You Are an Investment Analyst Essay - 1146 Words

You Are an Investment Analyst Amazon versus eBay Angelia Bradley Professor Timothy Carr Financial Accounting December 11, 2012 Amazon versus eBay Jeff Bezos, founded Amazon.com in 1994 when he left his job as Vice-President of the Wall Street firm D.E. Shaw to move to Seattle. After reading a report that projected annual Web growth at 2.300 percent he launched his website in 1995. He began drawing up a plan to sell a list of products on the internet. Bezos narrow his list to five most common products: compact discs, computer hardware, computer software, videos, and books. The $40,000 investment from Nick Hanauer and $100,000 from Tom Alburg help created a more user friendly website that we used today.†¦show more content†¦By doing this, it created profits for everyone involved and Amazon was back in business. On Labor Day, Monday, September 4, 1995, Pierre Omidyar, a 28 years-old software developer, who previously worked for Claris, develops software for Apple computers started eBay from his home. Omidyar first called his website Auction Web because he was told that was his first choice for a website name with t he concept of auctioning. The first item he placed to auction was a broken laser pointer. He received a bid and sold for $14.83. Omidyar was very shocked when the item sold and realized that he had created something extraordinary. The website began to grow and gain great familiarity. Omidyar tried to register the site under the domain echobay.com. It was already in usage, so Omidyar decided to shorten the name to eBay.com which originated from Echo Bay Technology. The website is now ready for business and later became a leader in Internet revenue. Items on eBay are listed by categories and anyone with an eBay account can bid on the items. You can find anything on eBay, including cars, real estate, collectibles, concert tickets, CDs, clothing, DVDs, artwork and etc. When items are listed for auction on eBay it can be seen by millions of people all over the world. According to Swartz (2006) implied that emphasis on eBay was the customer. The nature of online auctions required that strangers trust each others. EBay worked veryShow MoreRelatedYou Are an Investment Analyst Essay3176 Words   |  13 PagesYou Are an Investment Analyst Abstract Through this paper Pepsi and Coca Cola will be fully evaluated. A stock market analysis will be presented to a client as part of a professional consultation process. A background of both Pepsi and Coca will be accompanied in order to have a full synopsis of each company. The stock trends will be examined for both investment options. The stock trends will be based from the intial public offering day to January 2, 2012. Current events surrounding bothRead MoreYou are an Investment Analyst Essay2252 Words   |  10 Pagesfluctuations. Since Pepsi is considered to be less volatile in its stock price it may be considered a better investment compared to Coke. Research and summarize at least two (2) news events (this may include mergers, acquisitions, or political issues) that occurred from 2010 to the present day and the potential impact on the stock price of each company. Indicate how this influences your investment decision related to the company. Coke has always been a company that strives to be innovative andRead MoreInvestment Banking Analyst Career Essays1485 Words   |  6 Pages The job of an investment analyst in a banking firm such as Goldman Sach and JPMorgan is to oversee whether or not an investment made by customers will bear fruits, but in order to do so, one must be skillful either in accounting or finance. A clear understanding in one of those majors is necessary because an investment banking analyst will be dealing with a bunch of financial research in stock and bond market and also in companies. Thus, providing information for the customers to helpRead MoreInside And Outside Of The Firm Essay1533 Words   |  7 Pagessecurity analysts. This player is very important to the operation of the firm because they influence how outside investors view the firm in terms of leadership as well as liquidity and other financial measures. Even though security analysts are known for their intensive research into investment vehicles for their clients they provide many in-depth services that investment advisors and others who watch and monitor the stock exchanges may not be able to receive. For instance, security analysts provideRead MoreEquity Research Questionnaire996 Words   |  4 Pagesthird quarter earnings. Hold Wal-Mart which has already been up 30% this year. Have you ever seen a similar news headline, wondering who on Wall Street issued that recommendation, why and how? Welcome to the dynamic world of equity research. As a junior at the University of Maryland, your finance internship next summer very well may launch your career. Which aspects of finance are you most interested in? Are you seeking a typical 9-5 position or a challenging role in the banking industry? I wasRead MoreInvestment Banking984 Words   |  4 PagesKris Howard Investment Banking The intensely competitive, action-oriented, profit-hungry world of investment banking can seem like a bigger-than-life place where deals are done and fortunes are made. Investment bank includes but is not limited to bringing an established company to the market, by that I mean taking company with the capabilities but not capital of expanding, and raising money through other investors or the stock market (IPO) for a commission, I chose this field becauseRead MoreThe Role of Capital Market Intermediaries in the Dot-Com Crash of 20001069 Words   |  5 Pagesdifferentiate intermediaries into two types in the capital market, one is financial intermediaries such as venture capital firms, banks, mutual funds, and insurance companies, and the other is information intermediaries such as auditors, financial analysts, bond-rating agencies, and the financial press. a) Venture Capitalists (VCs) There are several types of VCs that invest in companies in different stages such as Seed, Early Stage, Late Stage, Expansion, and Private Equity. In the case it wasRead MoreExamples Of Salary And Demand In Finance763 Words   |  4 Pagesoccupations in 2016 was 66,530, higher than the median annual wage for all occupations of 37,040† (U.S. Dept of Labor). As a future University of Houston-Downtown graduate obtaining a bachelor of Business Administration degree with a major in Finance and investment management, I hope to be able to pursue a successful career within the financial field. Seeking a career in the finance industry can lead to many different opportunities for success and growth because of the diverse and broad areas it encompassesRead MoreBeing A Business Person Since I Was Young1079 Words   |  5 Pagesbusiness person since I was young. My family’s business has motivated me to major in business. My dad owns a technology company’s, but Moreover, I esp ecially fascinated in finance. I have passion in finance fields, I am interested in stock market, investment banking, and marketing. Finance is very traditional, however, I am the one who knew the digital and social well, so I want to combine both the traditional and globalization together. I like to interact with people. I am interested in communicatingRead More Careers In Investment Banking Essay1108 Words   |  5 Pages Careers in Investment Banking A career in the securities industry can offer exciting work if you enjoy working in a competitive and demanding atmosphere. Investment bankers, stock brokers, and stock traders all make up the securities industry providing services to each other, as well as the general public. All of people involved in this field deal with stocks, bonds, and other financial material in some way or another, but they all have their own specific objectives and duties. The primary

Essay on Of Mice And Men - 548 Words

Every day, people are faced with responsibility. Some thrive under the pressure while others crumble. Responsibility is a sign of independence. Teenagers with greater amounts of responsibility feel freedom from their parents. In the same case, too much responsibility can put more stress on that freedom-seeking teen and can have devastating effects. John Steinbeck shows the theme that in life, responsibility is best taken in moderation in his novel Of Mice and Men. nbsp;nbsp;nbsp;nbsp;nbsp;In Of Mice and Men, George shows the weight of responsibility on taking care of Lennie. George knows he could be better off without Lennie. â€Å"When I think of the swell time I could have without you, I go nuts,† George finally expresses. He even tells†¦show more content†¦George even uses Lennie’s need as leverage to keep him under control. Lennie strives to hold responsibility. Unfortunately, Lennie tends to hurt the animals that he does receive. He is too strong for the animals that she cares for. During their journey from Weed, Lennie tends to a mouse, only to end up killing the fragile creature. Later on, George gets Lennie a puppy that Lennie regretfully kills with his power. Lennie’s good intentions fell short in comparison to his power. Lennie was looking for responsibility in pets but took on too much when the animals would be killed by his overwhelming strength. nbsp;nbsp;nbsp;nbsp;nbsp;Using the two main characters of the novel Of Mice and Men, John Steinbeck shows that in life, responsibility must be taken in moderation. George takes on the challenge of caring for Lennie. In doing this, George loses a job in weed and is often short-changed when it comes to food and other amenities. Eventually, George realizes where he could be without Lennie and kills Lennie to free himself of the responsibly. Lennie, in a life where he has always been protected by loved ones, looks for responsibility in dependent pets. Each time he is given a chance with an animal, he always cares for it with gentile love. Often times, Lennie’s strength would be too much for the animal and they would fall under his powerful hands. In the end, both men see that they were not capable of conquering the tasks at hand. GeorgeShow MoreRelatedOf Mice and Men1242 Words   |  5 PagesOf Mice and Men Thomas Hobbes in his Leviathan states that, in the state of nature mans life is nasty, brutish and short. In depression era America, no greater truth could be said. There were millions unemployed, largely unskilled and living on the margins of society. The lowest of the low were the migrant labourers travelling from place to place trying to scratch a living. They often had to travel illegally by freight car with all its consequent dangers. Their life expectancy was low, crimeRead MoreOf Mice and Men961 Words   |  4 PagesPeople have a tendency to lose sight of their goals and dreams. Mentally, people struggle to maintain their sanity in this game of life that has no set of rules. In the book Of Mice and Men, this story portrays the inequality between people’s dreams and what can actually be accomplished. John Steinbeck, the author Of Mice and Men, utilizes his general themes of friendship and loneliness, through his deep characterization and connection between characters i n order to illustrate â€Å"The American dream.† TheRead MoreOf Mice and Men1352 Words   |  6 PagesOf Mice and Men Essay - Fate or Choice? Choice is defined by the ‘Shorter Oxford Dictionary’ as; â€Å"The act of choosing; preferential determination between things proposed.† It also states the definition for fate; â€Å"The principle, power, or agency by which events are unalterably predetermined from eternity.† Is our life choice, can we determine our fate by choosing our path or is our destiny determined for us? John Steinbeck puts forward this question in his novella Of Mice and MenRead MoreMice and men1998 Words   |  8 PagesHey this essay is about me not having one and just wanting a free account.GCSE JOHN STEINBECK The first 200 words of this essay... à ¯Ã‚ »Ã‚ ¿Of Mice and Men Essay à ¢Of Mice and Menà ¢ is the fictional short novel written by John Steinbeck in 1937. Steinbeckà ¢s perspective when writing the novel could be based on the fact that he had once worked on a ranch and had a certain fascination about it. The novel is set in 1930s America and this can be seen as the cause of the very enduring culmination that takesRead MoreOf Mice and Men1006 Words   |  5 Pagesheart of every novel.† In your view, what are the distinctive ideas explored in Of Mice and Men? Explain how these ideas are developed throughout the novel. Themes are integral and fundamental aspects which render the literature valuable. They usually provide insight into the author’s perception and internalisations of the world in which they live. Set in California during the Great Depression, Of Mice and Men, by Steinbeck, illustrates the hardships experienced by individuals as they roamed theRead MoreOF MICE AND MEN1721 Words   |  7 Pagesï » ¿In the book Of Mice and Men, the single women that appeared in the book resented herself as an object. The statement Women today are more often treated by men as equals rather than objects can be true or false. A man that goes to Gentleman s Cubs every night is a different man that studies at Harvard Law School. A striper is going to be a different person than a CEO of a successful business. It’s all about how you present yourself. In Of Mice and Men, Curley s wife presents herself in a seductiveRead MoreOf Mice and Men1035 Words   |  5 PagesFriendship of George and Lenny The book Of Mice and Men focuses on the friendship of two migrant workers in California at a time when most of the work was done by people and not by machines.  Ã‚  George was a small man who acted worldly and wise.  Ã‚  Lennie was a huge man that had the mind of a child.  Ã‚  Together George and Lennie would bounce from job to job with no money in their pockets and only the dream of someday owning a place of their own to keep them going.  Ã‚  The two men were not able to stay in one placeRead MoreOf Mice and Men547 Words   |  2 PagesJohn Steinbeck’s landmark novel Of Mice and Men is perhaps best known for its revolutionary telling of two characters that are very different, but have come to rely on each other to survive during the Great Depression. The two characters are men named George and Lenny. George is somewhat of an average fellow who has no real special skills or attributes. Lenny is large and abnormally strong, but unfortunately has the mind of a child. Le nnie looks up to George as if he were a role model. This statementRead MoreOf Mice and Men1171 Words   |  5 PagesOf Mice and Men by John Steinbeck Q- â€Å"I never seen no piece of jail bait worse than her† what is the reader supposed to think about Curley’s wife? * How is she described by the other characters? * How the author describes her * How she speaks/behaves * Her dreams * Is she the cause of all the trouble Written By Ruqayyah Draey Curley’s wife is not well described and respected by the other characters. She is often looked down upon and discriminatedRead MoreOf Mice and Men883 Words   |  4 Pages‘Of Mice and Men’ is a novel about two men and their struggle to reach their dreams of owning their own ranch. George Milton and Lennie Small are best friends, and in despite of their differences they still manage to work together, travel together and tackle anything that gets in their way. Steinbeck uses nearly all of the characters in this novel to stress the importance of having a friend. The novel ironically starts off in Soledad, which means ‘Solitude’ but when translated into English it means

Production Supervisor Free Essays

KRA (Key Responsibility Area/Key Results Area): â€Å"Key Result Areas† or KRAs refer to general areas of outcomes or outputs for which the department’s role is responsible. A typical role targets three to five KRA. Value of KRAs: Identifying KRAs helps individuals:  · Clarify their roles  · Align their roles to the organisation’s business or strategic plan  · Focus on results rather than activities  · Communicate their role’s purposes to others  · Set goals and objectives  · Prioritize their activities, and therefore improve their time/work management  · Make value-added decisions Description of KRAs: Key result areas (KRAs) capture about 80% of the department’s work role. We will write a custom essay sample on Production Supervisor or any similar topic only for you Order Now The remainder of the role is usually devoted to areas of shared responsibility (e. g. , helping team members, participating in activities for the good of the organisation). CORE KRAs of HR DEPARTMENT: -RECRUITMENT/ SELECTION -WORKFORCE PLANNING/ -DIVERSITY MANAGEMENT -PERFORMANCE MANAGEMENT -REWARD MANAGEMENT -WORKPLACE MANAGEMENT -INDUSTRIAL RELATIONS -SAFETY AND HEALTH WORKPLACE -BUILDING CAPABILITIES AND ORGANIZATION LEARNING -EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING KEY PERFORMANCE AREAS: These are the areas within the HR DEPARTMENT, where an individual or group, is logically responsible / accountable for the results. To manage each KRA/ KPAs, a set of KPI are set . KRA and hence KPI is attributed to the department which can have effect on the business results and is self measured where applicable. THE IMPORTANCE AND WEIGHTAGE OF THESE ELEMENTS KRAs/KPAs/KPIs ARE GUIDED BY THE *VISION STATEMENT *MISSION STATEMENT *CORPORATE OBJECTIVES *CORPORATE STRATEGY *CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY. FOR THE BUDGET PERIOD, THIS IS USUALLY 12 MONTHS. What Are Key Performance Indicators (KPI): Key Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. They will differ depending on the organization. A business may have as one of its Key Performance Indicators the percentage of its income that comes from return customers. A school may focus its Key Performance Indicators on graduation rates of its students. A Customer Service Department may have as one of its Key Performance Indicators, in line with overall company KPIs, percentage of customer calls answered in the first minute. A Key Performance Indicator for a social service organization might be number of clients assisted during the year. Whatever Key Performance Indicators are selected, they must reflect the organization’s goals, they must be key to its success,and they must be quantifiable (measurable). Key Performance Indicators usually are long-term considerations. The definition of what they are and how they are measured do not change often. The goals for a particular Key Performance Indicator may change as the organization’s goals change, or as it gets closer to achieving a goal. Key Performance Indicators Reflect The Organizational Goals: An organization that has as one of its goals â€Å"to be the most profitable company in our industry† will have Key Performance Indicators that measure profit and related fiscal measures. â€Å"Pre-tax Profit† and â€Å"Shareholder Equity† will be among them. However, â€Å"Percent of Profit Contributed to Community Causes† probably will not be one of its Key Performance Indicators. On the other hand, a school is not concerned with making a profit, so its Key Performance Indicators will be different. KPIs like â€Å"Graduation Rate† and â€Å"Success in Finding Employment after Graduation†, though different, accurately reflect the schools mission and goals. Key Performance Indicators Must Be Quantifiable: If a Key Performance Indicator is going to be of any value, there must be a way to accurately define and measure it. â€Å"Generate More Repeat Customers† is useless as a KPI without some way to distinguish between new and repeat customers. â€Å"Be The Most Popular Company† won’t work as a KPI because there is no way to measure the company’s popularity or compare it to others. It is also important to define the Key Performance Indicators and stay with the same definition from year to year. For a KPI of â€Å"Increase Sales†, you need to address considerations like whether to measure by units sold or by dollar value of sales. Will returns be deducted from sales in the month of the sale or the month of the return? Will sales be recorded for the KPI at list price or at the actual sales price? You also need to set targets for each Key Performance Indicator. A company goal to be the employer of choice might include a KPI of â€Å"Turnover Rate†. After he Key Performance Indicator has been defined as â€Å"the number of voluntary resignations and terminations for performance, divided by the total number of employees at the beginning of the period† and a way to measure it has been set up by collecting the information in an HRIS, the target has to be established. â€Å"Reduce turnover by five percent per year† is a clear target that eve ryone will understand and be able to take specific action to accomplish. Key Performance Indicators Must be Key To Organizational Success: Many things are measurable. That does not make them key to the organization’s success. In selecting Key Performance Indicators, it is critical to limit them to those factors that are essential to the organization reaching its goals. It is also important to keep the number of Key Performance Indicators small just to keep everyone’s attention focused on achieving the same KPIs. That is not to say, for instance, that a company will have only three or four total KPIs in total. Rather there will be three or four Key Performance Indicators for the company and all the units within it will have three, four, or five KPIs that support the overall company goals and can be â€Å"rolled up† into them. If a company Key Performance Indicator is â€Å"Increased Customer Satisfaction†, that KPI will be focused differently in different departments. The Manufacturing Department may have a KPI of â€Å"Number of Units Rejected by Quality Inspection†, while the Sales Department has a KPI of â€Å"Minutes a Customer Is on Hold before a Sales Rep Answers†. Success by the Sales and Manufacturing Departments in meeting their respective departmental Key Performance Indicators will help the company meet its overall KPI. How to cite Production Supervisor, Papers

Audit & Assurance Service Risk Based Audit

Question: Discuss about theAudit Assurance Servicefor Risk Based Audit. Answer: Introduction to Risk Based Audit The Risk based auditing is a modern, independent, and neutral way of collecting and analyzing the evidences with regard to the assertions of a process. The opinion then formed leads to the report forming process in which all the contentions and assertions are put into implementation. The auditors in order to form an effective report, gathers sufficient and appropriate information about the business and its environment. There are two major tests performed, which are undertaken after the collection of sufficient data and information (Mohammadi et al. 2014). There are various forms of risks, which form part of an organization and include risks like inherent, control, detection and overall risk. In order to gain proper knowledge about the risks present, the compliance and substantive tests are undertaken. Compliance Test is the gathering of facts and data to know the compliance status of the organization with the legal requirements, rules and regulations. The procedure helps the auditor in attaining the confidence in the structure of internal control of the company. Substantive Test aims at evaluation of the transactions, data and other important information, on an individual basis (Uludag? 2016). The integral aim of the process is to get an assurance that, the objectives of the company are being met effectively and effectively. The risk-based approach is commonly followed, as it encourages the auditors to attain knowledge of the business as a whole (Johnstone et al. 2013). The auditors on following the models can easily enhance their identification and categorization procedure, which can help them in the better determination of risks, and most suitable approaches accordingly. Difference Between Business Risk and Risk of Material Misstatements Business risks are the risks present in the organization, which can be wide and diversified in nature. The risks present in an organization may contribute and result towards the failure of the business, therefore being the ultimate risk for an organization. Thus, the risks that affect the going concern of a business falls under the business risks. The risks also include the increment in the cost of production, competition in the market, frauds and thefts and other such risks (Wright 2016). Audit risks or the risk of the material misstatements represents the risks, which are expressed by the auditor. An inappropriate opinion on financial statements after the audit procedure comprises the audit risks. The risk of material misstatement comprises of two major components, inherent and control risk and third being detection risk (Knechel and Salterio 2016). The auditors majorly focus on the factors of inherent and control risks. The risk of detection is not an integral part of the material misstatement risk. The misstatements can lead to economical losses and they comprise the information, which is not easily visible or traceable. Thus, with the increase in the risk of the statements of finance can lead to an increment in the overall risk. The identification and assessment of the risks of the misstatements, which are material in nature and helps in the understanding of the organization and its environment is necessary to be carried out by the auditor. Such process helps to earn the knowledge about the likelihood and the present risks, which are being faced by the organization. Such business risks have the likelihood of identification of the material misstatements but it is not necessary that the material misstatements are the same as the business risk. Therefore, an auditor must undertake essential precautions to measure the nature and consequences of the various risks (Brown-Liburd et al. 2014). While, the risk of business relates merely to the entity and the stakeholders; the risk of audit i.e. material misstatements relates to the auditor only. Even though, the business risks and audit risks are not fully similar to each other, they still connect. The recognition and classification of the business risks guide towards the detection of the audit risks (Ruhnke and Schmidt 2014). Discussion on Business Risks Ferrywise Ltd is a company, which is operating the car and ferry route for the passengers after purchasing the rights of operating the same until the year 2022. It operates across a large lake in Ireland and due to recession, they are unable to build another bridge, which would allow an extra 125 kilometers drive. In addition, Ferrywise Ltd had purchased boats for the routes but as per the Environmental rules and regulations, they are unable to meet the emission standards required as per the rules and regulations. Thus, the company is not meeting the compliance requirements as per the audit standards and regulations, which comes easily under the focus of an auditor. The non-compliances are a part of a great business risk as they majorly form part of the future concern of the company (Sadgrove 2016). The Company is also unable to fulfill the requirement of carrying the passengers in the required number of vehicles per year, which means it has the risk of going concern as the passengers are not looking forward to such travelling and the vehicles are unavailable at the required time. Furthermore, it is unable to get the advantage of the subsidies, which are provided once the company increases the number of vehicles for the travelling across the route. The Safety at sea certificate is also required to be verified by the independent auditor, which if negative would create an unstable position for the company. It is mainly about the safety measures and precautions taken against the accidents, which might take place within the sea or anytime during the travel. On the assessment procedure carried on by a group of independent auditors, it was found that there are a huge number of deficiencies and paucity in the measures and operations undertaken by the Company. Lastly, the main problem constitutes the claim about the contaminated food provided by the company. The passengers had been complaining that they had been suffering from health issues like food poisoning after having the refreshments provided by the company. Even though, the company is denying the fact and responsibilities related to such refreshments, the goodwill of the company has gone down drastically and the same problem has been covered under the coverage of media. There has been a bad public image formed after such news spread by the media. Therefore, from the above we can easily make the numerous risks, which the business is facing, and the ones, which would affect and harm the company, which can even damage the going concern of the company (Epstein and Buhovac 2014). The auditor will undertake tests in which the company will surely fail, as they do not meet the compliance procedures and there are no internal controls present, which can save the company from being ruined in the near future. The Company will also not pass the substantive test, as the individual process of the companies is also not up to the mark, as per the discussions above. There are various failures of processes undertaken by the company and thus the auditor may give inappropriate opinion about such practices. The opinions matter and will decide the smooth continuation of the company. An auditor tries to attain a proper knowledge and detect the overall risks present inside the organization to provide the required opinion. Conclusion and Recommendation on Internal Control The existing system must be reviewed carefully by the management and ensure that there must be implementation of proper controls and procedures. As per the problems, which are seen above, there are various discrepancies in the existing system of the organization. Each aspect of the company is checked i.e. the checks and financial transactions undertaken by the company. There are many safety and other compliance and legal issues, which must be put under stringent controls to remove the inappropriate opinion of the auditors. The controls can simply include the implementation of checklists about the precautionary measures undertaken by the company. The various compliance procedures like the meeting of the emission standards as per the Environmental protection regulations must be highlighted to the management (Pahuja 2013). The compliance test would require the company to follow, as it will seriously affect the companys reputation and goodwill. There are decreased numbers of vehicles, which must be increased to gain proper amount of advantage of the subsidies, which are provided from the authority of the local transportation. There must be a maintenance report of the number of vehicles available and the requirement, if fulfilled or not. The requirement of the vehicles per year is not met and in order to fulfill the same, the manager, to provide appropriate answer to the auditor, must do enquiries. The company is losing the subsidy, as it does not meet the requirements, so it should take steps to increase the subsidies. The company has various issues, which also include the safety measures of company, which includes the safety of the passengers and ship from accidents, breakdown and collisions. They require the review of the safety documents, which the independent auditors found illegal. The Safety at Sea Certificate which becomes valid for five years down the row, was not approved by a set of independent directors, as there were numerous discrepancies found in the procedures and measurement undertaken by the company. Thus, the auditor must take steps to make the management take steps on controlling the same by making proper documents and questionnaire to be filled for perfection. The management also needs to take measures to correct such inconsistencies and continue the proper supervision on the activities carried on by the company (Benn et al. 2014). The last and major deficiency of the company is the improper and unsatisfied food supply to the passengers. The customers are not happy as they think the refreshments supplied are contaminated and therefore they are facing the problems of food poisoning and other such health issues. Though the company is denying the fact that their food is contaminated, the media has distorted their image as bad and unethical. The auditor must detect the reasons of such risk along with the management and other experts. After the detection procedure, the auditor must take into consideration the measures which will help the company get rid of the bad publicity in which the company is involved. The detection procedure helps in the reduction of the operational risks by creating firewalls in technologies and other personal business (Layton 2016). The auditor must help the management to make an effective risk plan and have sufficient insurance for the protection against the losses and other symptoms of destruction. He must also act as a professional and as he is an outsider, he must view all the situations in a more objective and effective manner (Peltier 2016). The auditor must issue written communication to the management with relation to the overall environment of the entity. It would be appropriate if the communication is first done in an oral manner to the management and those charged with the governance. Thus, the auditor must be in a continuous communication with the management and those charged with the governance (Bain and Band 2016). References Bain, N. and Band, D., 2016.Winning ways through corporate governance. Springer. Benn, S., Dunphy, D. and Griffiths, A., 2014.Organizational change for corporate sustainability. Routledge. Brown-Liburd, H., Mason, S. and Shelton, S., 2014.The effect of reliance on third-party specialists under varying levels of internal control effectiveness on the audit of fair value measurements. Working paper, Rutgers, The State University of New Jersey. Epstein, M.J. and Buhovac, A.R., 2014.Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers. Johnstone, K., Gramling, A. and Rittenberg, L.E., 2013.Auditing: a risk-based approach to conducting a quality audit. Cengage Learning. Knechel, W.R. and Salterio, S.E., 2016.Auditing: assurance and risk. Routledge. Layton, T.P., 2016.Information Security: Design, implementation, measurement, and compliance. CRC Press. Mohammadi, J., Kalali, A. and Najafzadeh, A., 2014. Risk-Based Auditing.Asian Journal of Research in Business Economics and Management,4(11), pp.366-372. Pahuja, S., 2013. Environmental Audit. InEncyclopedia of Corporate Social Responsibility(pp. 969-979). Springer Berlin Heidelberg. Peltier, T.R., 2016.Information Security Policies, Procedures, and Standards: guidelines for effective information security management. CRC Press. Ruhnke, K. and Schmidt, M., 2014. Misstatements in financial statements: The relationship between inherent and control risk factors and audit adjustments.Auditing: A Journal of Practice Theory,33(4), pp.247-269. Sadgrove, K., 2016.The complete guide to business risk management. Routledge. Uludag?, S., 2016. The importance of control environment in an organization for an independent auditor to determine nature, timing, and extent of substantive tests: An application in Turkey.JABS,2(6), pp.294-303. Wright, W.F., 2016. Client business models, process business risks and the risk of material misstatement of revenue.Accounting, Organizations and Society,48, pp.43-55.