It is useful to look at the general state of the economy and assess how this could impact the entity of interest. The general theory is that "in the absence of evidence to the contrary, […] the business will continue to trade in the normal way into the foreseeable future. This enables the account to assume that stock will eventually be sold, that fixed assets will continue to be used, and so on" (Alexander and Britton, 2004).
A relevant example for this scenario is given by the situation encountered throughout the past two years within the American automobile industry. The market was on the one hand characterized by a growing customer focus on small size vehicles incorporating fuel efficient engines. This situation occurred due to the impending occurrence of a global crisis and the scarcity of natural resources. At an industry level, the Japanese manufacturers were able to foresee these needs and serve them, even within the United States. The national producers however, were not able to do so. If one had looked at the macro-environment in which Ford operated, they could have come to the realization that the American automobile manufacturer was far from being a going concern.
In terms of a gradual and succinct presentation of the measures which have to be undertaken in order to identify the existence of a going concern, the auditor has to engage in the following actions:
identify and analyze any existent or potential risks which could influence organizational operations and results get rapid access to all financial statements and other organizational documents remain objective and detached in order to most effectively and efficiently assess organizational documents engage in open communications with the managerial team and accurately review their input assess the future of the company as it is presented and estimated by the managerial team in some cases, the internal auditors of the assessed company have already...
A favorite target for conspiracists today as well as in the past, a group of European intellectuals created the Order of the Illuminati in May 1776, in Bavaria, Germany, under the leadership of Adam Weishaupt (Atkins, 2002). In this regard, Stewart (2002) reports that, "The 'great' conspiracy organized in the last half of the eighteenth century through the efforts of a number of secret societies that were striving for
Scientific and empirical research take time, and therefore detracts from the timeliness of such research. However, the truth level in such research is higher than in research that takes less time and is therefore more timely. The author points out that these are not the only factors involved in the quality of a piece, and that the purpose of publication should also be kept in mind when assessing the
These claims are virtually all based on the concept that corporations - particularly multinationals -- should be held accountable for their actions within their sphere of operations. "Corporations, for their part, have responded in numerous ways, from denying any duties in the area of human rights to accepting voluntary codes that could constrain their behavior" (Ratner, 2001, p. 436). In fact, this very point is echoed throughout the literature; for
Biographies of Selected Organizational Theorists 1. ADAM SMITH (Wealth of Nations, 1723-1790) Born on June 5, 1723 in Kirkcaldy, Scotland, Adam Smith’s father died before his birth and he survived being briefly kidnapped by “gipsies” when he was just 4 years old to become one of the most prominent and influential economist theorists in history who is known today as the “Father of Economics” (Rae, 2009). Although his contributions were multiple, Smith
CSR Contrasting Different Vantage Points Regarding the Role of CSR and Business Ethics Introduction to Corporate Social Responsibility Review of the Variety of Ethical Systems Contemporary Vantage Points Corporate social responsibilities as well as business ethics have served as hotly contested issues over the last few decades. There has yet to be a consensus reached, to say the least, as to what there composition should look like or even if they are necessary academic pursuits
Drug Abuse Economically Alcohol consumption causes injuries, deaths and other problems in the society. In order to reduce the problem economists must understand it, and know the economic burden or effects it causes. Economists approach the problem using costs and further put it in real numbers. Economists use assumptions to simplify their work, and focus on what that really matters. They make rational decisions based on reason, and encourage them
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