Areas of Heightened Audit Risk Assignment Example | Topics and Well Written Essays - 1500 words

Areas of Heightened Audit Risk - Assignment Example In itself, this reduction of trade payables by  £7,352,000 seems material and as such, an area of heightened audit risk. This understatement could be associated with either a complete omission of some liabilities from the financial statements and/or recorded at a lower amount. This act would portray that Havelock Europa Company as healthier and less risky since the omission of some expenses that are not yet paid lowers the debt and leads to an overstatement of incomes. From the financial statements of the Havelock Europa Company, the understatement could have been caused by the omission of contingent liability because, according to its policy, it considers contingent liabilities only when it becomes probable that it will have to make payments under the guarantee (Havelock Europa Plc., 2013, p. 93). The next probable cause for this fall could be the omission of unearned revenues that arise from prepayments from customers for services and goods not provided. Finally, the understatement could be as a result of Havelock Europa Company’s fraudulent financial reporting scheme. The Public Company Accounting Oversight Board (2014) states that related party transactions, including those between a company and its executives, is a critical area as it has historically been characterised by increased risk of material misstatement. Therefore, this report also considers the transactions between Havelock Europa Company and its executives and related parties risky. These transactions are prone to manipulations and are used to understate liabilities or overstate assets. This report is concerned with the decrease in the amount from transactions with the management and group companies to  £877,000 in 2013 from  £914,000 in 2012 and  £1,377,000 in 2013 from  £2,045,000 in 2012 respectively (Havelock Europa Plc, 2013, p. 94). As noted by Colby (2010), these related party transactions could be improper and arise due to sale and purchase transactions between undisclosed affiliates.  Ã‚  

Joseph Mallord William Turner i Research Paper Example | Topics and Well Written Essays - 500 words

Joseph Mallord William Turner i - Research Paper Example Turner’s drawings were topographical in character, and his technique was traditional to imitate the best English masters who existed at that time (Townsend & Turner, 1996). He started working for various magazines in 1794 and got a job to make elaborations of many unfinished drawings that had been started by John Robert Cozen, who was a landscape painter (Shane & Turner, 2004). The magazines he was working for at this time were the Pocket magazine and the Copperplate Magazine that were popular and the England citizens. It was through the influence of the deceased landscape writer, Cozen and Richard Wilson from Wales that Turner was able to become more imaginative and poetic in his landscapes (Turner & Bockemuhl, 2005). At the Royal Academy, he went through various exhibitions for his watercolors and oil painting. The greatest of all watercolors that Turner made was the Fishermen at sea back in 1796. It had a moonlight scene and earned a lot of acknowledgement from critics as an original critical mind. At the age of 24, elections took place and he became an associate of the Royal Academy and later upgraded to become an academician three years later (Ackroyd & Turner, 2006). In 1800, Turner started a small studio in London and four years later opened a private gallery. In addition, he made trips in search of inspiration visiting various countries such as Wales and Scotland among others. He made more than five hundred drawings during his tour in Switzerland and France and studied the old Masters that is found in Louvre. In 180, Turner started his enterprise whose focus was publishing plates that referred to as Lober Sturdiorum (Turner & Bockemuhl. 2005). His main aim was to have full documentation of great variety and range of watercolors and landscapes. He had a few engravers on board though he did most of the work in supervision