Organic Chemistry (Methamphetamine) Essay

Methamphetamine was first synthesized from ephedrine in Japan in 1893 by chemist Nagai Nagayoshi. In 1919, crystallized methamphetamine was synthesized by Akira Ogata via reduction of ephedrine using red phosphorus and iodine. Synthesis is relatively simple, but entails risk with flammable and corrosive chemicals, particularly the solvents used in extraction and purification; therefore, illicit production is often discovered by fires and explosions caused by the improper handling of volatile or flammable solvents. Most of the necessary chemicals are readily available in household products or over-the-counter cold or allergy medicines. When illicitly produced, methamphetamine is commonly made by the reduction of ephedrine or pseudoephedrine. The maximum conversion rate for ephedrine and pseudoephedrine is 92%, although typically, illicit methamphetamine laboratories convert at a rate of 50% to 75%. Methamphetamine has been reported to occur naturally in Acacia berlandieri, and possibly Acacia rigidula, trees that grow in West Texas. Methamphetamine and regular amphetamine were long thought to be strictly human-synthesized, but Acacia trees contain these and numerous other psychoactive compounds (e.g., mescaline, nicotine, dimethyltryptamine), and the related compound ÃŽ ²-phenethylamine is known to occur from numerous Acacia species. Diagrams Health Concerns Physical effects can include anorexia, hyperactivity, dilated pupils, flushing, restlessness, dry mouth, headache, tachycardia, bradycardia, tachypnea, hypertension, hypotension, hyperthermia, diaphoresis, diarrhea, constipation, blurred vision, dizziness, twitching, insomnia, numbness, palpitations, arrhythmias, tremors, dry and/or itchy skin, acne, pallor, and with chronic and/or high doses, convulsions, heart attack, stroke, and death can occur. Psychological effects can include euphoria, anxiety, increased libido, alertness, concentration, energy, self-esteem, self-confidence, sociability, irritability, aggression, psychosomatic disorders, psychomotor agitation, grandiosity, hallucinations, excessive feelings of power and invincibility, repetitive and obsessive behaviors, paranoia, and with chronic and/or high doses, amphetamine psychosis can occur. Methamphetamine use has a high association with depression and suicide as well as serious heart disease, amphetamine psychosis, anxiety and violent behaviours. Methamphetamine also has a very high addiction risk. Methamphetamine also is neurotoxic and is associated with an increased risk of parkinson’s disease. Methamphetamine abuse can cause neurotoxicity which is believed to be responsible for causing persisting cognitive deficits, such as memory, impaired attention and executive function. Over 20 percent of people addicted to methamphetamine develop a long-lasting psychosis resembling schizophrenia after stopping methamphetamine which persists for longer than 6 months and is often treatment resistant. Meth labs can also be fatal seeing as they often blow up. This is usually due to amateur chemists operating them. They can also give off deadly fumes. Where It Is Commonly Found Methamphetamine is FDA approved for use in children and adults under the trademark name Desoxyn. A generic version became available in April, 2010. It is prescribed as a treatment for ADHD and exogenous obesity, as well as off-label for the treatment of narcolepsy and treatment-resistant depression. Physical Properties Formula C10H15N Mol. Mass 149.233g/mol Half-Life 9-12 hours Metabolism hepatic IUPAC Name N-methyl-1-phenylpropan-2-amine Structure Related To Function The structure of this molecule is very much related it’s function. It closely mimics another molecule which stimulates the brain. This molecule fits the receptor site and therefore acts as a stimulant. Functional Groups Methyl Amino Aromatic (Phenyl)

American Films and Northern Lights

Remember how you felt in that moment when you realized there was a big world out there that needed exploring? I don't remember the first time I saw a photo of Iceland. I know it was of the Northern Lights on a starry night with snow covered mountains in the background. I knew I had get there but, for years, I kept putting it off. And, In that time, my expectations for Iceland became very high.The friendly coals, untouched mountains, Northern Lights, being alone with nature – I built It all up In my head. And, now that I am here, I can safely say Iceland has exceeded my expectations beyond my wildest dreams. There are places you love and then there are places you carry inside forever. Places that change you. They are, In Hemingway words,†a movable feast†. For me, Iceland Is one of those places. I knew It from the first moment I got here.From the warm locals to the untouched landscape to magic f the Northern Lights, Iceland has changed me. It's made me remember the n eed to slow down. Life is too short to only look at pictures. It's too short to look at someone else's journey and say â€Å"one day, I'll go there†. So today's main blob post features ten new websites that will help you reach your travel goals quicker by helping you plan better and travel cheaper. Because your travel dreams shouldn't stay dreams but should become moments you remember.

Personal Portfolio in Business Essay Example | Topics and Well Written Essays - 1750 words

Personal Portfolio in Business - Essay Example Professional Experience: Teller, September 2004 to Present Bank of change, Wisconsin Handled diverse accounting dealings and settlement tasks. Gave status of account information and took care of phone enquiries. Customer education on a range of bank products. New hires training and supervision. Teller, August 1998 to September 2004 Lurking bank, Illinois Activated and ordered ATM cards and debit cards. Fund transfers activation. Verified endorsements. Private assistant, July 1994 to June 1998 bank of change, Wisconsin Took care of incoming and out coming mail. Customer handling at the reception and undertook cash drawer reconciliation duties. Education: April 1990 to July 1994 University of Excellence Bachelor in Business Administration: Finance Technical Skills: MS Word literate, data entry skills and bank computer software literate, competent in operation of cash registers Core Competencies: Eye for detail, self motivated, works unsupervised, straight forward and keen listener, har d worker and accountable. References Allan knight, Human resource manager, Bank of change, 854, uptown, Wisconsin, 6752, (445)9974521 Sharleen Shore, Assistant manager, Lurking bank, 75, chase, Illinois, 99754, (064) 2064509 Cover letter March 3, 2011    John Sanders 45, West Street, LA, 65928,    Dear Mr. Burch, in response to your today's ad in the church town newspaper, I would like to apply for a bank teller position at People’s Bank. ... In addition, I activated and ordered ATM cards and debit cards, and verified endorsements. I will bring my accurateness and dependability, my excellent customer service, and experience to my work at People’s Bank. My other work experience includes 4 years as a private assistant at the chase bank, where my responsibilities were taking care of incoming and out coming mail, and handling of customers at the reception and undertook cash drawer reconciliation duties. My resume is attached and references are present upon demand. Am looking forward to working with you in the near future. Thank you in advance. Sincerely yours,   John Sanders. Section 2 Social media is a web-based medium for people to interact socially or makes communication to be a dialogue that is interactive. With time, it has changed communication in organizations, among people and communities (Jantsch, 2007, 5). Social media has been used to detain a broad array of client’s attention this is through advert ising. Advertisement through social media is cheap compared to the old trend of advertisement that would cost millions of dollars (IAB media committee, 2010, 9) As an essential decision-support tool, it has provided a base for customer rapport building. This is by them using the gear and mediums available them to make their decision-making process (Evans and Mcken, 2010, 135& 136). Decision-making social nature has improved with extraordinary force by linking professionals from different generations to each other (Jue et. Al, 2009, 85). In a social networking website, there is potential of one creating useful and meaningful relations with one’s readers (carol, 2011, 187)social network provides a structure of communicating individuals and firms

Second topic Essay Example | Topics and Well Written Essays - 1250 words

Second topic - Essay Example A shift in population away from rural areas and into city areas appears to be one of the most common human behaviors in this situation, and there are many reasons why this is so. The consequences are not always positive for the people who migrate, however, and there is also an impact on those already in the cities who then have to share their urban environment with increasing numbers of immigrants. This paper explains the factors which drive this migration to cities, and enumerates the potential hazards which can arise in urban environments. The especial vulnerabilities of the poor in this situation are highlighted, along with a number of strategies which can be followed to improve the standard of living of the urban poor. This paper contends that the best strategy to address urban poverty is to invest in environmental infrastructure such as waste disposal, clean water provision, transport systems and renewable energy sources but that the detail of such a strategy will be different f or each major city in the world. . Third world countries traditionally have large proportion of people who make their living by subsistence farming. This is a hard and unpredictable way of life which wears people out and makes them dissatisfied. One important factor is the tendency of families to have many children, which ensures the security of the older generation in the short term, but creates an ever greater pressure on basic resources in the countryside like food, fuel, and water. This is what creates the so called ‘population problem’ of the third world. (Anand and Morduch, 1998) Over time it becomes harder and harder to maintain the large families and so people drift to the cities to find ways of supporting themselves and their relatives. Weather catastrophes, wars and competition for scarce resources also drive people out of rural environments and these can occur suddenly, encouraging rapid and chaotic immigration to cities. Additionally there are factors which pull people towards cities, such as the possibility of new employment opportunities, a steady wage and broader horizons for personal development. The lure of products and services from the developed world is also very powerful, but often the aspirations of the migrants are not met by the reality of urban poverty. The economic effects of migration to cities can be very severe, as for example when the number of workers in an area rises, the level of wages is driven in a downwards direction, and the overall poverty in the area for long-term urban dwellers and new arrivals increases. These demographic effects have a different effect on women than on men, with women often suffering a hidden burden because of the demand to bear children, and pressure to produce sons causing lower survival rates in girls. (Anand and Morduch, 1998) It is the men who are able to migrate and take up new possibilities in the cities while women and girls are confined to domestic roles and are less able to benef it economically and culturally. Empirical studies on megacities, defined as cities which have a population of at least 10 million in 2000, have shown that the poor are at risk from many hazards. (Cohen, 1993) Size in itself is not necessarily an impoverishing factor, since civilizations who possess appropriate technologies sustain wealthy megacities such as Tokyo and New York. In Mexico city, however, the expansion has

Black Studies The Urban Dilemma Essay Example | Topics and Well Written Essays - 500 words

Black Studies The Urban Dilemma - Essay Example With this rationale, they think that they have the right to impinge on the 'space' of other people. In his book entitled Black Corona: Race and the Politics of Place in an Urban Community, Steven Gregory (1998) enlightens the reader on the issue of contested space by using the experiences of the African American community in a New York setting collectively called Black Corona. In Gregory's work, we are made aware of a consultation conducted by an all-white Neighbourhood Stabilization to address the issues of latchkey kids, drug dealing and the lack of parental guidance. Although this consultation was designed to improve the security and safety of the whole community, the discussion and decision was left mostly to the white participants as the black participants were effectively prevented from participating. The blacks shied away from the discussion because they were implied to be the root of the problem. It was their kids who were menacing the library. It was their coming when the drug problem emerged. It was them who were mostly single parents. They were the problem and the white s had the right to correct them. The larger picture of what occurred in the consultation was that t

Short answer paragraphs Assignment Example | Topics and Well Written Essays - 250 words

Short answer paragraphs - Assignment Example Most Americans cannot afford the insurance coverage because the health care costs are high. The result is many Americans survive without the needed care that puts them at risks of various health problems. Costs for health rise as the needed treatment costs are above what would have been used to prevent the problem (Cebul 2008). A Health indicator is a characteristic that can be measured in an individual so as describe an aspect of health. Body mass index compares the weight, relative to height and age, against the measures of a healthy weight. It helps decide if interventions are needed. It refers to how societies compensate for the health care. The different options depend on the resources devoted on to them that eventually determine the amount and quality of care given to people. Some options may provide for the most advanced care while others compensate for basic care only. Medicaid is a government funded program that provides health care for low income families and those with limited resources. Those eligible to be beneficiaries can be children with disabilities, pregnant women, or parents of eligible women. Individuals in difficult conditions i.e. disabled and poor, have all their entire problems taken care of. For better services in future, beneficiaries can be asked to contribute back some share later in life when they have the capability (Cebul 2008). Increased costs of health care are due to the excess use of medical resources by patients and high costs associated charged by medics for fear of malpractice suits. The patients should be asked to take charge of their medical purchasing options. The health care system is unsuccessful because insurance dulls peoples’ consumer instincts. When medical care tends to be cheap or free, people do not shop around for other options. People do not also think otherwise before visiting the

Netflix Essay Example | Topics and Well Written Essays - 1500 words - 1

Netflix - Essay Example Bargaining Power of the Buyers The movie rental industry is highly dependent on the buyers similar to that of other industry. Buyers purchase DVD’s or access internet to watch movies of their preferred choices. Contextually, they need to pay for the movies that they desire to watch and in turn, they seek utmost quality for the same. Additionally, having several players offering similar product, buyers are enabled with number of choices to choose from. This raises buyers’ bargaining power (Thompson, n.d.). Bargaining Power of the Suppliers In this industry sector, suppliers have the authority to choose a single dealer through whom they can enhance their bargaining power. However, in order to maximize profit and market share, suppliers are inclined to sell their products to every company, thereby limiting their bargaining power to medium (Thompson, n.d.). Rivalry The cost of entering into this kind of industry is quite reasonable owing to which the competition among the c ompanies are quite high. A few of the competitors in this particular industry l include Blockbuster, internet movies and TV content providers among the prime ones (Thompson, n.d.). Threat of Substitute Products In general, there are no such threats of substitute for this kind of product owing to the reason that movies and TV programs have similar content irrespective of whoever is presented to the viewers. However, piracy and illegal file sharing can be a threat for the products (Thompson, n.d.). Threat of New Entrants Owing to low entry cost, more and more competitors can enter into this kind of business. However, certain big players like Blockbuster and Netflix seems to dominate this industry (Thompson, n.d.). Q. 2. What Forces Is Driving Change In The Movie Rental Industry And Is The Combined Impacts Of These Driving Forces Likely To Be Favorable Or Unfavorable In Term Of Their Effects On Competitive Intensity And Future Industry Profitability? The movie rental industry is driven by certain crucial forces such as advancement of technology, convenience of buyers and cost factors among others. With the advent of technologies like internet, watching movies has become more online than watching in TV through acquiring a hard copy of CD’s or DVD’s. Furthermore, technologies such as smartphone and computer enhance the viewing experiences of the people as they watch movies anytime and anywhere. In addition, it has also been viewed that people feel more convenient and comfortable in watching movies in internet through live streaming rather than buying a CD or DVD of the same from any video library. This not only saves their time but also minimizes cost. These forces are likely to be unfavorable for companies as they would need to shift their focus from renting DVDs or CDs to providing services online. However, this aspect might be profitable for them in the future in terms of attracting huge figure of customers (Thompson, n.d.). Q.3. What Key Factors W ill Determine A Company’s Success in the Industry in the Next 3-5 Years? In order to gain success in this particular industry, companies will require moving in parallel with the changing trends, demands and needs of the customers. Companies in the coming years will need to enhance their market coverage through widespread advertising to gain success in this particular industry. Moreover, they should also need to adopt and execute proper strategies in order to ensure maximum ease of the customers.

Innocent Drink Essay Example | Topics and Well Written Essays - 1750 words

Innocent Drink - Essay Example The purpose of this paper is to analyze the strategies that had been adopted by Innocent Drinks to become one of the most popular brands in the fruit smoothies market. The aim is to evaluate ways in which a company had implemented its strategies to rise from a humble beginning and becoming a major market player. One of the most interesting facts about this company is that its organizational structure has gone through massive changes that had impacted overall business. The organizational structure of a company refers to its shape or hierarchical structure. The organizational structure describes allocation of tasks, supervision and coordination that helps in achieving desired goals. In case of Innocent Drinks, the company was set up by Richard Reed, Adam Balon and Jon Wrigh and was initially funded by Maurice Pinto (a wealthy businessman). The company had a little more than hundred staff while commencing the operations. There was minimal hierarchy in the organization. The unique feature about Innocent Drinks is that it does not own any of the juicing facilities. The company simply contracts the work of manufacturing smoothies to different sites. The growth of the company in first six years of its establishment is nothing less than a success story. By 2005, the company became the fastest growing smoothie company in U.K. Constant product innovation has been one of the most important factors that had contributed to growth of the company. The reason behind growth of the smoothie market in U.K. can be assessed with the help of PESTLE factors. Political: The political environment in the U.K. is stable that had enabled fast growth of the fruit smoothie industry. The U.K. government required a smoothie manufacturing company to state whether the products that is being produced is either concentrated fruit juice or pure fruit juice. Also, the government had been promoting anti-obesity campaigns and promoting development of health drinks (Rao, 2004). Economic:

Virgin America Essay Example for Free

Virgin America Essay With the foundation of Virgin Records in 1970, The Virgin Group is one of world’s largest business entities, which in 2009 comprised 300 companies under its structure, in businesses as diverse as space travel, mobile telephony, transportation, travel, financial services, media, music and fitness. The image and culture of the Virgin Group is tied to the image and personality of its founder Sir Richard Branson. The company’s fundamental values foster many of the dimensions of culture, which are highly internalized within the organization. Mr.  Branson realizes the potential and importance of those who work for him and therefore creates a structure, which is decentralized, through empowering his employees and providing them with autonomy. This paper aims at providing a critical view over the Virgin Group’s corporate strategy, in terms of strategic thinking and diversification, as well as a closer look at the business strategy of one of the Group’s businesses, the Virgin America. The Virgin Group is a company that encourages employees to use their awareness to make decisions rather than the standard quo. Because of the company’s corporate culture and structure, Virgin has successfully forecasted possible issues and has dealt with them in a timely manner. Many other organizations have a formalized structure and the Virgin Group is anything but formal and other companies may look at this as an area of concern but not for Sir Richard Branson, the ways he communicates and the way he leads is testament to why he and his companies are very successful and Virgin America will follow suit. Virgin America One of the most recognized name in the world, Virgin, created in 1970 by Sir Richard Branson a leading venture capital organization, is one of the worlds most recognized and respected organizations in the business enterprise. The Virgin Group is a diversified grouping of more than 300 privately held companies, employing approximately 50,000 people, in 30 countries. Revenues around the world in 2009 exceeded 18 billion (http://www. virgin. com/about-us/). The Virgin Group has become one of the most successful businesses in industries ranging from mobile telephony, transportation, travel, financial services, media, music and fitness. Of Virgin’s 300-plus companies, the majority are operating companies that own assets, employ people, and offer goods and services. These operating companies are owned and controlled by some 20 holding companies; most of these own several operating companies within the same line of business. For example, Virgin Travel Limited owns Virgin Group’s investments in Virgin Atlantic, Virgin Blue, Virgin America, and SN Air holdings. Overall ownership of most of the Virgin Group lies in the hands of Virgin Group Investments Limited a private company registered in the British Virgin Islands. The corporate strategy of the Virgin Group is to operate like a venture capital firm based on the Virgin brand. This strategy involves diversification at the individual business unit level and meanwhile, collaborations are created from hierarchical relationships and the interaction of the corporate head office with individual business units. By leveraging the Virgin Brand which has established a reputation in the customer minds of the unique Virgin culture and also allows Virgin to break into new markets and execute its ventures very effectively. Virgin Atlantic Airways is the largest of the Virgin companies and the number two airline in the United Kingdom, with this said Mr. Branson wanted to branch out of the UK to build his airline image to the United States. In 2007, San Francisco became the headquarters for Virgin America. Virgin America which has flown mostly trans-continental routes in the U. S. since its launch in 2007, has expanded to Canada with flights to Toronto and plans to begin service to Mexico. Sir Richard Branson vision was to have a â€Å"topnotch service† (http://www. irgin. com/company/virgin-america/), for the U. S travelers, with the exceptional service that is known on Virgin Atlantic flights. It has not been an easy road to get into the airline industry in the United States. Because of The Federal Aviation Act of 1938, which restricts foreign ownership of domestic airlines, Mr. Branson would had to partner with another American carrier, example Southwest Airlines and would have to turn over the business to the American carrier. Due to this, he eventually waited until the laws could change into his favor which it did not and decided to follow another avenue. He viewed some finance options that would be enough to satisfy the laws about foreign ownership restrictions. There were other American domestic airlines that viewed Virgin as a threat and tried to block the certification. This lasted for a year and half with Virgin America planes parked and not being flown. It was time and money being wasted because of the fear from the domestic carriers that Virgin may take some of their travel customers. Sir Richard Branson had some laws and political warfare going against him and his Virgin Group because of fear of being challenged and to enter a market dominated by U. S carriers. The Virgin Group sent many of millions of dollars in lawsuits, time and man power to establish a foothold into the U. S territory. Sir Richard Branson has a charismatic style and talent which is a strength that other companies are unable to reproduce, and which describes the Virgin label. The Virgin culture is what Sir Richard Branson has built over decades and that distinguishes the work environment within Virgin Group from other companies. It is a culture that is ‘not looking for clones,’ that is ‘like a family’ and is one that requires employees to have the ‘Virgin Flair. ’ (Branson, 2010) Because of these qualities which have created a corporate culture that is unlike in any organization and has become the way at The Virgin Group. Sir Richard Branson’s personality is the culture at Virgin and like he mentions and has been heard before from other leaders yet he is the only one that adheres to this motto that a companys employees are its greatest asset, particularly in service-based operations where your people are your product. You here this all the time in many organizations and yet you have cultures that are in flux with management, you hear many complaints from the front line to mid-level managers that do not trust or believe the upper management. But you can also say the same from the Executive level that the employees are not listening, what this is, is poor communication, the leader has to establish the culture for the company and Sir Richard Branson has done this time and time again, with over 300 companies. With Virgin America coming to the U.  S, the culture is going to be one that will challenge the likes of Southwest Airlines where the culture of this airline is fun and exciting. Sir Richard Branson talks about the Virgin culture and provides an example that when building a new cabin for one of their aircraft that he invites certain departments from inception so they work together so they all can be responsible for the failure or success of the new project. This also invites all to ask questions as a team so everyone input is valid and that which makes the endeavor more enjoyable and the work fun. It’s all about communication, no matter what the culture is and in the Virgin companies it’s all about customer service, and in the U. S, Mr. Branson will know that Americans are a low context culture that communication is important and is precise. The culture barriers will be minimal for Virgin America since California has a diverse cultural background. Why did Sir Richard Branson want to enter in the United States especially the low cost airline industry? Virgin Atlantic is an international company that has flights all around the world but not based in the U.  S. and with the heavy hitters of the airline industry, example, Delta, United, and Continental, Sir Richard wanted to get into the business that he sees that could be successful like Southwest Airlines. But like this paper mentions, this has been fraught with challenging issues and times (current economic conditions) and the time and money of negotiating with lawyers and political upheaval from other airlines. The goal of Virgin America is to provide the exceptional customer service and the brand of the Virgin name to the United States. In 2010, Virgin America had yet another setback, trying to get a gate at one of the busiest airports in the country, Chicago O’hare. Now the new low cost airline will be looking towards to Dallas, this is a blow to the many Americans looking for another option to flying in and out of Chicago and all because of the two major airlines United and American who control more than 90% of the gates. (Low-cost airlines would land for city-owned gates. 2010). I believe it’s a waiting game, another carrier, JetBlue had to wait of over year to get a gate at the O’Hare airport, patience will be the key to Virgin America and that does not bode well with Sir Richards standards even though he has played this game for some time. What Virgin America can do is work with other cities that are willing to work and make the financial numbers feasible for both parties and in time gate availability for Chicago O’Hare will eventually be available. The Virgin Group organizational structure is quite complex, with over 300 companies that operate in all unique industries. But all of these companies fall under the Virgin brand. The brand is similar or identical within each separate operation. This image is one of quality and innovation and by creating an exceptional brand; the company is able to create a high level of loyalty within its customer base. The diversity of businesses operated by Virgin Group helps the company maintain a high level of loyalty in many different industries. With the Virgin America company, this would fall under the Virgin Travel umbrella, (see chart) and would have a separate management hierarchal structure, almost like a franchise organization. References http://www.virgin.com/about-us/ http://blogs.wsj.com/middleseat/2010/08/11/sir-richard-is-finally-linking-together-the-virgin-airlines/

Motor Cyclists Essay Example for Free

Motor Cyclists Essay Psychological and social factors influencing motorcycle rider intentions and behaviour Barry Watson Deborah Tunnicliff Katy White Cynthia Schonfeld Darren Wishart Centre for Accident Research and Road Safety (CARRS-Q) Queensland University of Technology August 2007 Psychological and social factors influencing motorcycle rider intentions and behaviour i Published by: Postal address: Office location: Telephone: Facsimile: E-mail: Internet: Australian Transport Safety Bureau PO Box 967, Civic Square ACT 2608 15 Mort Street, Canberra City, Australian Capital Territory 1800 621 372; from overseas + 61 2 6274 6440 02 6274 3117; from overseas + 61 2 6274 3117 [emailprotected] gov. au www. atsb. gov. au  © CARRS-Q, Queensland University of Technology 2006 To encourage the dissemination of this publication, it may be copied, downloaded, displayed, printed, reproduced, and distributed in unaltered form (retaining this notice). Subject to the provisions of the Copyright Act 1968, no other use of the material in this publication may be made without the authorisation of the Queensland University of Technology. ii Psychological and social factors influencing motorcycle rider intentions and behaviour DOCUMENT RETRIEVAL INFORMATION Report No. RSRG 2007-04 Publication date August 2007 No. of pages 152 ISBN 978 0 642 25564 8 ISSN Publication title Psychological and social factors influencing motorcycle rider intentions and behaviour Author(s) Barry Watson, Deborah Tunnicliff, Katy White, Cynthia Schonfeld, Darren Wishart. Organisation that prepared this document Centre for Accident Research and Road Safety Queensland University of Technology GPO Box 2434 Brisbane QLD 4001. Sponsor [Available from] Australian Transport Safety Bureau PO Box 967, Civic Square ACT 2608 Australia www. atsb. gov. au Project Officer John Collis Reference No. Aug2007/DOTARS 50323. Abstract This report documents two studies undertaken to identify and assess the psychological and social factors influencing motorcycle rider behaviour. The primary aim of the research was to develop a Rider Risk Assessment Measure (RRAM), which would act as a tool for identifying high-risk riders by assessing rider intentions and self-reported behaviour. The first study (n = 47) involved a qualitative exploration of rider perceptions utilising a focus-group methodology. This study identified six key aspects of rider behaviour considered to influence safety: motorcycle handling skills; rider awareness; riding while impaired or not; and the tendency to bend road rules, push limits, and ride at extreme speeds or perform stunts. Study two (n = 229) was survey-based and examined the psychological and social factors influencing these behaviours, utilising the theory of planned behaviour (TPB) and other relevant psychological constructs, such as sensation seeking and aggression. This study indicated that risky rider intentions were primarily influenced by attitudes and sensation seeking, while safer intentions were influenced by perceived behavioural control. While intentions significantly predicted all six types of behaviour, sensation seeking and a propensity for aggression emerged as significant predictors, particularly for the volitional risk-taking behaviours. The measures of intention and behaviour comprising the RRAM were not found to be significantly correlated with self-reported crash involvement, possibly indicating shortcomings in the measurement of crashes. However, significant correlations were found between the components of the RRAM and self-reported traffic offence involvement. While further work is required to refine and validate the RRAM, it represents a potential tool for informing and evaluating motorcycle rider safety countermeasures. Keywords Motorcycle safety, theory of planned behaviour, sensation seeking, aggression Notes (1) (2) ATSB reports are disseminated in the interest of information exchange. The views expressed are those of the author(s) and do not necessarily represent those of the Australian Government or the ATSB. Psychological and social factors influencing motorcycle rider intentions and behaviour iii CONTENTS Executive summary EXECUTIVE SUMMARY Background Motorcycle riding is rapidly increasing in popularity in Australia, attracting a much wider demographic of people than in decades past. Unfortunately, whilst the overall number of road deaths in Australia has generally been reducing, the proportion of motorcycle-related fatalities has been rising in recent years. Further, the proportion of motorcycle-related fatalities in Australia is unacceptably high compared with other OECD countries. To reduce motorcycle-related fatalities on Australian roads, there is an urgent need to consider motorcyclists as distinct from other road users. This program of research facilitates the understanding of safety issues from a motorcyclist perspective and provides important information on factors influencing safe and unsafe rider intentions and behaviour. The aims of this program of research were to: †¢ develop a better understanding of the psychological and social influences on rider behaviour in an Australian context; †¢ guide the development of future motorcycle safety countermeasures; and †¢ develop a tool (the Rider Risk Assessment Measure – RRAM) to inform the evaluation of motorcycle safety countermeasures, particularly in the area of training and education. To achieve these aims, two particular studies were undertaken: a qualitative study of motorcycle rider perceptions utilising a focus-group methodology and a survey-based quantitative study of selfreported rider intentions and behaviour. Both studies were underpinned by a theoretical framework drawing on the theory of planned behaviour (TPB), identity theory, social identity theory, and other relevant psychological concepts such as sensation seeking and aggression. Key findings Study 1 explored motorcyclists’ perceptions relating to ‘safe’ and ‘risky’ riding and the different personal and social factors that influenced their behaviour. A total of 43 people participated in this study, either as part of a focus group or as an interviewee. This exploratory process revealed six types of behaviours which were commonly believed to influence the safety (or riskiness) of motorcycle riding. These six behaviours are discussed below. Two behaviours were identified as being particularly essential to rider safety. The first was the necessity of being able to handle the motorcycle proficiently and skilfully. The second related to the need for riders to maintain a high level of concentration whilst riding and to stay aware of the changing road environment. In contrast, there was some debate about the inherent safety or riskiness of the two next behaviours commonly identified. Firstly, some riders believed that obeying the road rules was essential to their safety, whilst others reported that it was often necessary to break the road rules in order to stay safe. Secondly, the definition of what constituted ‘riding whilst impaired’ differed amongst riders. Most riders agreed that ‘drinking and riding’ was dangerous. However, for some, even one alcoholic drink before riding was considered dangerous, whilst others would ride after drinking provided they did not consider themselves to be over the legal BAC limit. Some riders stated that riding when viii Psychological and social factors influencing motorcycle rider intentions and behaviour they were tired was dangerous; however, fatigue was not considered a serious safety issue for many participants. Two further behaviours identified by participants were often associated with their accounts of crash involvement, yet not seen as intrinsically ‘unsafe’ by most riders. The first of these was the concept of ‘pushing your limits’. Most riders interviewed appeared to enjoy pushing the limits of their ability on a motorcycle. Whilst agreeing that pushing the limits too far was dangerous, pushing them to a point that tested a rider’s abilities was often reported to facilitate safety as this process developed a rider’s skill. The second behaviour that was often mentioned in connection with crashes was extreme riding (e. g. , performing stunts and riding at extreme speeds). The act of perfecting a stunt was often reported to result in the crashing of the motorcycle, although these crashes were usually accepted as a normal part of the learning process. Once perfected, performing stunts did not appear to be considered an intrinsically unsafe behaviour, unless performed in traffic or other unpredictable situations. A sizable minority of both male and female participants reported riding at extreme speeds. These riders often argued that they could ride extremely fast, safely, on public roads provided certain conditions were met (e. g. good visibility, minimal traffic, weather, road, and motorcycle maintenance). Study 2 involved 229 active motorcyclists who completed a questionnaire assessing: their riding intentions and self-reported behaviour; the psychological and social factors influencing these intentions and behaviour; and their self-reported involvement in road crashes and traffic offences over the last two years. The questionnaire was structured around the six types of rider behaviour identified as important in Study 1. Key results of this study are discussed below. In order to obtain an insight into the factors underpinning both ‘safe’ and ‘risky’ behaviour, the six areas of interest were operationalised as three ‘safer’ behavioural intentions (i. e. handle the motorcycle skilfully, maintain 100% awareness, not ride impaired) and three ‘riskier’ intentions which represented more volitional risk-taking (i. e. bend the road rules, push the limits, perform stunts or ride at extreme speeds). Hierarchical multiple regression analyses were then performed to assess the influence of different psychological and social factors on these intentions. These analyses indicated that a greater proportion of variance could be explained in the case of the riskier riding intentions [R2 ranging from 57% – 66%] than the safer riding intentions [R2 ranging from 22% – 36%]. The TPB construct of perceived behavioural control (PBC) significantly predicted all three ‘safer’ intentions, while attitude was a significant predictor of the three riskier intentions. In terms of the social influences, the TPB construct of subjective norm (which assesses the influence of others considered important) proved a relatively weak predictor of behaviour. However, the measure of specific subjective norm (i. e. the influence of the people that someone rides with) emerged as a significant predictor of three of the six intentions. Over and above this, a propensity for sensation seeking was found to be significant predictor of the three risky intentions. Overall, a similar pattern of results emerged when the self-reported behaviours of the participants were examined. Firstly, while the various psychological and social variables examined in the study significantly predicted all six behaviours, considerably larger amounts of variance were explained for the three volitional risk-taking behaviours, i. e. bend road rules to get through traffic [R2 = . 67], push my limits [R2 = . 59] and perform stunts and/or ride at extreme speeds [R2 = . 69]. Secondly, the results were largely consistent with the tenets of the TPB, with intentions proving a significant predictor of all six behaviours. Thirdly, sensation seeking, along with rider aggression, emerged as a strong predictor of all six behaviours. Indeed, together, these two variables accounted for between 7 – 20% of additional variance in the six behaviours. Not surprisingly, these two variables accounted for relatively large amounts of additional variance in the ride while impaired [R2 ch = . 20] and the perform stunts and/or ride at extreme speeds [R2 ch = . 15] variables. Unfortunately, no significant correlations were found between the various measures of intention and behaviour operationalised in Study 2 and the self-reported crash involvement of the participants. It Psychological and social factors influencing motorcycle rider intentions and behaviour ix is possible that this indicates that the six behaviours of interest, in reality, do not have a close relationship with crash involvement. However, this conclusion does not seem consistent with either the findings of Study 1 or the research evidence reviewed in Chapter 2. More likely, the findings highlight shortcomings in the size of the sample and/or the way that crash involvement was measured in the study. In particular, given that crashes are relatively rare events, crashes were measured over a two year period in order to ensure that (some) participants would have experienced a sufficient number of crashes to facilitate the analyses. However, this raises the possibility of recall problems that may have reduced the accuracy and reliability of the data, while the two year period may have been too long to accurately reflect the current intentions and behaviour of the participants. In contrast, the majority of the intention and behaviour measures were found to be significantly correlated with self-reported traffic offence involvement. In particular, significant associations were found between self-reported traffic offences and the three ‘riskier’ intentions examined in the study (i. e. those relating to more volitional risk-taking, namely, bend the road rules, push my limits and perform stunts and/or ride at extreme speeds). In addition, significant associations were found between traffic offence involvement and five of the six self-reported behaviours examined (the only exception being for awareness errors). These results don’t necessarily confirm the inherent ‘riskiness’ of the behaviours examined, since engaging in an illegal behaviour may not always result in a crash. However, they do provide prima facia evidence supporting the validity of the intention and behaviour measures developed in this study. Strengths and limitations of the research This program of research featured a number of strengths. Firstly, it was firmly grounded in theory; secondly, it utilised both qualitative and quantitative methods to obtain a broad insight into the factors influencing motorcycle rider behaviour; thirdly, the design of the research was informed by input from active motorcyclists; and finally, it adopted a balanced approach to motorcycle safety by examining both safe and risky riding intentions and behaviour. Nonetheless, the program of research also had a number of limitations. Both Studies 1 and 2 consisted of participants primarily recruited from South East Queensland. In addition, the participants were volunteers who were generally older in age. As a result, the samples used in this research may not be representative of Australian motorcyclists in general, but instead reflect a subset of older, primarily recreational, riders. This should be borne in mind when interpreting the results. Furthermore, a number of other potential limitations in the Study 2 questionnaire design emerged during the analysis of the results. These included the way that fatigue was grouped with alcohol and drugs to assess intentions and behaviour relating to riding while impaired and, as noted above, the manner in which crash involvement was measured. Implications of the research At a theoretical level, this program of research has confirmed that the predictive utility of the theory of planned behaviour (TPB) can be substantially improved by the addition of other variables. In particular, this research demonstrated that subjective norm (SN) was a relatively weak predictor of intentions and that the specific subjective norm (SSN) (i.e. assessing the influence of those people that someone rides with) performed relatively better as a measure of social influence. Moreover, both sensation seeking and the propensity to ride aggressively proved significant predictors of all six behaviours examined, over and above the TPB and other social influence variables. The findings relating to sensation seeking are consistent with previous research in the traffic psychology area. x Psychological and social factors influencing motorcycle rider intentions and behaviour. However, the results relating to aggression warrant more attention, since this variable proved a relatively stronger predictor than sensation seeking of the error-based behaviours (i. e. handling errors and awareness errors), the ride while impaired behaviour, and the perform stunts and/or ride at extreme speeds behaviour. This suggests that the propensity to ride aggressively has a broader influence on rider behaviour, which is not limited to the more volitional risk-taking types of behaviours. At a practical level, this program of research has identified a number of ways to enhance current motorcycle safety countermeasures, particularly in the area of rider training and education. Most particularly, it has identified a range of psychological and social influences on rider intentions and behaviour that appear to be beyond the scope of current skills-based approaches to motorcycle training and education. Consequently, further work is required to develop and trial new approaches to rider training and education that more effectively address the attitudinal and motivational influences on riding, both of a personal and social nature. To assist in this process, this research has undertaken the first steps in the development of the Rider Risk Assessment Measure (RRAM). This tool is intended to act as a means of identifying high-risk riders by assessing their intentions and self-reported behaviour (in relation to both ‘safe’ and ‘risky’ riding). While further work is required to refine and validate the RRAM, it represents a tool that can be used in a variety of ways to enhance motorcycle safety countermeasures, including informing the design and content of training programs and evaluating the impact of different  initiatives on rider behaviour. Psychological and social factors influencing motorcycle rider intentions and behaviour xi ACKNOWLEDGEMENTS The authors would like to acknowledge the funding support provided by the Australian Government, through the Australian Transport Safety Bureau’s (ATSB) Road Safety Research Grants Programme. The development and conduct of this study has involved the contribution of a large number of people. While it is difficult to acknowledge all the individuals that have contributed, the authors would like to thank: †¢ †¢ Mr John Collis from the ATSB for his ongoing advice and support; those people who assisted us organise the focus groups, from organisations such as Queensland Transport, Motorcycle Riders Association Queensland, Ulysses, and Q-Ride providers; personnel from the Queensland Police Service, particularly the Logan and Brisbane West Districts, who assisted in the distribution of the pilot and main questionnaires at various motorcycle events; The ongoing support for motorcycle research from Morgan and Wacker Pty Ltd; and the assistance of Morgan Wacker Motorcycle Training Centre, particularly Mr Fred Davies, in the finalisation and distribution of the Study 2 questionnaire.   xii Psychological and social factors influencing motorcycle rider intentions and behaviour GLOSSARY OF TERMS AND ACRONYMS ABS ATSB BAC Australian Bureau of Statistics. Australian Transport Safety Bureau [formerly Federal Office of Road Safety (FORS)]. Blood Alcohol Concentration. In Australia, the legal amount of alcohol that may be present in the blood is 0. 05% if the driver or rider is on an unrestricted licence. It is usually measured either by a police breathalyser or a by a blood test (see also Over the limit). A person who identifies with, and belongs to, an organised outlaw motorcycle club. Club members ride motorcycles and often wear jackets with ‘patches’ which identify the club they belong to (Veno, 2002). A motorcycle enthusiast. May or may not belong to a motorcycle club (Krige, 1995a). Centre for Accident Research and Road Safety Queensland. A study design which collects data on the perceptions or behaviours of subjects at one point in time, as opposed to a longitudinal.

Discussing British Police Forces In The Uk Criminology Essay

Discussing British Police Forces In The Uk Criminology Essay British police forces in the United Kingdom are unarmed, patrolling officers carry baton, speed-handcuffs and incapacitate spray. However, some units carry sub-machine guns and protective clothing on the international airports. Police use of force is a controversy subject of many discussions and it can create social conflict. Citizens want the police to be able to protect them against criminals, crime and violence by use of force. The fear of use of force and abuse of authority by the police will challenge freedom and basic human and civil rights. It also threatens characteristic and priceless value to British traditional policing by consent (Waddington and Wright 2008, Waddington 1991, Waddington 2003 and Waldern 2007). To answer the workshop report question it is necessary to state that the above quote The police are the custodians of the states lawful monopoly of force/coercion comes from Waddingtons book The strong arm of the law, published by Clarendon Press in 1991. Main body: Background information: Policing and police forces in England and Wales differ to the policing style in Scotland and Northern Ireland. The start of policing was seen in 1829 in London established by Sir Robert Peel (Waddington 2003 and Palmer 1988). The police officers were armed at the beginning when the famous Bow Street Runners carried weapons. However, Peel insisted on creation of the New Police. It would include British police officers who are seen as citizens in uniform, that means that they have more powers then citizens when are uniformed, but they are equal when off duty. Also they were dressed in a non-military style and their presence was highly visible in the community (Waddington and Wright 2008 and Waldern 2007). Police use of force and coercion: Police officers always must justify their use of force and it must be necessary and proportionate to the situation and danger. The force must aim and targeted at the specific offender (Harlow 1974, Ashworth 1975 and Waddington 2003). The Metropolitan Police Service has its firearm department, called CO19 (known over the years as D6, D11, PT17 or SO19). Arms Police carry various combinations of weapons, including carbines, rifles, baton guns, pump-action shotguns and tasers. Coercion is way of reaction and practice when forcing public to behave in an involuntary conduct. Those actions and practice can be accomplished by use of threats, intimidation, form of pressure and force or use of torture as the most extreme methods (Police 2009, Waddington 1991). Previously, the military was the exclusive states custodians of force. Due to the growth of the nations multicultural and citizenship the police developed into the core institution to establish compliance between states lawful monopoly and the citizens (Marshall 1950, Tilly 1995 and Waldern 2007). Shoot to kill policy: Police officers use of lethal force is the last resource, to eliminate the threat and it does not mean shot to kill, although it aims to stop an imminent threat to life. The practice and recommendations when using lethal force in relation to terrorists was to aim at the torso, with is the biggest part of the body. From the other hand, it mostly causes fatal injuries to the terrorist suspect. It was replaced with the recommendation to use firearms as the last resource in self-defense cases. The counteract point can be argued that the bomb placed on the chest and can be detonated when shot. That can clarify the actions of some armed police officers (e.g. shooting of Jean Charles de Menezes on 22/07/2005) who shot to incapacitate by multiple shots to the head of a suspected suicide bomber. Shooting in such a way intends to guarantee immediate flaccid incapacitation of the brain stem. The main principle of shooting to incapacitate is not to kill however to accomplish instant incapacitation (ACPO 2005, Amnesty International 1988, Asmal 1985, Kennison and Loumansky 2007, Mainwaring-White 1983, Squires and Kennison 2010 and Waldern 2007). Policing by consent: Policing by consent is the relationship between police and community based on agreement. Community needs to respect and follow actions, tasks and routinely police work in return of detection and protection from crime. British police officers stay unarmed to uphold Queens Peace. The term of policing by consent can be confusing because police officers operate as members of the legitimate authority, custodians of the state. The police officer may ask the suspect to remain calm, answer few questions and stay with the police officer. The suspect may refuse the follow officers instructions, which will probably result in the suspect being arrested. The suspect did not consent to being arrested but wanted to leave, the police powers of arrest allow the police officer to act against suspects will and detain the suspect. The publics compliance can be achieved by informing the public what to do. In case if they refuse and do not comply, police officer can force them to compliance (Police 2009 and Waddington 1991). Legislations: Those documents give the police powers to use force as a custodians of states lawful monopoly. Police and Criminal Evidence Act 1984 Gives powers of arrest, search a person/vehicle without first making an arrest, search premises, seize and retain property found on premises/persons, the requirements for the detention, treatment and questioning of people in the custody, recording of interviews, methods used during the investigation and deals with the detention of terrorism suspects (Home Office 2010). Human Rights Act 1998, Article 2 Protects right to life and states the use of lethal force by police should be necessary and proportionate (The National Archives 2010 and Waddington and Wright 2008). The ACPO Manual of Guidance on Police Use of Firearms The police officers may use force only when strictly necessary and to the extent required to perform their duties (ACPO 2005). Criminal Justice Act 1967, section 3 Any person may use reasonable force in prevention of crime or assisting during the lawful arrest for lawful purposes (Waddington 1991 and Waddington and Wright 2008). Common Law Police officers and citizens share a right to defend themselves and the duty to maintain Queens Peace (Waddington and Wright 2008). Conclusion: The law in United Kingdom allows police officer to use reasonable force to make an arrest, to prevent crime from happening or in case of self-defense. The use of fatal force needs to be justified that the fore used during the given circumstances was not more than absolutely necessary. The above picture created public concerns and nervousness about the issue of usage of the minimum force and style of policing based on coercion. The police have authorization by the law to achieve compliance from the public by usage of coercion. As mention earlier, policing by consent and coercion created the dilemma, due to the publics expectation, norms and values and the methods of policing. The armed officers are allowed only to shot to stop an imminent threat to life. Police officers need to take a responsible decision when planning to shoot a firearm. The officer must be convinced of the indisputable need to fire a gun in order to protect life, the rational nature of the force that they will use, and the insufficiency of any other option. The force used by police as the custodians of the states monopoly of force can only be used against citizens who breach the peace and break the law The formation of an unarmed and civil police force is the mark-point of the British police tradition. It resulted in the establishment of the states lawful monopoly for force. References: ACPO (2005) The ACPO Manual of Guidance on Police use of Firearms, ACPO Amnesty International (1988) United Kingdom: Northern Ireland: Killings by Security Forces and Supergrass Trials, London, Amnesty International Ashworth, A. J. (1975) Self-defense and the right to life, Cambridge: Law Journal 34, Volume 2 Asmal, K. (1985) Shoot to Kill? International Lawyers Inquiry into the Lethal Use of Firearms by the Security Forces in Northern Ireland, Dublin, Mercier Press. Harlow, C. (1974) Self-Defense: Public Right or Private Privilege?, Criminal Law Review Home Office (2010) Police and Criminal Evidence Act 1984 (PACE) and Accompanying Codes of Practice, http://www.homeoffice.gov.uk/police/powers/pace-codes (accessed on 05/11/2010) Kennison, P. and Loumansky, A. (2007) Shoot to kill: Understanding police use of force in combating suicide terrorism, Crime, Law and Social Change 47 Mainwaring-White, S. (1983) The Policy Revolution, Brighton: Harvester Marshall, T. H. (1950) Citizenship and Social Class and Other Essays, Cambridge University Press. Palmer, S. H. (1988) Police and Protest in England and Ireland, 1780-1850, Cambridge: Cambridge University Press Police (2009) Policing by Consent, The Police Federation of England and Wales Squires, P. and Kennison, P. (2010) Shooting to kill? Policing, Firearms and Armed Response, Wiley-Blackwell The National Archives (2010) Human Rights Act 1998, http://www.legislation.gov.uk/ukpga/1998/42/contents (accessed on 05/11/2010) Tilly, C. (1995) Popular Contention in Great Britain, Harvard University Press. Waddington, P. A. J. (1991) The strong arm of the law, Oxford: Clarendon Press Waddington, P. A. J. (1999) Policing Citizens, London, Routledge Waddington, P. A. J. (2003) Human Rights and Police use of Force in the Terrorist Context, in Stenning, P. C. (eds.) Police use of Force and Human Rights, Criminology Research Centre Occasional Paper Waddington, P. A. J. and Wright, M. (2008) in Newburn, T. (eds.) Handbook of Policing, Second Edition, Willan Publishing Waldern, M. J. (2007) Armed Police: The Police Use of Firearms since 1945, Sutton Publishing

Nature and Nuture Essays -- Psychology Behavior

The question is this: How can we distinguish between the environmental causes of behavior and heredity causes? This question embodies the nature-nurture issue. John B. Watson argued that each is made, not born. He discounted the importance of heredity, maintaining that behavior is managed entirely by the environment. Indeed he boldly claimed: " Give me a dozen healthy infants, well-formed, and my own special world to bring them up in and I'll guarantee to take any one at random and train him to become any type of specialist I might select-doctor, lawyer, artist, merchant-chief, and yes, even beggar-man and thief, regardless of his talents, penchants, tendencies, abilities, vocations and race of his ancestors. I am going beyond my facts and I admit it, but so have the advocates of the contrary and they have been doing it for many thousands of years." (Weiten 82) Although the question was first posed as a nature-versus-nurture issue, developmental psychologists today agree that both nature and nurture interact to produce specific developmental patterns and outcomes. Consequently, the question has evolved into how and to what degree do environment and heredity both produce their effects? No one grows up free of environment influences, nor does anyone develop without being affected by his or her inherited genetic makeup. However, the debate over the comparative influence of the two factors remains active, with different approaches and theories of development emphasizing the environment or heredity to a greater or lesser degree. "Some developmental theories rely on basic psychological principles of learning and stress the role learning plays in producing changes in behavior in a developing child."(Weiten 350) These theories... ...ferent environments, the may consider people raised in similar environment who have totally dissimilar genetic backgrounds. If they find, for example, similar courses of development in two adopted children who have different genetic backgrounds and have been raised in the same family, they have evidence for the importance of sentimental influences on development. Moreover, psychologists can carry out research involving animals with dissimilar backgrounds. By experimentally varying the environment in which they are raised, we can determine the influence of environmental factors on development. Dodge, Kenneth A. "The Nature Nurture Debate. "2004: p418-427. Gloucester County College Library. 2006 Papalia, Diane E. A Child's World: Infancy through Adolescence. New York: McGraw-Hill, 2006 Weiten, Wayne. Psychology Themes and Variations. Belmont: Wadsworth, 2002

Global Expansion Essay -- essays research papers

Before entering a dark place, most people tend use some type light emitting device to provide direction and guidance; so they are able to see what is in front of them, so that Do not fall. The same principal should be used when attempting to sell overseas. Before attempting expand into a new market domestically; your success depends on research planning and timing. This will give you the necessary light needed to find out if you have the right offering, and pinpoint a high-potential customer base. In addition, it helps you find the right partners to help you out your planning, then tapping consumer or business markets overseas have the potential to benefit your business tremendously.   Ã‚  Ã‚  Ã‚  Ã‚  The cultural divide is still ever persistent, but the good news is that it's getting smaller and smaller. It may never disappear totally because of the way most us tend to stay within our cultural bounds. Most of us Americans believe that we are supposed to be positive, dynamic and assertive no matter what but is the proper way to do things in other countries? Probably not. Yet, that’s the American way of doing things. Many of us are pretty comfortable with our own customs but normally feel threaten when cross cultural lines. Normally we feel uncomfortable or even threaten when boundaries are crossed, but adjustments must be made for firms to be successful overseas. In most of the world, business is about people and relationships, win-win relationships built on mutual trust. Of course, business involves selling and buying and making money. But for the most of the world, good business follows mutual trust, not vice versa. Friendship comes before money talk. In addition, mutual trust usually results from comfort levels they achieve with each other. Politically incorrect or not, let's face it. It is more difficult to feel comfortable with   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   people who don't look like us or talk like us. The failure to adjust, to the difference between people can cause an organization to fail miserable when trying expand in overseas markets. After investigati... ...ly been open to the world for 20 years therefore, its growth has been extraordinary. Vietnam's economy has weathered the global economic slowdown of 2001 better than most other Asian economies, largely due to the fact that it is less integrated into the world economy and less vulnerable to declines in demand for its exports. Vietnam is growing economy with a bright future ahead of it. For our firm to expand international we must continue to make low cost product to support the ever-growing elderly population and challange people of these nations the ability to moving around with little or trouble.   Ã‚  Ã‚  Ã‚  Ã‚  Before we expand to any of these nations we need to ensure that have a firm understanding of their culture. Friendship and understand first, then the bottom line should be discuss. .   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  References Retrieved October 5, 2002 http://www.cia.gov/cia/publications/factbook/geos/rp.html Retrieved October 8, 2002 http://lcweb2.loc.gov/frd/cs/vntoc.html Retrieved October 10, 2002 http://www.singstat.gov.sg/

Importance of Integrity

Integrity is the number one quality of leadership. Integrity in leadership is expressed in terms of constancy and consistency. It is manifested in an absolute devotion to keeping one’s word. The glue that holds all relationships together-including the relationship between the leader and the led—is trust, and trust is based on integrity. Integrity is so important that functioning in our society would be impossible without it. We could not make even a simple purchase without a high level of confidence that the price was honest and that the change was correct. The most successful individuals and companies in America are those with reputations of high integrity among everyone they deal with. This level of integrity builds the confidence that others have in them and enables them to do more business than their competitors whose ethics may be a little shaky. Earl Nightingale once wrote, â€Å"If honesty did not exist, it would have to be invented, as it is the surest way of getting rich. † A study at Harvard University concluded that the most valuable asset that a company has is how it is known to its customers, its reputation. By the same token, your greatest personal asset is the way that you are known to your customers. It is your personal reputation for keeping your word and fulfilling your commitments. Your integrity precedes you and affects all of your interactions with other people. There are several things you can do to move you more rapidly toward becoming the kind of person that you know you are capable of becoming. The first is to decide upon my five most important values in life. Organize them in order of priority. Then I write a brief paragraph defining what each of those values means to me. A value combined with a definition becomes an organizing principle, a statement that I can use to help me make better decisions. It is a measure and standard which enables me to know how closely I am adhering to my innermost beliefs and convictions. Five of my most important values are: helping those who are less fortunate, working hard to reach my goals, being honest and truthful, working with others to get things done, and being the nicest person anyone could meet. I have always been regarded as a leader and that does not come with ease: backlash of the bullies and those who want to bring me down to get where I am will always encounter me, but because of my high integrity and honesty to do what is â€Å"right† I will not retaliate against them. I must go into others shoes, which enables me to help others in more ways than one, because their situations make me emotionally motivated to get them in a better place to be successful. Integrity is hard work, but that work is nothing but rewarding. I’m a leader and I will continue to develop to be the best leader I am to become, by living with integrity every day.

Human consumption: and its effect on the environment Essay

The environment is a very important in human existence as it is basically all that surrounds us. Our environment is a complex phenomenon that consists of the climate, geography and other natural resources in the environment. The human life basically depends on healthy produce and the balanced environmental conditions. The environment however could affect humans physically spiritually and culturally. In today’s ever growing society, it is important that we take care of our environment in order to have a healthy and balanced environment. Humans are known to solely depend on earth’s resources such as; oil, forests, water, energy and others. These resources however, get limited in time and humans are known to largely consume them. There are some negative and positive effects on the environment caused by humans. In terms of negative effects, the depletion of the ozone layer, pollution and overconsumption are some examples of how humans affect the environment. However, there are some positive effects which benefits the environment such as—conservation of wild life. The environment today, has been affected by various factors, which benefits the environment and negative factors, which damage the environment and cause severe damage to it. Several discussions have been made on human consumptions and what effects they have on the environment. This essay will be set in three parts that will assess human consumption and the various ways in which it affects  the environment. The first part of the essay will focus on the negative and positive effects human consumption has on the environment and secondly this essay will discuss over consumption of natural resources, and thirdly this essay will address various solutions in which to address this problem and help the environment and all of earth’s resources to give a more balanced and healthier environment. THE POSITIVE AND NEGATIVE EFFECTS OF HUMAN CONSUMPTION ON THE ENVIRONMENT As mentioned earlier, there are many ways in which the environment is affected negatively by humans. One of these ways is through pollution. Pollution is basically regarded as unwanted substances that are harmful and contaminating the environment. Pollution is a very important issue when addressing the environments and its factors. There are various types of pollution, such as; air pollution, water pollution, land pollution and others. Air pollution is when there are unwanted, harmful substances in the air which have poisonous effects. These substances are very dangerous and when ingested could cause diseases such as cancer and bronchitis, which are deadly to both man and animals alike. â€Å"Pollutants are harmful chemical or physical substances released into the atmosphere, a water source, the soil or a component of the biosphere† (Saier, 2006:205) Particle pollutants when released in the air are very lethal, and could cause severe damage to the human body. Air pollution does not only affect humans but it also affects the environment, for example, the depletion of the ozone layer is caused by harmful toxins that are released into the air. Water pollution however, is the contamination of water bodies in the ecosystem such as rivers, lakes, oceans and others. This mostly occurs, when pollutants are released into the water bodies and this could be very dangerous to man, animals and other living creatures in the environment. Water much like air, is very needed in other for the environment to be balanced. Another example of pollution is land pollution which is the deposition of solid or liquid waste material on land. This is also very harmful to the environment, especially when the garbage disposed is not separated into re-usable and recyclable waste. Lands that are contaminated as a result of pollution are known to be very problematic to the human respiratory system. Pollution is a very serious matter that needs to be taken into further considerations, especially since it is done  mostly by humans. There is no question that humans are incapable of destroying the environment and although a lot has changed in the generation, much has not. Humans still contaminate their air, water supplies and land by disposing hazardous materials and thereby destroying natural habitats. It is important we take the matter of pollution seriously and properly take care of our environment, because we still continue to populate the earth at an increasing rate. (Pierce et al., 1998) There also some positive factors of human’s in our environment. These positive effects are very beneficial to the environment as it properly sets it in balance. One of the ways in which humans are impacting the environment positively is by protecting endangered species. Nearly most endangered species are now being bred in protective areas. Species such as the Chinese giant pandas is an example of endangered species that are carefully being bred in protective areas to keep them from going to extinct. OVERCONSUMPTION OF NATURAL RESOURCES Overconsumption of natural resources has become a growing trend, especially in the industrialized nations. Overconsumption which is the act of using something to the excess is mostly done in western industrialized nations. â€Å"The necessity of preventing environmentally disrupting effects of affluent consumption in modern industrial societies has been recently addressed in a vast body of literature on ‘sustainable consumption’† (Cogoy, 2010:460)Natural resources such as materials, water and energy are very essential in the environment because they are the basis of our existence on earth. These resources are gradually decreasing due to humans’ constant consumption of these resources. Our climate is changing, species are becoming extinct, fish and forests are shrinking due to the damages that are imposed on our environment by humans. â€Å"..Overconsumption of natural resources is portrayed as a major threat to the sustainability of the world’s envi ronmental systems.† (Brown et al., 2000). Overconsumption which is regarded as the excessive used of goods and services is perceived as a means of personal happiness, status and success. However, in an environmental context, it is the excessive use of natural resources. It is known that humans today extract and use more 50% more natural resources than only 30 years ago. This consumption from humans, is a way of trying to  aspire to achieve happiness through the use of goods produced from materials that are deemed â€Å"plentiful† and resourceful. (The European Environment [SOER], 2010). There are ways in which we can avoid over consumption of natural resources in order to continue to thrive on earth. These ways include; changing our lifestyles and making it more sustainable so that we are able to protect our ecosystem and natural resources. It is important we characterize the problem of overconsumption and start a debate about resource use and its environmental impacts around the world. If humans were to continually consume resources wastefully, in order to follow self-interested motives, then natural resources in the environment would be reduced and future consumption will be undermined and resources are very likely to slowly deplete. Solutions Asserting that â€Å"human influence on the planet has increased faster than human population,† Joel Cohen elaborated on the concept of human carrying capacity. Though carrying capacity is ultimately determined by natural constraints, Cohen stressed the role of human choices about lifestyle and consumption in determining how many people the earth can sustain within those constraints. Emphasizing the role of economics, Donald Ludwig contended that the real problem with human population growth is not biological, but societal. Ludwig asserted that a fundamental conflict exists between economics and ecology; economists believe growth to be essential, leading to increased consumption, while ecologists say growth is inherently limited. Reaffirming Ludwig’s opinion about the importance of economics, William Rees introduced the concept of the ecological footprint, a model that puts the economy inside the ecosphere, intrinsically imposing limits on growth based on availability of resources. The ecological footprint recognizes the interplay of economics and ecology by measuring not just the natural resources a place uses of its own, but those consumed from other countries. Though it is Gretchen Daily’s opinion that â€Å"people have difficulty looking beyond their own discipline for solutions,† she stressed the importance of crossing both societal and economic boundaries in exploring the issue of human population growth. Daily believes that not only  must scientists cooperate with others, but cooperation within the sciences is essential; scientists worldwide must begin to share information. Bibliography Cogoy, M. (2010). Consumption, time and the environment. Review of Economics of the Household, 8(4), 459-477. Saier, M. (2006). Pollution. Environmentalist, 26(3), 205-209. Peirce, J., Weiner, Ruth F, Vesilind, P. Aarne, & ScienceDirect. (1998.). Environmental Pollution and Control. Burlington: Butterworth-Heinemann. Brown, Paul M, & Cameron, Linda D. (2000). What can be done to reduce overconsumption? Ecological Economics, 32(1), 27-41.

Critical Disagreement Essay

Few modern writers reveal a more consistent intellectual development than Ernest Hemingway. In both his themes and the meaning he has found in them he has moved steadily and even logically from the earliest work of In Our Time to the significant orientation of The Fifth Column. The logic of this development has for the most part remained unnoticed by critics who have failed to realize that Hemingway, far from being a child of nature, is in fact an intellectual. They have presented him, consequently, as a sort of savage endowed with style, gifted but brainless. A Farewell to Arms ( 1929) takes us to the Italian front and includes a vivid account of the terrible retreat from Caporetto. An American lieutenant in the Italian Red Cross falls in love with an English nurse and she with him. Both have previously suffered more attrition than human nerves can stand, and in their passionate attachment they find a psychological refuge from the incessant horror of war. They escape to brief happiness in Switzerland, but in giving birth to a child the girl dies. The ending is far from inevitable. It is a comment on the looseness of Hemingway’s artistry that the moving picture version of this novel was equipped with alternative sad and happy conclusions. In A Farewell to Arms it is society as a whole that is rejected, social responsibility, social concern. Lieutenant Henry is in the War, but his attitude toward it is purely that of a spectator, refusing to be involved. He is leading a private life as an isolated individual. Even personal relations, of any depth or intimacy, he avoids; he drinks with the officers and talks with the priest and visits the officers’ brothel, but all contacts he keeps, deliberately, on a superficial level. He has rejected the world. Such an attitude is possible only to a sensitive and reflective person. Henry is no naive barbarian. He was studying architecture in Italy when the War began; he makes ironical remarks about sculptures and bronzes; his reflections and conversation contain allusions to Samuel Johnson, Saint Paul, Andrew Marvell, and Sir Thomas Wyatt. His flight from responsibility is the ultimate of the flight that Jake and Brett and Mike were trying to effect with drink and bullfights and sex. He is evading responsibility and emotion, taking refuge in simple primary sensations. Successfully, so far as the War is concerned: â€Å"I was always embarrassed by the words sacred, glorious and sacrifice and the expression in vain . . . Abstract words, such as glory, honor, courage, or hallow were obscene beside the concrete names of villages, the number of roads, the names of rivers, the numbers of regiments and the dates. † Characterization Hemingway’s greatness lies not in the range of his characterization or the suppleness of his style but in the astonishing perfection of these limited objectives. As Wilhelm points out, â€Å"the oppressive weight of death and anxiety in this object composition, subtly framed for the reader’s perusal, undercuts the scene’s â€Å"mask of well-being†Ã¢â‚¬â€œtwo wartime colleagues bonding rather sophomorically in their desire for women. Henry imbues the elements of this expansive still life with symbolic import, foreshadowing events to come. Because objects are frequently used for characterization, Henry’s possessions provide visual clues to the reader, but only as fragments in the larger narrative that withhold their essential meaning until the text’s conclusion†. (Wilhelm) The very intensity of Hemingway’s â€Å"nihilism† in his first stories and novels proved, however, that his need for an ideal expression in art was the mark of a passionate romanticist who had been profoundly disappointed. The anguish of his characters was too dramatic, too flawless; it was too transparent an inversion. The symbols Hemingway employed to convey his sense of the world’s futility and horror were always more significant than the characters who personified emotions, and the characters were so often felt as personified emotions that the emotions became sentimental. The gallery of expatriates in The Sun Also Rises were always subsidiary to the theme that the period itself was lost; the lovers in A Farewell to Arms were, as Edmund Wilson has said, the abstractions of a lyric emotion. Hemingway had created a world of his own socially more brilliant than life, but he was not writing about people living in a world; he was dealing in stock values again, driving his characters between the two poles of a tremulous inner exaltation and an absolute frustration. What he liked best was to invoke the specter of damnation. But A Farewell to Arms is a tragedy, and the lovers are shown as innocent victims with no relation to the forces that torment them. They themselves are not tormented within by that dissonance between personal satisfaction and the suffering one shares with others which it has been Hemingway’s triumph to handle. A Farewell to Arms, as the author once said, is a Romeo and Juliet. And when Catherine and her lover emerge from the stream of action–the account of the Caporetto retreat is Hemingway’s best sustained piece of narrative–when they escape from the alien necessities of which their romance has been merely an accident, which have been writing their story for them, then we see that they are not in themselves convincing as human personalities. And we are confronted with the paradox that Hemingway, who possesses so remarkable a mimetic gift in catching the tone of social and national types and in making his people talk appropriately, has not shown any very solid sense of character, or indeed, any real interest in it. The people in his short stories are satisfactory because he has only to hit them off: the point of the story does not lie in personalities, but in the emotion to which a situation gives rise. This is true even in The Sun Also Rises, where the characters are sketched with wonderful cleverness. But in A Farewell to Arms, as soon as we are brought into real intimacy with the lovers, as soon as the author is obliged to see them through a searching personal experience, we find merely an idealized relationship, the abstractions of a lyric emotion. Against the gaiety, the warmth of ‘A Farewell to Arms,’ Hemingway portrays, of course, the cumulative degeneration of the human temperament under the conditions of war. The novel is a series of human defeats within one continuous and terrible sequence: the rains, the cholera, the soldiers who mutilate themselves rather than go on fighting, the growing weariness of the Italian army which led up to Caporetto, the degeneration of Rinaldi himself who is symptomatic of the novel’s pattern, and at its start is so quick and alive. Contrasted against this in turn, in the love of Lieutenant Henry and Catherine Barkley we have another antithesis of increasing joy. The love and the despair are constantly related, intensely intertwined, and in the end almost gain the feeling of life and death themselves: the death preying upon the living organism of the lovers’ hope, eating into the flesh and destroying the form from page to page. Yet each change of form, each advance of destruction makes the life of the novel more vital, the life we know must yield, but in the manner of its yielding asserting itself beyond its destruction. A Farewell to Arms in this sense lies quite outside of the pattern of Hemingway’s development which we have been showing. For the feeling of tragedy in the novel comes precisely from the struggle to participate in life despite all the odds, from the efforts of the lovers to fulfill themselves in a sterile world, from the exact impact of the human will which Hemingway has negated. Yet even here we must notice that Lieutenant Henry turns his back upon our society after Caporetto. Following his personal objectives he abandons his friends, his responsibilities as an officer, the entire complex of organized social life represented by the army and the war. This farewell to arms is accomplished without request or permission. Lieutenant Henry, in fact, deserts, and his action is prophetic of his author’s own future movement. ‘You and me,’ says Nick to the Rinaldi of ‘In Our Time,’ ‘we’ve made a separate peace. ‘ And Hemingway’s separate peace was to embrace the woods of Michigan as well as Caporetto, the activities of normal times as well as war, and even at last the ordinary purposes of the individual’s life within his society, as well as the collective purposes of society as a whole. Conclusion A Farewell to Arms is even more strictly the story of one man; here, even more than in The Sun Also Rises, the reader feels the cleft between the primary and secondary figures. Both books have the foreshortening of time which is more properly the privilege of the drama than of the traditional novel a technique toward which, since Hemingway demonstrated its immense value, American fiction has been striving with remarkable persistence. Back in the nineteenth century, when people like Henry James and Paul Bourget were taking such distinctions seriously, books like these would have been classified as novelas. I have some difficulty in feeling any wide gap between books in which Hemingway is reporting upon young men who are in character-tastes, occupations, age very much like himself, and books in which he drops the pretense of fiction in order to discuss the same materials in definite reference to himself. And why, to come directly to the main question, do we have to consider Death in the Afternoon and Green Hills of Africa such failures, anyway? One may not be particularly interested in bullfighting and still find that the considered statement, by an accomplished artist, regarding the effect on his own personality of the study of the world’s most stylized form of violence is a document of extraordinary interest, particularly if the artist is making a special effort to see himself clearly at the time. We can also agree with Edmund Wilson that as a book about animals Green Hills of Africa is dull, as we can agree with Max Eastman that as a manual of tauromachy Death in the Afternoon is silly, and still be passionately interested in Hemingway’s report on himself as a killer. I imagine the answer is that we were concerned by the apparent disappearance of a novelist who seemed to be losing his grip. Hemingway himself was aware of the danger and discoursed upon it for the benefit of the German traveler in the beginning of Green Hills of Africa. He also seemed to feel the danger of losing his memory for sharply characterized sensations, so essential to his kind of writing. In the books after 1930 he seems disproportionately intent on catching things before he forgets them. Works Cited Balbert, Peter. â€Å"Courage at the Border-Line: Balder, Hemingway, and Lawrence’s the Captain’s Doll. † Papers on Language & Literature 42. 3 (2006) Bloom, Harold, ed. Ernest Hemingway†s a Farewell to Arms. Philadelphia: Chelsea House Publishers, 1987. Giles, Todd. â€Å"Simon and Schuster’s Hemingway Audio Collection. † The Hemingway Review 26. 1 (2006) Onderdonk, Todd. â€Å"†Bitched†: Feminization, Identity, and the Hemingwayesque in the Sun Also Rises. † Twentieth Century Literature 52. 1 (2006) Trodd, Zoe. â€Å"Hemingway’s Camera Eye: The Problem of Language and an Interwar Politics of Form. † The Hemingway Review 26. 2 (2007) Wagner-Martin, Linda, ed. Seven Decades of Criticism Seven Decades of Criticism. East Lansing, MI: Michigan State University Press, 1998. Whitlow, Roger. Cassandra’s Daughters: The Women in Hemingway. Westport, CT: Greenwood Press, 1984. Wilhelm, Randall S. â€Å"Objects on the Table: Anxiety and Still Life in Hemingway’s A Farewell to Arms. † The Hemingway Review 26. 1 (2006)

Psa 200

Auditing and Assurance Standards Council Philippine Standard on Auditing 330 (Redrafted) THE AUDITOR’S RESPONSES TO ASSESSED RISKS PSA 330 (Redrafted) PHILIPPINE STANDARD ON AUDITING 330 (REDRAFTED) THE AUDITOR’S RESPONSES TO ASSESSED RISKS (Effective for audits of financial statements for periods beginning on or after December 15, 2009) CONTENTS Paragraph Introduction Scope of this PSA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Effective Date†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Objective†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Definitions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ RequirementsOverall Responses†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Audit Procedures Responsive to the Assessed Risks of Material Misstatement at the Assertion Level†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Adequacy of Presentation and Disclosure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Evaluating the Sufficiency and Appropriateness of Audit Evidence†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Documentation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 1 2 3 4 5 6-24 25 26-28 29-31 Application and Other Explanatory M aterial Overall Responses†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. A1-A3 Audit Procedures Responsive to the Assessed Risks of Material Misstatement the Assertion Level†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.A4-A54 Adequacy of Presentation and Disclosure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ A55 Evaluating the Sufficiency and Appropriateness of Audit Evidence†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. A56-A58 Documentation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. A59 Acknowledgment Philippine Standard on Auditing (PSA) 330 (Redrafted), â€Å"The Auditor’s Responses to Assessed Risks† should be read in the context of the â€Å"Preface to the Philippine Standards on Quality Control, Auditing, Review, Other Assurance and Related Services,† which sets out the authority of PSAs. 2 PSA 330 (Redrafted) IntroductionScope of this PSA 1. This Philippine Standard on Auditing (PSA) deals with the auditor’s responsibility to design and implement responses to the risks of material misstatement identified and assessed by the auditor in accordance with PSA 315, â€Å"Identifying and Assessing Risks of Material Misstatement Through Understanding the Entity and Its Environment† in a financial statement audit. Effective Date 2. This PSA is effective for audits of financial statements for periods beginning on or after December 15, 2009. Objective 3.The objective of the auditor is to obtain sufficient appropriate audit evidence about the assessed risks of material misstatement, through designing and implementing appropriate responses to those risks. Definitions 4. For purposes of the PSAs, the following terms hav e the meanings attributed below: (a) Substantive procedure – An audit procedure designed to detect material misstatements at the assertion level. Substantive procedures comprise: (i) Tests of details (of classes of transactions, account balances, and disclosures), and ii) Substantive analytical procedures. (b) Test of controls – An audit procedure designed to evaluate the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the assertion level. Requirements Overall Responses 5. The auditor shall design and implement overall responses to address the assessed risks of material misstatement at the financial statement level. (Ref: Para. A1-A3) 3 PSA 330 (Redrafted) Audit Procedures Responsive to the Assessed Risks of Material Misstatement at the Assertion Level 6.The auditor shall design and perform further audit procedures whose nature, timing, and extent are based on and are responsive to the assessed risks of material misstatement at the assertion level. (Ref: Para. A4-A8) 7. In designing the further audit procedures to be performed, the auditor shall: (a) Consider the reasons for the assessment given to the risk of material misstatement at the assertion level for each class of transactions, account balance, and disclosure, including: (i) The likelihood of material misstatement due to the particular characteristics of the relevant class of transactions, account balance, or disclosure (i. . , the inherent risk); and (ii) Whether the risk assessment takes account of relevant controls (i. e. , the control risk), thereby requiring the auditor to obtain audit evidence to determine whether the controls are operating effectively (i. e. , the auditor intends to rely on the operating effectiveness of controls in determining the nature, timing and extent of substantive procedures); and (Ref: Para. A9-A18) (b) Obtain more persuasive audit evidence the higher the auditor’s assessment of risk. (Ref: P ara. A19) Tests of Controls 8.The auditor shall design and perform tests of controls to obtain sufficient appropriate audit evidence as to the operating effectiveness of relevant controls when: (a) The auditor’s assessment of risks of material misstatement at the assertion level includes an expectation that the controls are operating effectively (i. e. , the auditor intends to rely on the operating effectiveness of controls in determining the nature, timing and extent of substantive procedures); or (b) Substantive procedures alone cannot provide sufficient appropriate audit evidence at the assertion level. Ref: Para. A20-A24) 9. In designing and performing tests of controls, the auditor shall obtain more persuasive audit evidence the greater the reliance the auditor places on the effectiveness of a control. (Ref: Para. A25) 4 PSA 330 (Redrafted) Nature and Extent of Tests of Controls 10. In designing and performing tests of controls, the auditor shall: (a) Perform other audit procedures in combination with inquiry to obtain audit evidence about the operating effectiveness of the controls, including: (i) How the controls were applied at relevant times during the period under audit. ii) The consistency with which they were applied. (iii) By whom or by what means they were applied. (Ref: Para. A26-29) (b) Determine whether the controls to be tested depend upon other controls (indirect controls), and if so, whether it is necessary to obtain audit evidence supporting the effective operation of those indirect controls. (Ref: Para. A3031) Timing of Tests of Controls 11. The auditor shall test controls for the particular time, or throughout the period, for which the auditor intends to rely on those controls, subject to aragraphs 12 and 15 below, in order to provide an appropriate basis for the auditor’s intended reliance. (Ref: Para. A32) Using audit evidence obtained during an interim period 12. When the auditor obtains audit evidence about the operatin g effectiveness of controls during an interim period, the auditor shall: (a) Obtain audit evidence about significant changes to those controls subsequent to the interim period; and (b) Determine the additional audit evidence to be obtained for the remaining period. (Ref: Para.A33-A34) Using audit evidence obtained in previous audits 13. In determining whether it is appropriate to use audit evidence about the operating effectiveness of controls obtained in previous audits, and, if so, the length of the time period that may elapse before retesting a control, the auditor shall consider the following: 5 PSA 330 (Redrafted) (a) The effectiveness of other elements of internal control, including the control environment, the entity’s monitoring of controls, and the entity’s risk assessment process; b) The risks arising from the characteristics of the control, including whether it is manual or automated; (c) The effectiveness of general IT-controls; (d) The effectiveness of the control and its application by the entity, including the nature and extent of deviations in the application of the control noted in previous audits, and whether there have been personnel changes that significantly affect the application of the control; (e) Whether the lack of a change in a particular control poses a risk due to changing circumstances; and f) The risks of material misstatement and the extent of reliance on the control. (Ref: Para. A35) 14. If the auditor plans to use audit evidence from a previous audit about the operating effectiveness of specific controls, the auditor shall establish the continuing relevance of that evidence by obtaining audit evidence about whether significant changes in those controls have occurred subsequent to the previous audit. The auditor shall obtain this evidence by performing inquiry combined with observation or inspection, to confirm the understanding of those specific controls, and: a) If there have been changes that affect the continu ing relevance of the audit evidence from the previous audit, the auditor shall test the controls in the current audit. (Ref: Para. A36) (b) If there have not been such changes, the auditor shall test the controls at least once in every third audit, and shall test some controls each audit to avoid the possibility of testing all the controls on which the auditor intends to rely in a single audit period with no testing of controls in the subsequent two audit periods. (Ref: Para. A37-39) Controls over significant risks 15.When the auditor plans to rely on controls over a risk the auditor has determined to be a significant risk, the auditor shall test those controls in the current period. 6 PSA 330 (Redrafted) Evaluating the Operating Effectiveness of Controls 16. When evaluating the operating effectiveness of relevant controls, the auditor shall evaluate whether misstatements that have been detected by substantive procedures indicate that controls are not operating effectively. The abse nce of misstatements detected by substantive procedures, however, does not provide audit evidence that controls related to the assertion being tested are effective. Ref: Para. A40) 17. When deviations from controls upon which the auditor intends to rely are detected, the auditor shall make specific inquiries to understand these matters and their potential consequences, and shall determine whether: (a) The tests of controls that have been performed provide an appropriate basis for reliance on the controls; (b) Additional tests of controls are necessary; or (c) The potential risks of misstatement need to be addressed using substantive procedures. (Ref: Para. A41) 18.The auditor shall evaluate whether, on the basis of the audit work performed, the auditor has identified a material weakness in the operating effectiveness of controls. 19. The auditor shall communicate material weaknesses in internal control identified during the audit on a timely basis to management at an appropriate lev el of responsibility and, as required by PSA 260 (Revised), â€Å"Communication with Those Charged with Governance,† 1 with those charged with governance (unless all of those charged with governance are involved in managing the entity). Substantive Procedures 0. Irrespective of the assessed risks of material misstatement, the auditor shall design and perform substantive procedures for each material class of transactions, account balance, and disclosure. (Ref: Para. A42-A47) Substantive Procedures Related to the Financial Statement Closing Process 21. The auditor’s substantive procedures shall include the following audit procedures related to the financial statement closing process: (a) Agreeing or reconciling the financial statements with the underlying accounting records; and 1 Close off document approved May 2006. 7PSA 330 (Redrafted) (b) Examining material journal entries and other adjustments made during the course of preparing the financial statements. (Ref: Para. A48) Substantive Procedures Responsive to Significant Risks 22. When the auditor has determined that an assessed risk of material misstatement at the assertion level is a significant risk, the auditor shall perform substantive procedures that are specifically responsive to that risk. When the approach to a significant risk consists only of substantive procedures, those procedures shall include tests of details. Ref: Para. A49) Timing of Substantive Procedures 23. When substantive procedures are performed at an interim date, the auditor shall cover the remaining period by performing: (a) Substantive procedures, combined with tests of controls for the intervening period; or (b) If the auditor determines that it is sufficient, further substantive procedures only, that provide a reasonable basis for extending the audit conclusions from the interim date to the period end. (Ref: Para. A51-A53) 24.If misstatements that the auditor did not expect when assessing the risks of material missta tement are detected at an interim date, the auditor shall evaluate whether the related assessment of risk and the planned nature, timing, or extent of substantive procedures covering the remaining period need to be modified. (Ref: Para. A54) Adequacy of Presentation and Disclosure 25. The auditor shall perform audit procedures to evaluate whether the overall presentation of the financial statements, including the related disclosures, is in accordance with the applicable financial reporting framework. Ref: Para. A55) Evaluating the Sufficiency and Appropriateness of Audit Evidence 26. Based on the audit procedures performed and the audit evidence obtained, the auditor shall evaluate before the conclusion of the audit whether the assessments of the risks of material misstatement at the assertion level remain appropriate. (Ref: Para. A56-57) 27. The auditor shall conclude whether sufficient appropriate audit evidence has been obtained. In forming an opinion, the auditor shall consider all elevant audit evidence, regardless of whether it appears to corroborate or to contradict the assertions in the financial statements. (Ref: Para. A58) 8 PSA 330 (Redrafted) 28. If the auditor has not obtained sufficient appropriate audit evidence as to a material financial statement assertion, the auditor shall attempt to obtain further audit evidence. If the auditor is unable to obtain sufficient appropriate audit evidence, the auditor shall express a qualified opinion or a disclaimer of opinion. Documentation 29. The auditor shall document: a) The overall responses to address the assessed risks of material misstatement at the financial statement level, and the nature, timing, and extent of the further audit procedures performed; (b) The linkage of those procedures with the assessed risks at the assertion level; and (c) The results of the audit procedures, including the conclusions where these are not otherwise clear. (Ref: Para. A59) 30. If the auditor plans to use audit eviden ce about the operating effectiveness of controls obtained in previous audits, the auditor shall document the conclusions reached about relying on such controls that were tested in a previous audit. 1. The auditors’ documentation shall demonstrate that the financial statements agree or reconcile with the underlying accounting records. *** Application and Other Explanatory Material Overall Responses (Ref: Para. 5) A1. Overall responses to address the assessed risks of material misstatement at the financial statement level may include: †¢ Emphasizing to the audit team the need to maintain professional skepticism. †¢ Assigning more experienced staff or those with special skills or using experts. †¢ Providing more supervision. †¢Incorporating additional elements of unpredictability in the selection of further audit procedures to be performed. 9 PSA 330 (Redrafted) †¢ A2. Making general changes to the nature, timing, or extent of audit procedures, for examp le: performing substantive procedures at the period end instead of at an interim date; or modifying the nature of audit procedures to obtain more persuasive audit evidence. The assessment of the risks of material misstatement at the financial statement level, and thereby the auditor’s overall responses, is affected by the auditor’s understanding of the control environment.An effective control environment may allow the auditor to have more confidence in internal control and the reliability of audit evidence generated internally within the entity and thus, for example, allow the auditor to conduct some audit procedures at an interim date rather than at the period end. Weaknesses in the control environment, however, have the opposite effect; for example, the auditor may respond to an ineffective control environment by: †¢ †¢ Obtaining more extensive audit evidence from substantive procedures. †¢ A3.Conducting more audit procedures as of the period end rathe r than at an interim date. Increasing the number of locations to be included in the audit scope. Such considerations, therefore, have a significant bearing on the auditor’s general approach, for example, an emphasis on substantive procedures (substantive approach), or an approach that uses tests of controls as well as substantive procedures (combined approach). Audit Procedures Responsive to the Assessed Risks of Material Misstatement at the Assertion Level The Nature, Timing, and Extent of Further Audit Procedures (Ref: Para. 6) A4.The auditor’s assessment of the identified risks at the assertion level provides a basis for considering the appropriate audit approach for designing and performing further audit procedures. For example, (as appropriate and notwithstanding the requirements of this PSA)2, the auditor may determine that: (a) Only by performing tests of controls may the auditor achieve an effective response to the assessed risk of material misstatement for a p articular assertion; (b) Performing only substantive procedures is appropriate for particular assertions and, therefore, the auditor excludes the effect of controls from the relevant risk assessment.This may be because the auditor’s risk assessment procedures 2 For example, as required by paragraph 20, irrespective of the approach selected, the auditor designs and performs substantive procedures for each significant class of transactions, account balance, and disclosure. 10 PSA 330 (Redrafted) have not identified any effective controls relevant to the assertion, or because testing controls would be inefficient and therefore the auditor does not intend to rely on the operating effectiveness of controls in determining the nature, timing and extent of substantive procedures; or c) A combined approach using both tests of controls and substantive procedures is an effective approach. A5. The nature of an audit procedure refers to its purpose (i. e. , test of controls or substantive procedure) and its type (i. e. , inspection, observation, inquiry, confirmation, recalculation, reperformance, or analytical procedure). The nature of the audit procedures is of most importance in responding to the assessed risks. A6. Timing of an audit procedure refers to when it is performed, or the period or date to which the audit evidence applies.A7. Extent of an audit procedure refers to the quantity to be performed, for example, a sample size or the number of observations of a control activity. A8. Designing and performing further audit procedures whose nature, timing, and extent are based on and are responsive to the assessed risks of material misstatement at the assertion level provides a clear linkage between the auditors’ further audit procedures and the risk assessment. Responding to the Assessed Risks at the Assertion Level (Ref: Para. 7(a)) NatureA9. The auditor’s assessed risks may affect both the types of audit procedures to be performed and their comb ination. For example, when an assessed risk is high, the auditor may confirm the completeness of the terms of a contract with the counterparty, in addition to inspecting the document. Further, certain audit procedures may be more appropriate for some assertions than others. For example, in relation to revenue, tests of controls may be most responsive to the assessed risk of misstatement of the completeness ssertion, whereas substantive procedures may be most responsive to the assessed risk of misstatement of the occurrence assertion. A10. The reasons for the assessment given to a risk are relevant in determining the nature of audit procedures. For example, if an assessed risk is lower because of the particular characteristics of a class of transactions without consideration of the related controls, then the auditor may determine that substantive analytical procedures alone provide sufficient appropriate audit evidence.On the other hand, if the assessed risk is lower because of inter nal controls, and the auditor intends to base the substantive procedures on that low assessment, then the auditor performs tests of those controls, as required by paragraph 8(a). This may be the case, for 11 PSA 330 (Redrafted) example, for a class of transactions of reasonably uniform, non-complex characteristics that are routinely processed and controlled by the entity’s information system. Timing A11.The auditor may perform tests of controls or substantive procedures at an interim date or at the period end. The higher the risk of material misstatement, the more likely it is that the auditor may decide it is more effective to perform substantive procedures nearer to, or at, the period end rather than at an earlier date, or to perform audit procedures unannounced or at unpredictable times (for example, performing audit procedures at selected locations on an unannounced basis). This is particularly relevant when considering the response to the risks of fraud.For example, the auditor may conclude that, when the risks of intentional misstatement or manipulation have been identified, audit procedures to extend audit conclusions from interim date to the period end would not be effective. A12. On the other hand, performing audit procedures before the period end may assist the auditor in identifying significant matters at an early stage of the audit, and consequently resolving them with the assistance of management or developing an effective audit approach to address such matters. A13. In addition, certain audit procedures can be performed only at or after the period end, for example: †¢ †¢Examining adjustments made during the course of preparing the financial statements; and †¢ A14. Agreeing the financial statements to the accounting records; Procedures to respond to a risk that, at the period end, the entity may have entered into improper sales contracts, or transactions may not have been finalized. Further relevant factors that influence the auditor’s consideration of when to perform audit procedures include the following: †¢ The control environment. †¢ When relevant information is available (for example, electronic files may subsequently be overwritten, or procedures to be observed may occur only at certain times). The nature of the risk (for example, if there is a risk of inflated revenues to meet earnings expectations by subsequent creation of false sales agreements, 12 PSA 330 (Redrafted) the auditor may wish to examine contracts available on the date of the period end). †¢ The period or date to which the audit evidence relates. Extent A15. The extent of an audit procedure judged necessary is determined after considering the materiality, the assessed risk, and the degree of assurance the auditor plans to obtain.When a single purpose is met by a combination of procedures, the extent of each procedure is considered separately. In general, the extent of audit procedures increases as the risk of m aterial misstatement increases. For example, in response to the assessed risk of material misstatement due to fraud, increasing sample sizes or performing substantive analytical procedures at a more detailed level may be appropriate. However, increasing the extent of an audit procedure is effective only if the audit procedure itself is relevant to the specific risk.A16. The use of computer-assisted audit techniques (CAATs) may enable more extensive testing of electronic transactions and account files, which may be useful when the auditor decides to modify the extent of testing, for example, in responding to the risks of material misstatement due to fraud. Such techniques can be used to select sample transactions from key electronic files, to sort transactions with specific characteristics, or to test an entire population instead of a sample. Considerations specific to public sector entities A17.For the audits of public sector entities, the audit mandate and any other special auditin g requirements may affect the auditor’s consideration of the nature, timing and extent of further audit procedures. Considerations specific to smaller entities A18. In the case of very small entities, there may not be many control activities that could be identified by the auditor, or the extent to which their existence or operation have been documented by the entity may be limited. In such cases, it may be more efficient for the auditor to perform further audit procedures that are primarily substantive procedures.In some rare cases, however, the absence of control activities or of other components of control may make it impossible to obtain sufficient appropriate audit evidence. Higher Assessments of Risk (Ref: Para 7(b)) A19. When obtaining more persuasive audit evidence because of a higher assessment of risk, the auditor may increase the quantity of the evidence, or obtain evidence that is more relevant or reliable, e. g. , by placing more emphasis on obtaining third 13 PS A 330 (Redrafted) party evidence or by obtaining corroborating evidence from a number of independent sources.Tests of Controls Designing and Performing Tests of Controls (Ref: Para. 8) A20. Tests of controls are performed only on those controls that the auditor has determined are suitably designed to prevent, or detect and correct, a material misstatement in an assertion. If substantially different controls were used at different times during the period under audit, each is considered separately. A21. Testing the operating effectiveness of controls is different from obtaining an understanding of and evaluating the design and implementation of controls.However, the same types of audit procedures are used. The auditor may, therefore, decide it is efficient to test the operating effectiveness of controls at the same time as evaluating their design and determining that they have been implemented. A22. Further, although some risk assessment procedures may not have been specifically desig ned as tests of controls, they may nevertheless provide audit evidence about the operating effectiveness of the controls and, consequently, serve as tests of controls. For example, the auditor’s risk assessment procedures may have included: Inquiring about management’s use of budgets. †¢ Observing management’s comparison of monthly budgeted and actual expenses. †¢ Inspecting reports pertaining to the investigation of variances between budgeted and actual amounts. These audit procedures provide knowledge about the design of the entity’s budgeting policies and whether they have been implemented, but may also provide audit evidence about the effectiveness of the operation of budgeting policies in preventing or detecting material misstatements in the classification of expenses. A23.In addition, the auditor may design a test of controls to be performed concurrently with a test of details on the same transaction. Although the purpose of a test of cont rols is different from the purpose of a test of details, both may be accomplished concurrently by performing a test of controls and a test of details on the same transaction, also known as a dual-purpose test. For example, the auditor may design, and evaluate the results of, a test to examine an invoice to determine whether it has been approved and to provide substantive audit evidence of a 14 PSA 330 (Redrafted) ransaction. A dual-purpose test is designed and evaluated by considering each purpose of the test separately. A24. In some cases, as discussed in PSA 315, the auditor may find it impossible to design effective substantive procedures that by themselves provide sufficient appropriate audit evidence at the assertion level. This may occur when an entity conducts its business using IT and no documentation of transactions is produced or maintained, other than through the IT system. In such cases, paragraph 8(b) requires the auditor to perform tests of relevant controls.Audit Evid ence and Intended Reliance (Ref: Para. 9) A25. A higher level of assurance may be sought about the operating effectiveness of controls when the approach adopted consists primarily of tests of controls, in particular where it is not possible or practicable to obtain sufficient appropriate audit evidence only from substantive procedures. Nature and Extent of Tests of Controls Other audit procedures in combination with inquiry (Ref: Para. 10(a)) A26. Inquiry alone is not sufficient to test the operating effectiveness of controls.Accordingly, other audit procedures are performed in combination with inquiry. In this regard, inquiry combined with inspection or reperformance may provide more assurance than inquiry and observation, since an observation is pertinent only at the point in time at which it is made. A27. The nature of the particular control influences the type of procedure required to obtain audit evidence about whether the control was operating effectively. For example, if oper ating effectiveness is evidenced by documentation, the auditor may decide to inspect it to obtain audit evidence about operating effectiveness.For other controls, however, documentation may not be available or relevant. For example, documentation of operation may not exist for some factors in the control environment, such as assignment of authority and responsibility, or for some types of control activities, such as control activities performed by a computer. In such circumstances, audit evidence about operating effectiveness may be obtained through inquiry in combination with other audit procedures such as observation or the use of CAATs. Extent of tests of controls A28.When more persuasive audit evidence is needed regarding the effectiveness of a control, it may be appropriate to increase the extent of testing of the control. As well as the degree of reliance on controls, matters the auditor may consider in determining the extent of tests of controls include the following: 15 PSA 330 (Redrafted) †¢ The frequency of the performance of the control by the entity during the period. †¢ The length of time during the audit period that the auditor is relying on the operating effectiveness of the control. †¢The expected rate of deviation from a control. †¢ The relevance and reliability of the audit evidence to be obtained regarding the operating effectiveness of the control at the assertion level. †¢ The extent to which audit evidence is obtained from tests of other controls related to the assertion. PSA 530, â€Å"Audit Sampling and Other Means of Testing† contains further guidance on the extent of testing. A29. Because of the inherent consistency of IT processing, it may not be necessary to increase the extent of testing of an automated control.An automated control can be expected to function consistently unless the program (including the tables, files, or other permanent data used by the program) is changed. Once the auditor determi nes that an automated control is functioning as intended (which could be done at the time the control is initially implemented or at some other date), the auditor may consider performing tests to determine that the control continues to function effectively. Such tests might include determining that: †¢ Changes to the program are not made without being subject to the appropriate program change controls, The authorized version of the program is used for processing transactions, and †¢ Other relevant general controls are effective. Such tests also might include determining that changes to the programs have not been made, as may be the case when the entity uses packaged software applications without modifying or maintaining them. For example, the auditor may inspect the record of the administration of IT security to obtain audit evidence that unauthorized access has not occurred during the period. Testing of indirect controls (Ref: Para. 10(b))A30. In some circumstances, it ma y be necessary to obtain audit evidence supporting the effective operation of indirect controls. For example, when the auditor decides to test the effectiveness of a user review of exception reports detailing sales in excess of authorized credit limits, the user review and related follow up is the control that is directly of relevance to the auditor. Controls over the accuracy of 16 PSA 330 (Redrafted) the information in the reports (for example, the general IT controls) are described as ‘indirect’ controls. A31.Because of the inherent consistency of IT processing, audit evidence about the implementation of an automated application control, when considered in combination with audit evidence about the operating effectiveness of the entity’s general controls (in particular, change controls), may also provide substantial audit evidence about its operating effectiveness. Timing of Tests of Controls Intended period of reliance (Ref: Para. 11) A32. Audit evidence perta ining only to a point in time may be sufficient for the auditor’s purpose, for example, when testing controls over the entity’s physical inventory counting at the period end.If, on the other hand, the auditor intends to rely on a control over a period, tests that are capable of providing audit evidence that the control operated effectively at relevant times during that period are appropriate. Such tests may include tests of the entity’s monitoring of controls. Using audit evidence obtained during an interim period (Ref: Para. 12) A33. Relevant factors in determining what additional audit evidence to obtain about controls that were operating during the period remaining after an interim period, include: †¢ †¢The specific controls that were tested during the interim period, and significant changes to them since they were tested, including changes in the information system, processes, and personnel. †¢ The degree to which audit evidence about the oper ating effectiveness of those controls was obtained. †¢ The length of the remaining period. †¢ The extent to which the auditor intends to reduce further substantive procedures based on the reliance of controls. †¢ A34. The significance of the assessed risks of material misstatement at the assertion level. The control environment.Additional audit evidence may be obtained, for example, by extending tests of controls over the remaining period or testing the entity’s monitoring of controls. 17 PSA 330 (Redrafted) Using audit evidence obtained in previous audits (Ref: Para. 13) A35. In certain circumstances, audit evidence obtained from previous audits may provide audit evidence where the auditor performs audit procedures to establish its continuing relevance. For example, in performing a previous audit, the auditor may have determined that an automated control was functioning as intended.The auditor may obtain audit evidence to determine whether changes to the autom ated control have been made that affect its continued effective functioning through, for example, inquiries of management and the inspection of logs to indicate what controls have been changed. Consideration of audit evidence about these changes may support either increasing or decreasing the expected audit evidence to be obtained in the current period about the operating effectiveness of the controls. Controls that have changed from previous audits (Ref: Para. 4(a)) A36. Changes may affect the relevance of the audit evidence obtained in previous audits such that there may no longer be a basis for continued reliance. For example, changes in a system that enable an entity to receive a new report from the system probably do not affect the relevance of audit evidence from a previous audit; however, a change that causes data to be accumulated or calculated differently does affect it. Controls that have not changed from previous audits (Ref: Para. 14(b)) A37.The auditor’s decision on whether to rely on audit evidence obtained in previous audits for controls that: (a) Have not changed since they were last tested; and (b) Are not controls that mitigate a significant risk, is a matter of professional judgment. In addition, the length of time between retesting such controls is also a matter of professional judgment, but is required by paragraph 14(b) to be at least once in every third year. A38. In general, the higher the risk of material misstatement, or the greater the reliance on controls, the shorter the time period elapsed, if any, is likely to be.Factors that may decrease the period for retesting a control, or result in not relying on audit evidence obtained in previous audits at all, include the following: †¢ A weak control environment. †¢ Weak monitoring of controls. †¢ A significant manual element to the relevant controls. 18 PSA 330 (Redrafted) †¢ †¢ Changing circumstances that indicate the need for changes in the control. â₠¬ ¢ A39. Personnel changes that significantly affect the application of the control. Weak general IT-controls.When there are a number of controls for which the auditor intends to rely on audit evidence obtained in previous audits, testing some of those controls in each audit provides corroborating information about the continuing effectiveness of the control environment. This contributes to the auditor’s decision about whether it is appropriate to rely on audit evidence obtained in previous audits. Evaluating the Operating Effectiveness of Controls (Ref: Para. 16-19) A40. A material misstatement detected by the auditor’s procedures may indicate the existence of a material weakness in internal control.A41. The concept of effectiveness of the operation of controls recognizes that some deviations in the way controls are applied by the entity may occur. Deviations from prescribed controls may be caused by such factors as changes in key personnel, significant seasonal fluct uations in volume of transactions and human error. The detected rate of deviation, in particular in comparison with the expected rate, may indicate that the control cannot be relied on to reduce risk at the assertion level to that assessed by the auditor.Substantive Procedures (Ref: Para. 20) A42. Paragraph 20 requires the auditor to design and perform substantive procedures for each material class of transactions, account balance, and disclosure, irrespective of the assessed risks of material misstatement. This requirement reflects the facts that: (i) the auditor’s assessment of risk is judgmental and so may not identify all risks of material misstatement; and (ii) there are inherent limitations to internal control, including management override.Nature and Extent of Substantive Procedures A43. Depending on the circumstances, the auditor may determine that: †¢ Performing only substantive analytical procedures will be sufficient to reduce audit risk to an acceptably low l evel. For example, where the auditor’s assessment of risk is supported by audit evidence from tests of controls. †¢ Only tests of details are appropriate. †¢ A combination of substantive analytical procedures and tests of details are most responsive to the assessed risks. 19 PSA 330 (Redrafted) A44.Substantive analytical procedures are generally more applicable to large volumes of transactions that tend to be predictable over time. PSA 520, â€Å"Analytical Procedures† establishes requirements and provides guidance on the application of analytical procedures during an audit. A45. The nature of the risk and assertion is relevant to the design of tests of details. For example, tests of details related to the existence or occurrence assertion may involve selecting from items contained in a financial statement amount and obtaining the relevant audit evidence.On the other hand, tests of details related to the completeness assertion may involve selecting from items that are expected to be included in the relevant financial statement amount and investigating whether they are included. A46. Because the assessment of the risk of material misstatement takes account of internal control, the extent of substantive procedures may need to be increased when the results from tests of controls are unsatisfactory. However, increasing the extent of an audit procedure is appropriate only if the audit procedure itself is relevant to the specific risk. A47.In designing tests of details, the extent of testing is ordinarily thought of in terms of the sample size. However, other matters are also relevant, including whether it is more effective to use other selective means of testing. See PSA 530 for additional guidance. Substantive Procedures Related to the Financial Statement Closing Process (Ref: Para. 21(b)) A48. The nature, and also the extent, of the auditor’s examination of journal entries and other adjustments depends on the nature and complexity o f the entity’s financial reporting process and the related risks of material misstatement.Substantive Procedures Responsive to Significant Risks (Ref: Para. 22) A49. Paragraph 22 of this PSA requires the auditor to perform substantive procedures that are specifically responsive to risks the auditor has determined to be significant risks. For example, if the auditor identifies that management is under pressure to meet earnings expectations, there may be a risk that management is inflating sales by improperly recognizing revenue related to sales agreements with terms that preclude revenue recognition or by invoicing sales before shipment.In these circumstances, the auditor may, for example, design external confirmations not only to confirm outstanding amounts, but also to confirm the details of the sales agreements, including date, any rights of return and delivery terms. In addition, the auditor may find it effective to supplement such external confirmations with inquiries of non-financial personnel in the entity regarding any changes in sales agreements and delivery terms. Substantive procedures related to 20 PSA 330 (Redrafted) ignificant risks are most often designed to obtain audit evidence with high reliability. Timing of Substantive Procedures (Ref: Para. 23-24) A50. In most cases, audit evidence from a previous audit’s substantive procedures provides little or no audit evidence for the current period. There are, however, exceptions, e. g. , a legal opinion obtained in a previous audit related to the structure of a securitization to which no changes have occurred, may be relevant in the current period.In such cases, it may be appropriate to use audit evidence from a previous audit’s substantive procedures if that evidence and the related subject matter have not fundamentally changed, and audit procedures have been performed during the current period to establish its continuing relevance. Using audit evidence obtained during an interim period (Ref: Para. 23) A51. In some circumstances, the auditor may determine that it is effective to perform substantive procedures at an interim date, and to compare and reconcile information concerning the balance at the period end with the comparable information at the interim date to: a) Identify amounts that appear unusual, (b) Investigate any such amounts, and (c) Perform substantive analytical procedures or tests of details to test the intervening period. A52. Performing substantive procedures at an interim date without undertaking additional procedures at a later date increases the risk that the auditor will not detect misstatements that may exist at the period end. This risk increases as the remaining period is lengthened. Factors such as the following may influence whether to perform substantive procedures at an interim date: †¢The control environment and other relevant controls. †¢ The availability at a later date of information necessary for the auditorâ€℠¢s procedures. †¢ The purpose of the substantive procedure. †¢ The assessed risk of material misstatement. †¢ The nature of the class of transactions or account balance and related assertions. 21 PSA 330 (Redrafted) †¢ A53. The ability of the auditor to perform appropriate substantive procedures or substantive procedures combined with tests of controls to cover the remaining period in order to reduce the risk that misstatements that may exist at the period end will not be detected.Factors such as the following may influence whether to perform substantive analytical procedures with respect to the period between the interim date and the period end: †¢ Whether the period end balances of the particular classes of transactions or account balances are reasonably predictable with respect to amount, relative significance, and composition. †¢ Whether the entity’s procedures for analyzing and adjusting such classes of transactions or account balances at in terim dates and for establishing proper accounting cutoffs are appropriate. Whether the information system relevant to financial reporting will provide information concerning the balances at the period end and the transactions in the remaining period that is sufficient to permit investigation of: (a) Significant unusual transactions or entries (including those at or near the period end), (b) Other causes of significant fluctuations, or expected fluctuations that did not occur, and (c) Changes in the composition of the classes of transactions or account balances.Misstatements detected at an interim date (Ref: Para. 24) A54. When the auditor concludes that the planned nature, timing, or extent of substantive procedures covering the remaining period need to be modified as a result of unexpected misstatements detected at an interim date, such modification may include extending or repeating the procedures performed at the interim date at the period end. Adequacy of Presentation and Discl osure (Ref: Para. 25) A55.Evaluating the overall presentation of the financial statements, including the related disclosures, relates to whether the individual financial statements are presented in a manner that reflects the appropriate classification and description of financial information, and the form, arrangement, and content of the financial statements and their appended notes. This includes, for example, the terminology 22 PSA 330 (Redrafted) used, the amount of detail given, the classification of items in the statements, and the bases of amounts set forth. Evaluating the Sufficiency and Appropriateness of Audit Evidence (Ref: Para. 6-28) A56. An audit of financial statements is a cumulative and iterative process. As the auditor performs planned audit procedures, the audit evidence obtained may cause the auditor to modify the nature, timing, or extent of other planned audit procedures. Information may come to the auditor’s attention that differs significantly from the information on which the risk assessment was based. For example, †¢ The extent of misstatements that the auditor detects by performing substantive procedures may alter the auditor’s judgment about the risk assessments and may indicate a material weakness in internal control. The auditor may become aware of discrepancies in accounting records, or conflicting or missing evidence. †¢ Analytical procedures performed at the overall review stage of the audit may indicate a previously unrecognized risk of material misstatement. In such circumstances, the auditor may need to reevaluate the planned audit procedures, based on the revised consideration of assessed risks for all or some of the classes of transactions, account balances, or disclosures and related assertions. PSA 315 contains further guidance on revising the auditor’s risk assessment. A57.The auditor cannot assume that an instance of fraud or error is an isolated occurrence. Therefore, the consideration of how the detection of a misstatement affects the assessed risks of material misstatement is important in determining whether the assessment remains appropriate. A58. The auditor’s judgment as to what constitutes sufficient appropriate audit evidence is influenced by such factors as the following: †¢ Significance of the potential misstatement in the assertion and the likelihood of its having a material effect, individually or aggregated with other potential misstatements, on the financial statements. Effectiveness of management’s responses and controls to address the risks. †¢ Experience gained during previous audits with respect to similar potential misstatements. †¢ Results of audit procedures performed, including whether such audit procedures identified specific instances of fraud or error. 23 PSA 330 (Redrafted) †¢ Source and reliability of the available information. †¢ Persuasiveness of the audit evidence. †¢ Understanding of the entit y and its environment, including the entity’s internal control. Documentation (Ref: Para. 29) A59.The form and extent of audit documentation is a matter of professional judgment, and is influenced by the nature, size and complexity of the entity and its internal control, availability of information from the entity and the audit methodology and technology used in the audit. Acknowledgment This PSA is based on International Standard on Auditing 330 (Redrafted), â€Å"The Auditor’s Responses to Assessed Risks,† issued by the International Auditing and Assurance Standards Board. There are no significant differences between this PSA 330 (Redrafted) and ISA 330 (Redrafted). 4 PSA 330 (Redrafted) This PSA 330 (Redrafted), â€Å"The Auditor’s Responses to Assessed Risks,† was unanimously approved for adoption on January 29, 2007 by the members of the Auditing and Assurance Standards Council. Benjamin R. Punongbayan, Chairman Felicidad A. Abad Antonio P. Ac yatan Erwin Vincent G. Alcala Froilan G. Ampil David L. Balangue Ma. Gracia Casals-Diaz Amorsonia B. Escarda Manuel O. Faustino Eliseo A. Fernandez Nestorio C. Roraldo Joaquin P. Tolentino Editha O. Tuason Jaime E. Ysmael 25