressions from fellow writers Jay Caspian Kang in his own work â€Å"Serial and White Reporter Privilege† and Jeff Yang’s post from Quartz. In my judgement, Friedersdorf does an excellent job refuting Kang’s and Yang’s opposing views and persuading his audience that Serial is innocent of the accused wron gdoings. What are these wrongdoings you ask? Kang claims that Serial is not so much about the cold case it is investigating, but more so the producer and narrator, Sarah Koenig’s, fixation on the case. He also believes that while Koenig may be well intentioned, she is interpreting and making assumptions on facts of the lives of people within minority communities involved with the case. Another writer, Yang asserts that This American Life’s method of narrative journalism displays â€Å"cultural clumsiness† (Yang qtd. Friedersdorf). Friedersdorf argues that these allegations

IPT Marketing Technology Free Essays

Once IPT’s website is complete, the company will have a fantastic opportunity to use several simple tools in order to capture data on its customer base. An online sign-up form in which customers input key data along with their Email address will be instrumental in fine-tuning marketing efforts which target specific markets. Permission-based Email marketing will involve sending promotional messages to the list of addresses in the database at least once monthly. We will write a custom essay sample on IPT Marketing Technology or any similar topic only for you Order Now Asking all customers to complete a short, online survey form after placement of an order or at various random times as consumers are browsing the site will direct IPT’s efforts to create a more satisfactory experience for the customer from a service standpoint. The website can also be configured to provide an online ordering system for commercial customers, making it easier and more convenient for them to place orders. Spreadsheets can also be used in conjunction with existing sales software. By assigning customer numbers and tracking purchases, IPT will be able to determine its best customers in terms of buying frequency and dollar amounts. Spreadsheets can be created to track the spending habits of retail, corporate and wholesale customers as well as show trends relating to business levels throughout the year, also known as a â€Å"recency frequency monetary value† tool (Alexander, 2007). In this way, IPT will have a strong foundation on which to base marketing promotions after a year or less of tracking. Creating a database of information from each customer will also aid in retention of loyal customers. CRM principles are based on a foundation of knowing the customer at the most intimate level possible and then using this information to align benefits with consumer needs (Alexander, 2007). As IPT expands geographically, the purchase of CRM software specifically designed to be used in a networked system will be a necessity. Such software will also contain report-building features so that IPT is able to analyze the data in several different ways. Eventually, IPT will want to develop its own, unique loyalty program with incentives offered to its top percentage of customers. Incentives do not need to be monetary-based, but can be as simple as tracking occasions when the customer may want to send gifts, such as relative’s birthdays, etc. References Alexander, Peter (July, 2007). â€Å"Use Data to Build Customer Loyalty†. Retrieved February 5, 2008 from the Entrepreneur.com Website: http://www.entrepreneur.com/technology/techtrendscolumnistpeteralexander/article182362.html.    How to cite IPT Marketing Technology, Essay examples

Budget and Finance Coffee Cafe coffee Bar

Question: Describe about the Executive Summary ,Calculation of Start-up Costs and Other Budgeted Projections and Assumptions of the presentation to the Bank of Coffee Cafe coffee bar? Answer: Executive Summary Coffee Cafe coffee bar aims at becoming the daily necessity of the local addicts. This will be a place for the consumers to relax so that they can escape the daily stress from their life. The coffee shop will be a comfortable place to meet up with friends, family. One can have a sip of coffee while reading the book (Pinson, 2008). There is growing demand for coffee which is of high quality. The service of the coffee shop will be satisfactory. The coffee shop will capitalize on its proximity to the University of Sydney campus so that it can build a core group of customers who will be repeat customers. The Coffee Caf has decided its venue in the populated areas of Sydney in order to build a core of repeat customers. The coffee shop will build strength of repeat customers (McKeever, 2002). The coffees will be complemented with pastries and other snacks. The customers can read free books so that they can enjoy their visit in the coffee shop (BBC News, 2014). The coffee shop will operate in a 1500 square foot area and it will be located in close proximity to the University of Sydney. The place has been secured by the owners with a lease for a period of three years. The owner of the coffee shop will invest $140000 for the initial start up of the business. The total capital required for the coffee shop is $170000 for starting the business. The coffee shop will obtain the remaining capital from Bank of Australia via commercial loans (V.T., 2014). The company has estimated the revenue from sales for the financial year 2015 to financial year 2017. The sales revenue for the year 2015 will be $584000 in the year 2015 and the sales revenue will reach to $706000 in the year 2017. The Coffee Caf bar will keep a marginal gross profit of around 65% in the three years. The operating expenses will be reasonable and there will be a significant increase in the net profit during the period of three years. The objective of the coffee shop for the first year of operations is to become the best new coffee shop in the locality of Sydney. The coffee shop will be set up in the close proximity of the busy street of Sydney so that it can address to a maximum customers. The college students will be potential customers of the coffee shop (Wagen and Goonetilleke, 2015). The coffee shop will turn profits in the first month of operation. The coffee shop will maintain the gross margin of 43%. The key success of the business of the Coffee shop will depen d on the design of the store, the quality of coffee offered to the customers. The ambience of the coffee shop is crucial for the growth of the coffee shop business. The coffee shop will be visually attractive for the customers and they are designed for the efficiency of operations of the coffee shop (Sanchez, 2014). The employees of the coffee shop will be trained properly to ensure that the coffee preparation techniques are top class and maintains the standards with the best coffee shop in Australia (Thomsen, 2015). The marketing strategies of the coffee shop will aim to build a solid base of loyal customers. The organization will aim at maximizing its sales (entrepreneur.com, 2015). The products with high margin such as expresso will be sold keeping high margin. The major expenses of the company will be incurred in legal expenses as accounting services amounting to $1300. The coffee shop has to spend on marketing promotion expenses for the opening of the coffee shop (Kerner, 2015) . Additional charges have to be paid to the consultants for helping the set up of the coffee shop. Expenses will be made for insurance, prepaid rent, remodeling of the premises and other expenses in stationery and phone utility deposits (Beanhunter, 2015). The Coffee Caf shop will be located in the ground floor of the commercial building near University of Sydney (Awe, n.d.). The owner will take the lease of the building for one year. The lease contract will be renewed for three years at a fixed rate that will be executed by Coffee Caf depending on the financial strength of the business. The property will be located in the commercial area in the near proximity of the University campus (BBC News, 2014). The interior design of the coffee shop will portray a clean interior design. The dcor will be modern wooden dcor (BizPlanDB, 2015). The quality of the coffee and the snacks will be one of the best in Australia. It will be an eclectic place where the people can relax and enjoy a cup of coffee (web.uvic.ca, 2015). The window display of the coffee shop will be clear so that the customers sitting at the coffee shop will have a clear view of the passerby while enjoying their beverages (Urbanspoon, 2015). Calculation of Start-up Costs and Other Budgeted Projections Budgeted Cash Flow Statement Cash received from Operations Cash Sales $ 548,000.00 $ 624,000.00 $ 705,640.00 Additional cash received Receipt of Sales Tax , GST / VAT $ - $ - $ - Current Net borrowing $ - $ - $ - New interest free liabilities $ - $ - $ - New long term liabilities $ - $ - $ - Current Assets sale $ - $ - $ - Long term assets sale $ - $ - $ - Receipt of New investment $ - $ - $ - Sub Total receipt of cash $ 548,000.00 $ 624,000.00 $ 705,640.00 Expenditure Expenditure of Operations Cash Spending $ 126,400.00 $ 134,800.00 $ 154,155.00 Payment of Bills $ 327,856.00 $ 388,751.00 $ 402,954.00 Subtotal operation expenses $ 454,256.00 $ 523,551.00 $ 557,109.00 Repayment of Principal of Current Borrowing $ 3,300.00 $ 3,300.00 $ 3,300.00 Principal Repayment for long term liabilities $ - $ 3,858.00 $ 3,691.00 Long term asset purchase $ - $ 2,000.00 $ 2,000.00 Dividends $ - $ - $ - Subtotal cash spent $ 457,556.00 $ 532,709.00 $ 566,100.00 Net flow of cash $ 90,444.00 $ 91,291.00 $ 139,540.00 Budgeted Profit and Loss January May June July August September October November December Sales $ 40,000.00 $ 47,000.00 $ 47,000.00 $ 47,000.00 $ 47,000.00 $ 48,000.00 $ 49,000.00 $ 51,000.00 $ 53,000.00 Direct Cost of Sales $ 14,500.00 $ 15,500.00 $ 15,750.00 $ 16,000.00 $ 16,250.00 $ 16,500.00 $ 16,750.00 $ 17,000.00 $ 17,250.00 Gross Margin $ 25,500.00 $ 31,500.00 $ 31,250.00 $ 31,000.00 $ 30,750.00 $ 31,500.00 $ 32,250.00 $ 34,000.00 $ 35,750.00 Gross Margin % 76% 66% 66% 65% 67% 67% 69% 70% 67% Expenses Payroll $ 10,833.00 $ 10,833.00 $ 10,833.00 $ 10,833.00 $ 10,833.00 $ 10,833.00 $ 10,833.00 $ 10,833.00 $ 10,833.00 Sales and Marketing $ 2,250.00 $ 2,250.00 $ 2,250.00 $ 2,250.00 $ 2,250.00 $ 2,250.00 $ 2,250.00 $ 2,250.00 $ 2,250.00 Depreciation $ 432.50 $ 432.50 $ 432.50 $ 432.50 $ 432.50 $ 432.50 $ 432.50 $ 432.50 $ 432.50 Rent $ - $ 4,120.00 $ 4,120.00 $ 4,120.00 $ 4,120.00 $ 4,120.00 $ 4,120.00 $ 4,120.00 $ 4,120.00 Maintenance $ 400.00 $ 600.00 $ 650.00 $ 700.00 $ 750.00 $ 800.00 $ 850.00 $ 900.00 $ 950.00 Utilities $ 717.00 $ 717.00 $ 717.00 $ 717.00 $ 717.00 $ 717.00 $ 717.00 $ 717.00 $ 717.00 Payroll Tax @ 12.5% $ 1,354.13 $ 1,354.13 $ 1,354.13 $ 1,354.13 $ 1,354.13 $ 1,354.13 $ 1,354.13 $ 1,354.13 $ 1,354.13 Total Operating Expenses $ 15,986.63 $ 20,306.63 $ 20,356.63 $ 20,406.63 $ 20,456.63 $ 20,506.63 $ 20,556.63 $ 20,606.63 $ 20,656.63 Profit before Tax $ 9,513.38 $ 11,193.38 $ 10,893.38 $ 10,593.38 $ 10,293.38 $ 10,993.38 $ 11,693.38 $ 13,393.38 $ 15,093.38 Interest expense $ 247.00 $ 239.00 $ 237.00 $ 235.00 $ 233.00 $ 231.00 $ 229.00 $ 227.00 $ 225.00 Tax Burden @10% $ 951.34 $ 1,119.34 $ 1,089.34 $ 1,059.34 $ 1,029.34 $ 1,099.34 $ 1,169.34 $ 1,339.34 $ 1,509.34 Net Profit $ 8,315.04 $ 9,835.04 $ 9,567.04 $ 9,299.04 $ 9,031.04 $ 9,663.04 $ 10,295.04 $ 11,827.04 $ 13,359.04 Net Profit Percentage 21% 21% 20% 20% 19% 20% 21% 23% 25% Budgeted Balance Sheet January February March April May June July August September October November December Assets Current Assets Inventory $15,027.00 $16,400.00 $16,325.00 $17,480.00 $17,480.00 $17,480.00 $18,864.00 $20,010.00 $22,175.00 $22,354.00 $24,135.00 $25,600.00 Cash $66,123.00 $94,736.00 $106,966.00 $114,462.00 $121,235.00 $129,127.00 $137,020.00 $144,914.00 $152,811.00 $161,679.00 $172,596.00 $184,211.00 Other current assets $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total current Assets $81,150.00 $111,136.00 $123,291.00 $131,942.00 $138,715.00 $146,607.00 $155,884.00 $164,924.00 $174,986.00 $184,033.00 $196,731.00 $209,811.00 Long term Assets Long term assets $58,160.00 $58,160.00 $58,160.00 $58,160.00 $58,160.00 $58,160.00 $58,160.00 $58,160.00 $58,160.00 $58,160.00 $58,160.00 $58,160.00 Depreciation $0.00 $430.00 $645.00 $967.50 $1,451.25 $2,176.88 $3,265.31 $4,897.97 $7,346.95 $11,020.43 $16,530.64 $24,795.97 Total Long term assets $58,160.00 $58,590.00 $58,805.00 $59,127.50 $59,611.25 $60,336.88 $61,425.31 $63,057.97 $65,506.95 $69,180.43 $74,690.64 $82,955.97 Total Assets $139,310.00 $169,726.00 $182,096.00 $191,069.50 $198,326.25 $206,943.88 $217,309.31 $227,981.97 $240,492.95 $253,213.43 $271,421.64 $292,766.97 Liabilities and Capital Current Liabilities Current Borrowing $11,000.00 $10,850.00 $10,700.00 $10,550.00 $10,400.00 $10,250.00 $10,100.00 $9,950.00 $9,800.00 $9,650.00 $9,500.00 $9,350.00 Accounts Payable $0.00 $20,118.00 $24,118.00 $28,118.00 $32,118.00 $36,118.00 $40,118.00 $44,118.00 $48,118.00 $52,118.00 $56,118.00 $60,118.00 Total current liabilities $11,000.00 $30,968.00 $34,818.00 $38,668.00 $42,518.00 $46,368.00 $50,218.00 $54,068.00 $57,918.00 $61,768.00 $65,618.00 $69,468.00 Long term liabilities $21,000.00 $21,000.00 $21,000.00 $21,000.00 $21,000.00 $21,000.00 $21,000.00 $21,000.00 $21,000.00 $21,000.00 $21,000.00 $21,000.00 Total Liabilities $32,000.00 $51,968.00 $55,818.00 $59,668.00 $63,518.00 $67,368.00 $71,218.00 $75,068.00 $78,918.00 $82,768.00 $86,618.00 $90,468.00 Paid in capital $130,500.00 $130,500.00 $130,500.00 $130,500.00 $130,500.00 $130,500.00 $130,500.00 $130,500.00 $130,500.00 $130,500.00 $130,500.00 $130,500.00 Earnings $0.00 $6,963.00 $7,102.26 $7,528.40 $7,980.10 $8,458.91 $8,966.44 $9,504.43 $10,074.69 $10,679.17 $11,319.92 $11,999.12 Total Capital $130,500.00 $137,463.00 $137,602.26 $138,028.40 $138,480.10 $138,958.91 $139,466.44 $140,004.43 $140,574.69 $141,179.17 $141,819.92 $142,499.12 Total Capital and Liabilities $162,500.00 $189,431.00 $193,420.26 $197,696.40 $201,998.10 $206,326.91 $210,684.44 $215,072.43 $219,492.69 $223,947.17 $228,437.92 $232,967.12 Net Worth $293,000.00 $326,894.00 $331,022.52 $335,724.79 $340,478.20 $345,285.81 $350,150.88 $355,076.85 $360,067.38 $365,126.35 $370,257.85 $375,466.24 Assumptions of the presentation to the Bank 1. The coffee shop will be set up in the close proximity of University of Sydney. It will be located in the busy streets of Sydney to attract mass of customers mostly comprising of college students who will form repeat customers. 2. The profit of the coffee shop for the first three years has been presented. The net profit margin will be 9.15% in the first year, 14.61% in the second year and 19.59% in the third year. The gross profit margin will reach to around 65% in the three years. References Awe, S. (n.d.).The entrepreneur's information sourcebook. BBC News, (2014).Deadly end to Sydney cafe siege. [online] Available at: https://www.bbc.com/news/world-australia-30485355 [Accessed 26 Feb. 2015]. BBC News, (2014).Gunman holds Sydney cafe hostages. [online] Available at: https://www.bbc.com/news/world-australia-30473983 [Accessed 26 Feb. 2015]. Beanhunter, (2015).Sydney, Australia. [online] Available at: https://www.beanhunter.com/australia/new-south-wales/sydney [Accessed 26 Feb. 2015]. BizPlanDB, (2015).Cafe Business Plan. pp.2-10. entrepreneur.com, (2015).The Water Tower Cafe - Business Plan. [online] Available at: https://www.entrepreneur.com/downloads/assist_bplans/watertowercafe_live.pdf [Accessed 26 Feb. 2015]. Kerner, N. (2015).Creating a Business Plan: Your Dream Concept Made Real. pp.20-100. McKeever, M. (2002).How to write a business plan. Berkeley, CA: Nolo. Pinson, L. (2008).Anatomy of a business plan. Tustin, CA: Out of Your Mind and Into the Marketplace. Sanchez, R. (2014).Gunman and two hostages killed in Sydney siege: as it happened - Telegraph. [online] Telegraph.co.uk. Available at: https://www.telegraph.co.uk/news/worldnews/australiaandthepacific/australia/11293694/Islamists-take-hostages-in-Sydney-cafe-siege-live.html [Accessed 26 Feb. 2015]. Thomsen, M. (2015).The Dynamic Business Plan. pp.24-35. Urbanspoon, (2015).Coffee. [online] Available at: https://www.urbanspoon.com/f/70/100012/Sydney/Coffee-Shops [Accessed 26 Feb. 2015]. V.T., (2014).Jumpstart Your Coffeeshop Business. Wagen, L. and Goonetilleke, A. (2015).Hospitality Management, Strategy and Operations. pp.500-600. web.uvic.ca, (2015).Coffee Shops. [online] Available at: https://web.uvic.ca/~pcourty/8.pdf [Accessed 26 Feb. 2015].

How To Stop Smoking Essays - Habits, Smoking, Anxiety,

How To Stop Smoking Smoking cigarettes decreases vitamin C levels to the adrenal glands. This weakens the adrenal glands, which in turn lowers epinephrine production. This will lower your energy levels, and could also be playing a role in your trouble breathing. So my first suggestion is to work on building up your adrenals. To get the toxins out of your system, the best blood purifiers are chaparral, red clover, burdock root, and/or hydragnea root. And remember to drink plenty of water throughout the day. I also recommend kelp to help remove the toxic heavy metals from your system, such as the cadmium from cigarettes. To curb the desire for cigarettes, Gaia Herbs makes an excellent stop smoking formula called Lobelia/Calamus Supreme. It is sold in health food stores. Health and Beauty

The Origins of the Domesticated Grapevine

The Origins of the Domesticated Grapevine Domesticated grapevine (Vitis vinifera, sometimes called V. sativa) was one of the most important fruit species in the classic Mediterranean world, and it is the most important economic fruit species in the modern world today. As in the ancient past, sun-loving grapevines are today cultivated to produce fruits, which are eaten fresh (as table grapes) or dried (as raisins), and, most especially, to make wine, a drink of great economic, cultural, and symbolic value. The Vitis family consists of about 60 inter-fertile species that exist almost exclusively in the Northern Hemisphere: of those, V. vinifera is the only one extensively used in the global wine industry. Approximately 10,000 cultivars of V. vinifera exist today, although the market for wine production is dominated by only a handful of them. Cultivars are typically classified according to whether they produce wine grapes, table grapes, or raisins. Domestication History Most evidence indicates that V. vinifera was domesticated in Neolithic southwest Asia between ~6000–8000 years ago, from its wild ancestor V. vinifera spp. sylvestris, sometimes referred to as V. sylvestris. V. sylvestris, while quite rare in some locations, currently ranges between the Atlantic coast of Europe and the Himalayas. A second possible center of domestication is in Italy and the western Mediterranean, but so far the evidence for that is not conclusive. DNA studies suggest that one reason for the lack of clarity is the frequent occurrence in the past of purposeful or accidental cross-breeding of domestic and wild grapes. The earliest evidence for wine production- in the form of chemical residues inside pots- is from Iran at Hajji Firuz Tepe in the northern Zagros mountains about 7400–7000 BP. Shulaveri-Gora in Georgia had residues dated to the 6th millennium BC. Seeds from what are believed to be domesticated grapes have been found in Areni Cave in southeastern Armenia, about 6000 BP, and Dikili Tash from northern Greece, 4450–4000 BCE. DNA from grape pips thought to be domesticated was recovered from Grotta della Serratura in southern Italy from levels dated to 4300–4000 cal BCE. In Sardinia, the earliest dated fragments come from the Late Bronze Age levels of the Nuragic culture settlement of Sa Osa, 1286–1115 cal BCE. Diffusion By about 5,000 years ago, grapevines were traded out to the western margin of the Fertile Crescent, the Jordan Valley, and Egypt. From there, the grape was spread throughout the Mediterranean basin by various Bronze Age and Classical societies. Recent genetic investigations suggest that at this distribution point, the domestic V. vinifera was crossed with local wild plants in the Mediterranean. According to the 1st century BCE Chinese historical record Shi Ji, grapevines found their way into East Asia in the late 2nd century BCE, when General Qian Zhang returned from the Fergana Basin of Uzbekistan between 138–119 BCE. Grapes were later brought to Changan (now Xian city) via the Silk Road. Archaeological evidence from the steppe society Yanghai Tombs indicates, however, that grapes were grown in the Turpan Basin (at the western edge of what is today China) by at least 300 BCE. The founding of Marseille (Massalia) about 600 BCE is thought to have been connected with grape cultivation, suggested by the presence of a large number of wine amphorae from its early days. There, Iron Age Celtic people bought large quantities of wine for feasting; but overall viticulture was slow-growing until, according to Pliny, retired members of the Roman legion moved to the Narbonnaisse region of France at the end of the 1st century BCE. These old soldiers grew grapes and mass-produced wine for their working colleagues and the urban lower classes. Differences Between Wild and Domestic Grapes The main difference between wild and domestic forms of grape is the wild forms ability to cross-pollinate: wild V. vinifera can self-pollinate, while domestic forms cannot, which allows farmers to control a plants genetic characteristics. The domestication process increased the size of bunches and berries, and the berrys sugar content as well. The end result was greater yields, more regular production, and better fermentation. Other elements, such as larger flowers and a wide range of berry colors- particularly white grapes- are believed to have been bred into the grape later in the Mediterranean region. None of these characteristics are identifiable archaeologically, of course: for that, we must rely on changes in grape seed (pips) size and shape and genetics. In general, wild grapes bear roundish pips with short stalks, while domestic varieties are more elongated, with long stalks. Researchers believe the change results from the fact that larger grapes have larger, more elongated pips. Some scholars suggest that when pip shape varies within a single context, that probably indicates viticulture in process. However, in general, using shape, size, and form is only successful if the seeds were not deformed by carbonization, water-logging, or mineralization. All of those processes are what allows grape pits to survive in archaeological contexts. Some computer visualization techniques have been used to examine pip shape, techniques which hold promise to resolve this issue. DNA Investigations and Specific Wines So far, DNA analysis doesnt really help either. It supports the existence of one and possibly two original domestication events, but so many deliberate crossings since then have blurred researchers ability to identify the origins. What does seem apparent is that cultivars were shared across wide distances, along with multiple events of vegetative propagation of specific genotypes throughout the wine-making world. Speculation is rampant in the non-scientific world about the origins of specific wines: but so far scientific support of those suggestions is rare. A few that are supported include the Mission cultivar in South America, which was introduced into South America by Spanish missionaries as seeds. Chardonnay is likely to have been the result of a medieval-period cross between Pinot Noir and Gouais Blanc that took place in Croatia. The Pinot name dates to the 14th century and might have been present as early as the Roman Empire. And Syrah/Shiraz, despite its name suggesting an Eastern origination, arose from French vineyards; as did Cabernet Sauvignon. Sources Bouby, Laurent, et al. Bioarchaeological Insights into the Process of Domestication of Grapevine (Vitis Vinifera L.) During Roman Times in Southern France. PLoS ONE 8.5 (2013): e63195. Print.Gismondi, Angelo, et al. Grapevine Carpological Remains Revealed the Existence of a Neolithic Domesticated Vitis Vinifera L. Specimen Containing Ancient DNA Partially Preserved in Modern Ecotypes. Journal of Archaeological Science 69.Supplement C (2016): 75-84. Print.Jiang, Hong-En, et al. Archaeobotanical Evidence of Plant Utilization in the Ancient Turpan of Xinjiang, China: A Case Study at the Shengjindian Cemetery. Vegetation History and Archaeobotany 24.1 (2015): 165-77. Print.McGovern, Patrick E., et al. Beginnings of Viniculture in France. Proceedings of the National Academy of Sciences of the United States of America 110.25 (2013): 10147-52. Print.Orrà ¹, Martino, et al. Morphological Characterisation of Vitis Vinifera L. Seeds by Image Analysis and Comparison with Archaeological Remains . Vegetation History and Archaeobotany 22.3 (2013): 231-42. Print. Pagnoux, Clà ©mence, et al. Inferring the Agrobiodiversity of Vitis Vinifera L. (Grapevine) in Ancient Greece by Comparative Shape Analysis of Archaeological and Modern Seeds. Vegetation History and Archaeobotany 24.1 (2015): 75-84. Print.Ucchesu, Mariano, et al. Predictive Method for Correct Identification of Archaeological Charred Grape Seeds: Support for Advances in Knowledge of Grape Domestication Process. PLOS ONE 11.2 (2016): e0149814. Print.Ucchesu, Mariano, et al. Earliest Evidence of a Primitive Cultivar of Vitis Vinifera L. During the Bronze Age in Sardinia (Italy). Vegetation History and Archaeobotany 24.5 (2015): 587-600. Print.Wales, Nathan, et al. The Limits and Potential of Paleogenomic Techniques for Reconstructing Grapevine Domestication. Journal of Archaeological Science 72.Supplement C (2016): 57-70. Print.Zhou, Yongfeng, et al. Evolutionary Genomics of Grape (Vitis Vinifera Ssp. Vinifera) Domestication. Proceedings of the National Academy of Sciences 114.44 (2017 ): 11715-20. Print.

Emerging Trends in Civil Liability Cases Annotated Bibliography

Emerging Trends in Civil Liability Cases - Annotated Bibliography Example For a case to be successful, the applicant has to prove that the government official violated his or her constitutional or federal law rights and whether the officers acted under color of law. As such, the article presents a discussion of a series of case rulings in which the plaintiffs sought to be awarded legal relief under the provision of Section 83. The liability cases studied and analyzed by Ross are related to correctional officers, since such officials are at the highest risk of litigation. In total, the study examined 3,205 correctional liability cases filed against correctional officials under Section 1983. The claims for such cases were many and varied, but Ross identified sixteen categories indicating trends in the litigation claims. These categories include violation of free speech rights, cruel and unusual punishment, and failure to protect a claim. The large sample evaluated increases the reliability of the study. In addition, by examining the trend over a long period of time and considering cases from all facilities in the United States District Court system, the validity of the findings from the study is increased. This validity is further strengthened by the credibility of the researcher since Ross is a University Professor with the Criminal Justice Program. The study observed that majority of the cases were filed without legal counsel, and this could present a weakness in the findings since some of them could have no legal basis. According to Ross’ findings, the number of correctional liability claims filed under Section 1983 is directly related to the prisoner population and would continue to increase with a proportional increase in the population of prisoners. CJ professionals would use this fact to vary the population of inmates in particular correctional facilities, thus reducing potential conflicts that could result in litigation claims against correctional officers.

Stakeholders of the software industry Research Paper

Stakeholders of the software industry - Research Paper Example Conspicuously, information on the quality of software products is the most sought by consumers. It is imperative that developers of software products disseminate this information not only in a timely manner but also ensure that the information publicized is accurate and detailed (Myers, 1999). To obtain this information about a product’s quality, design, requirements, and implementation, it is important that developers of software products carry out different tests at the various phases of their production line. Such testing processes not only give information on the quality of a product but also enable an independent and unprejudiced view of a product not only by its developers but also by its users (Myers, 1999). In addition, the developer of software product may have the opportunity to appreciate and understand the risks of the design, development, and execution software (Myers, 1999). Contrary to common belief among laymen, software testing extends beyond tests done to asc ertain whether a product can be executed or applied and testing to identify or discover bugs; it encompasses all the processes by which software is validated and verified. In addition, software testing seeks to establish whether a product has adhered to the design and development requirements and can be effectively executed with similar features. What is more, software testing seeks to establish whether the needs of all stakeholders have been achieved in a product (Willison, 2004). One fundamental facet of software testing is that it can be done at any stage of the development and implementation of software, depending on the type of testing advised or adopted. This paper explores the notion that software testing is used to show that software functions properly. More precisely, the paper discusses the use of software testing to prevent and/or eliminate faults associated with requirements, design, analysis, and implementation. Software Testing for Prevention of Faults Recent times hav e realized an increase in the popularity of software testing in the software development industry. Software testing in the software industry entails not only the activities in the development cycle of software but also beyond. The importance of software testing is best highlighted by the fact that quite many users have experiences of software not working as expected. Evidently, faulty software has quite huge impacts on organisations. Among the consequences of software that do not work include financial losses, time losses, damage to business reputation, injury or death for safety-critical systems (Willison, 2004). The first way by which faulty software may result in financial loss is due to non-compliance to legal requirements. Regrettably, the testing phase of software development is never accorded the seriousness it deserves from software developers and managers. This situation exists despite the fact that testing is the only way to ascertain whether an application is likely to fu nction properly after it is deployed to the market. Due to its importance in ensuring a product is correct, there are several recommended approaches to and reasons for software testing (Willison, 2004). Although it gets a little attention, software testing remains a rather integral and important phase of any project on software development. That is, it is only via software testing that a developer may ascertain whether a software project or product is poised to succeed in the market or is doomed (Willison, 2004). It is important that software developers must have an approach that focuses on functional testing, characterized by the verification of whether software

Concepts and Theories of Auditing

Concepts and Theories of Auditing Auditing has been present for years in different stage of development following the evolution of accounting. Starting since the epoch when the records were approved after a public reading, to the era when governments officials were measured by their honesty. Followed by the times of the industrial revolution were the ownership of companies started separating from management; when owners required more protection of their investments increasing the use of auditors, consequently; to the times were an auditor was always searching for frauds or errors (Whittington Pany, 2004, p. 7) and then to ascertain the actual financial condition and earnings of an enterprise (Montgomery, 1913, p. 9). However, the acceptance of auditing as an academic discipline is not old and just after the development of different concepts and techniques within the audit model such as the use of sampling, the study of the internal control environment, and the risk assessment, is when more focus to the theoretical and conceptual framework of auditing it is been devoted. Andrew Sayer (1992) discussed the concept of theories in social science from the perspective of theory as an ordering-framework (p. 50), indicating that theory allows the use of the observed data and their relationships to predict and explain empirical events. Additionally Cooper and Schindler (1998) define theory as a set of systematically interrelated concepts, definitions, and propositions that are advanced to explain and predict phenomena (facts) (p. 47). Another concept is expressed by Singleton and Straits (2005) explaining theory as a set of interconnected propositions (p. 19). The success in the explanations or predictions of any phenomena depends on the level that the theory holds and do not fails fitting in the situation, and the challenge is to perfect the process of matching theory and fact (Cooper and Schindler (1998). Different authors have started the development of the audit theory such as Mautz and Sharaf (1961) with their publication titled The Philosophy of Auditing; also Tom Lee (1986) with his approach in the book Company Auditing, and later David Flint (1988) with his book Philosophy and principles of auditing (as cited in Moizer, 1989). The auditing analysis in this demonstration will be framed on the postulates proposed by David Flint (1988) as a foundation for the theory of auditing. Flint (1988) stated that there is a matter of public accountability demanding an independent audit for its demonstration with clear definition and intention, based on evidence that only skilled auditors gather, measure it, and compare it against the standards, which generates economic or social benefit (as cited in Moizer, 1989). Following are the seven postulates or assumptions stated by Flint (1988): There is a relationship of accountability or a situation of public accountability. Accountability cannot be demonstrated without an audit. An audit requires independence and freedom. The subject matter of audit is susceptible to verification by evidence. Auditors are skilled judges who are able to measure and compare actual performance against standards of accountability. The meaning, significance, and intention of statements to be audited must be clear. An audit produces an economic or social benefit. (Flink, 1989) Whenever an economic relationship exists one of the parties owe a duty of an acceptable accountability, consequently audits are voluntary, imposed for the health of the relationship. There are also audit related to the interest of the public in matters of the society institutions. As expressed by Whittington and Pany (2004) dependable information is essential to the very existence of our society (p. 1). They explained the social need for audit and professionals who can attest that the reported information is fair respect to the reality for purpose of allocating resources for the production of services and goods based on reliable financial information (p. 1). Normally the financial and economic aspects of the related subject matter are complex, not physically accessible, or have the level of significance that necessary demand an audit to accept the accountability. No all investors or stakeholders of an entity understand the complexity of the business and financial environment, or are near to the place were their resources are to oversee for accountability. The credibility of the information is important and the preferable form of obtaining credible information to rely on is by using independent auditors to perform an audit. That reduce the business risk that relates to the permanence and profits of the company, and the information risk that the financial information used to make a decision is materially misstated (Whittington Pany, 2004, p. 6). Therefore, if the audit must add credibility it must be performed independently and without bias or prejudice. Audit is subject to verification and that is possible only if sufficient evidential matter of the audit is gathered. Additionally, some standards of accountability and performance need to be in place to easy the auditors measurement. Therefore, the parties involved must agree on their acceptable standards. The auditing community has set some professional guidance as a form of general accepted practiced standards. For an audit to add value to the financial information, the purpose of the information should be clear, and the findings effectively communicated. The audit should be performed only when its benefits weigh more than the costs. As a consequence auditors should be aware of the cost of collecting evidence especially in situation were the risk is high. The practice of auditing auditors agree on an attest engagement in which they issue or does issue an examination, a review, or an agreed-upon procedures report on subject matter or an assertion about subject matter that is the responsibility of another party (e.g., management) (Whittington Pany, 2004, p. 2). In an examination of financial statement, referred to as an audit the standards may be the Generally Accepted Accounting Principles (GAAP), and the auditors collect sufficient evidence to attest about how fair is the information in the financial statement respect to the GAAP. However, here are three types of audits: (a) audits of financial statements, (b) compliance audits, and (c) operational audits. Financial audits determine if the statements were prepared according with GAAP. Compliance audit verifies if the company had complies with law, regulations or polices and procedures. Finally, operational audits review the effectiveness and efficiency of particular unit of an organization (Whittington Pany, 2004, p. 11). Relative to the public accounting standards, the American Institute of Certified Public Accountants (AICPA) has developed the framework for the general accepted auditing standards (GAAS), which are the fundamentals principles of independent auditing in the U. S. The framework is divided in three major areas that are summarized as follow: General standards. A professional possessing adequate technical training and proficiency, independent in mental attitude and free from bias and with professional care planning and performing diligently, perform the audit. Standards of field work. The audit should be adequate planned and the staff properly supervised. Auditor should acquire sufficient understanding of the internal control environment to be able to determine the weak areas, and gather sufficient competent evidence to support their conclusions. Standards of reporting. The final report should state if the statements are consistent with GAAP and if necessary indicate those circumstances departing from GAAP, include adequate informative disclosure, and includes the opinion of the auditors about the financial statements. Likewise, the AICPA has issued a series of auditing standards on auditing procedure, auditing and accounting guides, and auditing statements of position, to help auditor in the fulfillment of their responsibility of detecting misstatement (Whittington Pany, 2004, pp. 34-35). Auditing involve a serious processes that expose auditors to a different situations in which they need to exercise professional ethics. Those moral principles and values leading decisions and actions of the profession of auditing are provided by the AICPA in the Code of Professional Conduct, and by the Institute of Internal Auditors (IIA) Code of Ethics. Normally auditors are involved in a decision process of ethical dimension. CPAs decisions during performing their duties can affect thousands of investors and their resources; therefore, they need to measure the implication of their decisions. Additionally, as Whittington and Pany (2004) indicated, what is considered unethical in a particular society is not specifically prohibited (p. 11), giving relevance and support to the need for the establishment of those principles and values in the accounting and auditing profession. The public accounting, as well as the rest of professions, has the following characteristics: (a) their responsibility to serve the public with independence and due care with fairness and free from bias. (b) Involves a complex body of knowledge that includes different authoritative pronouncements of standards and principles governing the profession and the financial reports due to the need of technical competency. (c) Has establishes some standard of admission to the profession that each CPA is required to meet. In addition (d), need public confidence to be successful (Whittington Pany, 2004, pp. 61-62). The AICPA leads public accountants to recognize their responsibility to the public in general, to their clients, and to the profession. The section one of the code of conduct describes the organization and CPAs principles of responsibilities, public interest, integrity, objectivity and independence, due care, and scope and nature of services. The section two depicts the institutes rules that are compounded by the following: independence, integrity and objectivity, general standards, compliance with standards, accounting principles, confidential client information, contingent fees, acts discreditable, advertising and other forms of solicitation, commissions and referral fees, and form of organization and name (Whittington Pany, 2004, pp. 63-83). Similarly, the IIA has their own code of ethics divided in three main sections, an introductory section, principles, and rules of conduct. Their principles apply to the profession and practice of the internal auditing, and include integrity, objectivity confidentiality, and competency. The IIA rules on conduct include integrity, objectivity, confidentiality, and competency (Whittington Pany, 2004, pp. 83-84). The IIA is the organization that provides the standards for the professional practice of internal auditing. As it can be deduced from the previous summaries, both institutes the IACPA and the IIA require high level of self-discipline and commitment to a honorable professional behavior, integrating similar principles of integrity, objectivity, and competence. Their rules differ in the fact that internal auditors perform internally; public accountants attest on the financial statements to the company as outsiders performing professionally to honor the public trust. However, the concept of independence is common to both ramification of auditing because it refers to the ability to maintain and objective and impartial mental attitude (Whittington Pany, 2004, p. 66), and without of conflict of interest. After the previous review of the auditing theory and how CPAs support it with a professional framework that includes principles, ethical codes, and general accepted standards for the auditing practice, the following section depicts a discussion of audit procedures as well as an introduction of important concepts that are fundamental part of the theory of auditing and the auditing practice. The Audit Procedures The ultimate product after the performance of an audit is the issuance of a report indicating if the financial statements audited comply with GAAP. Sufficient evidence must support the audit report and such evidence is gathered and documented by exercising rigorous procedures that, among other important goals, help the auditors in assessing the risk of misstatement. According to Whittington and Pany (2004), audit procedures involve: (a) the understanding of the client, the business, and industry to use it in assessing risks; (b) the understanding of the internal control environment; (c) the design and performance of controls testing to assess how effective the controls are in preventing or detecting material misstatements; and (d) the design and performance of substantive procedures that include analytical procedures, direct testing of transactions and ending balances (pp. 138-139). Because the internal control is the focus of interest for this demonstration, a separate section will discuss it. The substantive procedures include analytical procedures, the testing of transactions, and the testing of the ending balances on the statements. Analytical procedures consist of an analysis and evaluation of the information present in the financial statements, and a review of the relationship between financial and nonfinancial information. The assumption behind the analytical procedures is that the relationship and trend of the financial information is expected to follow the historical data and projections of the business and in contrary situation evidence must be obtained to support the reasonability of the changes (Whittington Pany, 2004, p. 141). Different techniques are use during the analytical procedures. From simple verification of a number to complicated mathematical models, such the comparison of cumulative expenses and revenues with prior years to find significant differences, the use of multiple regression model to estimate revenues by using economic and industry data, and ratio analysis and its comparison with other businesses in the same industry (Whittington Pany, 2004 (p. 141). The testing procedures seek to prove the occurrence and correct recognition of transactions, and prove of existence and misstatements on what the ending balances represent. The substantive testing procedures are performed as an interim mode before year-end, and then after the business year-end. The level of risk established by the auditors during the overall business assessment guides the extent of the substantive audit procedures. The greater the risk of material misstatement the greater the needed extent of substantive procedures (Whittington Pany, 2004, p. 139), but always keeping under evaluation the cost-benefit relation of increasing the procedures to perform. Among the most common test performed in an audit process, Whittington and Pany (2004) summarized the following: Accounting System: Comparison-Agreeing amounts from different internal records. Documentary evidence: Tracing-Establishing the completeness of transaction processing by following a transaction forward through the accounting records. Vouching-Establishing the existence or occurrence of recorded transactions by following a transaction back to supporting documents forms a subsequent processing step. Inspection-Reading or point-by-point review of a document or record (the terms examine, review, read, and scan are used to describe the inspection technique). Reconciliation-Establishing agreement between two sets of independently maintained but related records. Third-party representation: Confirmation and evaluating a response from a debtor, creditor, or other party in reply to a request for information about a particular item affecting the financial statements. Physical evidence: Physical examination-viewing physical evidence of an asset. Observation-viewing a client activity. Computations: Reperformance-repeating a client activity. This may include operations such as footing (providing the total of a vertical column of figures); cross footing (proving the total of a horizontal row of figures); and extending (re-computing by multiplication). Data interrelationships: Analytical procedures-Evaluation of financial information made by a study of expected relationships among financial and nonfinancial data. Client representations: Inquires-questions directed toward appropriate client personnel. According to Whittington and Pany (2004), auditors also collect evidence from some subjective areas such as the accounting estimates, the fair market value measurement and disclosures, and transactions with related parties (pp. 146-148). After the development of audit procedures auditors test for existence or occurrence to search for misstatements and completeness searching for understatement, from transactions start to finish, and they test the accounting system from source documents to journals to ledgers. (Whittington Pany, 2004, p. 195). The audit program includes two main parts, the assessment of the effectiveness of the client internal controls, and substantive testing. Normally the system portion of an audit program is divided by cycle such as revenue, purchasing and payments, production, payroll, investing, and financing (Whittington Pany, 2004, p. 196). Audit Risk The risk concept is use in different disciplines for different purposes. A simple definition of the concept is that: risk is the level of exposure to the chance that some event happens. The event might be beneficial or prejudicial, or might have subsequent implications to other situations or process. Therefore, in business there is a risk of losing money, a risk of fraud, and a risk of misstatement the financial information. As consequence, business and individuals manage risk and the level of exposure to specific risk according to their judgment. The audit process involves the management of risk in different areas with the goal to reduce it to the minimum level possible. Whittington and Pany (2004) introduced some of the risks concepts such as: business risk, the risk associated with a companys survival and profitability (p. 6). Information risk, the risk that the information used to assess business risk is not accurate (p. 6). Audit risk, the risk that the auditors may unknowingly fail to appropriately modify the opinion on financial statements that are materially misstated (p. 35). Inherent risk, the possibility of a material misstatement of an assertion before considering the clients internal control (p.128). Control risk, the risk that a material misstatement will not be prevented or detected on a timely basis by the clients internal control (p. 129) Detection risk, the risk that the auditors will fail to detect the misstatement with their audit procedures (p. 129). Within the audit risk, auditors assess the risk level of occurrence of the different form of misstatement of financial statement, such as errors, fraud, and illegal acts. In measuring audit risk auditors use the following model: AR = IR x CR x DR Where: AR = Audit risk, IR = Inherent risk, CR = Control risk, and DR = Detection risk. (Whittington Pany, 2004, p. 130) Additionally, because the auditors are expose to some legal responsibility and are subject to be sued by any clients stakeholder, they have to take in consideration the reputation of the management, financial strength, and other financial rating to assess the overall risk or engagement risk of the association with that particular business (Whittington Pany, 2004, p. 174). The process of planning the audit involves the understanding of the client and its environment, an overall audit strategy, and the risk assessment of financial statements material misstatement. Therefore, auditors seek to understand the nature of the client and accounting polices, the industry, regulations and external factors affecting the client, the clients objectives, strategies, and related business risk, how the client measure and review performance, and the internal control environment. (Whittington Pany, 2004, pp. 179-180). Consequently, auditors use different sources to obtain the client overall understanding. That includes electronic research tools, visit to different plant or location of the client, and some analytical procedures. (Whittington Pany, 2004, pp. 181-183). A Companys internal control consists of the policies and procedures established to provide reasonable assurance that the objectives of the company will be achieved; including the clients internal control, they could identify areas of strength as well as of weakness. The stronger the internal control, the less testing of financial statement account balances required by the auditors. For any significant account or any phase of financial operation in which controls were weak, the auditors expanded the nature and extent of their tests of the account balance. With the increased reliance on sampling and internal control, professional standards began to emphasize limitations on auditors ability to detect fraud. The profession recognized that audits designed to discover fraud would be too costly. Good internal control and surety bonds were recognized as better fraud protection techniques than audits. (Whittington Pany, 2004, p. 8) The assessment of inherent risk involves considering the likelihood that material misstatement in financial statement will result, and each risk related to the management assertions. At this stage, auditors identify what it is not correct or the significant risk by area and based on that assessment they adjust their approach, modifying the nature, timing, and extent of the audit procedures (Whittington Pany, 2004, pp. 188-189). Audit Evidence Evidence is all data and information gathered by the auditors to support auditors conclusions. The importance of the evidence is that audit risk is reduced by gathering audit evidence (Whittington Pany, 2004, p. 127) and when the risk is high more evidence is necessary as well as the increasing the coverage of audit procedures. According to Whittington and Pany (2004), evidence need to be collected for each financial statement assertion sufficiently to support their opinion. As issued in the Statement of Auditing Standard (SAS) 31 about evidential matter, the financial statement assertions are the following: Existence or occurrence-assets, liabilities, and owners equity reflected in the financial statements exist; the recorded transactions have occurred. Completeness-all transactions, assets, liabilities, and owners equity that should be presented in the financial statements are included. Rights and obligations-the client has rights to assets and obligation to pay liabilities that are included in the financial statements. Valuation or allocation-assets, liabilities, owners equity, revenues, and expenses are presented at amounts that are determined in accordance with generally accepted accounting principles. Presentation and disclosure-accounts are described and classified in the financial statements in accordance with generally accepted accounting principles, and all material disclosures are provides. (Whittington Pany, 2004, p. 174) The above assertions are the base for the risk assessment performed by auditors, and to determine misstatements possible to occur and consequently decide the audit procedure to exercise. Guidelines are included in the SAS 31 regarding what sufficient competent evidence is, which relates to the quantity of evidence auditors should collect. The competence of the evidence is determined by the combined condition of relevant and valid. That means that it most related to the assertion, and that it is dependent on the circumstance in which it is obtained. The reliability or validity of the evidence increase when is received from independent sources, when is produced by an effective internal control, gathered directly by the auditor, is documented, obtained from original documents, and when is received from more than one source (Whittington Pany, 2004, p. 132). Different types of audit evidence is obtained by the auditors such as accounting information system, internal and external documentary evidence, third-party representations such as confirmations, reports, and lawyers letters; physical evidence such as fixed assets and inventory, computations re-performance, data interrelationships of financial and nonfinancial information, and client representations oral and in writing (Whittington Pany, 2004, pp. 131-137). An important supporting evidence of the audit report and conclusions is the audit documentation, which is required by the SAS 96 for the auditors understanding and review of the audit work, the nature of audit work performed, and to show the agreement between the records and the financial statements. The working papers have some important functions: (a) are the best way to assign and coordinate the auditing work, (b) help audit managers and partners in the supervision and reviewing or the work of assistants, (c) support the audit reports, (d) documents the auditors compliance with GAAS, and (d) assist in the conduction of future audit to the client (Whittington Pany, 2004, pp. 148-150). The working papers are confidential and unrestricted documentation owned by the auditors, principally because they represent the major factor to use in case of negligence charges. Part of the working paper are the administrative working papers, the working trial balance, separate schedules, adjusting journal entries and supporting schedules, and analysis of ledgers accounts such as a reconciliation, computational working paper, corroborating documents. They are filed in two major groups, permanent file, and current files (Whittington Pany, 2004, pp. 151-158). Audit Sampling As a large-scale corporate grow rapidly auditors began to sample selected transactions, rather than study all transactions. Auditors and business managers gradually came to accept the proposition that careful examination of relatively few selected transactions would give a cost-effective, reliable indication of the accuracy of other similar transactions (Whittington Pany, 2004, p. 8). As explained before, auditors need sufficient and competent evidence to support their conclusions, but because business grows involving high volume of economic events and transactions, they need to rely in sampling testing. Audit sampling can be statistical or no statistical, involves the selection of a sample from a group of items and the use of the sample characteristics presuming that the auditors can draw inferences about the whole population. (Whittington Pany, 2004, p. 309). From the previous sampling introduction, we have the sample risk that is the risk that the auditors conclusion based on a sample might be different if they examine the whole population. According to Whittington and Pany (2004) sampling risk is reduced by increasing the size of the sample (p. 309) or by auditing the whole population. Auditors use statistical and no statistical sampling to perform a random selection, which involve that every item in the population has an equal chance of being selected for inclusion in the sample. Different techniques are used such as random number tables, random number generators, systematic selection, haphazard selection, block selection, and stratification (Whittington Pany, 2004, pp. 310-313). There is a sample risk for test of controls in which auditors face the risk of assessing control risk too high, which is related to efficiency, or too low based on the operating effectiveness of the control. The AICAP guide suggest the statistical sample sizes for tests of controls at 5 percent risk of assessing control risk too low, providing the following tolerable deviation rate per assessed level of control risk: for low 2 7%, for moderate 6 12 %, for slightly below the maximum 11 20%, and for maximum level of control risk they recommend to omit test (Whittington Pany, 2004, pp. 316-320). Besides sampling, auditors became aware of the importance of effective internal auditing. Following section presents a discussion about internal auditing. Internal Auditing The internal auditing developed rapidly during the decade of 1930s generating the foundation of the Institute of Internal Auditors (IIA), which is an organization with local chapter in the main cities worldwide. The IIA defines internal adducting as follows: An independent, objective assurance and consulting activity designed to add value and improve an organizations operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance process. (The Institute of Internal Auditors [IIA], 2008) Internal auditors are an important part of the internal control environment of entities, representing the highest level of control that measure and evaluate the effectiveness of other controls. Additionally to the financial controls, the internal auditors scope includes the evaluation and testing of control effectiveness, and other assurance and consulting services to the management. Some companies have focus on outsourcing the internal audit functions, which is also provided by CPA firms as an extended audit service and according to the AICPA guiding. However, opposition to the participation of accounting firms exist under the argument of possible conflicts of interest having then as part of the internal control when they also audit the company. The IIA have issued the standards for the practice of internal auditing with the following purpose: To delineate basic principles that represent the practice of internal auditing. Provide a framework for performing and promoting a broad range of value-added internal auditing. Establish the basis for the evaluation of internal audit performance. To foster improved organizational processes and operations. The auditing standards of the IIA includes two parts, the first is the attribute standards that state basic requirements for the practice of internal auditing. According with this attribute, organizations should define in a formal document or internal audit charter, the purpose, authority, and responsibility of the internal audit, and the nature of assurance and consulting services that the internal auditors will provide. Additionally, the chapter should include recognition of the definition of internal auditing, the code of ethics, and the auditing standards (IIA, 2008). The standards also state the independence and objectivity condition for internal auditors during the performance of their work. The need of freedom from conditions, bias, and subordination of judgment, or conflict of interest that impairs their ability to perform objectively, is rigorously presented in the standards. Additionally, the competencies, knowledge, and skills that an auditor must possess are described as well as the due professional care requirement for the performance of the engagement as important elements of the IIA standards. Finally, the attribute standards set requirements for continuing professional development and quality assurance for the internal audit activity (IIA, 2008). The second part of the IIA standards covers the Concepts and Theories of Auditing Concepts and Theories of Auditing Auditing has been present for years in different stage of development following the evolution of accounting. Starting since the epoch when the records were approved after a public reading, to the era when governments officials were measured by their honesty. Followed by the times of the industrial revolution were the ownership of companies started separating from management; when owners required more protection of their investments increasing the use of auditors, consequently; to the times were an auditor was always searching for frauds or errors (Whittington Pany, 2004, p. 7) and then to ascertain the actual financial condition and earnings of an enterprise (Montgomery, 1913, p. 9). However, the acceptance of auditing as an academic discipline is not old and just after the development of different concepts and techniques within the audit model such as the use of sampling, the study of the internal control environment, and the risk assessment, is when more focus to the theoretical and conceptual framework of auditing it is been devoted. Andrew Sayer (1992) discussed the concept of theories in social science from the perspective of theory as an ordering-framework (p. 50), indicating that theory allows the use of the observed data and their relationships to predict and explain empirical events. Additionally Cooper and Schindler (1998) define theory as a set of systematically interrelated concepts, definitions, and propositions that are advanced to explain and predict phenomena (facts) (p. 47). Another concept is expressed by Singleton and Straits (2005) explaining theory as a set of interconnected propositions (p. 19). The success in the explanations or predictions of any phenomena depends on the level that the theory holds and do not fails fitting in the situation, and the challenge is to perfect the process of matching theory and fact (Cooper and Schindler (1998). Different authors have started the development of the audit theory such as Mautz and Sharaf (1961) with their publication titled The Philosophy of Auditing; also Tom Lee (1986) with his approach in the book Company Auditing, and later David Flint (1988) with his book Philosophy and principles of auditing (as cited in Moizer, 1989). The auditing analysis in this demonstration will be framed on the postulates proposed by David Flint (1988) as a foundation for the theory of auditing. Flint (1988) stated that there is a matter of public accountability demanding an independent audit for its demonstration with clear definition and intention, based on evidence that only skilled auditors gather, measure it, and compare it against the standards, which generates economic or social benefit (as cited in Moizer, 1989). Following are the seven postulates or assumptions stated by Flint (1988): There is a relationship of accountability or a situation of public accountability. Accountability cannot be demonstrated without an audit. An audit requires independence and freedom. The subject matter of audit is susceptible to verification by evidence. Auditors are skilled judges who are able to measure and compare actual performance against standards of accountability. The meaning, significance, and intention of statements to be audited must be clear. An audit produces an economic or social benefit. (Flink, 1989) Whenever an economic relationship exists one of the parties owe a duty of an acceptable accountability, consequently audits are voluntary, imposed for the health of the relationship. There are also audit related to the interest of the public in matters of the society institutions. As expressed by Whittington and Pany (2004) dependable information is essential to the very existence of our society (p. 1). They explained the social need for audit and professionals who can attest that the reported information is fair respect to the reality for purpose of allocating resources for the production of services and goods based on reliable financial information (p. 1). Normally the financial and economic aspects of the related subject matter are complex, not physically accessible, or have the level of significance that necessary demand an audit to accept the accountability. No all investors or stakeholders of an entity understand the complexity of the business and financial environment, or are near to the place were their resources are to oversee for accountability. The credibility of the information is important and the preferable form of obtaining credible information to rely on is by using independent auditors to perform an audit. That reduce the business risk that relates to the permanence and profits of the company, and the information risk that the financial information used to make a decision is materially misstated (Whittington Pany, 2004, p. 6). Therefore, if the audit must add credibility it must be performed independently and without bias or prejudice. Audit is subject to verification and that is possible only if sufficient evidential matter of the audit is gathered. Additionally, some standards of accountability and performance need to be in place to easy the auditors measurement. Therefore, the parties involved must agree on their acceptable standards. The auditing community has set some professional guidance as a form of general accepted practiced standards. For an audit to add value to the financial information, the purpose of the information should be clear, and the findings effectively communicated. The audit should be performed only when its benefits weigh more than the costs. As a consequence auditors should be aware of the cost of collecting evidence especially in situation were the risk is high. The practice of auditing auditors agree on an attest engagement in which they issue or does issue an examination, a review, or an agreed-upon procedures report on subject matter or an assertion about subject matter that is the responsibility of another party (e.g., management) (Whittington Pany, 2004, p. 2). In an examination of financial statement, referred to as an audit the standards may be the Generally Accepted Accounting Principles (GAAP), and the auditors collect sufficient evidence to attest about how fair is the information in the financial statement respect to the GAAP. However, here are three types of audits: (a) audits of financial statements, (b) compliance audits, and (c) operational audits. Financial audits determine if the statements were prepared according with GAAP. Compliance audit verifies if the company had complies with law, regulations or polices and procedures. Finally, operational audits review the effectiveness and efficiency of particular unit of an organization (Whittington Pany, 2004, p. 11). Relative to the public accounting standards, the American Institute of Certified Public Accountants (AICPA) has developed the framework for the general accepted auditing standards (GAAS), which are the fundamentals principles of independent auditing in the U. S. The framework is divided in three major areas that are summarized as follow: General standards. A professional possessing adequate technical training and proficiency, independent in mental attitude and free from bias and with professional care planning and performing diligently, perform the audit. Standards of field work. The audit should be adequate planned and the staff properly supervised. Auditor should acquire sufficient understanding of the internal control environment to be able to determine the weak areas, and gather sufficient competent evidence to support their conclusions. Standards of reporting. The final report should state if the statements are consistent with GAAP and if necessary indicate those circumstances departing from GAAP, include adequate informative disclosure, and includes the opinion of the auditors about the financial statements. Likewise, the AICPA has issued a series of auditing standards on auditing procedure, auditing and accounting guides, and auditing statements of position, to help auditor in the fulfillment of their responsibility of detecting misstatement (Whittington Pany, 2004, pp. 34-35). Auditing involve a serious processes that expose auditors to a different situations in which they need to exercise professional ethics. Those moral principles and values leading decisions and actions of the profession of auditing are provided by the AICPA in the Code of Professional Conduct, and by the Institute of Internal Auditors (IIA) Code of Ethics. Normally auditors are involved in a decision process of ethical dimension. CPAs decisions during performing their duties can affect thousands of investors and their resources; therefore, they need to measure the implication of their decisions. Additionally, as Whittington and Pany (2004) indicated, what is considered unethical in a particular society is not specifically prohibited (p. 11), giving relevance and support to the need for the establishment of those principles and values in the accounting and auditing profession. The public accounting, as well as the rest of professions, has the following characteristics: (a) their responsibility to serve the public with independence and due care with fairness and free from bias. (b) Involves a complex body of knowledge that includes different authoritative pronouncements of standards and principles governing the profession and the financial reports due to the need of technical competency. (c) Has establishes some standard of admission to the profession that each CPA is required to meet. In addition (d), need public confidence to be successful (Whittington Pany, 2004, pp. 61-62). The AICPA leads public accountants to recognize their responsibility to the public in general, to their clients, and to the profession. The section one of the code of conduct describes the organization and CPAs principles of responsibilities, public interest, integrity, objectivity and independence, due care, and scope and nature of services. The section two depicts the institutes rules that are compounded by the following: independence, integrity and objectivity, general standards, compliance with standards, accounting principles, confidential client information, contingent fees, acts discreditable, advertising and other forms of solicitation, commissions and referral fees, and form of organization and name (Whittington Pany, 2004, pp. 63-83). Similarly, the IIA has their own code of ethics divided in three main sections, an introductory section, principles, and rules of conduct. Their principles apply to the profession and practice of the internal auditing, and include integrity, objectivity confidentiality, and competency. The IIA rules on conduct include integrity, objectivity, confidentiality, and competency (Whittington Pany, 2004, pp. 83-84). The IIA is the organization that provides the standards for the professional practice of internal auditing. As it can be deduced from the previous summaries, both institutes the IACPA and the IIA require high level of self-discipline and commitment to a honorable professional behavior, integrating similar principles of integrity, objectivity, and competence. Their rules differ in the fact that internal auditors perform internally; public accountants attest on the financial statements to the company as outsiders performing professionally to honor the public trust. However, the concept of independence is common to both ramification of auditing because it refers to the ability to maintain and objective and impartial mental attitude (Whittington Pany, 2004, p. 66), and without of conflict of interest. After the previous review of the auditing theory and how CPAs support it with a professional framework that includes principles, ethical codes, and general accepted standards for the auditing practice, the following section depicts a discussion of audit procedures as well as an introduction of important concepts that are fundamental part of the theory of auditing and the auditing practice. The Audit Procedures The ultimate product after the performance of an audit is the issuance of a report indicating if the financial statements audited comply with GAAP. Sufficient evidence must support the audit report and such evidence is gathered and documented by exercising rigorous procedures that, among other important goals, help the auditors in assessing the risk of misstatement. According to Whittington and Pany (2004), audit procedures involve: (a) the understanding of the client, the business, and industry to use it in assessing risks; (b) the understanding of the internal control environment; (c) the design and performance of controls testing to assess how effective the controls are in preventing or detecting material misstatements; and (d) the design and performance of substantive procedures that include analytical procedures, direct testing of transactions and ending balances (pp. 138-139). Because the internal control is the focus of interest for this demonstration, a separate section will discuss it. The substantive procedures include analytical procedures, the testing of transactions, and the testing of the ending balances on the statements. Analytical procedures consist of an analysis and evaluation of the information present in the financial statements, and a review of the relationship between financial and nonfinancial information. The assumption behind the analytical procedures is that the relationship and trend of the financial information is expected to follow the historical data and projections of the business and in contrary situation evidence must be obtained to support the reasonability of the changes (Whittington Pany, 2004, p. 141). Different techniques are use during the analytical procedures. From simple verification of a number to complicated mathematical models, such the comparison of cumulative expenses and revenues with prior years to find significant differences, the use of multiple regression model to estimate revenues by using economic and industry data, and ratio analysis and its comparison with other businesses in the same industry (Whittington Pany, 2004 (p. 141). The testing procedures seek to prove the occurrence and correct recognition of transactions, and prove of existence and misstatements on what the ending balances represent. The substantive testing procedures are performed as an interim mode before year-end, and then after the business year-end. The level of risk established by the auditors during the overall business assessment guides the extent of the substantive audit procedures. The greater the risk of material misstatement the greater the needed extent of substantive procedures (Whittington Pany, 2004, p. 139), but always keeping under evaluation the cost-benefit relation of increasing the procedures to perform. Among the most common test performed in an audit process, Whittington and Pany (2004) summarized the following: Accounting System: Comparison-Agreeing amounts from different internal records. Documentary evidence: Tracing-Establishing the completeness of transaction processing by following a transaction forward through the accounting records. Vouching-Establishing the existence or occurrence of recorded transactions by following a transaction back to supporting documents forms a subsequent processing step. Inspection-Reading or point-by-point review of a document or record (the terms examine, review, read, and scan are used to describe the inspection technique). Reconciliation-Establishing agreement between two sets of independently maintained but related records. Third-party representation: Confirmation and evaluating a response from a debtor, creditor, or other party in reply to a request for information about a particular item affecting the financial statements. Physical evidence: Physical examination-viewing physical evidence of an asset. Observation-viewing a client activity. Computations: Reperformance-repeating a client activity. This may include operations such as footing (providing the total of a vertical column of figures); cross footing (proving the total of a horizontal row of figures); and extending (re-computing by multiplication). Data interrelationships: Analytical procedures-Evaluation of financial information made by a study of expected relationships among financial and nonfinancial data. Client representations: Inquires-questions directed toward appropriate client personnel. According to Whittington and Pany (2004), auditors also collect evidence from some subjective areas such as the accounting estimates, the fair market value measurement and disclosures, and transactions with related parties (pp. 146-148). After the development of audit procedures auditors test for existence or occurrence to search for misstatements and completeness searching for understatement, from transactions start to finish, and they test the accounting system from source documents to journals to ledgers. (Whittington Pany, 2004, p. 195). The audit program includes two main parts, the assessment of the effectiveness of the client internal controls, and substantive testing. Normally the system portion of an audit program is divided by cycle such as revenue, purchasing and payments, production, payroll, investing, and financing (Whittington Pany, 2004, p. 196). Audit Risk The risk concept is use in different disciplines for different purposes. A simple definition of the concept is that: risk is the level of exposure to the chance that some event happens. The event might be beneficial or prejudicial, or might have subsequent implications to other situations or process. Therefore, in business there is a risk of losing money, a risk of fraud, and a risk of misstatement the financial information. As consequence, business and individuals manage risk and the level of exposure to specific risk according to their judgment. The audit process involves the management of risk in different areas with the goal to reduce it to the minimum level possible. Whittington and Pany (2004) introduced some of the risks concepts such as: business risk, the risk associated with a companys survival and profitability (p. 6). Information risk, the risk that the information used to assess business risk is not accurate (p. 6). Audit risk, the risk that the auditors may unknowingly fail to appropriately modify the opinion on financial statements that are materially misstated (p. 35). Inherent risk, the possibility of a material misstatement of an assertion before considering the clients internal control (p.128). Control risk, the risk that a material misstatement will not be prevented or detected on a timely basis by the clients internal control (p. 129) Detection risk, the risk that the auditors will fail to detect the misstatement with their audit procedures (p. 129). Within the audit risk, auditors assess the risk level of occurrence of the different form of misstatement of financial statement, such as errors, fraud, and illegal acts. In measuring audit risk auditors use the following model: AR = IR x CR x DR Where: AR = Audit risk, IR = Inherent risk, CR = Control risk, and DR = Detection risk. (Whittington Pany, 2004, p. 130) Additionally, because the auditors are expose to some legal responsibility and are subject to be sued by any clients stakeholder, they have to take in consideration the reputation of the management, financial strength, and other financial rating to assess the overall risk or engagement risk of the association with that particular business (Whittington Pany, 2004, p. 174). The process of planning the audit involves the understanding of the client and its environment, an overall audit strategy, and the risk assessment of financial statements material misstatement. Therefore, auditors seek to understand the nature of the client and accounting polices, the industry, regulations and external factors affecting the client, the clients objectives, strategies, and related business risk, how the client measure and review performance, and the internal control environment. (Whittington Pany, 2004, pp. 179-180). Consequently, auditors use different sources to obtain the client overall understanding. That includes electronic research tools, visit to different plant or location of the client, and some analytical procedures. (Whittington Pany, 2004, pp. 181-183). A Companys internal control consists of the policies and procedures established to provide reasonable assurance that the objectives of the company will be achieved; including the clients internal control, they could identify areas of strength as well as of weakness. The stronger the internal control, the less testing of financial statement account balances required by the auditors. For any significant account or any phase of financial operation in which controls were weak, the auditors expanded the nature and extent of their tests of the account balance. With the increased reliance on sampling and internal control, professional standards began to emphasize limitations on auditors ability to detect fraud. The profession recognized that audits designed to discover fraud would be too costly. Good internal control and surety bonds were recognized as better fraud protection techniques than audits. (Whittington Pany, 2004, p. 8) The assessment of inherent risk involves considering the likelihood that material misstatement in financial statement will result, and each risk related to the management assertions. At this stage, auditors identify what it is not correct or the significant risk by area and based on that assessment they adjust their approach, modifying the nature, timing, and extent of the audit procedures (Whittington Pany, 2004, pp. 188-189). Audit Evidence Evidence is all data and information gathered by the auditors to support auditors conclusions. The importance of the evidence is that audit risk is reduced by gathering audit evidence (Whittington Pany, 2004, p. 127) and when the risk is high more evidence is necessary as well as the increasing the coverage of audit procedures. According to Whittington and Pany (2004), evidence need to be collected for each financial statement assertion sufficiently to support their opinion. As issued in the Statement of Auditing Standard (SAS) 31 about evidential matter, the financial statement assertions are the following: Existence or occurrence-assets, liabilities, and owners equity reflected in the financial statements exist; the recorded transactions have occurred. Completeness-all transactions, assets, liabilities, and owners equity that should be presented in the financial statements are included. Rights and obligations-the client has rights to assets and obligation to pay liabilities that are included in the financial statements. Valuation or allocation-assets, liabilities, owners equity, revenues, and expenses are presented at amounts that are determined in accordance with generally accepted accounting principles. Presentation and disclosure-accounts are described and classified in the financial statements in accordance with generally accepted accounting principles, and all material disclosures are provides. (Whittington Pany, 2004, p. 174) The above assertions are the base for the risk assessment performed by auditors, and to determine misstatements possible to occur and consequently decide the audit procedure to exercise. Guidelines are included in the SAS 31 regarding what sufficient competent evidence is, which relates to the quantity of evidence auditors should collect. The competence of the evidence is determined by the combined condition of relevant and valid. That means that it most related to the assertion, and that it is dependent on the circumstance in which it is obtained. The reliability or validity of the evidence increase when is received from independent sources, when is produced by an effective internal control, gathered directly by the auditor, is documented, obtained from original documents, and when is received from more than one source (Whittington Pany, 2004, p. 132). Different types of audit evidence is obtained by the auditors such as accounting information system, internal and external documentary evidence, third-party representations such as confirmations, reports, and lawyers letters; physical evidence such as fixed assets and inventory, computations re-performance, data interrelationships of financial and nonfinancial information, and client representations oral and in writing (Whittington Pany, 2004, pp. 131-137). An important supporting evidence of the audit report and conclusions is the audit documentation, which is required by the SAS 96 for the auditors understanding and review of the audit work, the nature of audit work performed, and to show the agreement between the records and the financial statements. The working papers have some important functions: (a) are the best way to assign and coordinate the auditing work, (b) help audit managers and partners in the supervision and reviewing or the work of assistants, (c) support the audit reports, (d) documents the auditors compliance with GAAS, and (d) assist in the conduction of future audit to the client (Whittington Pany, 2004, pp. 148-150). The working papers are confidential and unrestricted documentation owned by the auditors, principally because they represent the major factor to use in case of negligence charges. Part of the working paper are the administrative working papers, the working trial balance, separate schedules, adjusting journal entries and supporting schedules, and analysis of ledgers accounts such as a reconciliation, computational working paper, corroborating documents. They are filed in two major groups, permanent file, and current files (Whittington Pany, 2004, pp. 151-158). Audit Sampling As a large-scale corporate grow rapidly auditors began to sample selected transactions, rather than study all transactions. Auditors and business managers gradually came to accept the proposition that careful examination of relatively few selected transactions would give a cost-effective, reliable indication of the accuracy of other similar transactions (Whittington Pany, 2004, p. 8). As explained before, auditors need sufficient and competent evidence to support their conclusions, but because business grows involving high volume of economic events and transactions, they need to rely in sampling testing. Audit sampling can be statistical or no statistical, involves the selection of a sample from a group of items and the use of the sample characteristics presuming that the auditors can draw inferences about the whole population. (Whittington Pany, 2004, p. 309). From the previous sampling introduction, we have the sample risk that is the risk that the auditors conclusion based on a sample might be different if they examine the whole population. According to Whittington and Pany (2004) sampling risk is reduced by increasing the size of the sample (p. 309) or by auditing the whole population. Auditors use statistical and no statistical sampling to perform a random selection, which involve that every item in the population has an equal chance of being selected for inclusion in the sample. Different techniques are used such as random number tables, random number generators, systematic selection, haphazard selection, block selection, and stratification (Whittington Pany, 2004, pp. 310-313). There is a sample risk for test of controls in which auditors face the risk of assessing control risk too high, which is related to efficiency, or too low based on the operating effectiveness of the control. The AICAP guide suggest the statistical sample sizes for tests of controls at 5 percent risk of assessing control risk too low, providing the following tolerable deviation rate per assessed level of control risk: for low 2 7%, for moderate 6 12 %, for slightly below the maximum 11 20%, and for maximum level of control risk they recommend to omit test (Whittington Pany, 2004, pp. 316-320). Besides sampling, auditors became aware of the importance of effective internal auditing. Following section presents a discussion about internal auditing. Internal Auditing The internal auditing developed rapidly during the decade of 1930s generating the foundation of the Institute of Internal Auditors (IIA), which is an organization with local chapter in the main cities worldwide. The IIA defines internal adducting as follows: An independent, objective assurance and consulting activity designed to add value and improve an organizations operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance process. (The Institute of Internal Auditors [IIA], 2008) Internal auditors are an important part of the internal control environment of entities, representing the highest level of control that measure and evaluate the effectiveness of other controls. Additionally to the financial controls, the internal auditors scope includes the evaluation and testing of control effectiveness, and other assurance and consulting services to the management. Some companies have focus on outsourcing the internal audit functions, which is also provided by CPA firms as an extended audit service and according to the AICPA guiding. However, opposition to the participation of accounting firms exist under the argument of possible conflicts of interest having then as part of the internal control when they also audit the company. The IIA have issued the standards for the practice of internal auditing with the following purpose: To delineate basic principles that represent the practice of internal auditing. Provide a framework for performing and promoting a broad range of value-added internal auditing. Establish the basis for the evaluation of internal audit performance. To foster improved organizational processes and operations. The auditing standards of the IIA includes two parts, the first is the attribute standards that state basic requirements for the practice of internal auditing. According with this attribute, organizations should define in a formal document or internal audit charter, the purpose, authority, and responsibility of the internal audit, and the nature of assurance and consulting services that the internal auditors will provide. Additionally, the chapter should include recognition of the definition of internal auditing, the code of ethics, and the auditing standards (IIA, 2008). The standards also state the independence and objectivity condition for internal auditors during the performance of their work. The need of freedom from conditions, bias, and subordination of judgment, or conflict of interest that impairs their ability to perform objectively, is rigorously presented in the standards. Additionally, the competencies, knowledge, and skills that an auditor must possess are described as well as the due professional care requirement for the performance of the engagement as important elements of the IIA standards. Finally, the attribute standards set requirements for continuing professional development and quality assurance for the internal audit activity (IIA, 2008). The second part of the IIA standards covers the