Premium Essay

Flat

In: Business and Management

Submitted By sukanthi
Words 3415
Pages 14
Internal audit
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.[1] Internal auditing is a catalyst for improving an organization's governance, risk management and management controls by providing insight and recommendations based on analyses and assessments of data and business processes. With commitment to integrity and accountability, internal auditing provides value to governing bodies and senior management as an objective source of independent advice. Professionals called internal auditors are employed by organizations to perform the internal auditing activity.
The scope of internal auditing within an organization is broad and may involve topics such as an organization's governance, risk management and management controls over: efficiency/effectiveness of operations (including safeguarding of assets), the reliability of financial and management reporting, and compliance with laws and regulations. Internal auditing may also involve conducting proactive fraud audits to identify potentially fraudulent acts; participating in fraud investigations under the direction of fraud investigation professionals, and conducting post investigation fraud audits to identify control breakdowns and establish financial loss.
Internal auditors are not responsible for the execution of company activities; they advise management and the Board of Directors (or similar oversight body) regarding how to better execute their responsibilities. As a result of their broad scope of involvement, internal auditors may have a variety of higher educational and professional backgrounds.
The Institute of Internal…...

Similar Documents

Premium Essay

The World Is Flat

...A Level Playing Field By: Elaine Nescio PSL200 T-TH 11:00 The international bestselling book The World is Flat: A Brief History of the Twenty First Century by Thomas L. Friedman analyzes globalization in the early 21st century. Throughout the book Friedman helps the reader view the world on a level playing field, where the traditional issues of historical and geographical divisions are becoming irrelevant and all competitors have an equal opportunity. Friedman examines the influences shaping businesses and competition in a technology fueled global environment. Supporting his ideas with interviews, case studies and statistics Friedman sends the message to his readers that they need to be prepared because the flattening world waits for no one. The flattening of the world however is not something that happens over night. In fact this process has been happening over a number of years but has become more noticeable after the turn of the century. Throughout “The World is Flat” you will find Friedman believes are the ten major factors causing the flattening of the world, how the United States should approach the flattening world, and how Friedman comes to his conclusions. Thomas Friedman’s trip to India is where he first notices that the playing field has been leveled and that global knowledge is available to a much larger audience. Friedman argues that the world is “going from size small to size tiny” (10). The flattening of the world entails that we are now......

Words: 2855 - Pages: 12

Free Essay

The World Is Flat

...Thomas L. Friedman, a journalist¸ often travels the globe. On a visit to India he ran across and idea that sparked his want to author The World is Flat. The seemingly simplistic idea is that from information and economic aspects the world is “flat”. In the modern age, individuals and countries have greater access to technological advances, which help level the playing field in terms of communication and gathering information. He presents his ideas through specific stories, interviews, and conversations had with executives in different countries who have similar ideas about globalization. The Next Convergence, written by Michael Spence, expresses the idea that prior to World War II the rich countries were getting richer and the poor were getting poorer. This is the idea of divergence; modern convergence is Spence’s main claim throughout this book. Convergence is the shift in the global economy in which developing countries have experienced rapid growth. He has the idea that fairly soon the developing countries will be on par with the countries with advanced economies. Ultimately, both books have similar messages, but the messages are presented in different ways. A key aspect of Friedman’s book is that globalization occurred rapidly. The Berlin Wall collapse, occurring during the end of 1989, was his first of ten “forces” that flattened the world. Throughout thousands of years of human existence and multiple economies, I do not believe any have experienced a rapid......

Words: 1380 - Pages: 6

Free Essay

The World Is Flat

...he calls Globalization 2.0. Friedman discusses that we are now in the midst of Globalization 3.0 which is a period in which the world shrinks from small to tiny, flattening to such a degree that individuals can collaborate and compete globally, from ANYWHERE in the world. Friedman explains how the world became flat as well as the associations of that development. He then goes on to explain that there are 10 flatteners of the world. The first flattener discussed is 11/9/89, when the Berlin wall fell, “when the wall came down, windows came up,” which Friedman explains that when this wall fell it allowed the world to be looked at as a single plane. The third flattener argued is when workflow software such as Microsoft office software came into effect. Outsourcing was the fifth flattener; Friedman quickly details how the United States benefited from India’s seven Institutes of Technology (IIT), created in 1951. The tenth and final flattener is what Friedman calls “the steroids.” Friedman calls certain technologies steroids (digital, mobile, personal, and virtual), because they augment and strengthen other flatteners. Friedman says these flatteners “created a flat world: a global, web-enabled platform for multiple forms of sharing knowledge and work, irrespective of time, distance, geography and increasingly, language.” This lecture opened my eyes to the flatness of the world, and how the flatness of the world materialized three huge economies -- those of India, China......

Words: 385 - Pages: 2

Premium Essay

Flat Tax

...these countries since 1994 have established the system of flat tax. Flat tax implies the application of a single-level tax system. Flat tax is applied in consideration of the supposition that all income should be taxed only once during their circulation, precisely when they are owned. Flat tax system refers to the unification of taxes in two taxing plans: personal income tax, which is levied on the total income of the individual and corporate tax, which is levied on the profits made by the companies. Flat tax was firstly applied in Albania during 2008 after two years of debates. The tax refers to the application of a 10% levied on the profit or on the total personal income. Keywords, flat tax, progressive tax, rates taxes, tax system in Albania, the consequences of taxation The notion of taxation has been known since the establishment of states. A social organization, as primitive as it may be, requires sufficient financial means to accomplish its goals. Taxes are a substantial means of providing the financial resources of a country. They occupy the leading place in the public income of modern countries. The great part of our neighboring countries and countries with quite a similar economic situation as ours are applying flat tax. So as to improve the economic situation and the fiscal administration, since 2008 Albania is applying the flat tax system. Previously Albania applied another tax that was progressive tax. Flat Tax or Progressive Tax – a dilemma that is frequently......

Words: 2359 - Pages: 10

Premium Essay

Flat Tax

...Flat Tax Rate Eliminates Complicated System The first quarter of each year marks a period of turmoil and angst for many Americans as they race to complete the complicated forms of the current years’ federal income tax return. With more than 66,000 pages and 893 forms to choose from, the current Internal Revenue Service Code screams difficulty (Mitchell, 2005). Most politicians agree that changes are necessary; however there remains to be a major debate of ways to accomplish changes without stressing the economy. The department of treasury has compiled extensive research that has resulted in various options on various ways to reform our current system (Mitchell, 2005). A flat tax rate on income could be a solution to this issue and many have invested time in devising feasible plans. There are pros and cons to everything, but I believe the benefits would far outweigh the faults in light of our countries current economic situation. A flat tax, taxing everyone at the same rate, with basic deductions as well as no income tax burden for persons or families who make less than a specified amount during the year, would be fair. Most people feel the current system is unfair with its double taxation and varying tax brackets ranging anywhere from 10% to 33% of the adjusted gross income (“Congressional Budget Office”). The proposed 15% or 17% flat rate for all American would benefit everyone, considering in 2007 the overall average federal tax rate was 20.4 percent (“Congressional...

Words: 957 - Pages: 4

Free Essay

Salt Flats

...1/9/14 Create Your Own Miniature Salt Flats! | Education.com Education.com Try Brainzy Try Plus Sign in Your Account Already a member? Sign in Become a free basic member: Get 5 free worksheets per month plus activities, articles and science projects. Sign Up As an annual PLUS member, get unlimited access to: Over 15,000 Worksheets Over 260 Printable Workbooks Hundreds of Fun Activities Get Started As a Brainzy member, help your child: Review Key Skills: Teaching Videos Practice Through Play: 75 Fun Games Master Reading: Leveled Stories Get Started Games Activities Worksheets Workbooks Articles Science Fair Schools more + Next Project Idea (http://www.education.com/science-fair/article/determine-earth-rotation-affects-spin/) (http://www.education.com/science-fair/fourth-grade/) Back To Project Ideas List Create Your Own Miniature Salt Flats! Print (http://www.education.com/print/Miniature-Salt-Flats/) Collect It! (#) Pin It Email (javascript:void(0);) Twitter (http://twitter.com/intent/tweet? status=Check%20out%20%27Create%20Your%20Own%20Miniature%20Salt%20Flats%21%27%20%28http%3A%2F%2Fbit.ly%2Fnnh9Vw%29%20on%20%40Education_com) Science Fair Survival Guide Join now and get it free! (#) Author: Michelle Formoso Topics Eighth Grade (http://www.education.com/sciencefair/eighth-grade/) , Seventh Grade (http://www.education.com/science-fair/seventh-grade/) , Sixth Grade (http://www.education.com/science-fair/sixth-grade/) , Middle School......

Words: 1425 - Pages: 6

Premium Essay

A Flat World

...Journal of Economic Literature Vol. XLV (March 2007), pp. 83–126 A Flat World, a Level Playing Field, a Small World After All, or None of the Above? A Review of Thomas L. Friedman’s The World is Flat EDWARD E. LEAMER∗ Geography, flat or not, creates special relationships between buyers and sellers who reside in the same neighborhoods, but Friedman turns this metaphor inside-out by using The World is Flat to warn us of the perils of a relationship-free world in which every economic transaction is contested globally. In his “flat” world, your wages are set in Shanghai. In fact, most of the footloose relationship-free jobs in apparel and footwear and consumer electronics departed the United States several decades ago, and few U.S. workers today feel the force of Chinese and Indian competition, notwithstanding the alarming anecdotes about the outsourcing of intellectual services. Of course, standardization, mechanization, and computerization all work to increase the number of footloose tasks, but innovation and education work in the opposite direction, creating relationship-based activities—like the writing of this review. It may only be personal conceit, but I imagine there is a reason why the Journal of Economic Literature asked me to do this review. 1. Prologue hen the Journal of Economic Literature asked me to write a review of The World is Flat: A Brief History of the Twenty-First Century (Farrar, Straus, and Giroux 2005) by Thomas Friedman, I responded with enthusiasm,...

Words: 25516 - Pages: 103

Premium Essay

The World Is Flat

...Globalization is the key component nowadays for a company to be able to be profitable. As Thomas Friedman states in his book, The World is Flat, “For physical products, supply chains now span the world. For example, raw materials might be extracted in South America, electronic components manufactured in Asia, computers assembled in the United States, and the final products sold in Europe.” [1] Consolidation strategies further empower firms to capitalize on economies of scale and focus on lowering their unit production costs. Firms often publicly declare that their mergers are motivated by a desire for revenue growth, an increase in product bases, and for increased shareholder value via staff consolidation, overhead reduction and by offering a wider array of products. However, the main reason and value of such strategy combinations is often related to internal cost reduction and increased productivity. [2] In banking, globalization has also affected us. Citibank, for example, two years ago moved their AML operations from Ft. Lauderdale, Florida to India where a friend of mine ended up for three weeks training her now ex-coworkers. Not only that, call centers are located around the world, I recently called Bank of America to report a problem and someone with perfect English helped me in a very efficient way, when I asked where was he located at, he mentioned that he was in San Jose de Costa Rica, Costa Rica. Most recently, the banking institution where I work was sold...

Words: 421 - Pages: 2

Free Essay

The World Is Flat

...Thomas L Friedman’s The World is Flat In Thomas L. Friedman TheWorld is Flat he explains the new “flat” playing field of world business created by a combination of technology and intertwined economies. In addition he notes that this global leveling can be both positive and detrimental. Evidence of one of the more detrimental effects of flattening is easy to view in the recent crisis of the Greek economy and its effect on the global economy. Greece is one of the smallest economies in Europe, however between the technological ease of information of the Greek economies woes being broadcasted incessantly and the interdependency of the European and other world markets, what was once a regional concern about the amount of debt amassed by a small economy has rapidly turned into a worldwide economic contagion. “Worries that over indebted Greece could default sent investors scouring for the next ticking debt bomb. The euro zone has quite a selection to choose from: Portugal, Italy, Ireland and Spain, which, along with Greece, form the aptly nicknamed PIIGS. Yields on the sovereign bonds of Portugal and Spain have already risen, a sign that investors believe holding their debt is becoming riskier.” (Schuman, http://www.time.com/time/magazine/article/0,9171,1987598,00.html) Greece’s economic turmoil combined with other EU member states poised to default has caused a global unease that endangers the recovery of the United States market as well. The U.S. was finally seeing...

Words: 472 - Pages: 2

Premium Essay

The World Is Flat

...The World Is Flat Thomas L. Friedman’s book, The World Is Flat is a book helps us understand the how the world is flat. He does this buy dissecting the world we live in and by sharing information we all should know. The World Is Flat focuses on globalization along with social, political and environmental issues we face. Chapter two highlights the ten forces that flattened the world along with the effect and opportunities we now have because the world flattened. The fall of the Berlin Wall, Netscape Going Public, Work Flow Software, Uploading, Off shoring, Supply Chains, In sourcing, Informing and Steroids are the ten forces Friedman identifies to be the main causes that flattened the world. The first force that triggered the world to flatten was the fall of the Berlin Wall. The fall of the Berlin Wall helped us to understand the world differently. It helped us to open our eyes and think outside the box rather then just in our own. The fall of the Berlin Wall, allowed us to have a free market, introduced capitalism. We then began to adopt commons standers on how economics should be run along with a common understanding on how banking and accounting should be done. The second force that helped Flatten the world was when Netscape went public. Friedman describes the Internet and how it helped to connect people to come together globally. Netscape was an explosive technology that became w accessible to everyone. This made people want to do things......

Words: 702 - Pages: 3

Premium Essay

Flat Cargo

...TEACHING NOTES FLAT CARGO BERHAD: AN AUDITOR’S CONUNDRUM ZAKIAH MUHAMMADDUN MOHAMED TAKIAH MOHD ISKANDAR SYNOPSIS Flat Cargo Berhad (hereafter referred to as FCB) was one of the largest air freight companies in Malaysia. It provided freight services to several government linked companies, including Freight Malaysia Bhd. The company began its operations in November 1997 with two aircrafts to provide overnight air express transport services to Singapore for Freight Malaysia Bhd. Its air express market’s impressive growth paralleled with that of its 1997-2004 expansion plans. On 15 September 2001, FCB was listed on Bursa Malaysia. It had several subsidiaries, which included FC Spare Sdn Bhd, Cargo Management Sdn Bhd, FCB (SPV), Cargo Air Services Sdn Bhd and FC Air Ltd. The company’s head office was located in Selangor. Their main activities covered air transportation services, aircraft ground handling services, aircraft engineering, technical and maintenance services, trading and leasing of aircraft and supplying of aircraft spare parts and accessories. Kencana & Associates served as FCB’s auditors. During their audit of the 2006 accounts, the auditors identified several discrepancies. They incurred a number of auditing difficulties, i.e. the inability to verify aircrafts, returned debtors’ confirmation letters, unsupported sales transactions, improper amounts of recorded loan, and unverified abnormal items. The situation posed reconciliation problems to the auditors with...

Words: 1846 - Pages: 8

Premium Essay

Flat Cargo

...1.0 Introduction Flat Cargo Berhad (FCB) is an air freight services and ground handling company. Its company’s operations cover Asian Pacific region including China, Japan, Thailand, Singapore and many more. Their main customers are United Parcel Services (UPS), City Link and Nationwide Express. The main shareholder for FCB is Bangor Sdn Bhd which is part of Miri Group represented by 26.5% of the company interest. Kencana & Associates is the auditor company that audit FCB’s account. The leader of the auditors is Mr Chuah Mun Soong. The auditing team found some irregularities in accounting record of FCB. There are two parties which Mr Chuah has to report, they are his superior, Mr Keong Chee Wah and FCB Audit Committee. However, Mr Chuah concerns that FCB might have a fraud due to the past experience such as Media Com and Blue Vital. 2.0 The Root Cause of the Problems As per our discussion about this case study, we managed to find out several root cause of the problems. 2.1 Rising of Oil Price The first root cause is the rising in oil price in the year 2005. In the year 2005, there was an international crisis occurred with the exceptional increase in oil prices. The hike started in mid-2004 at US$40 per barrel but eventually, the increase continued to stages of US$50, US$60, US$65, US$70 and US$80 per barrel. The price hike in fuel surcharges drastically affected the freight forwarding industry significantly because of its reliance on fuel for operations.......

Words: 2524 - Pages: 11

Premium Essay

Flat Tax

...Flat Tax Rate Memo To: From: Date: Re: Benefits/burdens of implementing a “Flat Tax” From the U.S. Federal Government to each individual taxpayer in America, everyone cares about how tax is being paid. In this memo, we will discuss the benefits and the burdens of implementing a “flat tax”. The current U.S. tax system is complex. IRS has six federal income tax brackets ranging from 10 to 35 percent. This progressive tax system punishes the most productive members of society with a higher tax rate. Some scholars, such as Dan Mitchell, argue that, “From an economic perspective, the flat tax and the national sales tax (or fair tax) are virtually identical. Both would junk the current system. Both would restore fairness by taxing at one low rate. Both would eliminate all forms of double taxation.” A flat tax is a single rate that spans all income brackets of taxpayers, rather than the current “progressive” system, which taxes higher-income individuals at increased rates and includes numerous deductions and exemptions. From the article Ramifications of a Flat Tax—Shifting the Burden to the Middle Class, the author states that, because many taxpayers believe the current tax system is not good enough, it needs to be changed. Therefore, the article introduces two flat tax systems to replace the current tax system, one is the Forbes’ Plan and another one is the Hall and Rabushka Plan. The models of these two plans are as follow: 1. Forbes Simulation Model Tax...

Words: 1417 - Pages: 6

Premium Essay

Flat Car

...1.0 Introduction Flat Cargo Berhad (FCB) was a listed company, focusing on air freight and aircraft ground handling services. It was established by Lim Loon Sim and Ali Bin Ahmad and successfully became one of the largest air cargo carriers in Malaysia, servicing not only the public but also the government linked companies. FCB started its operation in year 1997 and being listed in Bursa Malaysia on 15 September 2001. It consists of five subsidiaries which are FC Spare Sdn Bhd, Cargo Management Sdn Bhd, FCB (SPV) Ltd, Cargo Air Services Sdn Bhd and Fc Air Ltd. Consequently, FCB fueled its expansion plans from year 2001 to 2004 by increasing the demand for express transportation services with intensive e-business activities. However, its auditor, Kencana & Associates found several suspicious findings that presented possibility of fraud in year 2006. 2.0 Point 1 3.1 The problem Firstly, the auditors were unable to verify the aircrafts claimed that have been purchased by FCB in 2005. Moreover, the audit team found a non-functional rundown aircraft barely worth RM231 million in a hangar. 3.2 The root causes of problem This may be due to FCB did not keep or maintain a proper accounting record and financial transactions. Such action may be just a mere mistake done by FCB. However, if this is intended, FCB posed the possibility of trying to over-state its asset value. The reason for this act is FCB intended to show a healthier financial......

Words: 1829 - Pages: 8

Premium Essay

Flat Hierarchy

...a“Your team is your boss because you don’t want to let them down. Everyone’s your boss, and no one’s your boss.” (Deutschman) Flat hierarchy system, which follows the “no boss” approach has been proven to be a successful way to run a business, like Fast company. While it is true that flat hierarchy does not follow Greiner’s stages of revolution and evolution that a company should ultimately follow throughout its lifetime it sets itself exclusive to its traditional working manner. It looks for companies with “a long history of innovation […] that doesn’t depend on the ingenuity of a single individual or even a small cadre of geniuses” (Deuschman). This exceptional system recognizes people for their talents and gives them the opportunity to flourish as individuals, while gaining experience and knowledge as a team. I think that Herzberg is mistaken when it comes to motivating employees because he overlooks motivation between coworkers. Group work creates friendships, and friendships lead to help, advice, and motivation. Deutschman’s theory is very useful because he sheds light on the interesting fact that people talk to one another freely without regard for the chain of command. While it is true that a chain of command “pushes” employees to work, such as KITA, described by Herzberg, it does not necessarily follow that employees will do it well, or even do it at all. By being part of a group, every individual is responsible for one another, therefore, it is only normal that......

Words: 290 - Pages: 2