Saturday, December 28, 2019

Freedom And Learning The Philosophy And Theory Within...

Freedom is the most important condition in almost any aspect of life. Freedom in itself is a main issue in human affairs. History is full of movements and protests of different people from different walks of life at all social levels, who were looking for freedom in various aspects of their lives. Learning is amongst those issues which has always been a hot topic in the literature of freedom. As Lankshear argues: â€Å"Freedom and learning have been linked in educational philosophy and theory within the western tradition since the time of the Greeks, and was especially significant in Anglo-American educational debate throughout much of the twentieth century.† Association of American Colleges Universities (AACU) mentions that: â€Å"The academic freedom implies not just freedom from constraint but also freedom for faculty and students to work within a scholarly community to develop the intellectual and personal qualities required of citizens in a vibrant democracy and participants in a vigorous economy.† My philosophy of education is embodied in a set of principles based on a combination of my experience as a student and as a teacher. These principles are neither exhaustive nor entirely mutually exclusive but represent in summary fashion what I consider to be the key ingredients of effective teaching and effective learning. I believe for both teachers and students, academic freedom is the most important part of education. The aim of education isShow MoreRelatedGreek Philosophy And The Greek Creation1593 Words   |  7 Pages The word â€Å"philosophy†, comes from the Ancient Greek word (Phileo), meaning â€Å"to love† or â€Å"to befriend† and (Sophia), meaning â€Å"wisdom†; making philosophy stand for â€Å"the love of wisdom†. Philosophy is about understanding the fundamental truths about ourselves, the world in which we live in, and our relationships to the world and amongst each other. It is the study of general problems connected with existence, values, language, and mind. Those who study philosophy (philosophers), engage in askingRead MoreEssay about Philosophy and Education: From Elitism to Democracy1999 Words   |  8 PagesPhilosophy and Education: From Elitism to Democracy ABSTRACT: From its first appearance in western culture, philosophy has been considered able to build up reality, to educate people, and to disclose truth. Plato proposed philosophers as governors in life-long pursuit of philosophical learning. Socrates was the ideal paradigm of an educating philosopher: he tried to wake up human minds so that they could be aware of themselves and of the world, criticizing tradition and prejudices in a logicallyRead MoreThe Anti  ­ Vaccination Movement1487 Words   |  6 PagesDuring the course of this paper, I hope to demonstrate my grasp on applied anthropology (changing human behavior through the usage and understanding of anthropological concepts and ideas)(textbook pg 38), and value free philosophy (the aversion of personal viewpoints interjected)(page 44) to argue in the favor of criminal charges for citizens that do not choose to vaccinate, a subject of medical anthropology as it concerns culture and its effect on health, (page 12). I w ill be operating from theRead MoreFrancis Bacon Essay example1282 Words   |  6 Pagesscientific philosophy. 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Part of this tradition was measuring job satisfaction through a positive evaluation of individuals attitudes toward their jobs. Career satisfaction measures concentrated on correlating external job factors with global measures of satisfaction (Henderson 1999-2000; Savickas

Friday, December 20, 2019

Racism Is Still Alive, By The End Of Segregation And Slavery

It has long been believed that with the end of segregation and slavery, racism too had died. However, this could not be farther from the truth. Racism has never truly died; it was simply kept hidden. Present day racism can be found in the forms of job denial, racial profiling, and cultural appropriation. Members of all non-white races such as African Americans, Asians, and Native Americans experience modern racism in their own way. Time may have moved forward, but not everyone’s thought processes have advanced with it. Racism is still alive, though in some ways not as blatant, and being actively portrayed throughout the United States. The most actively engaged with and well known representation of racism is the abuse of power by law†¦show more content†¦This practice can be seen as rewarding the violent cops for acting on their prejudice and hidden racism. Another example that instead represents police negligence and civilian brutality is the case of Trayvon Martin. T rayvon was a boy in his teens trying to get to his father’s girlfriend’s house when he was gunned down by local civilian, George Zimmerman. His murder actually got away with the crime for some time because police claimed â€Å"they found no evidence to contradict Zimmerman’s assertion that he acted in self defense after Martin attacked him† (Onwuachi-Willig 1115). With further investigation evidence revealed that Mr. Zimmerman â€Å"called 911 to report Martin as a ‘suspicious person’, but then disregarded the 911 operator’s directives to remain in his car and leave Martin alone. Instead, Zimmerman chased, confronted, and ultimately shot and killed Martin after a physical struggle† (Onwuachi-Willig 1115). Zimmerman was of white descent and acted as a neighborhood watchman for the community. By chasing Martin he ignored both his watch leader and the 911 operator. Zimmerman was eventually charged with second-degree murder, but the time it took for that to happen made many black people feel as though their lives mean nothing to cops. This example portrays not physical brutality by the cops, but negligence that allowed a murder to roam free for six weeks. Another case that also involved primarily white law officers is the case of SandraShow MoreRelatedThe Idea Of Race Throughout History And Even In Today’S1569 Words   |  7 Pagesto do with race and that is slavery. It was based upon racism and the belief that a white man was free and an African American man was not even though they were being forcibly taken from Africa and other areas and being forced to work for white farmers. 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From the time of slavery to the Jim Crow laws that followed the passing of the 13th Amendment; from the Civil Rights era to the Rodney King beating and subsequent riots in LA; from anger over apartheid in Africa to support ofRead MoreEssay On Superstitions In Huckleberry Finn1084 Words   |  5 Pagesthe Bulrushes† (Twain, 4), however as she is teaching him this story Huck becomes disinterested once he finds out that Moses is dead. Huck does not understand why anyone would care about a person who has been dead for a long time, if Moses is not alive there is no reason to learn about him if he is no longer living his life. Huck much rather believe in something that will benefit him in the long run, which is why he begins to believe in superstitions. These superstitions will give him something in

Thursday, December 12, 2019

Employment Relations in Asia Globalization

Question: How should business, labour, and the government deal with plant closings and layoff of employees? Should government be involved at all? Support your argument with examples where possible. Answer: Introduction Globalization has led to easy access to human and other resources across borders; it has given rise to outsourcing which has increased competition worldwide(Faiola, 2009). Slowing economy in Asian markets has dampened the extent to which workforce used to be earlier demanded. Due to rapid rise in globalization, political pressures and slowing of economies some prominent manufacturing units and plants have closed down, cutting a large number of jobs. Closing down of plants or impermanent shutdown of solitary vocational site along with office space hampers a large number of workers. The problem of plant shut down and layoff is acute in Singapore, where individuals have often resorted to suicide due to its adverse effects. An average of 50 workers are impacted who are engaged for 20 hours per week in a month, 500 odd workers who work for 20 hours per week along with 50 to 499 additional employees(Yellen, 2008). These employees constitute of one third workforce and hence will have an imp act on other factors. The essay is an analysis of layoff and plant closing challenges in Singapore, and the ways business, laborers, government and society is handling them. The essay argues in favor of governmental, business and laborers intervention prior to a companys plant liquidation which helps in adequate compensation of workers. Argument Layoffs of labors and shutting down of plants are rising due to decrease in demands of industrial production and investors from the West withdrawing their funds to invest elsewhere. Rise in Indonesia workforce have further diverted industrial funds and created opportunities for production and manufacturing in those countries. According to the Redundancy and Re-Entry into Employment a total 10% of professionals, managers, technicians and executives from service and manufacturing sectors were laid off, while overall redundancy rate increased from 5.5 to 5.8 employees per 1000 individuals. Contributing to further layoffs was Walt Disney, who shut down their game studio Lucas Arts due to cost-cutting purposes in 2012. Motorola also shut their cell-phone manufacturing unit removing 700 individuals from employment. Thus, many corporates and organizations are responsible for such layoffs and closing down of plants(Milanez, 2013). Management of organization needs to have strategic plans and processes in order to deal with remuneration, closing down of plant expenses and in layoffs. Organizations needs to include job counseling, placement assistance, review potential working environment, administrative contacts and managing litigations in plant conditions and so on. Proper strategies within organization can help significantly overcome stresses during layoffs and plant close-down. Laborers are the primary victims of layoffs and hence suffer from mental illness and absence of motivation(Ng, 2013). Providing therapists for reframing techniques and overcoming negative situation helps laborers cope with the condition and opt for further opportunities. It is extremely important to understand and help laid-off employees overcome emotional and mental conditions; hence managers along with other employees should help them. An effective communication strategy helps individuals to cope up with the condition in a better way. When managers or administrators communicate with individuals it has a better effect compared to when it has been communicated by HR managers or administrators(Atanassov, 2009). Government has an integral role to play in cases of plat shut down and laborers layoffs as most of the plants are run by private investments from Asian countries. Governments from Asian countries allow investments following pressure from influential countries which often divert their funds to more profitable and lucrative shores. Due to Asian market dominance in the world currently especially of Indian and Chinese markets FMCG; automobile and multi-brand retailing has grown at a more rapid pace compared to the rest of the world. Current recession in business scenarios and dominance of Asian markets has further put pressure on neighboring countries in regards to investment(Guzmn, 2014). The government has primary role in maintaining equilibrium in the national as well as international market prior to their breakdown. Workplacefairness.org has tried and created employment for various sectors but there have been major threats in other sectors. In Motorola and Seagate government in Singa pore needed to intervene to resolve the issues. For Seagate government did not allow its compensation plan for 2000 workers, by putting a ban of liquidation of the plant. Government intervention is needed at the time of negotiation such that the company can provide adequate compensation. Liquidating companies need to adhere to Singapores trade act for compensation prior to considering liquidation(Chossudovsky, 2008). In case of Motorola liquidation in 2008, the government failed to take proactive measures but once judicial system intervened the government was forced to resolve the situation. Primarily the company had refused for additional compensation to the employees and also refused to transfer workforce to Chinese plants. In its liquidation processes, the government intervened as the companys stock price had been deeply affected, majority of the workers were shifted to Chinese plant nearby. Around 450 workers had been shifted till the end of 2010(Beardwell, 2007). In case of plant shut down and layoffs mental health of workers in the young and middle aged categories are affected. Workplacefairness.org has studied the impacts of plant shut down on young and middle aged individuals, which is associated with mental breakdown. The immediate closing of a plant and its subsequent layoff breaks down the mental health amongst human beings as indicated by a report of Channel NewsAsia(Han, 2013). This instability of mental health often leads to developing of suicidal tendencies amongst middle-aged individuals, who are less likely to find opportunities in jobs. There are multiple news of couples who have reportedly committed suicide post layoffs and plant shut down and these incidents are not uncommon in Asian markets, who are grossly dependent on foreign investors(Bernaciak, 2013). The rise in such tendencies can be attributed primarily due to the presence of unorganized sectors where there is no social recognition. A historical case of Cipher data Inc. , reportedly some 50 workers dies a year from layoff reasons in 1986 alone. The same year the company laid off 450 individuals from current services which received horrific response from the society. The government of Singapore following such incidents developed a community service aimed at helping the workers that time, through community help services and programs. The programs and services helped in a great way these individuals cope with their current situations and overcome stress(Elliott, 2012). Layoffs and plat shut down has been identified to be associated with work distress and leads to unavoidable business costs, according to certain financial specialists. In Singapore this issues has gained immensely prominent as being creating mechanical relations for opportunity seeking fascinated investors. Tripartism has been the key solution to manage divergent issue regarding financial aggressiveness, labor management relations and in developing of the entire country. This strategy of Tripartism has helped achieve Singapores social union, monetary versatility and an advantageous position for continued 30 years. The agreement helps in attaining tripartite accomplices by allowing for sensitive adjustments. Singapore National Employers Federation (SNEF), the National Trades Union Congress (NTUC) and Ministry of Manpower (MOM) formed the Singapore Tripartism Forum (STP) for deepening and strengthening of frameworks of Tripartism in order to face current challenges faced and to overcom e them(Fashoyin, 2010). The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) was formed to have prominent and acceptable business solutions for the overall population. The association formed further extended help to administrators, preparing workshops, admonitory administrations, instructive materials for complying to vocational recruitments. The Tripartite Committee for Low-wage Workers and Inclusive Growth (Tricom) was formed for recommending measures to workers such that they can enhance their job conditions and gauge work amongst low-wage laborers. The body also help identify opportunities for developing money and employment portability for low-wage workers for promotional and low-wage workers. Conclusion Asian market is characterized by ongoing issue of plant closing down and layoffs due to current economic conditions and trading environment present. In order to overcome the current situation government Tripartism and workers needs to work together in a professional manner. There needs to be formal liquidation procedure for plants and lying off procedure that can help individuals cope up with pressures. A formal organization needs to be organized which helps laid off employees overcome the mental distress and look for new opportunities. References Atanassov, J. . (2009). Labor and corporate governance: International evidence from restructuring decisions. . The Journal of Finance, 341-374. Beardwell, J. . (2007). Human resource management: a contemporary approach. Pearson Education. Bernaciak, M. (2013). Labour solidarity in crisis? Lessons from general motors. . Industrial Relations Journal, 139-153. Chossudovsky, M. (2008). The great depression of the 21st century: Collapse of the real economy. . Global Research, Canad, 15. Elliott, W. F. (2012). What are the predictors of economic instability. Faiola, A. (2009). A Global Retreat As Economies Dry Up. . The Washington Post, 5. Fashoyin, T. (2010). Tripartite cooperation, labour market reform and economic upturn in Singapore. ILO. Guzmn, S. G. (2014). To pa or to protest. (Doctoral dissertation, New School for Social Research). Han, K. (2013). One Singapore? . (Doctoral dissertation, Cardiff University). Milanez, A. (2013). The human capital costs of financial constraint. mimeo. Ng, T. (2013). Organizational Resilience and Adversity Quotient of Singapore Companies. . International Proceedings of Economics Development and Research, 65,81. Yellen, J. (2008). Economic Conditions in Singapore and Vietnam: A Monetary Policymakers Report. . CPBS 2007 Annual Report, 3.

Wednesday, December 4, 2019

The Professional Skepticism Continuum

Questions: 1. Critically assess what you understand by the audit concept of professional scepticism and why professional scepticism is important in the audits of financial statements? 2. Identify, research and evaluate any one recent example of your choice of a UK business failure where there was an apparent lack of professional scepticism? Answers: Introduction: Auditors look after the accounts of a company to determine whether they are representing the affairs of the company exactly and accurately on the accounts date or not, by the process of auditing. On the other hand, this auditing provides assurance or comfort to the accounts users that the auditor, who is the independent third party, has checked the accounts and agrees with the management of the company. Thus, both the term audit and assurance are interconnected and interrelated to each other (Vallance-Jones, 2012). Again to perform auditing accurately, professional skepticism is the compulsory factor, as without professional skepticism, the auditors might not understand the fraudulent activities of a particular activity. Thus, professional skepticism should be developed within the auditors to avoid misinterpretation of audit results. As professional skepticism is an attitude, thus it has to be developed within the auditors, and cannot be readily integrated into them. Thus audit is re lated to professional skepticism and vice versa. Therefore, professional skepticism plays a vital role in the procedure of audit of the financial statements of a company. 1. Audit concept regarding professional scepticism: Generally, audit means an evaluation and an unbiased examination of all the financial statements of a particular financial year of any organization by the help of the internal employees of the firm who deals with the financial department of the company or chattered accountants or employees of financial department of other organization (Whittington, 2012). Audit is generally done to verify the accuracy of the financial filings, such that an organization could pay proper amount of tax to the government of the country. Professional skepticism may be defined as an attitude which involves questioning mind and a critical assessment of evidence of audit (Turri, 2011). On other hand, it can be said that, the external or internal auditors should not consider the management of the specified organization to be either dishonest or honest, during the process of financial auditing. According to the annual report of Audit Inspection Unit (AIU), of the year 2011 2012, there is basic importance of professional skepticism in various key audit issues (Pickett, 2011). Thus, the concept of audit is related to the professional skepticism. Auditors are required by any organization or a company for auditing the financial statements. Thus, the auditors of a specified company have to perform the audits with an attitude of professional skepticism, that is, they should possess the questioning mind and should not consider the management of the company to be either dishonest or honest, during the process of auditing (Nolder, 2012). Financial researchers have stated that presently, many auditors have failed to perform the act of auditing correctly, due to lack of professional skepticism, and thus, they are planning for improvement of this attitude within this profession. Fraud is a very common act, which a company may perform for more sales revenue, profit and betterment of the company. Thus, the auditors should remain alert to the misstatement risk, though there may be the strength of the control of the client or the reports of current or prior years by the audit procedures. To consider the type of identified misstatements is another way of implication of professional skepticism. In the past, there had been a tendency to identify any misstatement immediately as an error. But the auditors should examine the misstatements much deeply, as some of them can be fraud too or just an indication of deficiencies in the system of accounting, which could lead to more errors in future (McCoy et al., 2011). The auditors generally apply the attitude of professional skepticism at different stages of audit process they are as follows: When assessing engagement acceptance here, the integrity of the management of the company and the matters that might affect the auditor regarding professional skepticism is considered. When performing risk assessment procedures at the planning stage of audit, an auditor should always be skeptical, when he would perform the procedures of risk assessment. When obtaining audit evidence the auditor should be capable of challenging the management of the specified company, about the subjective and complex matters which are exercised by the management (Lee, Welker and Wang, 2012). When there is risk of fraud, reliable and sufficient evidence should be considered. When evaluating evidence the reliable and sufficient evidences should be evaluated critically. Finally, it can be said that, the application of professional skepticism should reduce the risk as it enhances the efficiency and effectiveness of audit procedures. It also reduces the possibility of reaching inappropriate conclusion. Importance of professional scepticism: According to chairman of IAASB, large numbers of auditors are needed for application of professional skepticism. The reason for this is the enlarged use of the subjectivity and judgment in the financial reporting decisions of the management of the company. This is due to the decision of Financial Reporting Standards, for the application of principle based and often requires the financial statement preparers to perform the significant judgment during decision making on treatments of accounting. The global financial crisis of 2009 2010, also aimed on professional skepticism. In many jurisdictions, the auditors were critically criticized for not applying enough professional skepticism, especially in relation to the fair values audit, transactions of related party and assessments on going concern concept. Staff Questions and Answers document is issued by IAASB, for re-emphasizing the importance of professional skepticism, especially in the field of auditing of the financial statements, which includes the high risk of misstatement of material due to financial distress (Keating, 2011). The Financial Reporting Council of U.K. has issued a paper on professional skepticism, which advices that in audit quality, professional skepticism is the cornerstone. It also proposes that, the auditor should look for material misstatement risks. This activity is possible only when a high quality of knowledge about the business of audited entity and its environment is known to the person. Thus from these, we can understand the increasing importance of professional skepticism. But the reasons for which professional skepticism is important in audits of financial statements are: Skill test of auditor the skills of an auditor is tested through the quality of audit he or she performed for a particular organization. And also through the exercise of professional judgment regarding the misstatements, the quality or the skill of an auditor can be understood (Glover and Prawitt, 2014). Audit procedure enhancement Reducing the possibility of a. Selection of inappropriate procedures of audit. b. Application of inappropriate procedures of audit. c. Misinterpretation of audit results. d. Unusual circumstances are overlooked. Appropriate decisions can be made on a. The extent or timing or nature of the procedures of audit with the aim to reduce the high risk to an appropriate level. b. Sufficient evidence of audit has been obtained or not, and according to that, more evidence should be obtained, to achieve the goals of assurance standards (Cascarino and Cascarino, 2012). c. Evaluation can be done on the judgment of the management, based on the financial reporting of the entity, regarding the annual audit. d. Conclusions can be drawn based on the evidence of the audit obtained. Thus, the application of professional skepticism increases the effectiveness of the procedure of audit and of its application and also lowers the chance of selecting inappropriate procedure of audit. 2. The Professional Scepticism of a company means the prediction of companys performance through audit. The future planning or strategy of a company depends on its professional scepticism. Due to the lack of professional scepticism, a company may suffer from loss or slower growth in profit. In U.K., there are some companies, which suffer from apparent lack of the professional Scepticism. Among these companies, is the Cannary Limited of U.K (Ashton, 2015). On 1st February 2012, Canary Limited has appointed the auditor named C.S. Group of the new subsidiary. This group has planned the audit for the individual financial statement of the firm named Canary Limited and then has analyzed its significance of the audit on the consolidated financial statements. The selling process of Canary Limited is related to the online selling. Since, there is complexity related to the online selling system, the professional scepticism focus on the requirement of expert and the computed-oriented audit techniques, which is used to get the higher profit. It is necessary to understand the financial performance and position of that company, and for this, the review of preliminary analysis on a full set of Canary Ltd.s financial statement should be done besides forecasting the revenue and profit for the year (Bland, 2015). The financial audit process of Canary Ltd.:- At that time, the management of Canary Ltd. Company was unfamiliar with the process used of financial audit and failed to provide required information to CS group in preparing the consolidated statements, as the Canary Ltd. management was involved with the group financial reporting for the first time. Therefore, there was a risk related to inaccurate and incomplete information of the company such as incomplete information related to the inter-company transactions (Frc.org.uk, 2015). Financial performance of Canary Ltd.:- Considering the consolidated profit and revenue figure of Canary Ltd. in 2012, the group financial result was encouraged before the tax of 1-2% with a rise in revenue of eight percent and in profit. The 2012 result of Canary Ltd. include the report of six months revenue and profit of that company. By comparing its result with the previous year combined financial year of the Crow Ltd and Starling Ltd. it can be said that, there was a reduction in profit of the combined companies Craw Ltd and Starling Ltd. for the year 2012, as the revenue reduced slightly. To do with the acquisition of Canary Ltd. like legal costs and diligence, the one-off costs may results the apparent rise in costs with the acquisition of Canary of Canary Ltd. As costs could be overstated or revenue may be understated, there was risk misstatement in this company (Gaaaccounting.com, 2015). Forecast of Crow Ltd in 2012 ( million) Forecast of Starling Ltd in 2012 ( million) Forecast of Crow Ltd and Starling Ltd in 2012 ( million) Actual report of Crow Ltd and Starling Ltd in 2011 ( million) Change in percentage Revenue 69 50 119 125 4.8% Profit before tax 3.5 3 6.5 8.4 22.6% Professional Scepticism of financial statement:- As the financial statements of Canary Ltd. have been prone to manipulation, a risk or misstatement that leads to a lack of professional scepticism. Particularly, to protect the good sale price for the company, its management may overstate the revenue and profit of the company. As the groups avoid the additional consideration, the existence of consideration of contingent related to the acquisition revenue of group post is also treated as a contributing factor for the possible manipulation (Hancox et al., 2015). Risks related to the lack of Professional Scepticism of the financial statement of Canary Ltd:- Risk related to General matters:- Due to the lack of Professional Scepticism, there is a risk related to the material misstatement of the company. This will leads to some changes to corporate structure of the company like moving into large business, installation of new significant IT system and large acquisitions etc. Since the CS Group was involved in all these three changes during the financial year, the audit is involved with the high risk (Hartl, 2015). Risk related to Goodwill:- There are specific risks attached with the various components of goodwill. According to the professional scepticism, on the acquisition of Canary Ltd, the goodwill of the company will rise to 45 million, which will represent the 8.2 percent of total assets. As the measurement of the goodwill of the company, involves the judgement, which is judged based on the probability of the amount to be paid, the contingent element of consideration is inherently risky. If there is the incorrect assessment of this probability of payment, the consideration part can be overstated. In case of the individual financial statement of Craw Ltd., there are also some risk factors related to its goodwill. The value of identifiable assets is another component of assessing the goodwill of the company. Therefore, it is essential to measure the fair value at the date of acquisition. Since, the estimation of fair value involves the uncertainty, so there is a risk factor related to this estimation. Therefore, if t he management fails to conduct an impairment hypothesis or Professional Scepticism, then there will arise a risk regarding the goodwill of the company (Kang, Trotman and Trotman, 2015). Risk related to the loan stock:- The management of the company has issued 100 million loan stock, which represents the 18.2% of total assets of crow Ltd. As the loan will be paid at a significant premium of 20 million, this will recognized as a financial cost of the company over the period. There arises a risk of misstatement if the premium of the financial year, has not been included under the financial cost. Moreover, if interest payable has not been accrued, the financial cost could be understated. Besides these types of risks, regarding the loan in the financial statement, there is a risk associated to financial disclosure, as the required narrative and financial disclosure are related to financial instruments, which provide the risk exposure. Regarding the loan in the notes to the financial statement, there is also a risk of inadequate disclosure (MACHUCA, 2015). Risk related to the online sale:- In case of online sale of Canary Ltd., when the revenue recognition criteria of IAS 18 Revenue have been met it is difficult to establish with the online selling process. As a result, there will arise a risk that the revenue can be recognised at the correct time. As 30% of Canary Ltds sales are made online, which is amounting to sales of 4.8 million or 3.6% of consolidated revenue of the year, this will treated as a significant issue and it is predicted that when a full year revenue of the Canary Ltd sales is consolidated, there will be a higher percentage of total sales in the next year. This refers to the fact that the revenue and profit are underestimated over the period. Here will be the Professional Scepticism in this case, as the CG group had no experience of online sales, for online revenue recognition, there will be no group accounting policy. The risks arising from the system may not operate effectively and there is a deficient control, which leads to inaccurate recording of the sales (Orcpa.org, 2013). Risk related to the Grant received:- There is a risk related to the recognition of the needs and types of grant received by the company. The company has not been yet spent 10 million, which results for the further risks and represents 1.8% of the consolidated assets. Risk associated with new IT system:- The IT system is related to the financial reporting. Therefore, a risk of material misstatement is related to this system (Sweeney and McGarry, 2011). Conclusion:- Hence, from the above analysis it can be said that for every company, there is a need for proper Professional Scepticism, which help the company to take the appropriate business policy for future. 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