Graduation Speech -- Graduation Speech, Commencement Address

"Some people come into our lives and quietly go. Some stay for a while And leave footprints on our hearts And we are never the same again." As I prepared this speech, this quote came to mind as I realized how many of you have left footprints on my heart over the past four years. I have may wonderful memories that I will cherish forever. I remember embarrassing moments when a teacher misunderstood what I said, and then my classmates teased me mercilessly. I remember a time in math class when a student fell asleep and was tied to his chair and chalk dust was thrown all over him. I remember teepee wars and dissecting old smelly eyeballs and cute little minks in biology, staying up all night to finish thesis papers, and taking endless flashcard quizzes. I remember when I was in the hospital my friends visited me and cheered me up. I remember crying together when a coach and two of our peers passed away. We have definitely been through a lot together. But tonight is not only a celebration of the end of high school, it is a celebration of the beginning of our future. Today is the first day of the rest of our lives. Yesterday is not ours to recover, but tomorrow is ours to win or lose. We, the Class of 2006, have chosen "Change The World" as our graduation theme. I think this is the perfect choice for our class, because we will do just that. Our class is very special. We have been leaders in every aspect of our school. Among us are talented athletes, musicians, scholars, artists, actors and actresses. We are skilled in business, family science, agriculture, horticulture, foreign languages, computers, technology, and many other areas. None of us, of course, are good at all of these things, but we are all good at something. Ma... ...odness I'm not a clam or a ham Or a dusty old jar of gooseberry jam! I am what I am! What a great thing to be! If I say so myself Happy every day to me!" We are each unique and have different goals and aspirations. But whether we become a social worker, doctor, auto mechanic, or a politician, we can influence the lives of others in a positive way. Each small thing we do, even just a simple smile or pat on the back, can make a difference to one person. And when we do this daily at school or work or in our family, we are slowly changing our homes, neighborhoods and communities. In the year 2007, at our ten-year reunion, I would like each of us to be able to share how we have left our footprints on the hearts of those around us, and thereby made a difference in our community. We will be able to see how the Class of 2006 has united to change the world.

Bead Bar Network Paper

Bead bar specializes in making beads jewellery for the customers. They have three divisions’ namely studios, franchises and bead bar on board that requires to be connected for synchronization of activities. It is required to create a network design and the appropriate topology which would be of good to the company for communicating the requirements and sharing information to keep in synchronization with the current state of the business.The network topology would be discussed which would make the communication feasible and possible with regard to all the physical and network barriers.The network design is the architecture which would give a clear picture of the interconnection of devices and the departments to facilitate the sharing of business information. The final section discusses the pros and cons of the proposed topology in question. Background information of Bead Bar: Bead Bar as an organization is departmentalized into three divisions namely studios, franchises and bea d bar on board. The present situation does not create a network among the divisions and thus creates inconsistencies in information sharing and knowledge about the company as a whole, at any given point of time.A computer network would facilitate the process of getting the entire job done for every customer at a lesser time than usual. It would make sure that information regarding ones choice and preferences would be catered and stored for future benefits. The network would enrich the communication among the divisions which in turn would facilitate greater workability and functionality in operation. Recommendation overview: The network recommendation for the Bead Bar could be capitulated into LAN and WAN.The internal network within the divisions would have a LAN network; however the inter-department communication would be made possible using WAN. Creating a LAN would create an internal network which can be made possible for connecting the personnel in the very department itself. For the LAN network, switches and hubs are used for connecting the sole division itself and for WAN routers are used for interconnecting each other. Explanation of the Network Design: All the three divisions of the company are interconnected using the network cable in a wired network using both LAN and WAN.Using LAN the computers are interconnected within the office or building premises so that all the employees are able to get information on demand. The head office has a central server where all the information us stored in the database. The other offices are also networked using the LAN technologies. The switch is two layered and used to take care of the storing and forwarding mechanism as stated in Tanenbaum (2003). Using WAN the network connections are using the public data services and get connect to internet and using VPN technology, using login credentials.Network Topology: The LAN technology follows a star topology with hubs. The interconnecting devices used facilitate the use and share of information. The hubs are used to store and forward the information. Star topology is used which would facilitate the efficient use of network resources (Star Topology). Advantages of the architecture: †¢ Having a star topology would make it less expensive in relation to mesh topology. †¢ In a star, each device needs only one link and one I/O port to connect it to any number of other devices (Forouzan, 2003).†¢ It makes the star topology easy to install and reconfigure with time and need. †¢ Star topology requires far less cabling and any additions, deletions and moves involve only one connection between that device and hub. †¢ It is quite robust in nature; if one link fails the others do not cease to operate. This factor also enhances the fault identification and fault isolation. †¢ As long as the hub is in working condition, it is quite easy to monitor link problems and bypass defective links. †¢ A WAN is used for connecting to the i nternet so as to get connected with the other departments across geographic locations.†¢ VPN technology is used to validate the user of the network so that the connection established is secure in nature. It would use the login name and password facilities to enable a secure way of handling data. †¢ A database server is used so that all the information is stored centrally and all the users access the information using their credentials. †¢ The VPN also makes sure that not all users would be able to access all for ms of data an data security and integrity is restricted using the login credentials. Drawbacks of the architecture:†¢ The VPN technology would be quite expensive to implement (VPN). †¢ The cost of switches and hubs would be costly. †¢ The use of websites where all the computers are used for accessing directly the internet would have made the architecture more accessible but security would have been less. Even the cost of web server would be incu rred quite high. Conclusion The primary objective to connect has been taken into account and the network topology has been discussed to give shape to the entire network for interconnecting with the various divisions in the company.The network architecture and the drawbacks associated with it are thoroughly examined for its feasibility and communication. The network topology would have an upper hand on the drawbacks and is quite sufficient to inter-connect the enterprise to capitalize on its resources. References/ Bibliography Forouzan A. Behrouz (2003). TCP/IP Protocol Suite, second edition. Tata McGraw Hill. Physinfo (2006). Network Topologies. Retrieved October 26, 2007 from http://physinfo. ulb. ac. be/cit_courseware/networks/pt2_1. htm

How provision of nonaudit services affects auditors independence - Free Essay Example

Sample details Pages: 10 Words: 2865 Downloads: 10 Date added: 2017/06/26 Category Business Essay Type Analytical essay Level High school Topics: Independence Essay Did you like this example? Recent expansion of nonaudit services by public accounting firms has caused some to question whether auditors who provide nonaudit services to audit clients can remain independent of their clientsà ¢Ã¢â€š ¬Ã‚  Introduction The increasing level of frauds and scandals in the corporate sector have resulted in an upsurge in the regulations for audit firms whereby their independence is kept into question due to the non-audit services they offer to their audit clients (IOSCO, 2007). Many public accounting firms provide such services to their clients merely because of convenience, knowledge about the clients financial statements and saving extra time spent dealing with audit and non-audit services separately (Muir, 2014). However, financial statement users often perceive it as impairing the auditors independence (Al-Ajmi and Saudagaran, 2011). Don’t waste time! Our writers will create an original "How provision of nonaudit services affects auditors independence" essay for you Create order Different views exist about the impact of providing non-audit services to audit clients; they may have negative (Quick and Rasmussen, 2015), positive (Wang and Hay, 2013) or no effect on the auditors independence (Jenkins and Krawczyk, 2001). As such, this essay will explore whether the provision of nonaudit services affects auditors independence. Definition and Role of Non-audit Services Adeyemi and Olowookere (2012) regard non-audit services to be any services provided by an auditor other than their code audit function. These services may include bookkeeping (Jenkins and Krawczyk, 2001), management consultancy (ICAEW, 2015), tax advisory services (Pwc, 2014), human resource consultancy (ABP, 2004) and others. Jenkins and Krawczyk (2001) found that bookkeeping has a negative impact on auditors independence, while management consultancy and tax advisory services have a positive impact. The differences occur because of an expectation gap between the auditing professionals and financial statement users (Jenkins and Krawczyk, 2001). Looking at it from a marketing perspective, organisations providing additional value to their customers other than their core service are considered to be highly competitive and end up being more successful than their competitors (Hoffman, 2009). That is exactly what audit firms strive for when they offer additional services to their cli ents in anticipation of strengthening relationship with them (Ismail, Hasnah, Ibrahim and Isa, 2006). However, critics object on the income received from non-audit services because their impact on the objectivity of the auditor has long been considered as a potential threat for the auditing process and financial system as a whole (Adeyemi and Olowookere, 2012). Okaro and Okafor (2009) pointed out that an audit firm auditing their own work is not regarded to be independent and the objectivity of their work may be questioned at any point by financial statement users. To avoid any criticisms from their stakeholders, audit firms need to be particular about their audit quality, which is considered to be high if the stakeholders are assured to have no uncertainty and ambiguity in the financial statements prepared by the management (Krishan, Zhang and Sami, 2005). Negative Impact on Auditors Independence Threat to Audit Quality The work of an audit firm is to act as an investment guide, which helps in their clients valuation and predicting bankruptcy (Salehi, 2009a). Research suggests that there is a strong relationship between the credibility of the statements produced by an audit firm and the investment decision taken by the client (Salehi, 2009a). Therefore the economic development of the client is often dependent upon the credibility of the documents prepared by the audit firm, which depicts the financial standing of the client (Wahdan et al., 2005). Sori and Karbhari (2006) believe that the auditor independence may be affected by this economic bonding between the auditor and the client. In case of an increasing pressure from the client regarding consultancy in investment decisions, the auditor may unintentionally overlook the quality of the actual audit services. Gwilliam (2010) mentioned that a classic example of audit failure was that of Ernst Young while conducting the audit of a UK truck manu facturing company, ERF. In that case, the provision of non-audit services impaired the audit quality to such an extent that the firm had to undergo a couple of lawsuits. A part of the case constituted of the company accountants attempt to fabricate the VAT returns, so that the repayments from the Customs and Excise could be received. Moreover, the audit team did not work on the VAT separately; they relied upon the figures received from the VAT specialists. This compromise in the quality of audit services resulting from intrusion of additional services, negatively affected the independence of Ernst Young. Threat due to the Provision of Joint Services Another problem arises when the audit and non-audit services are provided in conjunction with each other, whereby the focus on the actual service may be lost (Sori and Karbhari, 2006). Swanger and Chewning (2001) recommended a solution to this issue, i.e. the personnel performing the audit and non-audit services should be separate. Regulatory authorities, however, believe that it would be difficult to track performance if this solution is implemented; hence audit firms should be banned from providing any additional services to their clients (Chadbourne and Parke, 2003). Additionally, the Securities and Exchange Commission adopted rules which limit the audit firms from providing any compensation to their clients in joint services (Chadbourne and Parke, 2003). Threat of Higher Non-audit Fee Research indicates that the auditor independence is adversely affected if the fee paid for non-audit services is higher when compared with that of audit services (Frankel, Johnson and Nelson, 2002). Due to the existence of this threat, the Securities and Exchange Commission devised laws which enforced the disclosure of all fees paid to auditors by their clients (Chadbourne and Parke, 2003). Chen, Elder and Liu (2005) found an unfavourable relationship between non-audit services and the degree of acceptance the client showed to the recommendations by the auditor. This imparts that highly extensive additional services result in lower possibility of acceptance from the client, due to the equally high fee attached to them (Reynolds, Deis and Francis, 2004). Therefore, it may turn out to be hazardous for the audit firms independence as it would then attempt to introduce even more extensive non-audit services, further complicating legal requirements for itself. Threat from Relationship with Management Perhaps the greatest detrimental effect which non-audit services have on auditors independence is related to the relationship between the auditor and client management and the way it affects audit approach (Gwilliam, Teng and Marnet, 2014). Despite its economic dependence on its clients, the audit firms independence is greatly strengthened by lower levels of competition to cater to its clients (Quick and Rasmussen, 2015). Positive Impact on Auditors Independence Strengthening Audit Quality Wang and Hay (2013) provided evidence for a positive relationship between provision of non-audit services and auditors independence, indicating that these additional services help the audit firms distinguish themselves from their competitors, whereby they portray their uniqueness in front of their clients. Some authors support this claim by saying that the auditors objectivity is strengthened by non-audit services because they help them form a better understanding of their clients (Jenkins and Krawczyk, 2001). Proponents of this view explain that the audit quality is indeed enhanced by the provision of non-audit services, because the auditors are then able to develop a better understanding of their clients industry, competitive position, strategies, business model and the risks they face (Ernst Young, 2013). Gwilliam, Teng and Marnet (2014) mentioned that because of economies of scope, the joint provision of audit and non-audit services has economic benefits for both the auditor a nd the client. It is mainly because of knowledge spillovers. Limiting the audit firms from providing non-audit services would result in economic inefficiency. Ernst Young (2013), for example, takes advantage of its non-audit services through knowledge spillovers; i.e. it uses the financial information gained from auditing its clients to provide advisory and consultancy services to the same clients related to their investment decisions, recruitment, strategic direction and other such internal matters. While there are concerns regarding clients paying higher fee when they opt for a joint provision of both types of services (Frankel, Johnson and Nelson, 2002), there is another school of thought which directs financial statement users to initially compare the frequency of usage of both audit and non-audit services before jumping to any such conclusions (Ezzamel, Gwilliam and Holland, 2002). This imparts that firms paying higher may be using more of non-audit services than actual audit services. An example of the positive effect of non-audit services could be gauged from the recent guidelines by the Financial Reporting Council (FRC, 2015), which introduced the revised Auditing Standards ensuring that the auditors are able to get some consultancy and advice regarding provision of non-audit services. Along with explaining its regulations, it also claims to provide guidance to audit firms on how they can use these supplementary services to their advantage, remaining within the ethical code of conduct. Even in case of pressure from the client regarding non-audit services, the auditor must first ensure its stakeholders that it produces completely transparent financial statements and should not get involved in suspicious practices, such as the KPMG case, where the companys accountants were doubted to be involvement in tax dodging, which they finally had to publicly admit. They then avoided the lawsuits by paying a huge penalty and accepting the conditions impos ed by the US Justice Department (Gwilliam, Teng and Marnet, 2014). Positive Reputation Effects Supporters of non-audit services do not contradict with the laws related to these services; they in fact believe that if the services are provided with the appropriate measures to safeguard auditors independence, they will end up being favourable for both the auditor and the client (Ernst Young, 2013). Advocates of this viewpoint also found that the income received as a result of providing non-audit services helps in enhancing auditors reputational capital, which is the firms goodwill in the market (Wang and Hay, 2013). Thus, to sustain their goodwill, audit firms would keep themselves from surrendering to their clients. Evidence from economic models suggests that audit firms may be willing to forgo short-term increases in earnings from non-independent behavior in anticipation of building a better reputation in the long run, leading to higher economic returns (Gwilliam, Teng and Marnet, 2014). Firms would, therefore, abide by the rules as they prove to be a powerful tool to safegu ard against any independence violence. Enhancement in Audit Training Some researchers believe that if auditing personnel are involved in providing non-audit services, they will not be able to perform the audit tasks in a complex business environment (Sori and Karbhari, 2006). On the contrary, proponents of non-audit services argue that by performing these additional services, junior auditors and audit trainees learn many skills which then help them become more competent accountants, which favourably impacts the audit firms independence and audit quality (Gwilliam, Teng and Marne, 2014). No Impact on Auditors Independence Some researchers believe that there is no relationship between provision of non-audit services and auditor independence (Jenkins and Krawczyk, 2001). Reviewing 20 years of literature, Salehi (2009b) did not find enough evidence about investors being concerned with non-audit services. Quick and Rasmussen (2009) also discovered that there is a lack of evidence supporting the claim that non-audit services are the reason behind impairment of auditors independence. Tepalagul and Lins (2014) study revealed that providing consultancy services to audit clients does not really affect the perceptions of the financial statement users about auditors credibility and independence; it in fact helps in enhancing the organisations internal control systems. Conclusion There are many reasons due to which an auditors reliability and independence may be compromised, one of which is often said to be the additional non-audit services provided by audit firms to their clients. Some researchers believe that these services pose to be a threat to the audit quality and independence by joint provision of both service types, higher non-audit fee and relationship with management. There are others who believe that these services positively influence auditor independence, whereby the audit quality is strengthened and the audit firm enjoys better reputational capital and enhanced audit training. There are still other researchers who found non-audit services to have no impact on the auditors independence. Numerous examples of firms are present supporting either of the three viewpoints; it all depends upon the auditors strategic moves by which it strives to safeguard its independence and the reliability of its work. The doubts financial statement users have about auditors performance can be handled well by standardized processes and transparency of information provided by audit firms. References ABP (2004). Ethical Standards 5: Non-Audit Services Provided to Audit Clients. The Auditing Practices Board. [Online] Available at: https://www.frc.org.uk/Our-Work/Publications/APB/ES-5-Non-audit-services-provided-to-audit-clients.pdf Adeyemi, S.B., and Olowookere, J.K. (2012). Non-audit Services and Auditor Independence Investors Perspective in Nigeria. Business and Management Review, Vol. 2, No. 5, pp. 89-97. Al-Ajmi, J., and Saudagaran, S. (2011). Perceptions of Auditors and Financial-Statement Users Regarding Auditor Independence in Bahrain. Managerial Auditing Journal, Vol. 26, No. 2, pp. 130-160. Chadbourne, and Parke, (2003). SEC Adopts Final Rules on Auditor Independence. [Online] Available at: https://www.chadbourne.com/files/Publication/40905c7b-de76-481d-a771-124300cc04ba/Presentation/PublicationAttachment/891d9f5a-b897-44ed-a141-004f2d922405/SECAdoptsFinalRulesonAuditorIndependence.pdf Chen, K.Y., Elder, R.J., and Liu, J.L. (2005). Auditor Independence, Audit Quality and Auditor-Client Negotiation Outcomes: Some Evidence from Taiwan. Journal of Contemporary Accounting Economics, Vol. 1, No. 2, pp. 119-146. Ernst Young (2013). QA on Non-audit Services. Point of View: Our Perspective on Issues of Concern. [Online] Available at: https://www.ey.com/Publication/vwLUAssets/EY-qa-on-non-audit-services-march2013/$FILE/EY-qa-on-non-audit-services-march2013.pdf Ezzamel, M., Gwilliam, D., and Holland, K. (2002). The Relationship between Categories of Non-audit Services and Audit Fees: Evidence from the UK. International Journal of Auditing, Vol. 6, No. 1, pp. 13-35. Frankel, R.M., Nelson, M.F., and Johnson, K.K. (2002). The Relation between Auditors Fees for Non-audit Services and Earnings Management. The Accounting Review: Supplement 2002, Vol. 77, No. s-1, pp. 71-105. FRC (2015). FRCs Work to Enhance Justifiable Confidence in audit through Implementation of the EU Audit Regulation and Directive. [Online] Available at: https://www.frc.org.uk/News-and-Events/FRC-Press/Press/2015/September/FRC-s-work-to-enhance-justifiable-confidence-in-au.aspx Gwilliam, D. (2010). Trucking on: Audit in the Real World? (Man V Freightliner and Ernst Young). Journal of Professional Negligence, Vol. 26, No. 4, pp. 180-193. Gwilliam, D., Teng, C.M., and Marnet, O. (2014). How does Joint Provision of Audit and Non-audit Services Affect Audit Quality and Independence? A Review. Chartered Accountants Trustees Limited. [Online] Available at: https://www.icaew.com/en/products/audit-and-assurance-publications/~/media/481bd2be6ac7414cb4248996d259f8f5.ashx Hoffman, K.D. (2009). Services Marketing: Concepts, Strategies Cases. Third International Edition. Mason: South-Western. ICAEW (2015). The Provision of Non-audit Services to Audit Clients. [Online] Available at: https://www.icaew.com/en/technical/ethics/auditor-independence/provision-of-non-audit-services-to-audit-clients Ismail, I., Hasnah, H., Ibrahim, D.N., and Isa, S.M.(2006). Managerial Auditing Journal, Vol. 21, No. 7, pp. 738-756. IOSCO (2007). A Survey of the Regulation of Non-Audit Services Provided by Auditors to Audited Companies Summary Report. [Online] Available at: https://www.iosco.org/library/pubdocs/pdf/IOSCOPD231.pdf Jenkins, J. G., and Krawczyk, K. (2001). The Influence of Nonaudit Services on Perceptions of Auditor Independence. Journal of Applied Business Research, Vol. 17, No. 3, pp. 73-78. Krishan, J., Zhang, Y., and Sami, H. (2005). Does the Provision of Non-audit Services affect Investor Perceptions of Auditor Independence? Auditing: A Journal of Practice Theory, Vol. 24, No. 2, pp. 111-135. Muir, S. (2014). The Provision of Non-Audit Services to Audit Clients Still a Difficult Circle to Square. CAPITA Asset Services. [Online] Available at: https://www.capitaassetservices.com/assets/media/SS14384_Non_audit_services_article-v4.pdf Okaro, S.C., and Okafor, G.O. (2009). Stemming the Tide of Audit Failures in Nigeria. ICAN Students Journal January/March, Vol. 13, No. 1, pp. 11-17. Pwc (2014). EU Audit Reform: Providing Non-audit Services. [Online] Available at: https://www.pwc.co.uk/assets/pdf/pwc-uk-eu-audit-reform-client-briefing-nas-7-aug-2014.pdf Quick, R., and Rasmussen, B.W. (2009). Auditor Independence and the Provision of Non-audit Services: Perceptions by German Investors. International Journal of Accounting, Vol. 13, No. 1, pp. 141-162. Quick, R., and Rasmussen, B.W. (2015). An Experimental Analysis of the Effects of Non-audit Services on Auditor Independence in Appearance in the European Union: Evidence from Germany. Journal of International Financial Management Accounting, Vol. 26, No. 2, pp. 150-187. Reynolds, J.K., Deis, D.R., and Francis, J.R. (2004). Professional Service Fees and Auditor Objectivity. Auditing: A Journal of Practice Theory, Vol. 23, No. 1, pp. 29-52. Salehi, M. (2009a). Non-audit Service and Audit Independence: Evidence from Iran. International Journal of Business and Management, Vol. 4, No. 2, pp. 142-152. Salehi, M. (2009b). In the Name of Independence: With Regard to Practicing Non-audit Services by External Auditors. International Business Research, Vol. 2, No. 2, pp. 137-147. Sori, Z.M., and Karbhari, Y. (2006). Audit, Non-Audit Services and Auditor Independence. Staff Paper Universiti Putra Malaysia. [Online] Available at: https://www.researchgate.net/publication/237379279_Audit_Non-Audit_Services_and_Auditor_Independence Swanger, S.L., and Chewning, E.G. (2001). The Effect of Internal Audit Outsourcing on Financial Analysts Perception of External Auditor Independence. Auditing: A Journal of Practice and Theory, Vol. 20, No. 2, pp. 115-129. Tepalagul, N., and Lin, L. (2014). Auditor Independence and Auditor Quality: A Literature Review. Journal of Accounting, Auditing Finance, Vol. 3, No. 1, 101-121. Wahdan, M.A., Spronck, P.S., Ali, H.F., Vaassen, E.V., Herik, H.J. (2005). Auditing in Egypt: A Study of Challenges, Problems and Possibility of an Automatic Formulation of the Auditors Report. [Online] Available at: https://ilk.uvt.nl/~pspronck/pubs/Wahdan2005c.pdf Wang, S.W., and Hay, D. (2013). Auditor Independence in New Zealand: Further Evidence on the Role of Non-audit Services. Accounting and Management Information Systems, Vol. 12, No. 2, pp. 235-262.