Communication and Leadership A discussion

Introduction In the academia, there has been a growing interest in the leadership literature and its relations with communication, especially after the realization by scholars and practitioners that effective leadership is still principally dependent on communication (Barrett, 2006).Advertising We will write a custom essay sample on Communication and Leadership: A discussion specifically for you for only $16.05 $11/page Learn More An assessment conducted by Aziz (2003) shows that proficiency in communication enhances leadership skills and competencies, as well as business credentials. Drawing on the leadership and communication competencies of Oprah Winfrey, an American media owner, talk show host, performer, producer and philanthropist, the present paper purposes to illuminate why effective communication is so fundamental for effective leadership. Justifications for Selecting Oprah Oprah Winfrey is an effective leader and good communicator, if her achie vements in the media and contributions to the global society are to receive consideration. In terms of being an effective leader, it can be argued that the celebrity has demonstrated transformational, charismatic and servant leadership competencies not only in the process of touching and changing the lives of her viewers for the better (Klenke, 2002), but also in leading them by example (Aziz, 2003). Her empathetic and caring personality, excellent communication skills, capacity to get along well with people of diverse backgrounds, and outstanding mediation skills qualify her to be one of the most effective leaders globally (What Oprah Knows, 2014). In the context of being a good communicator, it can be argued that Oprah’s communication is process-oriented and effective in meeting the set goals, not mentioning that the celebrity collaborates well with others by gesturing and listening conscientiously as her guests in the talk show communicate their unique needs (Klenke, 2002) . Discussion In almost all of the organizations aspiring to remain competitive in today’s turbulent business environment, leaders and managers must spend a considerable portion of their daily engagements communicating with customers, employees, supervisors, suppliers, owners, and other relevant stakeholders. Consequently, the very basis of effective leadership is having the right kind of skills to successfully and effectively communicate with these stakeholders (Barrett, 2006). As an example, it can be argued that the sheer amount of time that Oprah Winfrey spends communicating with her viewers, employees and other stakeholders underlines how significant strong communication skills can be for her, especially in terms of advancing her leadership position. In this light, it is clear that having effective communication skills should be a seminal responsibility for leaders if they expect to broaden their scope in effective leadership.Advertising Looking for essay on communic ation strategies? Let's see if we can help you! Get your first paper with 15% OFF Learn More Walker (2004) argues that effective leadership is about managing diversity, which is impossible to do in the absence of effective communication. Although Oprah meets with individuals from diverse backgrounds in terms of age, status, culture, ethnicity and gender, she is able to demonstrate effective leadership through effective communication with these individuals, especially through an accurate analysis of the audience, structuring communication, and listening attentively to her audience (Barrett, 2006). Cases abound of highly qualified managers in global companies, who are unable to effectively manage racial or ethnic diversity in the workplace due poor communication skills. Such managers, in my view, cannot qualify to become successful leaders, thus the explanation as to why effective communication is so important for effective leadership. Drawing on the available leadership lite rature, there appears to be a tangible relationship between good communicators and charismatic leaders in the sense that most charismatic leaders have well developed communication skills and competencies (Barrett, 2006). Going back to Oprah’s case example, it is beyond doubt that the celebrity is an effective charismatic leader due to her capacity to connect with her audience while communicating (What Oprah Knows, 2014), and also as a result of communicating with her image and persona (Klenke, 2002). Consequently, it is possible to progress the argument that Oprah has become a hugely effective leader due to her capacity to use different avenues to communicate to her audience. These communication avenues endear followers to their leaders, hence facilitating an environment through which effective leadership can be achieved. Barrett (2006) acknowledges that â€Å"good communication skills enable, foster, and create the understanding and trust necessary to encourage others to fo llow a leader† (p. 385). Oprah has been hugely successful as a leader owing to the understanding and trust she has cultivated in her viewership over the years (Klenke, 2002), not mentioning that her perceived self-efficiency and transformative personality has helped her a great deal in securing the understanding and trust she continues to enjoy from viewers (What Oprah Knows, 2014). The most important point for this discussion, though, is that a manager cannot become an effective leader in the absence of effective communication skills, which have been found to reinforce the above mentioned attributes.Advertising We will write a custom essay sample on Communication and Leadership: A discussion specifically for you for only $16.05 $11/page Learn More In business contexts, the only way to get things done with and through people is by effectively communicating your decisions to those concerned, implying that communication is essential in any leadershi p endeavors. Indeed, effective communication involving the context, sender, message and receiver must be present if the leader is to purposively transfer meaning, with the view to influencing a single individual, group, organization or community (Barrett, 2006). In her shows, for example, Oprah is able to purposively transfer meaning by not only putting her audience in the right context, but also connecting with them using a multiplicity of communication skills (Klenke, 2002). This way, the celebrity is able to change her viewers in manifold ways, thus demonstrating effective leadership. Lastly, Barrett (2006) is of the view that â€Å"leaders need to be able to analyze an audience in every situation and develop a communication strategy that facilitates accomplishing their communication objectives† (p. 386-387). In the absence of insufficient communication skills, therefore, leaders may never be in a position to develop an effective communication strategy aimed at addressing the audience, thus may fail in their work as effective leaders. It also follows that a firm with a disjointed communication strategy many never achieve its set objectives due to underlying poor leadership, hence underlining the need to maintain a positive relationship between effective communication and effective leadership. Conclusion Overall, this exposition has successfully demonstrated that having the capacity to communicate effectively is a primary determinant in the process of allowing an individual to move into a leadership position, and that the person who gets ahead in leadership is one who develops the capacity to communicate effectively with the view to making sound leadership decisions and getting things done with and through people. The discussion advanced in this paper not only demonstrates the difficulties involved in attempting to divorce effective communication from effective leadership, but also provides clear examples of how Oprah Winfrey has employed effective co mmunication skills to be successful in leadership. It is therefore incoherent to assume that effective leadership can be achieved in the absence of effective communication skills and competencies. References Aziz, K. (2003). Effective communication: The key to successful leadership. Development and Learning in Organizations, 17(5), 7-9.Advertising Looking for essay on communication strategies? Let's see if we can help you! Get your first paper with 15% OFF Learn More Barrett, D.J. (2006). Strong communication skills a must for today’s leaders. Handbook of Business Strategy, 7(1), 385-390. Klenke, K. (2002). Cinderella stories of women leaders’ connecting leadership contexts and competencies. Journal of Leadership and Organization Studies, 9(2), 18-22. Walker, R. (2004). Leadership: A communication perspective. Women in Management Review, 19(1), 65-68. What Oprah knows for sure about communicating. (2014). Retrieved from http://www.oprah.com/spirit/what-oprah-knows-for-sure-communication This essay on Communication and Leadership: A discussion was written and submitted by user Annabelle Stevenson to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

An analysis on the relevance of published financial statement to decision makers in Zimbabwe. Essays

An analysis on the relevance of published financial statement to decision makers in Zimbabwe. Essays An analysis on the relevance of published financial statement to decision makers in Zimbabwe. Essay An analysis on the relevance of published financial statement to decision makers in Zimbabwe. Essay Faculty of commercialism Department of accounting and it Chapter one Subject: An analysis on the relevancy of published fiscal statement to determination shapers in Zimbabwe. ( A instance survey of econet radio Zimbabwe ) SUBMITTED IN PARTIAL FULLFILMENT OF THE REQUIREMENT FOR BACHELOR OF COMMERCE HONOURS DEGREE IN Accounting Chapter: 1 Introduction Fiscal statements are the most widely used and most comprehensive manner of pass oning fiscal information about a concern endeavor to users of the information provided in the studies. The chief aim of fiscal statement is to supply the proprietors and investors, authorities, employees, Tenders, providers, clients, investing analysts and the populace to look into the public presentation of an endeavor ; comparison and contrast past public presentation to current public presentation of the organisation Moskowitz ( 2000 ) The user groups have a assortment of specific information demands and merely particular purpose fiscal statement may hold the ability to turn to those demands. The Accounting model ( par. 10 ) acknowledges that fiscal statements can non run into the demands of all these users, but argues that the proviso of fiscal statement that meet the demands of investors will besides run into most of the demands of other users. research has extensively examined the relevancy of accounting informations in order to measure the utility of fiscal statements to the users Papadaki and Siougle ( 2007 ) . Published fiscal statement is defined as relevant if it has a predicted association with equity market values. The survey was designed to measure whether the corporate studies are relevant in supplying information that is utile to the determination shapers. Barth et Al ( 2001 ) . 1.1 Background of the survey In recent times the demand for proper corporate fiscal revelation of listed companies was increasing and the failures of big companies registered on the most of import stock exchange have exerted excess force per unit area on listed companies and standard compositors for the betterment of the quality of corporate coverage. The stock exchange committee stated the diminution in subject in corporate one-year coverage and imperativeness release to the absence of capacity at the Zimbabwe stock exchange from 2007.The consequences of the IFRS reappraisal for the published infusions of fiscal describing provinces that the coverage entity do non expose consistence and sometimes look to describe subjective information on which the reader is supplied with information that satisfy their direction aims. hypertext transfer protocol: //www.africair.com/2012/08/09/pu. It besides states that some companies are non following with the IFRS. A figure of accounting and concern failures recorded around the universe have promoted unfavorable judgment on accounting. The determination shapers have been in a figure of lay waste toing losingss due to accounting dirts and bankruptcy in companies which they have stockholding. These state of affairss might be that the corporations have supplied inaccurate information to the determination shapers. The recent accounting dirts have led to the loss of assurance in fiscal coverage pattern and effectivity of corporate administration mechanisms Bartley 2002 ; Browning 2002 ; O’Connell, et Al. 2005. Even though enterprises have been put frontward to better the quality fiscal coverage, it is clear that the quality fiscal coverage is sometimes biased. In pattern, as can be witnessed by a figure of accounting dirts and bankruptcies, some companies are still printing low-quality fiscal studies and supply misdirecting information to the populace. The quality corporate fiscal coverage remains the dream of most comptrollers. It seems to be a myth that the world of fiscal coverage is different from what people presently believe. However, we have instances whereby companies window dress their histories to do it attractive to investors to purchase portions or put in their companies, which in bend consequences to either loss or prostration of the company at the terminal of the twenty-four hours. The ground for revelation of accounting information is to inform the stockholders on the fiscal deductions and effects of the departures on in the organisation. 1.2 Statement of the job Zimbabwe Stock Exchange is sing a batch of overreaction by irrational investors who have no footing for their determinations despite the published fiscal statement ; it was observed that determination shapers are drawn into the market in a sort of bandwagon consequence, nevertheless the inquiry that begs to be answered is whether investors can trust on fiscal statement information for investing determination devising intents in Zimbabwe. 1.3 Aims of the survey The chief aim of this research work is to analyze the relevancy of published one-year studies of listed companies to determination shapers. The specific aims of the survey are: To analyze the extent to which fiscal studies are used in measuring the overall public presentation of the company. To determine if there exist other finding variables apart from the information provided in one-year studies and histories that influence their investing determination. To determine insufficiencies if any with the current revelation practiced in corporate coverage in Zimbabwe. 1.4 Research Questions To supply a usher in the behavior of the survey the undermentioned inquiries are raised: To what extent are fiscal study used in measuring the overall public presentation of the company? Are one-year study and histories adequate in act uponing thebuy, clasp and sell determination of investor. Are at that place other variables that inform the determination of stockholders to purchase, keep and sell equities? Are there current revelation patterns in corporate coverage in Zimbabwe adequate? 1.5 Significance of the Study The significance of this research work is to give an empirical analysis of corporate one-year study and history and its relevancy to users of fiscal statements. The research would give the research worker a comprehensive apprehension on how fiscal statements can be used by users to do informed judgement and determinations. The survey is besides extremely important to stakeholders as they need accurate information to foretell future public presentation by placing the factors in fiscal study. This work will decidedly add to the organic structure of bing cognition and a usher for other research workers who will transport out research on this capable affair, peculiarly in countries that will non be addressed in the survey. 1.6 Explicating Hypothesis Establishing on the statement of the job, the undermentioned void hypothesis were through empirical observation formulated and tested on the analysis of the relevancy of one-year studies to the determination shapers. H0:That published fiscal statement has no importance in the investors’ determination devising. H1: That published fiscal statement has greater importance in the determination devising by the users. 1.7 Premises The research is traveling to be successfully carried out in the allocated clip The information gathered from samples, respondents and any other beginning will be right Econet Wireless Zimbabwe will run on a traveling concern construct therefore operate in the foreseeable hereafter Datas from respondents will be equal to infer findings and decisions 1.7 Boundary lines This survey is limited to the published fiscal statements and their relevancy to users of fiscal statement, with particular mention to Econet Wireless Zimbabwe, Masvingo and shall cover the period of 2010 to 2013. The population comprised all stakeholders. From the population, a sample of 30 was obtained through the simple random choice technique. 1.8 Restrictions of the survey This survey has been undertaken in malice of the cynicism that dogged the survey right from the construct which constituted restriction to the research worker and these are: Due to the high degree of confidentiality in the administration nowadays non all beginnings relevant to this research is accessed. However the research worker resorted to the usage of other beginnings of information like the accounting manual. Some respondents were non being able to react freely due to work committednesss therefore the research worker followed them in order to entree the information. Secondary informations contained some elements of prejudices so on this regard the research worker put more trust on primary informations. Several disbursals were involved in this work therefore there was limited resources available to the research due to hapless economic status that was non adequate to take attention of high transit cost, letter paper, public dealingss and cost of typing this work and binding. Budget Item Unit of measurement Monetary value sum quantity/trips $ $ printing, photocopying and typing 3 20 Conveyance 7 12 72 telephone charges 1 50 Stationery 20 sundry disbursals 50 Entire 212 The research worker will seek contributions from the administrations and besides beginning financess from relations and friends to finance the research procedure budget. 1.9 Definition of footings Accounting: This is the presentation of consistently developed and accurately recorded fiscal studies about an entity engaged in economic activity to users of such study, reading and analysis of such study to accomplishing their assorted demands. Annual Report: Is a elaborate study on a company’s operations throughout the preceding twelvemonth. This is intended to give stockholders and other stakeholder’s information about the company’s activities and fiscal public presentation. Investors: They are the proprietors of the concern and they need fiscal information to measure the effectivity of the direction in running the concern and the likeliness of hazard if any. Accounting Standards: In a nutshell, these are regulations which indicate the footing of recording, presentation or valuing an point. Relevance: Fiscal statements: these are paperss prepared by the direction of the company to pass on its public presentation to the stockholders and other users Investing ; this means the forfeiture of the present resource for the hereafter. It is the committedness of present resources for future return. Information-these can be said to be the facts needed or received by a individual, or group of individual, or group of individuals which is or will be utile to them. Decision making- can be defined as placing options, measuring such options and taking from such options. It can be viewed as the really cloth of which organized activity is made. 1.10 Organization of the survey Chapter one concentrated on a brief description of the background to the survey, statement of the job, aims of the survey, research premises and boundary line of the survey and ends with an administration of the survey. Chapter two will concentrate on reappraisal of related literature. It focuses on old work done by others authors and research workers on the relevancy of published fiscal statements . A survey of this magnitude required a thorough and critical rating of relevant literature centred on the undermentioned constructs of the job: the empirical reappraisal and justification of the survey. Chapter three will look at the research methodological analysis used in the research procedure and the justifications thereof. The chapter will concentrate on the research design, instance survey, study method, population and sample, questionnaires, interviews, cogency of the instruments and dependability of the instruments. Chapter four will concentrate on informations presentation and treatment of the research findings on the research subject. It analyses the primary informations in the signifier of responses from questionnaires and interviews, and besides secondary informations. Chapter five will show the sum-up, decisions and recommendations. These summaries the major concerns of the research survey as highlighted in chapter one, methods used and the deductions of the findings, besides presenting inquiries for future research. 1.11 Chapter sum-up Research subject was drawn, followed by a brief background of the job. Steering inquiries were outlined. Restrictions and operational definitions were given. The following chapter, which is chapter two, seeks to appreciate what other writers are traveling to state theoretically and through empirical observation about the relevancy of published fiscal statements to the determination shapers

Personal Wellness Living Plan Article Example | Topics and Well Written Essays - 500 words

Personal Wellness Living Plan - Article Example Personally, my goal is to work on reducing my body weight from currently 170kg to 80kg. This is a hard task, and for me to achieve it, a lot of disciple and advice from health officials will be very vital. One can reduce weight in many different ways. However, before resorting anyone of them, it is critical to consult medical practitioners to advise you on the best method suitable for you. Health experts have always advised that eating a healthy diet is one of the best ways to reduce the body weight (Moreno 48). Healthy weight reduction takes time and energy, but simple changes in the lifestyle like eating a healthy diet can greatly help in the process. Keeping proper food and exercise diary will be key for me to achieve my goal. A regular workout regime will be developed, and my diet is modified according to my doctor’s advice so as to achieve a healthy weight loss. The implementation of this plan will not be easy as I will have to adjust to some routines that I was never used to before. Having to eat fewer carbohydrates will specifically be tough for me as some of my favorite meals fall in this category of foods. To overcome all these difficulties, I will count on the support of my family members. They will play a big part in my transformation process, offering moral support and guidance. Despite all the challenges I am likely to face in my dream to lower my body weight, my motivation is to reduce the risks of getting high blood pressure and other diseases related to body weight.

Case Study of Supply Chain Management in Larsen & Toubro Ltd Essay

Case Study of Supply Chain Management in Larsen & Toubro Ltd - Essay Example In fact, some of the most amazing business successes in the past 20 years are direct results of finding more efficient supply chains in delivering products to customers. Supply chain management emerged only a decade ago together with the emergence of the word "supply chain" in the business scene. This development started from the business world's recognition of the importance of integrating and managing the processes within a business entity. The new revolution in supply chain management significant changed business processes and introduced radical revolutions which promote the operation efficiency of companies and gain competitive advantage in their respective industries. Perhaps, the most successful in revamping its supply chain is Dell Computers. In fact, supply chain management is often referred to as the Dell's model (Cavinato, 2002). Currently, supply chains generally perceived as the "proper blending of physical resources with financial, informational, and relational resources-all within the strategic context of competing in the marketplace (Cavinato, 2002)." Experts argued that there is no "one size fits all" supply chain and that different businesses need to employ unique business models to run their operations. The shift in business model necessitates major changes in a comp... The first section will give a brief profile and background of the company. Next, it will look at the costs of shifting to a more streamlined value chain. Afterwards, it will explore the importance of technology in the new supply chain as well as its long-term collaboration with its supplier's to the system's efficiency. An analysis of the material procurement system of the ECC will be presented. The paper will end with its findings and recommendations. The Company: Larsen and Toubro Limited (L&T) L&T traces its origins by the partnership formed by two Danish engineers Henning Holk Larsen and Soren Kristian Toubro in 1938. The firm is engaged in the manufacture of a wide array of engineering products, earthmoving equipment, chemical and industrial machinery, switchgear valves, welding alloys and cement manufacturing machinery. The ECC division of L&T handled the turnkey industrial and infrastructure projects in civil, mechanical, electrical and instrumentation engineering as well as turnkey construction services. The division is headquartered in Chennai and has operations dispersed in other countries like UAE, Bangladesh, Sri Lanka, Malaysia, and South Africa. The company's thrust of utilizing a business model to integrate the division's operations into a more cohesive one is the driving force in revamping the company's supply chain. From its manual operations, the company opted to employ a web-based SCM solution which took advantage of the recent trend in the information and communication technology (ICT) sector. Thus, the company was able to streamline its supply chain and boost the efficiency of its operation. Challenges in Integrating

Basic law Essay Example | Topics and Well Written Essays - 1000 words

Basic law - Essay Example A substitution might be necessary if the court decided a litigation guardian did not act in the best interests of the minor (Queen’s Bench Rules 2008). 5. The burden of proof in this case is carried by Gina Shez Maria Sobello, Jai Desmond Sorbello and Andre Giovani Sorbello. 6. The test of intention leads the court to the statement that it is permissible to have regard to the subsequent conduct of the parties for the purpose of ascertaining whether the intention to be attributed to them was to make a binding agreement or otherwise. 7. The common law presumptions the courts rely upon in deciding if the parties intended to be legally bound is that in social or domestic situations legal relations are not intended. In a business context, however, the courts will presume that the agreement was indented to be legally bounding. In relation to social cases such presumptions can be rebutted in an attempt to show that there was an attempt for legal relations (Online Legal Coach 2008). 8 . The English case mentioned in the process is Balfour v Balfour[1919] 2 KB 571; 35 T.L.R. 609 , King's Bench: a husband who worked abroad promised his wife who in England to sent 30 pounds monthly. Then they divorced and she brought that action for the money he promised to her but didn’t pay (Balfour v Balfour [1919] 2 KB 571; 35 T.L.R. 609). 9. The Queensland case cited in the judgment is Riches v Hogben [1986] 1 Qd R 315: a man agreed that his mother would give him a house in Australia if he moved there to take care of her. The family gave up his rent-free house, sold a car and other belongings to depart to Australia on time. The mother bought a house, however, did not put it in his name, but on hers, and made the man’s family leave her house. The son then sued in order to enforce the contract with the mother. The Full Court, however, found the contract unenforceable (Heffey, Paterson and Hocker 1998). Mullins J refers to Riches v Hogben stating that â€Å"It is pe rmissible to have regard to the subsequent conduct of the parties for the purpose of ascertaining whether the intention to be attributed to them was to make a binding agreement or otherwise† (Sorbello & Ors v. Sorbello & Anor [2005] QSC 219) 10. Mullins J concluded that the first defendant (John Sorbello) was an honest witness. As a result, John’s evidence evidence on the events was preferred to that of Mrs Anderson or Gina. 11. The order of the court was that the proceeding be dismissed. 12. Regarding the costs of the case, it was decided that Mrs Anderson, as his litigation guardian, was ordered responsible for any costs ordered against Andre. However, the issue of whether she should be ordered to pay all the costs of both defendants was questioned by the judge who promised to hear submissions from both parties regarding the costs. 13. I believe the decision was fair. There was no formal (written) contract. Part B 1. Considering that Harry, who was willing to sell the bar, is representing a business entity, here a contract between Monty and Harry according to the common presumption that in business situations legal relations are intended. Furthermore, the court would assume that the agreement was indented to be legally bounding. In addition, since option is a contract that signifies one party’s intention to acquire a legal right to buy something (Farlex, Inc.

EU Commission on Auditor Liabilities

EU Commission on Auditor Liabilities Auditors are increasingly finding that they are being targeted by those who feel that they have been wronged by the quality of the financial accounts. Auditors are required to consider the financial accounts that are prepared by the company and to establish whether they believe that they give a true and fair representation of the underlying financial position. By ‘true’ they are looking for whether the transaction actually occurred and by ‘fair’ they are looking to ascertain whether the value of the transaction has been accurately recorded. In the UK, there is a rule that liability for misstatement is joint and several between wrongdoers. This often results in auditors taking a much greater portion of the liability than would seem just. Auditors are often seen to have deep pockets due to their insurance policies and, as such, make more promising targets for those who believe that they have lost out financially due to the inaccuracy of the accounts[1]. Background to the EU Consultation on Auditor Liability There have been widespread concerns over this practice, with many countries operating a more proportional approach where the extent of the blame dictates the extent of the liability. The European Union has shown particular concern over the potential reduction in competition that this lack of capped liability leads to. With the limit level of professional insurance policies playing a huge role in the company’s decision as to which auditor to appoint, this is thought to favour the larger auditors and exclude the smaller players from some of the larger lucrative contracts. It is also thought that this requirement presents such a great barrier to entry for auditor firms that there is a real danger that the audit market is not operating competitively. The EU consultation undertook a study based on four possible options that were available to produce a cap for auditor liability. Firstly, they considered a monetary cap on a Europe wide basis. Secondly, they considered a monetary cap based on the size of the auditor firm. Thirdly, there was an option to produce a monetary cap based on a multiple of the audit fee and finally, they considered the option of member states entering into a policy of proportionate liability, which would require the courts to split the liability based on the level of responsibility for the breach and on a proportional basis. This could either be achieved through statutory provisions or through the contractual provision between the company and the auditor. Upon consultation, the commissioners found that there was overwhelming support for the concept of having a cap on auditor liability, both from inside and outside the auditing profession. The Commission noted that the issue of auditor liability was not a new one, with consideration having been given, in 2001, to whether the extent of the differences between the countries in relation to auditor liability would prevent a single market across Europe. Although, at this stage, the substantial differences across jurisdictions were recognised, they were not thought to be so large that anything had to be done to rectify the position. However, since 2002, the large scale collapse of Arthur Andersen has occurred, bringing the issue of potential liability caps back into the forefront. The Commission initially identified the potential problems that the current auditing regime causes in terms of market stability and competition within the auditing function. Considerable attention was paid to the issue of public interest and the need to have a stable auditing function which can be relied upon to be accurate. For an auditing function to be efficient, the company must be able to select an appropriate auditor for its business needs but still allow it to maintain the independence of the function so that the stakeholders can rely on the statements. It is accepted that auditors will not always be 100% accurate; however, they should be able to be relied upon as this is critical to the overall efficiency of the European capital markets. Concentration of the Audit Market The central importance of the auditing profession is not disputed, with investors relying on the financial statements in order to make investment decisions. However, the magnitude of the risk that auditors are exposed to is becoming increasingly worrying both for the auditors and for the general competitive landscape. Due to the nature of internationally listed companies, there are only four companies that are capable of providing the necessary auditing services. These are refereed to as the ‘Big Four’: Deloitte, KPMG, Price Waterhouse Coopers and Ernst Young. It is not necessarily the expertise that prevents others entering the market, but rather the high level of professional indemnity that is required which is simply not cost effective for smaller firms entering the market. It is recognised that there is little or no chance of a new entrant into the market, yet there is a danger that any one of the four could be forced out of the market, at any point, thus further re ducing the competition in large scale auditing. In reality, international auditing firms are not actually one large firm but are a network of smaller firms that recognise they are not able to manage the level of risk that is required for international auditing. With strict rules relating to auditing firms, it is unlikely that another network will emerge, making the international audit market particularly fragile[2]. Auditors often become the target in cases of insolvency as they are the ones with the resources available to deal with any financial losses due to misstatement. It is this potential redress that offers investors a degree of confidence in the market and, therefore, it is seen as desirable that auditors are held to be liable in situations where they get it wrong. However, it is recognised that the current joint and several approach is simply inefficient and consideration should be given to alternatives. For the auditing profession to be truly efficient, it is necessary for there to be a substantial degree of choice. This is not currently the case and effort should be made to ensure that the auditing options are widened so as to become accessible to other medium sized firms. One of the recognised ways of doing this is to have a liability cap or a proportionate regime so that the deep pocket syndrome does not restrict the choice of auditor to the hands of the big four[3]. Extent of Risk for an Auditor The major barriers for mid sized auditor firms are recognised as being the lack of available indemnity insurance and the large amount of potential risk that is involved when auditing large international firms. Clearly, an auditor has a duty towards the company itself, based on either contract or tort when it has behaved negligently or with wilful misconduct. The vast majority of cases are related to negligence and it is this area of liability that has generated the most interest from the European Commission[4]. Liability is clearly owed to the client itself; however, this has also extended to be liability towards third parties, causing further barriers to entry for mid sized auditing firms. For a third party to bring a claim, it is necessary for there to be a causation link between the act of negligence and the damages suffered by the third party which, although difficult to prove, has resulted in some high profile payouts further jeopardising the chances of mid tier firms entering the international auditing market[5]. At the heart of this widespread liability is the concept of joint and several liability. Under this process, a third party who has a claim against a director can also bring a claim against an auditor who has given an unqualified opinion as to the accuracy of the accounts. In a case of corporate insolvency, the directors rarely have any finances available to pay out third party losses, therefore, encouraging actions against the auditors who are seen to have ample financial backing. It is this high level of risk that the cap on liability is aiming to address. Oppositions to an Auditors’ Liability Cap Despite the overall acceptance of the need to do something to alter the balance of power within the international auditing market, one of the main objections was that placing a limit on liability would give the auditing profession a privileged position in comparison to other professions. A main aim of establishing a cap was to encourage mid sized firms to enter into the market and it is feared that a liability simply would not achieve this aim. Much of the exposure faced is outside of the EU (i.e. in the US)[6] and, therefore, the cap would make little or no difference. Equally, the insurance requirements would remain high. A cap would not make the insurance requirement less; it would simply make it more ascertainable. There are also concerns that the cap would encourage poor performances and weaker audits. From a competitive point of view, those in opposition to the cap were concerned that such a move would reduce the competitive position of European companies in comparison to other international jurisdictions where no such cap exists. Concerns were also raised that a cap on auditors’ liability would be contrary to the overall proposition of better regulation that the EU has been working towards, in recent years[7]. Alternative Options As it is accepted that the main reason for imposing such a cap would be to open up the international auditing market to other mid sized auditing firms; alternatives to a cap on liability were also considered by the EU because of the potentially negative competitive impact of such caps. One of the possible options is to impose a compulsory insurance on audit firms. There is currently an insurance gap where the amount that an insurer is prepared to insure an auditor for is substantially less than the potential liability. Forcing the auditor to take out insurance to cover all losses would not be practicable due to the high level of potential risk. Therefore, the premiums would be prohibitively expensive, particularly for the smaller firms. Alternatives to funding this additional insurance would have to come from investors or the companies themselves. Another approach would be to reduce the potential risk faced by auditors by introducing safe harbours. This would involve carving out certain areas from the potential liability of the auditor such as any external reviewers’ comments on the company or any future plans which have happened after the end of the financial accounting year. However, in doing this, there are fears that the underlying principle of professional judgment would be eroded in favour of formalised approaches to ensuring that as much of the safe harbour carve out could be enjoyed. EU Recommendations On considering all of these factors and a widespread discussion of the pros and cons of the possibility of a cap on auditors’ liability, the EU commission has established a proposal that aims to achieve the middle ground[8]. When considering the four options as stated above (cap for all European audits, cap based on size of audit firm, cap based on the fee and a proportionate regime), the EU Commission concluded that a combination of a proportionate liability and an auditors’ cap on liability would make the foundations of their recommendations. The report advised member states to require a limitation to auditors’ liability to be established either through a statutory cap, a limitation based on proportionality or limitation of liability through the contract between the audit company and the auditor. Proportional liability gained considerable support from the non-auditing respondents to the proposals as it was felt that this would deal with the issue of reliance on auditors’ deep pockets, but would also ensure that the quality of the audit would be maintained. The commission recommended that any member state implementing this approach should not set a specific proportion and should simply set the principle in place to be applied through the judicial processes, where necessary. Unsurprisingly, the auditing profession preferred the concept of a cap on liability, arguing that it would have no long term impact on the quality of the audit and would allow mid sized firms to enter the market. This was not entirely followed by the EU Commission who preferred to suggest a principle of proportionate liability. Based on all arguments, the EU Commission has advised a regime of proportionate liability across all member states. Conclusions The issue of auditors’ liability and how risk is apportioned has been raising concerns on an international level and has, therefore, become the subject of an EU Commission report. Currently, the international auditing market is heavily dominated by the big four accounting firms and several barriers of entry exist to prevent mid sized firms entering the market. Many of the barriers result directly from the fact that auditors are jointly and severally liable for misstatements in the financial accounts. Therefore, due to their deep pockets, auditors are often the main target for those taking actions against struggling companies[9]. Based on this position, the EU Commission looked into the option of establishing a cap on liability (either statutorily or through contractual provisions). After careful consideration of all of the options, it was felt that a principle of proportionality would be the best approach, given all of the issues raised. It was concluded that proportionality would reduce the deep pockets issue, yet would still ensure that the level of quality of auditing work is maintained. This level of proportionality should not be cast in stone and should be established on a case by case basis. It is anticipated that this will provide sufficient security for the smaller auditors to compete on a level playing field with the domain that has traditionally been that of the big four firms. Bibliography Allen, Robert D., Hermanson, Dana R., Kozloski, Thomas M., Ramsay, Robert J., Auditor Risk Assessment: Insights from the Academic Literature, Accounting Horizons, 20, 2006 Clarke, Frank L., Dean, G.W., Oliver, Kyle Gaius, Corporate Collapse: Accounting, Regulatory and Ethical Failure, Cambridge University Press, 2003 Garner, Don E., McKee, David L., McKee, Yosra AbuAmara, Accounting and the Global Economy After Sarbanes-Oxley, M.E. Sharpe, 2008 Hay, David, Davis, David, The Voluntary Choice of an Auditor of Any Level of Quality, Auditing: A Journal of Practice Theory, 23, 2004 Hillison, William, Pacini, Carl, Auditor Reputation and the Insurance Hypothesis: The Information Content of Disclosures of Financial Distress of a Major Accounting Firm, Journal of Managerial Issues, 16, 2004 Pacini, Carl, Hillison, William, Sinason, David, Auditor liability to third parties: an international focus, Managerial Auditing Journal, 15, 8, 2000 Pong, C.K.M., Burnett, S., The implications of merger for market share, audit pricing and non-audit fee income: The case of PricewaterhouseCoopers, Managerial Auditing Journal, 21, 1, 2006 Smith, Roy C., Walter, Ingo, Governing the Modern Corporation: Capital Markets, Corporate Control, and Economic Performance, Oxford University Press US, 2006 Soltani, Bahram, Auditing: An International Approach, Pearson Education, 2007 Footnotes [1] Pong, C.K.M., Burnett, S., The implications of merger for market share, audit pricing and non-audit fee income: The case of PricewaterhouseCoopers. Managerial Auditing Journal, 21, 1, 2006 [2] Clarke, Frank L., Dean, G. W., Oliver, Kyle Gaius, Corporate Collapse: Accounting, Regulatory and Ethical Failure, Cambridge University Press, 2003 [3] Soltani, Bahram Auditing, An International Approach, Pearson Education, 2007 [4] Hillison, William, Pacini, Carl, Auditor Reputation and the Insurance Hypothesis: The Information Content of Disclosures of Financial Distress of a Major Accounting Firm, Journal of Managerial Issues, 16, 2004 [5] Pacini, Carl, Hillison, William, Sinason, David, Auditor liability to third parties: an international focus, Managerial Auditing Journal, 15, 8, 2000 [6] Garner, Don E., McKee, David L., McKee, Yosra AbuAmara, Accounting and the Global Economy After Sarbanes-Oxley, M.E. Sharpe, 2008 [7] Hay, David, Davis, David, The Voluntary Choice of an Auditor of Any Level of Quality, Auditing: A Journal of Practice Theory, 23, 2004 [8] Smith, Roy C., Walter, Ingo, Governing the Modern Corporation: Capital Markets, Corporate Control, and Economic Performance, Oxford University Press US, 2006 [9] Allen, Robert D., Hermanson, Thomas, Dana R., Kozloski, M., Ramsay, Robert J., Auditor Risk Assessment: Insights from the Academic Literature, Accounting Horizons, 20, 2006

Alcohol Consumption in College :: Alcoholic Beverages Health College Essays

Alcohol Consumption in College Incomplete Paper Alcoholic beverages such as beer can cause problems for many people throughout life, but for college aged people alcohol can cause the worst. In college most people are being out on their own for the first time ever and having that freedom they have never had. Some problems caused by alcohol in college are, missing an assignment or class, or even death. Drinking a beer a day has been found healthy, but in college that is never the case. Not that everyone drinks or everyone drinks a lot but there is always that select group that will drink more nights out of a week than not. And when that group drinks they drink heavily in order to be drunk. Problems occur with many people who do drink very heavily because it impairs their ability to get things done for many hours including the ones when drinking and after. A student may not attend class the day after drinking because he or she may be to sick or just exhausted from the drinking the night before. After the student skips the first one it becomes easier and easier to skip classes, therefore it is more likely to happen over and over again. Also when skipping classes a student can miss anything from an important lecture to a test which can really hurt their grades. The final big issue is the number of students who die every year from alcohol poisoning. Alcohol poisoning is caused by excessive amounts of alcohol in the body. Some very common ways for students to get this is by doing shots of hard liqour or now the tool called a beer bong. Both involve swallowing a lot of alcohol very quickly which is very dangerous for the body, and can many times lead to being very ill or death. College is a huge part of every student's life, and there is no reason to try to ruin college or life by excessive drinking. Students need to understand there is more to life than partying or going out every night. Maybe if the school did more about educating the students on the issues of drinking there wouldn't be so many binge drinkers. If that huge paper is due in a couple days or there is class in the morning going out and partying is not going to help with either situation. alcohol to children For years, the population has been exposed to different forms of media. Newspapers, magazines, television, films, radio, and more recently the Internet are ways of promoting ideas, spreading news, and advertising products. Alcohol Consumption in College :: Alcoholic Beverages Health College Essays Alcohol Consumption in College Incomplete Paper Alcoholic beverages such as beer can cause problems for many people throughout life, but for college aged people alcohol can cause the worst. In college most people are being out on their own for the first time ever and having that freedom they have never had. Some problems caused by alcohol in college are, missing an assignment or class, or even death. Drinking a beer a day has been found healthy, but in college that is never the case. Not that everyone drinks or everyone drinks a lot but there is always that select group that will drink more nights out of a week than not. And when that group drinks they drink heavily in order to be drunk. Problems occur with many people who do drink very heavily because it impairs their ability to get things done for many hours including the ones when drinking and after. A student may not attend class the day after drinking because he or she may be to sick or just exhausted from the drinking the night before. After the student skips the first one it becomes easier and easier to skip classes, therefore it is more likely to happen over and over again. Also when skipping classes a student can miss anything from an important lecture to a test which can really hurt their grades. The final big issue is the number of students who die every year from alcohol poisoning. Alcohol poisoning is caused by excessive amounts of alcohol in the body. Some very common ways for students to get this is by doing shots of hard liqour or now the tool called a beer bong. Both involve swallowing a lot of alcohol very quickly which is very dangerous for the body, and can many times lead to being very ill or death. College is a huge part of every student's life, and there is no reason to try to ruin college or life by excessive drinking. Students need to understand there is more to life than partying or going out every night. Maybe if the school did more about educating the students on the issues of drinking there wouldn't be so many binge drinkers. If that huge paper is due in a couple days or there is class in the morning going out and partying is not going to help with either situation. alcohol to children For years, the population has been exposed to different forms of media. Newspapers, magazines, television, films, radio, and more recently the Internet are ways of promoting ideas, spreading news, and advertising products.