Financial regulation, law and compliance Essay Example | Topics and Well Written Essays - 3000 words

Financial regulation, law and compliance - Essay Example The paper will also discuss why trust is considered inevitable in the financial services industry. Finally, different methods that have been put in place/are proposed to restore trust will be evaluated. A healthy financial system is an integral part of a healthy economy as it helps the business sector to invest and grow; to deal with daily transactions and manage risks; and to underpin activities in every segment of the society. According to the Confederation of British Industry, the UK’s premier business lobbying organisation, the UK financial services industry plays a significant role in enhancing the country’s business growth and overall economic development (PWC, 2012). The products and services offered by this industry represent a crucial part of the UK economy and constitute one of the country’s few world-class sectors. A well performing financial services sector is very important in the modern economy to develop a competitive and resilient financial system which is free from taxpayer support and is co-ordinated globally (Ibid). The UK financial services industry employed nearly 1.2 million people in the 3rd quarter of 2012, representing approximately 4 p ercent of the UK workforce. In the financial year ending 31st March 2012, the industry paid and estimated  £63bn in taxes, accounting for around 11.6% of the total government tax receipts in UK (Ibid). Despite the crucial role that the UK financial services industry plays in the growth of the country’ economy, consumer trust and confidence in the UK financial services industry is very low currently (BBC News, 2014). According to an annual survey conducted by the public relations firm Edelman, â€Å"less than half of the public trust banks do what is right, making financial services the world’s least-trusted industry for the second year in a row† (The financial brand, 2014). Since the global financial crisis 2008-09, the consumers’ trust and confidence in the banks’ ability to do

Satyam Computer Services Essay Example for Free

Satyam Computer Services Essay In early 2009 the chairman of Satyam Computer Services admitted publicly to a fraud taking place in the company. Satyam reported in the financial statements billions of dollars in profits and cash assets that never existed. The public auditor’s responsible for auditing the financial statements of Satyam Computer Services at the time was PW India, an affiliate of Pricewaterhouse Coopers. The Securities and Exchange Commission determined that Satyam was able to commit the financial statement fraud due to the negligence of the audit team. The audit team tasked with auditing the records of Satyam failed to confirm cash balances in bank accounts which were grossly over represented. Later it was determined that the more than one billion dollars Satyam claimed to have was actually no more than sixty-six million. During the audits of Satyam Computer Services, the audit team at PW India never sought confirmations for the cash balances that management asserted which is a clear violation of auditing standards. The SEC, during the investigation, determined that many audit teams in PW India accepted cash confirmations directly from the management of their clients and almost never questioned the reliability of the confirmations received. It was also revealed that sometimes the banks would send statements directly to the auditors even though they weren’t directed to do so. Even though the bank statements showed different balances then those given to the auditors by management, the audit team never questioned the differences in amount. Procedures, for reviewing audits, were put into place to assure that all audits are completed with the highest degree of professional care. The Satyam audit team was warned by a partner from a different Pricewaterhouse Coopers firm that their cash confirmation procedures were deficient, but nothing was done to correct the deficiency. Due to this deficiency the Satyam fraud was not uncovered. As a result Satyam Computer Services was fined 10 million dollars by the SEC for fraud and PW India was fined 7. million dollars by the SEC and PCAOB. The critical issue in this case is that PWC India did not act in accordance with PCAOB or AICPA standards and codes of professional conduct. The critical factors are as follows: * The auditors did not act with due professional care. * The auditors did not appropriately assess the risks of material misstatements. * The audit team did not exercise professional skepticism. * The auditors did not act with integrity or in the best interest of the users of the financial statements. Due professional care, as required by the PCAOB, require the auditors to maintain professional knowledge and skill at the level required to ensure that clients receive competent professional service and to act in accordance with professional standards. This is the most vital part of the audit process to make certain that the audit will be handled with, ultimately, the users of the financial statements best interest in mind. PWC India, in their audit of Satyam, had completely disregarded this fundamental requirement of auditors. By relying on the confirmations given to them by management, the auditors did not provide the users of the financial statements with the skill and professionalism they are trusted with. As a result, they completely missed an obvious fraud taking place at Satyam and if the executive of Satyam hadn’t admitted to the fraud PWC India’s controls would have never caught the overstatement. Another relevant issue here is that the audit team did not appropriately assess the risks of material misstatements which resulted in the fraud. Before an audit, in the planning stage, the audit team should have identified accounts, transactions, and disclosures that could affect the financial statements significantly if they were materially misstated. The auditors at PWC India did not properly identify that the risk that the assertions of management about the cash accounts would result in a high risk of material misstatement. Cash accounts regardless of industry should require a special attention during an audit. The professional judgment of the auditors was lacking in the audit of Satyam’s cash balances. When evaluating the risks of certain accounts the auditors should have asked themselves whether there is a risk of fraud, whether there is subjectivity in measuring the financial information, and whether there is any unusual balances in the accounts. The answer to these questions should have all been yes in this case and there is no reason why they shouldn’t have properly confirmed the cash balances. One of the many requirements of an auditor is to exercise professional skepticism. The auditor must take what’s given to him with a ‘grain of salt’ and also question and confirm the existence, occurrence, and accuracy of account balances. In the audit of Satyam, the auditors acted with no professional skepticism whatsoever. If the auditors are not doing their due diligence, the audit risk will rise due to the increase in detection risk. Management took advantage of the fact that the auditors procedures of detecting material misstatements were lacking. This article’s relevance to the auditing profession is enormous. From here, auditors should learn to not take anything for granted and to always question what is put in front of you, unless it is from a completely objective source. The auditors at PWC India did not follow the basic requirements of an audit engagement which resulted in a major fraud. Even when the banks sent account confirmations directly to the auditors, despite not being requested to do so, the auditors still did not question the discrepancies. The gross negligence in this case should be an example to all auditors; do not take anything for granted. The quality control review also failed in this case. Auditors need to heed the advice of the review team. Here, the audit team ignored the recommendations of the review team to confirm cash balances with the banks. Quality control reviews are very significant to an engagement and auditors should not take recommendations without due consideration.

Teenage Suicide Essay -- Teenage Suicide Essays

Teenage suicide has become a critical, national problem the extent of which is mind boggling. From 1980 to 1992 the rate of suicides involving persons from the ages of 10-14 years old has increased by 120 percent, and has increased 28.3 percent when involving persons from the ages of 15-19 years old (Suicide 451). More recently in a poll of 3,210 high-school honor students, a stunning one-quarter have seriously considered suicide (Eaton 15). Suicides have been proven to be one of the leading causes of death among teens, falling second only to accidents (Roberts 45). This data, however, may be inaccurate, being that deaths labeled accidental may have actually been teen suicides. Also, many families may not want to report suicides or suicide attempts for the fear of embarrassment. Nevertheless, there is extensive proof that suicide attempts and/or successes are on the rise among teenagers, and numerous groups have devoted themselves to establishing a cause to this epidemic. The one si milarity that all of these different groups seem to agree on is that there is not one single theory that explains the growing phenomenon of teenage suicide. However, a number of factors seem to be common among â€Å"at-risk teens,† factors that, if given the right set of circumstances, could put them in jeopardy.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  One of and seemingly the most common of these factors is depression. According to the National Association for Mental Health, nearly 20 percent of those who receive care for depression in hospitals and clinics are under the age of eighteen (Leder 31). Everyone has different reasons for being depressed and the extent of that depression will also vary from person to person. Some common causes of depression that have been found to lead to suicide attempts are not feeling loved and/or understood, the feeling of rejection, trouble with friends and family, or the feeling of being â€Å"no good.† A loss, (as in the death of a loved one, divorce, or the breakup up with a boyfriend/girlfriend) Has also been found to link depression and suicide (Leder 34).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Psychologists and doctors have also realized that having numerous psychological problems, known as â€Å"conduct disorders,† causes teens to have impulsive behavior. This impulsive behavior can cause them to act violent... ... a sense of identity is often pretty shacked and fragile during adolescence, feelings of not being worth much in one’s parents eyes won’t help a young person’s self-esteem. In extreme cases the adolescent may look upon himself, as being despicable and worthless, and learn to hate himself, when he is unable able to reach their goals (Hafen 95). The Youth Suicide National Center feels that â€Å"few of them [adolescents] have found ways of dealing with the lack of self esteem and when these feelings overwhelm them, they believe there is something very wrong with them.† (qtd. in Hafen 23).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  After reading numerous books and articles, the plain, but simple truth is that no one knows exactly why teenagers kill themselves. Psychiatrists have, however, reached the conclusion that in a society where adolescents have been exposed to many adult pressures and stresses, they may not be able to cope. Some of the most common causes of stress revolve around family situations, social problems, depression, developmental factors, and other factors associated with adolescents. It is this unbearable stress that leads them to the act of suicide.

Mass Media Filling the Moral Void Essay -- Morals Ethics Television En

Mass Media Filling the Moral Void A walk down the streets of D.C. provides more than just exercise and scenery. It is a journey through the stages of Mass Media. The first newsstand one spots is full of every newspaper one could possibly want to read. A couple more steps down the sidewalk, and one can see the televisions flashing through the windows of ESPN Zone, and one is bombarded by the blaring sounds of radios from car stereos and stores alike. It is almost impossible to escape the claw of Mass Media, because there are very few places to which media influence does not extend. Through the beginning of Mass Media during the 1400’s to the present, television, radio and video games have become a large part of every child’s life. With media surrounding more than one’s immediate family, it is hard not to be influenced in everyday life. Experts continue to debate the influence that Mass Media has on the youth of this generation, and whether it is vital to growth or an impairment on a childâ €™s education. The first step when taking a look at Mass Media and its influences is to find out how clearly it can be defined. Mass Media are the mediums or channels through which images, information, and entertainment are sent. As defined by Professor Lawrence Grossberg of Communication Studies, Mass Media is exactly that: media generated from a single point to a large number of points or from a single source to an audience of many people (Grossberg 8). Media can best be explained as communication through television, radio, newspapers or the Internet. Since Mass Media is transported from a single source to multiple sources, it is hard to realize how each person will perceive it. Indeed, the sender of media has little or no contro... ...on, is a topic that will be continually discussed. In any case, no matter which kind of media it is, someone with always find it entertaining. Works Cited: Baker, Karen. "Kick the TV habit for a week." Times-Picayune. 22 Apr. 2004. Lexis Nexis. 13 Feb. 2005 <http://web.lexis-nexis.com>. Grossberg, Lawrence, Ellen Wartella, and D. Charles Whitney. Media Making: Mass Media In A Popular Culture. Thousand Oaks: SAGE Publications Inc., 1998. Guernsey, Lisa. "Tuning Into a Problem." The Washington Post. 9 Nov. 2004. Lexis Nexis. 14 Feb. 2005 <http://web.lexis-nexis.com>. Raymo, Chet. "Bach on the Wing." The Boston Globe. 3 Oct. 2004: 34. Lexis Nexis. 13 Feb. 2005 <http://web.lexis-nexis.com>. Scheibe, Cyndy. "Television in the Lives of Children." CRETv. 15 Feb. 2005. <http://www.ithaca.edu/CRETv>.

Being Self-Employed vs. Working for Someone Else

Being self-employed vs. working for someone else Self-employment and working for someone else has many of the same benefits and disadvantages. Although self-employment will allow a person to be his or her own boss and have endless financial possibilities, it also can be harder than working for someone else. Just because a person is able to work for their self, it does not mean that it will be any easier than working for someone else or even be more successful. Self-employment allows individuals to create his or her own schedule, allowing flexibility in the time that will be spent working.The flexible schedule of a self-employed individual is a good benefit. However in order to be successful at it, a lot of time has to be invested in it. If time is not put into the job, it will be difficult to maintain it. Having a flexible schedule allows the individual to have more time at home and also enable’s the person to work the hours convenient for their schedule. People normally find it easier to be self-employed because they feel that the freedom of working whenever they want or feel the need to may make the individual feel like they have power and authority they would not have working under a supervisor.However, good time management is essential to for self-employment. It is imperative that a person who is self-employed manages their time wisely and maintains themselves organized. It may take some time to get organized properly, but if the person practices how to best maintain organization with time, they will eventually come up with a work routine that best fits their work. Discipline is the key to being self-employed. If not, they run the risk of disorganization to the point where they will no longer be able to run their business or continue with their work.Without discipline and disorganization, the chances of financial success will be slim. Self-employment can be a financial success. There is the possibility of living very well when owning a business or si mply just work on your own. It also depends on what type of business or career path the person chooses in order to work for them selves. A person must consider that there are sometime’s many cost’s in initiating a self-owned business. Maybe start-up materials, hardware and financial management software to keep track of finances will often be needed when a person is self-employed.Organization and financial responsibility is crucial when owning a business or being self-employed. If the person that is self-employed does not manage money well, they run the risk of losing their business due to mismanagement. This will be a great disadvantage because not only is the person not able to be self-employed but they might have been out of the work field for a long time and did not gain much experience in a field that they would go out and try to work in after they figure out that working for themselves is not going to work for them.When the person tries to find a job and the hirin g manager sees how long they have been out of work and not enough experience, they may be hesitant to hire the individual. Working at a place of employment for someone else also has many benefits. For the most part, the employee will have a set schedule weekly and the employee will have to follow that schedule. Normal business hours are 8:00 a. m. to 5:00 p. m. unless of course the person works part-time, they work at a restaurant, a retail location, or maybe just a job that will schedule the employee when they are needed.In this case however, the employee does not set their own schedule, their supervisor, or boss will be responsible for that. There is not much flexibility with the schedules at a place of employment. While working for someone else, he or she is normally working under someone that they need to answer to and flexibility is very rare in the corporate world. A supervisor however, will take any time off needed as in vacation time, personal and sick time. Employees are en titled to the time off when working at a place of employment.Depending on the work field and if the individual is a full-time or part-time employee, the time off will be paid by the employer. The rate of pay at work place may not always be what the employee needs or is looking for. It could just be enough to make ends meet but it can also be exactly what the individual is looking for. Many companies require college degrees in order to make what the individual needs or should make with regards to their salary. Along with having a college degree, experience is absolutely necessary to earn top dollar.A degree does not necessarily mean that a person will be the most qualified to do the job but it does give the hiring employer that the employee they are considering has a sense of discipline, responsibility and knowledge that comes from a person with a college degree. Without the requirements, it will not be easy to obtain the type of salary the person wants. There are instances where eve n if the person meet’s the requirement’s needed to obtain a high or decent salary, some small companies are not able to pay these high salaries even if they wanted to.That is when individual either settle for what they are offered, continue searching for a job that meet’s their expectations, or become self-employed. Being self employed vs. working for someone else has many of the same advantages and disadvantages. To be self-employed, an individual needs to make sure they are organized and are prepared for the overhead cost’s that come with either owning a business or possibly just providing for your self and not having to answer to someone else. Working for someone else is not bad.A person has to be prepared and make every effort they need to in order to be successful at their place of employment. People in life have to make choice with regards to their careers. Do they work for themselves or do they work for someone else? In the end, he or she must choo se what makes the most sense and what he or she will know they can handle or not. Just because someone works for themselves, it does not necessarily mean that it will be easy. It can be just as hard as working for someone else.

ERP Application essays

ERP Application essays Increasingly, corporations are recognizing the strategic role of the operations function. These organizations are discovering that a focus on customer needs is effective only if the operations function is designed and managed to meet those needs. From acquiring raw materials to fabricating parts, to assembling products, to customer delivery, a total systems perspective can enable us, in the ideal, to fashion an operations function like the inner workings of a finely tuned machine. That operation can be fine-tuned by using modern information systems. Enterprise Resource Planning (ERP) software systems provide comprehensive management of financial, manufacturing, sales, distribution and human resources across the enterprise. The ability of ERP systems to support data "drill down" and to eliminate the need to reconcile across functions is designed to enable organizations to compete on the performances of the entire supply chain. (Welti) To utilize these capabilities managers have to lea rn how to manage processes in the ERP environment. Just what is ERP? It doesnt live up its acronym. Forget about planning-it doesnt do that-and forget about resource, thats a throwaway term. Keep in mind the enterprise part. That is ERPs true ambition to integrate all departments and functions across a company onto one single system. Modern day ERP systems, Material Resource Planning (MRP) and Manufacturing Resource Planning (MRPII) are the primary business systems installed in thousands of manufacturing companies around the world. These systems appeared shortly after the advent of the computer and were simplistic in nature compared to todays modern systems. The idea behind ERP is that the software needs to communicate across functions. The financial module can cut accounts payable checks as soon as the loading dock clerk confirms that the goods have been received in inventory. Similarly the accounts receivable can generate ...

Examples of Ionic Bonds and Compounds

Examples of Ionic Bonds and Compounds Here are examples of ionic bonds and ionic compounds: NaBr:Â  sodium bromideKBr: potassium bromideNaCl: sodium chlorideNaF: sodium fluorideKI: potassium iodideKCl: potassium chlorideCaCl2:Â  calcium chlorideK2O: potassium oxideMgO: magnesium oxide Note that ionic compounds are named with the cation or positively-charged atom written before the anion or negatively-charged atom. In other words, the element symbol for the metal is written before the symbol for the nonmetal. Recognizing Compounds With Ionic Bonds You can recognize ionic compounds because they consist of a metal bonded to a nonmetal. Ionic bonds form between two atoms that have different electronegativity values. Because the ability to attract electrons is so different between the atoms, its like one atom donates its electron to the other atom in the chemical bond. More Bonding Examples In addition to ionic bond examples, it may be helpful to know examples of compounds that contain covalent bonds and also compounds that contain both ionic and covalent chemical bonds.