What is audit strategy? The planning process to develop an efficient and effective audit which includes making decisions in relation to the scope of the audit, the general evidence requirements for the forming of an opinion, and the initial choice as to the nature, timing and extent of audit procedures to make efficient use of resources." Audit strategy equal to audit planning? (Mort Dittenhofer, 1994) found that the concept of strategy entails more than planning as consequences, audit planni...
Introduction In this study, Open University Malaysia has been chosen to investigate and analyze the relative strengths and weaknesses by absorption costing, cost volume profit analysis and others. The process by which total overheads are absorbed into production is known as absorption. The objective of the overhead absorption process is to include in the total cost a product an appropriate share of the company's total overheads. Once all the overheads have been apportioned to the production c...
From the Case study given, we found the additional issues that synchronize with the discontinued operations. The another issues arise is, most of managers in current situation manage their earning by using the discontinued operations. How, Why and What the consequences by doing so are will be explained and elaborate in details as the below paragraphs: When making firm-valuation decisions, investors place a higher value on items of income expected to be determined in the future. To assist inve...
it is becoming very clear that intangible assets have a major role in defining the growth of a company since the search for adding value always leads to calculating and identifying these assets, increased business competition and the adaptation on new information technologies increase the importance of intangibles as the major driving force of corporate value ( Leo, 2011). Hall (2001) also explains the discrepancies between the stock market value of the firm and the value recorded by the firm...
Accounting has always been an interest of mine. Since I was a child, I have always been good in calculation, which makes it clearer that accountancy would be a good choice. After years of studying it, I realised accounting is not only about numbers but theory that require various skills in order to perform a good accounting. The increase number of students in the accounting field has made employment extremely competitive. Major findings suggest that, employers require a broad range of generic...
Understanding the value of Tanikei intellectual property (IP) is a very important part of successfully managing the resources effectively. Unless the valuation information it rely upon in the decision making process is accurate, however, mistakes are likely to be made. The best way to avoid making mistake based on inaccurate or incomplete value information is to understand how the conclusions of value were derived. The first thing to determine when attempting to value intellectual property (I...
This research conducted on the valuation of intellectual capital has been conducted in order to measure the value of an enterprise, physical assets, various financial assets as well as intangible assets. As part of the intangible assets is the intellectual capital. As used by many financial analysts IC collectively refers to all the resources that determine the value and the competitiveness of a corporation (Ehin, 2002). Intellectual capital as part of the intangible assets includes as subset...
When entities experience exogenous or endogenous shocks they turn to the finance department to resolve the issue, due to financial instability. It is important to know what income smoothing is and the benefits and costs it can bring to a business. This essay will critically evaluate and identify the nature and effects of income smoothing. What is income smoothing and what are the nature and effects of it? Income smoothing is defined as, "the process of manipulating the time profile of earning...
The current chapter reviews the following literature: stakeholder-agency theory, intellectual capital definition, intellectual capital disclosure in prospectuses, components of IC and relationship between IC with firm characteristics and board structure. 2.1 Underlying Theories 2.1.1 Stakeholder-Agency Theory In agency theory, principals hire agents to perform some service on their behalf. Thus, the assumption of a typical agency theory framework is that there is a conflict between the intere...
Studies by the World Bank referred to the achievements of the Mauritian economy as the economic miracle. Exceptional circumstances have resulted to such achievements in a fairly short period of time to join the middle-income countries. Mauritius has been successful in achieving rapid growth and substantial diversification of a formerly mono-agricultural economy. Sound economic management and a far-sighted development strategy have permitted the country to diversify its export and productive b...
