The Environmental Challenges Facing The American Auto...

The environmental challenges facing the American auto industry. At the beginning of twenty centuries until now the American auto industry has been growing and in demand. Henry Ford innovated mass-production techniques that became standard, with Ford, General Motors and Chrysler emerges as the â€Å"Big Three† auto companies by the 1920s. Manufacturers funneled their resources to the military during World War II, and afterward automobile production in Europe and Japan soared to meet demand. Once vital to the expansion of American urban centers, the industry had become a shared global enterprise with the rise of Japan as the leading automaker by 1980. And Americans dominated the industry in the first half of the twentieth century. Hence, from the†¦show more content†¦Analysts expect the auto-industry recovery to persist as the market is benefiting from low interest rates, longer-term loans, and rebounding consumer confidence. Edmunds consultancy predicts 2014 sales of over 16 million, only one million units below the year 2000 sales record. Kristin Dziczek, a specialist at the Center for Automotive Research in Ann Arbor, says the post-great recession U.S. The auto industry is now highly competitive versus all global rivals. The United States auto industry is dominated by five major auto manufacturers: GM, Toyota, Ford, Cerberus (which owns Chrysler), and Honda, in ascending order of market share. These companies comprise 74.3% of the US market. The strength of US auto manufacturers, GM, Ford, and the company formerly known as Daimler-Chrysler, were once the dominant forces in the US market, fueled in part by their strength in the American-specific segment for pick-up trucks. However, with an increase in globalization, domestic markets must now compete with foreign competition. As foreign companies have gained accessibility into the US market over the past decade, domestic car manufactures have found it increasingly harder to compete. Most foreign competitors have been able to obtain lower raw material and prod uction costs while maintaining equal, if not better, quality of their product. The current market has been fueled by an attraction to European and Asian automakers and car models. New technology for powering

Nike in Brazil a Host Country View Free Essays

Negative effects of Nike from Brazil’s point of view Brazil is rapidly privatizing many industries and its attitude toward a free market economy has changed significantly in the past 10 years. However, it seems the country still has a perception that often times associates capitalism with â€Å"greedy† developed countries. If the opinion of Brazil’s president is a reflection of how some of its people feel this is certainly the case. We will write a custom essay sample on Nike in Brazil: a Host Country View or any similar topic only for you Order Now In 2008, Brazil’s president lambasted US corporations and the US government for â€Å"infecting his nation with problems that were not of its making (The New York Times, 2008). This attitude seems to have created some problems for Brazilians in terms of their view of Nike. The kind of leverage and control that such a large company can exert on football in the country is huge. This issue was thrown into the light when in 1998 the Brazilian national team lost in the World Cup finals to France. Earlier on in the year, Nike had invested a record amount ($200 million US) for the right to sponsor the Brazilian national team in the World Cup. As a requisite for sponsorship, Nike demanded that the team play an inordinate amount of exhibition games leading up to the event. Many Brazilians, including Brazilian football legend Pele (who filed a lawsuit against Nike), still blame Nike for Brazil’s loss. They claim that the unusual number of exhibition games tired the players out. Similarly, another interesting problem is Nike’s effect on competition in Brazil. Nike’s recent acquisition of UK sporting wear company Umbro allowed it to eclipse Adidas as the biggest brand in the world of football (The Financial Times, 2007). This is particularly troubling for Brazilian retailers, who worry about the concentration of brands between two large Multi-Nationals and the effect this might have on their business. Lastly, as with many interactions between MNC’s and developing countries environmental issues have been a problem. Brazil is a massive supplier of leather used for products like Nike shoes. However, much of the cattle that the leather comes from graze on what was once Amazon rain forest. A host of Brazilian ranchers have clear-cut entire swaths of rainforest in an attempt to make room for more cattle. This goes against Brazil’s need to preserve what is arguably its most precious natural resource (The Ends Report, 2009). In future business interactions, Nike needs to be weary of using tactics that could be perceived by the Brazilian people as greedy, dominating, or imperialistic. Such tactics may erode trust within the Brazilian population and could turn out to be a bigger PR headache than they are worth. Advantages of having Nike in Brazil from Brazil’s point of view On the other hand, the fact that Nike is such a large and powerful company can have its benefits for the Brazilian people. With its enormous buying capability Nike can actually shift the way products are produced in some countries by pressuring suppliers. As was discussed earlier, Nike has been using leather procured from suppliers who have clear-cut forests in order to make room for their cattle. However, in August of last year, Nike along with help from Greenpeace enacted a set of regulations that all its suppliers must follow. The policies included a rule against clear-cutting, as well as other important environmental conventions. It seems that where there are problems between Brazil and Nike, there are also opportunities (The Ends Report, 2009). Programs like this are exactly what Nike needs. Not only do they foster trust and goodwill, they also facilitate much needed changes in Brazil. Without Nike the changes in the Brazilian leather industry might be difficult to encourage. The cattle lobby in Brazil is well funded and has many political ties making initiatives that may affect productivity hard to pass. However, it seems that environmentally conscious Brazilians have found a solution and a partner in Nike. In addition, Nike also decided to make its entire 2010 World Cup kit (a collection of football clothing) out of recycled bottles. This initiative took 13 million plastic bottles out of landfills. Furthermore, the Nike project created an association between Brazil and sustainability that will be seen all over the world (Al-Bawaba Reporters, 2010). Lastly, in recent years Nike has invested enormous amounts of money in the Brazilian football infrastructure. Nike is one of the chief supporters of the Brazilian Football Confederation and has extended its contract with this association until 2018. In addition, Nike also sponsors all three of the largest football teams in the country (Sports Marketing Quarterly, 2006). This reflects a direct commitment to improving and fostering football in the Brazil. The support of such a large sporting powerhouse seems to have had some positive effects on Brazil in terms of their attractiveness as a host for future events. In the past year, Brazil secured the 2014 world cup. This event is extremely lucrative for local vendors (among other parties) and will allow Brazil to display its incredible culture on a worldwide scale. Bibliography How to cite Nike in Brazil: a Host Country View, Papers

Audit and Assurance for Financial Announcements -myassignmenthelp

Question: Discuss about theAudit and Assurance for Financial Announcements. Answer: Analytical Approach The analytic approach to the economic declarations of the DIPL shows the method of the dissemination of information from it. Analytic approach can be in the form of financial ratios. With the help of analytic method of evaluation of financial announcements however, several accountants as well as financial analysts can interpret the information for allowing the arrival at crucial business decisions (Barr-Pulliam et al. 2017). The case of the common sizing analytical way allows the assessment of the economic announcements to a common reference point. This results in the possible contrast of the financial statements in connection to the different timeframes or in relation to several entities. The assessors can consider the several item lines shown in the economic report along with the reporting method. For example, the way of registration of the items like assets, liabilities as well as the owners equity in the economic reporting of the organisation along with the investigational digression from the usual situation (Bayer and Cowell 2016). The method of benchmarking is thought of as an analytic procedure and it should further be used for the audit plan assessment. The variance of the actual fiscal declaration from the standard enables the recognition of the deviation as well as helps in the evaluation of the reason of the recognised variance. Along with this the analysis of the ratio could be adjudged as an effectual analytic method that can be used for contrasting the financial declarations along with the audit plan assessment (Bepari and Mollik 2015). Explanation: The outcomes of the given analytical method can be analysed with the help of ratio analysis for the last 3 years of financial statements of DIPL: The above table interprets about the liquidity, profitability and solvency status of the firm. The above table reflects that the current ratio of DIPL has declined in the last year in comparison with the last few years. This reflects that the company is not utilizing its working capital cycle. In addition to this, the profit margin of the firm has also declined, which infers that the company is not able to manage its direct and indirect expenses. On the other hand, it can be inferred that solvency ratio of the firm is lower, which interprets that the firm is not exposed to financial leverage risk. This is a good sign for the firm; however, it needs to increase its liquidity and profitability position in order to meet its respective short-term debt obligations. Several significant factors are innate in the auditing process, which constitutes the incident of material misstatements in the economic declarations of a specific entity. It can however be said that, several kinds of both systematic as well as unsystematic risks showing the way in which the financial misstatements are there in the organisations financial announcements. Additionally the identified risks may be due to financial as well as non-financial factors which can subsequently prevent a specific entity in reflecting a just view of the economic announcements. Based on the information from Devos and Zackrisson (2015), the detected risks may be associated with several risks of omission connected with risks of several unimaginable errors of a specific bookkeeper. Hence it can be said that it is the business risk for the DIPLs business operations. Apart from this, the employees at DIPL are inexperienced and do not possess the requisite proficiency that has escalated the total inherent risk of the organisation. Additionally, such a lack of experience can result in the committing of errors or mistakes, thereby increasing the inherent risks. This is due to the fact that the employees constitute a significant segment of the company and it is not feasible for the firm to ensure its business success as well as its growth in the future without the effective contributions from the employees. The other significant factors contributing towards the inherent risk can be categorised into several segments like the external as well as the ecological or environmental aspects as well as the materialistic misstatements in the previous time points as well as the false exercises. The environmental aspects directing the method towards the inherent risk comprises rapid alternations where the matters could arise connected to the valuation of invento ry, intense competition in the market as well as the lack of sufficient money. Apart from this, there is the chance of materialistic misstatements that can direct the DIPL towards the inherent risk in the years to come. The analytical process of the current case of the DIPL shows the fact that the issues as well as the complexities related to the CEO succession constitutes the inherent risks also. In core it can be said that the succession of CEO is different as the candidates are individuals (Graham 2015). Hence, the commencement of the procedure, without complying to the strategy, delayed initiation of the process, ineffective connection of the CEO as well as staff attrition may result in an inherent risk. The analysis of the case provided implies that the implementation procedure of the IT system has caused certain issues. DIPL has a shortage of employees for managing the implementation process as well as installation along with the reconciliation conduction as well as the testing which should be primarily before the new arrangement at the period end. Additionally, the initial assessment disclosed that numerous transactions carried out were recorded in a suitable manner. Thus the results in material misstatements because of the inherent factors that is an error of deletion in a specific economic announcement. The DIPL staff members need to follow a suitable sequence for registering the receivable accounts as well as ledgers connected to the accounts receivable. Along with this, the reconciliation of the bank, is required to be properly recorded as well (Milonas et al. 2016). Further, it can be said that the revenue registration found from the e-book and considering the textbook reprinting in the future could possibly result in several inherent risks due to complexity associated with the procedure. Thus the inventory valuation applicable to the raw materials at an average cost is not at all suitable as the average cost is not apt, as the average cost is much below the existing paper cost. The discerned inherent risks can be adjudged as the susceptibility of a particular assertion in connection to the materialistic misstatements and are shown briefly as follows: Increasing burden on the employees as well as the management: It is because of the increasing burden of work on the DIPL staff, that it has resulted in the inaccurate bookkeeping. As a result, several attributes have occurred that include the propensity in encountering the cash flow, operating results as well as the poor liquidity. Risk of errors due to incorrect representation: Intricacy as well as dependability is inherent because of the risk related with the errors as well wrong interpretation in a simultaneous manner. Overall management integrity: According to the case study, the DIPLs management possess the lack of integrity it is desired that it will be ready for any possible loss in the business community. Abnormal pressure on the management: Occasionally it so happens that there exist incentives for the management. As a result financial announcements have several misstatements (Nalewaik and Mills 2016). Nature of the business entity: DIPL contributes to the major growth in economic as well as circumstances of competitive nature. Additionally, these aspects might have an influence on the underlying risks of the business entities for the audit planning assessment in a suitable fashion. According to Saad (2014), the risks of fraud, could probably result in severe losses of the assets because of several fraudulent activities. The motivational lack in the workforce due to the additional pressure of work on the staff could probably influence them to get involved in several fraudulent activities. With this, the expectations form several groups of investors in the reporting of specific financial results or particularly in case of the management in achieving the suitable targets of performance had a chance of resulting in significantly increased fraud risks. Further, strong amount of pressure is exerted on the management of the corporation in order to announce specific economic results in a bid to avert the generation of the guarantees. The main types of risks identified in the context of DIPLs business operations are briefly classified as follows: Types of risk Identification Engagement of the total workforce in fraudulent activities The case study provided conforming to the operations of the DIPL states that the board has put immense pressure on the company in acquiring an innovative system of accounting. Such additional staff pressure in performing the new information installation process for accounting may result in fraud. This implies that the staff may be involved in fraudulent activities for managing the behaviours as well as the reconciliation process in an effective fashion, and also the materialistic misstatements. The provide case shows, that the ineffective management of the process execution connected to the implementation of the information technology for the accounting results system in incorrect allotment of several transactions at the period end. This results in severe loss due to the material misstatements as well as fraudulent risks (DeFond and Zhang 2014). Way pertaining to economic reporting Another risk of fraud that may confront the DIPLs business operations may take the risk related to the financial reporting fraud into account. At the time of certain situations, it has been found that there is additional expectation from the management or from the external financers. This form of expectation is to achieve the particular targets of the performance of different goals to qualify for obtaining debt. There is enhanced risk of incorrect declarations of a financial nature. Based on the DIPLs balance sheet statement the net revenue of the organisation has increased. Gross and net income has also increased. Current assets have also escalated. Due to the failure of the organisation in maintaining the standard yardsticks, the organisation became ineligible in acquiring funds. Depending on the provided case study, it can be stated that the evaluation method associated with the inventory valuation of several raw materials at specific average costs is not appropriate. This is because the existing cost of paper is higher considerably that the average cost. The risk connected with the financial reporting could have been recognised by the dissection of the financial statements on part of the assessors. Benchmarking is thought of as an analytic process and could be utilised for the audit plan assessment. The real financial declaration from the yardstick helps in the recognising of the deviation and helps in the evaluation of the recognised variance. References: Barr-Pulliam, D., Nkansa, P., Walker, K., appreciate helpful comments from Helen, W., Brown-Liburd, A.G. and Stefaniak, C., 2017. From Compliance to Strategy: Using the Three Lines of Defense Model to Evaluate and Motivate Internal Audit Contributions to Accounting Research. Bayer, R. and Cowell, F., 2016. Tax compliance by firms and audit policy.Research in Economics,70(1), pp.38-52. Bepari, M.K. and Mollik, A.T., 2015. Effect of audit quality and accounting and finance backgrounds of audit committee members on firms compliance with IFRS for goodwill impairment testing.Journal of Applied Accounting Research,16(2), pp.196-220. Bryce, M., Ali, M.J. and Mather, P.R., 2015. Accounting quality in the pre-/post-IFRS adoption periods and the impact on audit committee effectivenessEvidence from Australia.Pacific-Basin Finance Journal,35, pp.163-181. Cason, T.N., Friesen, L. and Gangadharan, L., 2016. Regulatory performance of audit tournaments and compliance observability.European Economic Review,85, pp.288-306. DeFond, M. and Zhang, J., 2014. A review of archival auditing research.Journal of Accounting and Economics,58(2), pp.275-326. Devos, K. and Zackrisson, M., 2015. Tax compliance and the public disclosure of tax information: An Australia/Norway comparison.eJournal of Tax Research,13(1), p.108. Gani, I., Wijeweera, A. and Eddie, I., 2017. Audit Committee Compliance and Company Performance Nexus: Evidence from ASX Listed Companies.Business and Economic Research,7(2), pp.135-145. Graham, L., 2015.Internal Control Audit and Compliance: Documentation and Testing Under the New COSO Framework. John Wiley Sons. Gray, S.E., Sekendiz, B., Norton, K., Dietrich, J., Keyzer, P., Coyle, I.R. and Finch, C., 2016. The development and application of an observational audit tool for use in Australian fitness facilities.Journal of Fitness Research,5(1), p.29. Milonas, A., Hutchinson, A., Charlesworth, D., Doric, A., Green, J. and Considine, J., 2016. Post resuscitation management of cardiac arrest patients in the critical care environment: A retrospective audit of compliance with evidence based guidelines.Australian Critical Care. Mumford, V., Greenfield, D., Hogden, A., Debono, D., Gospodarevskaya, E., Forde, K., Westbrook, J. and Braithwaite, J., 2014. Disentangling quality and safety indicator data: a longitudinal, comparative study of hand hygiene compliance and accreditation outcomes in 96 Australian hospitals.BMJ open,4(9), p.e005284. Nalewaik, A. and Mills, A., 2016.Project Performance Review: Capturing the Value of Audit, Oversight, and Compliance for Project Success. CRC Press. Saad, N., 2014. Tax knowledge, tax complexity and tax compliance: Taxpayers view.Procedia-Social and Behavioral Sciences,109, pp.1069-1075. Stephenson, M., Mcarthur, A., Giles, K., Lockwood, C., Aromataris, E. and Pearson, A., 2015. Prevention of falls in acute hospital settings: a multi-site audit and best practice implementation project.International Journal for Quality in Health Care,28(1), pp.92-98. Zureigat, Q.M., 2015. IFRS compliance and audit quality: evidence from KSA.International Journal of Accounting, Auditing and Performance Evaluation,11(2), pp.188-201.