The And Intensification Of World War One - 1218 Words

The Prolongation and Intensification of World War One by Its Belligerents. The First World War started from a minor conflict. However, poor decisions and lack of logical thinking by various belligerents, especially Germans, caused the minor conflict to become ‘The Great War’. Although, the German contribution to intensify the war was greater, all other belligerents who were influenced by the Germans in making decisions during the war were inclined to mistakes, leading to the disastrous outcome of the war. The First World War began as a minor conflict between Austria and Serbia. The conflict rose after the assassination of the Archduke Franz Ferdinand, the emperor of Austria-Hungary. Soon, the conflict turned into a European War when the†¦show more content†¦The Germans’ purpose for fighting was to attain the status of world power. They were not satisfied with simply to preserving Germany (Howard 9). â€Å"They claimed for Germany the status, not only of a Great Power, but of a World Power, Weltmacht† (Howard 10). Such a great ambition drove them to make rationally wrong decisions during the war. â€Å"There was certainly no logic in the decision by the German General Staff that, in order to support the Austrians in a conflict with Russia over Spain, Germany should attack France and do so by invading Belgium†(Howard 23). It was certainly a mistake to attack Belgium who was promised protection by the Germans themselves. Immediately after the invasion of Bel gium, previously neutral Britain was provoked into joining the war, spreading the war zone to the west. This decision increased the damage to each county as well as the number of countries affected. As bigger and more powerful countries entered the war, the battlefield expanded and so did the number of those who died. Perhaps the unprecedented catastrophic events were due to the fact that several more poor decisions were made by the German commanders in addition to the one above. Another German mistake was the usage of violent and destructive methods in an attempt to win the war. Their actions displayed inhumanity. â€Å"Seeing saboteurs and francs-tireurs even when they did not exist, German troops took and shot an

The History of Childresn Literature Essay - 1599 Words

The History of Children’s Literature EDP1: Task 1 Janet Blake Western Governors University Children’s literature is defined many different ways. It can be simply defined as a book that a child reads, or as Kiefer defined it â€Å"as the imaginative shaping of life and thought into the forms and structures of language.† (Kiefer, 2010, p.5) Literature has been around for hundreds of years, although not in the form that we are used to seeing now. There have always been stories to be told for as long as one can remember. Before the days of bound books and magazines, there were stories that were told by people in the village around the campfires, or the bards and traveling entertainers telling stories to the court in the castles. This form†¦show more content†¦(Kiefer, 2010, p.66) In the Middle Ages, children were treated as an adult in the family. Children went out to work just as the parents did to help provide for the good of the family and to provide for the family’s needs, whether it was economically or material based. The prosperity of the family came first. Because of this, many children were unable to read and were not provided with a formal education. They were provided with the education that was needed to survive everyday life and the education of religious beliefs. Books at this time cost too much for the common family to own, and were very rare at this time in history. In 1476 William Claxton was credited with learning the printing trade and taking it back to England with him and setting up a printing press at Westminster. From there he published 106 books of various genres. The books were put together with excellence, but were very costly, because of this they were owned mainly by the wealthy. (Kiefer, 2010, p.69) It is visible at this po int to see how valuable the printing press really was. Due to the high expense that books were in this time, many did not own books because they could not afford them. Others would trade their valuable land or property to own a single book. The fifteenth through the sixteenth centuries brought more to children’s literature. Children made a progression from hornbooks, to ABC books and primers, to the small

The Centro Case Duties and Responsibilities Outlined

Question: Discuss about theCentro Casefor Duties and Responsibilities Outlined. Answer: Introduction In 2011, the Federal Court of Australia ruled on Australian Securities Investments Commission (ASIC) v Healey Ors [2011] FCA 717 (the Centro Case), which has become one of the landmark cases on the duties and responsibilities of Australian company directors with regard to financial statement(Bowlt, 2011). As the facts of the case go, ASIC had instituted civil proceedings in 2009 against directors and officers of the Centro Group citing breach of the statutory duty of care, skill and diligence(McCullough Robertson Lawyers, 2011). According to ASIC, the directors were liable in breach as they had approved financial statements in 2007 which were marred by discrepancies. Additionally, the court had to address the issue of delegation of the aforementioned duty, the duty of directors to take reasonable steps in ensuring financial statements adhere to financial reporting standards as well as the role of non-executive directors in management(AICD, 2011). The issues in question were contrav entions of ss. 180(1), 601FD (1) and 344(1) of the Corporations Act 2001(Cth), hereinafter referred to as the Act 2001. The following report is commissioned to outline the specific duties and responsibilities breached by the Centro Group directors and analyse the Courts decision in view of the Act 2001. An Overview of the Directors Duties and Responsibilities Breached in the Centro Case The Duty of Care, Skill and Diligence The Act 2001, s.180, expects that directors execute their duties with a certain level of care, skill and diligence as would a prudent man under similar circumstances(Latimer, 2012, p. 698). This provision is adopted from the common law standing as illustrated by Romer J in Re City Equitable Fire Insurance Co Ltd [1925] Ch 407, where the standard of care in this duty is pit against the actions of a prudent man in the same situation(Corkery, 1987, p. 133). However, today the test also takes into consideration the nature of the business in question, its size, the constitution of the board of directors and the allocation of duties amongst them (Douglas, 2015). Additionally, the Act 2001, under s 198D, gives directors powers to delegate their duties so long as this is in line with the companys constitution. These duties include the preparation of company accounts, management roles among others. The delegation, however, does not exclude directors from keeping track of company activities, they cannot simply rely on the information of experts or employees but should undertake to examine and clarify details pertaining to their duties(Douglas, 2015). In ASIC v Macdonald (No 11) [2009] NSWSC 287 (the James Hardie case), Gzell J, even where expert advice is sort or duties are delegated, directors have a nondelegable duty to the company and its stakeholders to ensure they take all reasonable steps to provide accurate information failure to which they will be in breach of s180 of the Act 2001(Wan, 2015, p. 79). In the Centro case, the directors breached the duty of care, skill and diligence by failing to identify the discrepancy in the companys financial statements; the actions of the directors, in this case, fell below the stipulated standard of care mentioned above(Paolini, 2014, p. 314). Additionally, the directors reliance on external advisors, that is the PWC auditors, did not suffice as a reason to exempt them from liability as the law expected them to take all necessary action to ensure accuracy despite delegation of duties(Basovo, 2012, p. 84). The failure to identify the inaccuracies, as well as investigate the information provided by advisors, led to a breach of duty by Centro Groups directors. Duty not to Make Misleading Statements The Act 2001, under s.295 (4), tasks directors with the duty of making a declaration on the companys financial position. In making this declaration, directors are required to ensure the information they provide is accurate and a true and fair view of the companys position; this means that they are expected to read and understand said statements and apply their knowledge while reviewing them(AICD, 2011). Additionally, ss 601FD (1) and 344 (1) place the duty on company directors to take proper measure to ensure they, as well as the company, comply with the provisions of the Act 2001. The onus is therefore on directors to stay in the loop and pay attention all while ensuring utmost competency among board members so as to avoid discrepancies(Worthington, 2016, p. 382). Failure to comply with this requirement attracts a civil penalty on offenders who are found liable. According to Owen J in The Bell Group Ltd (in liq) v Westpac Banking Corporation (No 9) [2008] WASC 239, the buck of responsibility and liability in the running of a company stops at the board of directors. As such, directors have the duty to fully comprehend their duties and take all necessary measure to comply with them(Schenone, 2011, p. 95). The delegation of duties does not make them dormant; they must create for themselves a working knowledge on the running of the company and apply their mind to any information received from management(Daniels v Anderson, 1995). Directors are at the apex of the corporate structure and although they do not need to be involved with the nitty gritty details of the companys day to day operations, case law is clear that they have a principle role to play in the management of the company and as such should always be aware of the fundamentals of the business(AICD, 2011). In the Centro case, the Directors relied on the external auditors findings that there were no discrepancies in the financial statements. Although these were well renown auditors, the law expects directors to take it upon themselves to ensure their declarations are not misleading and reflect a true and fair view of the institutions financial position. It is clear that the Directors, in this case, did not intend to mislead stakeholders but merely relied on misleading information, however, failure to utilise their knowledge and adequately review the records constituted a breach of duty by Centros directors. An Analysis of the Courts Decision in View of the Corporations Act 2001 In the Centro case decision of June 2011, Justice Middleton found that each of the directors knew of the current interest bearing liabilities and guarantees and in addition knew, or should have known, of the key accounting principles that would inform them of any discrepancies in the statements(AICD, 2011). As such, each director did not take reasonable steps or apply his mind accordingly; additionally, they all failed to question management and other relevant parties on the proposed statements and additionally failed to request declarations as per the provisions of s 295A of the Act 2001.All these are duties expected of them in their capacity as directors and failure to fulfil them constituted a breach of the duty of care skill and diligence owed to Centro Group and a failure to take prudent steps in ensuring financial statements comply with set guidelines(AICD, 2011). They had, therefore, contravened the provisions of ss 180(1), 601FD (3) and 344 of the Act 2001. The following disc ourse will analyse the courts decision, in depth, in view of the Act 2011. According to Justice Middleton, directors must read the financial records and formulate their own view and not simply rely on the information provided by experts and advisors before approval(McCullough Robertson Lawyers, 2011). He believes that reading and comprehending the contents of the statements personally requires that the director to question whether the proposed statements are in line with his personal knowledge of the companys financial position. In his decision, the judge expressed that directors ensure they have a basic understanding of the companys business and its fundamentals. In addition, company directors must remain informed on company activities and monitor their affairs and policies by familiarising themselves with its financial status and conducting routine reviews of its statements(McCullough Robertson Lawyers, 2011). This is in line with the provisions of ss 601FD(1) and 344(1) of the Act 2001, which task directors with ensuring they take undertake measures to a scertain compliance with set guidelines in the Act 2001. Each director should have taken it upon themselves therefore to have an interest in the information provided by the external auditors and apply their skill as directors to discern the accuracy of the information provided. The decision in the Centro Case illuminates the higher standard of care expected of directors as opposed to previous cases. The original test for the standard of care as illustrated in Re City Equitable Fire Insurance was said to be subjective. The test in Centro, guided by s 180 of the Act, encompasses both the subjective and objective test where directors duty of care is pitted against the actions of a prudent man as well as their specific skill; where a director is appointed based on a particular skill the duty of care expected of them is higher(Wan, 2015). As such, the directors were not only expected to act diligently but also to apply their knowledge of the companys business in their review of its statements as they had been appointed with the expectation to nurture this skill. Their failure to apply this knowledge led the court to find them liable for breach of duty based on the aforementioned subjective and objective tests. Additionally, the decision in Centro outlined the extent to which directors can delegate their duties as per section 198D. This issue intertwined with the aforementioned issue of reliance on professional information. In Centro, a committee of directors known as the board audit and risk management committee had been commissioned with the mandate to supervise the preparation of financial statements and reports(AICD, 2011). Justice Middleton held that, although an audit committee played a significant role it could not substitute the role of directors. This decision puts a limit on the extent to which directors can delegate their duties as well as the significance of their managerial role to the company. Justice Middleton believed directors were paramount to the company structure and should not assume their duties through delegation(Schenone, 2011). Critics note, however, that this decision has failed to provide directors with the guidance on how much enquiry they are to make on proposed financial statements(McCullough Robertson Lawyers, 2011). The directors may experience challenges in identifying how far they are to investigate issues that are not clearly identifiable on information provided by management. Additionally, there is the fear that the decision, in this case, could challenge the relationship between management and directors as the high standard of care requires directors to heighten their scrutiny of information brought before them(Norton Rose Fulbright, 2011). This poses a challenge as the decision was unclear on the extent to which it is appropriate to scrutinise information and records presented to directors(McCullough Robertson Lawyers, 2011). Conclusion As illustrated in ASIC v Healey Ors (2011), the Corporations Acts (2001) (Cth) s 180 places a duty on directors to exercise care, skill and diligence in their responsibilities. Additionally, directors are expected to take all necessary measure to ensure the companys financial statements comply with financial reporting standards as per ss 601FD (1) and 344 (1) of the Act. In the above-mentioned case, the company directors failed to identify discrepancies in their annual financial reports after relying on professional experts who found no corrections in them. Their failure to identify these discrepancies constituted a breach of the aforementioned duties as they were expected to apply their knowledge and skill to review the reports prior to approving them. The decision of the Federal Court had brought with it some challenges as it remains unclear as to how much scrutiny directors should exercise on the information availed to them by management and additionally on how liable they are wh ere they fail to identify mistakes that are obvious. With this in mind, it is clear that directors, although given the power to delegate, should remain at the apex of the corporate structure and exercise care, skill and diligence in reviewing financial statements so as to ensure they reflect a true and fair view of the companys financial status. References AICD, 2011. Centro Case Summary: ASIC v Healey Ors [2011] FCA 717. [Online] Available at: https://www.thewaltongroup.com.au/wp-content/pushups/2011/09/ASIC_v_Healey_Centro_Directors_Federal_Court_Judgment__27_June_20111.pdf [Accessed 3 February 2017]. ASIC, 2016. Directors-What are My Duties as A Director?. [Online] Available at: https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/directors-what-are-my-duties-as-a-director/ [Accessed 3 February 2017]. Austin, B., 2012. Directos' Duties: Some Reflections after the James Hardie, Fortescue and Centro Cases. [Online] Available at: https://m.minterellison.com/publications/reflections-after-the-james-hardie-fortescue-cand-centro/ [Accessed 3 February 2017]. Australian Securities and Investments Commission v Healey Ors (2011) FCA. Basovo, V., 2012. Explaining Financial Scandals: Corporate Governance, Structured Finance and the Enlightened Sovereign Control Paradigm. Newcastle: Cambridge Scholars Publishing. Bowlt, H., 2011. Directors' Duties - Raising the Bar?. [Online] Available at: https://www.findlaw.com.au/articles/5136/directors-duties--raising-the-bar.aspx [Accessed 3 February 2017]. Corkery, J. F., 1987. Directors' Duties of Care, Skill and Diligence. In: Directors' Powers and Duties. Melbourne: Longman Cheshire, pp. 131-144. Daniels v Anderson (1995) 16 ACSR . Douglas, J., 2015. Directors' duty of care and diligence. [Online] Available at: https://legalvision.com.au/directors-duty-of-care-and-diligence/ Downie, A., 2011. The Centro Matter: ASIC v Healey [2011] FCA 717 and Breach of Director's Duties. [Online] Available at: https://www.the-civil-lawyer.net/2011/06/centro-matter-asic-v-healey-2011-fca.html [Accessed 3 February 2017]. Golding, G., 2012. Tightening the Screws on Directors: Care, Delegation and Reliance. UNSW Law Journal, 35(1), pp. 266-290. Hall Wilcox, 2015. Legal Obligations of Directors of Australian Companies. [Online] Available at: https://www.hallandwilcox.com.au/legal-obligations-of-directors-of-australian-companies/ [Accessed 3 February 2016]. Latimer, P., 2012. Australian Business Law. Sydney: CCH Australia Ltd. McCullough Robertson Lawyers, 2011. The Centro Decision - Impact on Directors' and Officers' Liability Insurance. Focus, 20 July, pp. 1-2. McCullough Robertson Lawyers, 2011. The Centro Eight- ASIC Turns up the Heat on Company Directors and Executives. Focus, 30 June, pp. 1-2. Norton Rose Fulbright, 2011. The Centro Decision - Directors as the 'Final Filter' of Corporate Financial Accounting. [Online] Available at: https://www.nortonrosefulbright.com/knowledge/publications/52803/the-centro-decision-directors-as-the-final-filter-of-corporate-financial-accounting [Accessed 3 February 2017]. Paolini, A., 2014. Research Handbook on Directors Duties. Cheltenham: Edward Elgar Publishing. Pearse Trust, 2011. ASIC v Healey and Others - A Must Read for Directors. [Online] Available at: https://www.pearse-trust.ie/blog/bid/78452/ASIC-v-Healey-and-Others-A-Must-Read-For-Directors [Accessed 3 February 2017]. Schenone, S., 2011. Duties and Responsibilities of Directors and Company Secretaries in New Zealand. 4th ed. s.l.: CCH. Walmsey, S. Puri, R., 2011. The Centro Decision - ASIC v Healey Ors [2011] FCA 717. [Online] Available at: https://www.jws.com.au/en/legal-updates-archive/item/198-the-centro-decision-asic-v-healey-ors-2011-fca-717 [Accessed 3 February 2017]. Wan, W. Y., 2015. Directors' Defence of Reliance on Professional Advisers under Anglo-Australian Law. Common Law World Review, 44(1), pp. 71-93. Worthington, S., 2016. Sealy and Worthington's Text, Cases and Materials in Company Law. 11th ed. Oxford: OUP.

Auditing Contemporary Accounting Research

Question: Discuss about the Auditing Contemporary Accounting Research. Answer: Introduction Auditing is the assessment of the books of accounts in order to ensure the future of any business entity. Audited assessments may not be pure and may be influenced by risks such as inherent. These risks are known as financial assessment risks which include control risk, inherent risk and detective risk. Various theories have been developed by financial frameworks to guide and help solve such risks at different financial review process stages. The scope of this paper contends to the review of inherent risk within a telecommunication company known as One.Tel Company. The paper further looks into various factors which may be the cause of accelerating rate of inherent risks as seen within the organization mentioned. There are other hypotheses such the area of going concern which has been discussed within the paper as well. What is inherent risk? Inherent risk is one of the assessment risks being experienced by the auditors during financial statement preparations of a given institution like one.tel. Inherent risks occurs as a result of fraud or oversights during financial report analysis (Menon and Williams 2010). This kind of risk may be controlled when various hypotheses and control measures are utilized accordingly. The risk is subject to accelerate and ranks high companies as a result of the various inherent factors discussed below. Inherent factors leading to increase of inherent risk at the financial report stages in teOne.tel Company according to the given report. Lack of enough directors to administration the company The geographical market separation influencing the company sales abilities Incompetency as a result of new recruitments on going in the company Influx of several companies joining telecommunication industry Newness of one.tel into the industry Stiff competition in the industry from other stable telephony providers Pressure on the company management Respective discussion of the above listed inherent factors The expansion in inherent risk in One.Tel Telecommunication Company may be as a result of the insufficiency of administration abilities by the directorate identities who are new to the framework. In the events of few individuals with numerous obligations the rate of an increased inherent risk always stands high as the personalities are more likely to make mistakes. One.Tel is working all around in the overall business sector. In the last trading period the association amassed a total of $M 678.2 from the arrangements in the overall business division. The association accumulated $M 429.4 from Australia, $ 144 million from the UK, France $ 15.1 million, $36.6 from Netherlands, $M 39.2 Hong Kong in conclusion $13.2 million from various parts of the world. This information shows the clumsiness on net offers of the association in the overall business segment (Al Nawaiseh and Jaber 2015). The association is a starting affiliation which infers new workforce enrollments who must grasp to the business structures of operations. Exactly when new characters are brought on board there is likely hood of oversights provoking extended inborn dangers. (New agents may be unfaithful to the evaluator to cover their idiocy inciting an extension in the intrinsic danger. There might be affectations for relationship to distort the budgetary report amplifying the inalienable risk. The motivations can be either from inside environment or the outside environment (Kerler and Brandon 2010). A valid example the shareholders' worth is extremely uncommon by virtue of One.Tel Telecommunication Company (Dusenbury et al. 2000). The Company has got shareholders' estimation of $M (365.6) which is seen to be abnormal. Such kind of recordings may be as result of longing for extended advantage by the association who may distort figures to procure a prize. Combinations in business and intense conditions would be foreseen to influence the inherent danger risk of a given substance like one.tel in the media transmission industry. The association is going up against strong competition from stable media transmission firms like Telstra owning 57% of the total supplies, Optus 31% and Vodafone owning 115 of whatever is left of the bits of the general business (Humphrey and Miller 2012). If there should be an occurrence of such firm competition, inalienable danger of little association joining the business revives at a higher speed. There is an inconceivable number littler scale transporters joining the business inciting an arrangement of compact supplier benefits and reduced expenses. The surge is as an eventual outcome of high competition, diminished earnings, expenses and low wage period per association inciting high inherent risk. The association has as of late joined the business in this way experiencing budgetary instability.it is exceptionally obvious that all the more consistent economies like that of Optus, Vodafone and Telstra are not slanted to dangers appeared differently in relation to various associations joining the systematic one. Less consistent economies attract high natural danger since there is nonattendance of business organization and operations inside a given industry inciting high characteristic danger. The gathering or the commentator evaluates the variables of the threats through sensible appraisal Evaluation of risk results into two sorts of threats which for this circumstance is an inherent risk. The recognized risk is a section of material misrepresentation of the cash related verbalization motivated by a couple of variables (Wilks and Zimbelman 2004). Variables relating to deception can be recognized in the midst of procedure change process while those component that prompts an expansion in inborn as a result of blackmail are identifiable by method for the AU demonstration 316. The above recorded elements coming as a consequence of misrepresentation can be distinguished and oversaw at a lower preliminaries of appraisal. Components prompting an expansion in inherent risk at the bookkeeping level The nature of liabilities Reduced rate of flow income High rate of share issuing High debt value Several abnormal transaction for the period ended Weakness of advantages for misfortune or misappropriation Conclusion required in deciding record parities Discussion of the above factors As demonstrated by the books of records given the association is running more on liabilities than the advantages. In the event that the Ratio of liabilities to assets is high the rate of natural dangers climbs (Elder and Allen 2003). One.tel Company is experiencing wild augmentation in liabilities as showed in the books of record, current liabilities has extended in terms of finance in the late one year provoking an extended innate danger at the accounting level. This has been as an outcome of a development in the game plans, measure of got capita and the records payable. There is diminished rate of pay into the association provoking an extended characteristic danger. The abnormality of the figures in the receivables have reduced and the association needs to examine it from the edges (Allen et al.2006). The rate of pay period through the receivables has reduced from small amount into a higher value in the last ended period. The rate of an expansion in the characteristic danger is high at the bookkeeping level when we make exchanges which require new preparing. In case of such case the evaluator of a business substance like One.Tel Telecommunication Company may commit errors prompting an expansion in inalienable danger. The benefit report gave indicates high rate of shareholders being brought into the association. This has been seen through the development in shareholders' quality. The association has issued an extensive measure of shares to get wage for the operations. Right when there is high shares being issued it happens into an extended inalienable rate at the books of records (Blay et al 2011). The rate of association borrowings have enlivened in the last trading period. Right when an association is chipping away at the reason of commitments the rate of inherent danger in the books of records upturns. The event of tremendous exchanges the middle of the exchanging day and age has a conceivable expansion the inalienable danger. Precisely when another exchange happens unequivocally towards the end of an exchanging period, there are high odds of slips in the books of records. Such different operations might be a test to the examiner and agents and may understand high characteristic hazard (Haron et al 2009). Right when an exchange is attempting, analysts may perform wrong strategy in the records in this way increment the trademark danger. A valid example the advantage and incident record given in the occasion that shows bizarre trade which has exceedingly extended. These peculiar trades may be as a delayed consequence of fakes achieved by weight from various environment. In the event that the arrangement amid an exchanging period is convoluted, it is likely that there will be an expansion in innate danger. Regarding One.Tel Telecommunication Company, the books of records shows complex sorts of exchanges, for example, the shareholder's disparity, stores and profit might be hard to comprehend prompting high innate danger at the bookkeeping level. The sort of judgment made by the evaluator amid the way toward adjusting of reviewers is prone to impact characteristic danger. In the event that the record report on a given exchange might be actuated by a few variables inside the organization (Gaganis and Pasiouras 2007). These judgments can be influenced by the sort of operation and the administration weight. The weakness of the organization's advantages for misfortune or misappropriations prompts expanded intrinsic danger at the bookkeeping level. Amid the exchange passages, it is apparent that straightforward misappropriation of a benefit result into quickened characteristic danger. Case in point taking scattering of an advantage for obligation may prompt an expansion in the innate danger (Herd and Lavelle 2014). Valuation of the area of going concern as either low, high or medium There are several factor according the given financial report leading to the area of going concern. The area of going concern is based on accounting and audit report from the previous trading period. The financial reports from the company indicates the rate instability the company is experiencing. The companys books of accounts indicates an increased rate of borrowings performed by the organization in the recent trading period (Carson et al. 2012.). It is clear from the above trade that the rate of going concern depends more on kind of benefit and misfortunes in the money related declaration. If there should be an occurrence of low benefit era, the nature of going concern stays low, when the sorts of a benefit is medium or high, the going concern is either low or high. Intrinsic danger in the association's cash related clarification is regarded to be high since the association works in a significantly controlled industry (Sanni and Zainab 2011). Regardless of the way that the suspici on may be correct, it is hard to coordinate the going with conditions that may provoke the going use of a going concern. The method for a running stress in run with depends on upon the utilization of the stipulated cash related framework. The way of productivity of a business impacts the way of the going worry as either low, medium or high. The organization is additionally having refundable shares of from the shareholders value. Regardless this clarifies the present circumstance the business and the need of going concern. One.tel media transmission organization chiefs and the review group ought to clarify conclusions whether to leave the business or continue in light of the going concern (Normah 1999). The area of going concern in this case is seen to be high based on the following issues. The company is running in debts, there is high rate of risks, poor management as a result few board managers and high share being issued to the public. Conclusion Financial risk assessment is very important for the growth of any given business entity. It is clear as seen in the above discussion shows the relevance of the Nature of auditing performed in the business. The company is clearly running in negative indicating the need for the application of the area of going concern (Zainab et al. 2013). It is upon the audit team and the company board of management to make decision based on the area of going concern. The area of going concern is one of the hypotheses developed by GAAP frameworks. The area of going concern applied to any business depends on the relation of profit and losses. When the company is running at a loss the rate of going concern becomes proportionally high. References Zainab, A.N., Sanni, S.A., Edzan, N.N. and Koh, A.P., 2013. Auditing scholarly journals published in Malaysia and assessing their visibility. arXiv preprint arXiv:1301.5379. Normah, B., 1999, August. Malaysian serials: issues and problems. In 65th IFLA Council and General Conference, Bangkok, Thailand (pp. 1-8). Sanni, S.A. and Zainab, A.N., 2011. Evaluating the influence of a medical journal using Google Scholar. Learned Publishing, 24(2), pp.145-154. Carson, E., Fargher, N.L., Geiger, M.A., Lennox, C.S., Raghunandan, K. and Willekens, M., 2012. Audit reporting for going-concern uncertainty: A research synthesis. Auditing: A Journal of Practice Theory, 32(sp1), pp.353-384. Menon, K. and Williams, D.D., 2010. Investor reaction to going concern audit reports. The Accounting Review, 85(6), pp.2075-2105. Blay, A.D., Geiger, M.A. and North, D.S., 2011. The auditor's going-concern opinion as a communication of risk. Auditing: A Journal of Practice Theory, 30(2), pp.77-102. Feldmann, D.A. and Read, W.J., 2010. Auditor conservatism after Enron. Auditing: A Journal of Practice Theory, 29(1), pp.267-278. Geiger, M.A. and Rama, D.V., 2006. Audit firm size and going-concern reporting accuracy. Accounting Horizons, 20(1), pp.1-17. Geiger, M.A. and Rama, D.V., 2006. Audit firm size and going-concern reporting accuracy. Accounting Horizons, 20(1), pp.1-17. Haron, H., Hartadi, B., Ansari, M. and Ismail, I., 2009. Factors influencing auditors going concern opinion. Asian Academy of Management Journal, 14(1), pp.1-19. Gaganis, C. and Pasiouras, F., 2007. A multivariate analysis of the determinants of auditors' opinions on Asian banks. Managerial Auditing Journal, 22(3), pp.268-287. O'Reilly, D.M., 2009. Do investors perceive the going-concern opinion as useful for pricing stocks?. Managerial Auditing Journal, 25(1), pp.4-16. Fitriani, L. and Sudarsono, D.T.E., 2007. Disclosure Index laporan Tahunan 2004 Emiten di BEJ. PESAT, Gunadarma, 2. Allen, R.D., Hermanson, D.R., Kozloski, T.M. and Ramsay, R.J., 2006. Auditor risk assessment: Insights from the academic literature. Accounting Horizons, 20(2), pp.157-177. Elder, R.J. and Allen, R.D., 2003. A longitudinal field investigation of auditor risk assessments and sample size decisions. The Accounting Review, 78(4), pp.983-1002. Wilks, T.J. and Zimbelman, M.F., 2004. Decomposition of Fraudà ¢Ã¢â€š ¬Ã‚ Risk Assessments and Auditors' Sensitivity to Fraud Cues. Contemporary Accounting Research, 21(3), pp.719-745. Dusenbury, R.B., Reimers, J.L. and Wheeler, S.W., 2000. The audit risk model: An empirical test for conditional dependencies among assessed component risks. Auditing: A Journal of Practice Theory, 19(2), pp.105-117. Mock, T.J. and Wright, A., 1993. An exploratory study of auditors' evidential planning judgments. Auditing, 12(2), p.39.