IELTS General Writing Task 2 - Learn Writing Essays

IELTS General Writing Task 2 - Learn Writing EssaysIELTS General Writing Task 2 is a great way to improve your writing skills. You don't have to be an expert in English grammar to benefit from this difficult but well-designed exam.The first thing that you should do is write down the subject headings, or a headnote, on a separate sheet of paper. The first paragraph is the introduction to your essay. Your introduction can be anything that is relevant to the main body of your paper.After the introduction, you can include the second part of your essay, the main part. Your essay will usually last from twenty-five to thirty minutes. You should follow the same format as the first part. The topics that you use for the second part should be the same as the first.In addition to your main topic, you should add a paragraph to the end of your essay at the end of the paragraph you used for the introduction. This paragraph should include all of the information that you needed for your information o r background section. It should be concise and to the point.As you will realize, many people make it difficult for themselves when they are preparing for this exam by using jumbled sentences and paragraphs. To make things easier, you can use flash cards to learn the proper structure of your essay. These flash cards can be found at your school library or online.Because of the difficulty of this IELTS General Writing Task 2, it is important that you understand that you must research thoroughly about the test before writing your essay. This will ensure that you can complete your essays quickly and easily. You should check online to see what subjects are included in the test. This will allow you to choose topics that are not covered in your English composition class.These three steps are a wonderful way to learn how to write essays correctly in English. They will also help you find information for your topics that you need. However, it is very important that you learn how to study for t he IELTS General Writing Task 2.

Financial Statement Analysis - A.G. Barr - Free Essay Example

Sample details Pages: 7 Words: 2023 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Financial Statement Analysis Student Name Introduction A.G. Barr p.l.c. is based in United Kingdom it maufacture, distribute, and sell soft drinks. Don’t waste time! Our writers will create an original "Financial Statement Analysis A.G. Barr" essay for you Create order A.G. Barr. operates in carbonates and water. Company has a wide range of brandà ¢Ã¢â€š ¬Ã¢â€ž ¢s which includes IRN-BRU, Rubicon, Barr Brands, KA, Strathmore, Simply, Tizer, Dà ¢Ã¢â€š ¬Ã¢â€ž ¢Nà ¢Ã¢â€š ¬Ã¢â€ž ¢B, St. Clementà ¢Ã¢â€š ¬Ã¢â€ž ¢s, Findlays and Abbottà ¢Ã¢â€š ¬Ã¢â€ž ¢s. Company also has some partnership brands which includes Orangina, Rockstar and Snapple. The manufacturing area located in United Kingdom. Findlays Limited, subsidairy of A.G. Barr P.l.c., is engaged in Rubicon Drinks Limted and natural mineral water as well as the manufacture and distribution of soft drinks. Schweppes International Limited is also a franchise partner of A.G. Barr p.l.c in United Kingdom, authorized for manufactures and sells Orangina. It also has collaboration with Rockstar Inc. in the United States to sell and distribution of energy drink, Rockstar brand in Ireland and United Kingdom. The following pie-chart represent market share of soft drinks and low calorie drinks. They strategy have developed in a way to deliever long term growth in value and focusing on core brands and markets, brand portfolio, route to market, partnerships, efficient operations, people development, sustainablity and responsibility. Financial Review The business performance throughout 2013 of A.G. BARR has perform well in U.K soft drinks market especially in second half of the financial year with double digit growth rate. The economic conditions in the core market segments survied difficulties in 2012, as well as the increasing cost of promotion effect margins. A.G.BARR growth rate for volume and revenue increased more rapidly then the market in carbonates ans still segments. The overall growth of softdrinks experienced carbonates growth rate of 3.8% in value but decreases in terms of volume, showed growth of 1.9% with avolume declining 1%. In 2013 A.G. BARR carbonates volume increased by 6.0% and revenue increased by 7.1%. On the other hand stills also performed better with a growt h of 4.3% in revenue and 4.1% in volume. In addition to delievering a growth higher then the market and much of the build program associated with their new production and storage facility at Crossley Road, Milton Keynes. The Milton Keynes site is an important asset for future business developments. Adverse whether condition in 2012 impacted soft drinks category according to Nielsen research, reflects 0.7% decline while to volume grew by approximately 3%. Conumer participation in the carbonates category has remained at high level supported by price-driven promotions across the main brands. Ratios analysis over the last 3 years Profit Margin: According to the financial statements ended January 2013, Company declared a profit after tax of  £ 25.564 million which represent 10.76% of its sales. Current year revenue grew by approximately 7% from prior year and 3.42% on the basis of average growth rate from the last three year. Profit before tax and exceptional item in 2013 in creased by 4.3% but profit margin was slightly reduced in 2013 as compare to 2012, due to higher cost of goods. In 2012, observed as a climate of continued economic uncertainty and increasing cost. Despite these challenges companys profit before tax and exceptional item increased by 6.2% from 2011. In 2011, Profit before tax increased by 13.3% from 2010. In 2011 AG Barr observed 10.4% growth in revenue as compare to 7% in UK soft drink market. Current ratio: measure the financial stability of a company to pay its current liability. According to the financial statement, in 2013 current ratio represent 1.31(in times) thus company has enough to pay its financial obligation. Current ratio in 2012 represent 1.46 (in times) which shows that company financial stability in 2012 is better among 2011 and 2013. Quick ratio: measures the financial stability after deducting inventories and prepaid expense because they cannot be easily converted into cash at fair value. Quick ratio show cle arer picture then current ratio, the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial stability in 2012 of having 1.043(in times) as compare to average 0.9 (in times) in the rest of year. Working capital: is defined as the financial ability of a company to pay its short term obligation. Working Capital is an important factor used to measure its financial health. Working Capital Management is the strategy of a company to maintain efficient levels of both asset and liabilities to improve their earnings. It is calculated as current assets minus current liabilities. It involves management of inventories, cash, accounts payable and account receivable. Working capital is required to support the day to day business operation it is treated as life blood for smooth and effective business operations. Working capital in 2013 and 2011 is less as compare to the 2012. In 2012 company has  £ 20.934 millions more than its liabilities. Thus in 2012 company has managed their day to day operations effec tively. Dividend: A.G. Barrà ¢Ã¢â€š ¬Ã¢â€ž ¢s efficient performance through the year enabled them to distribute per share dividend. In 2012 companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s profitability reflected in its dividend, declared  £ 25.96 per share, which is high through the rest of years. Inventory turnover ratio: measures the number of times the company sold its inventory throughout the year. AG Barr have inventory turnover of 6.51(in times) in year 2013 which means that company has 1.84 month of supply of inventory on hand. In 2012 and 2011, company has 2.02 (in times) and 2.05 (in times) months of supply of inventory on hand. ROE ROA: Return on equity in 2013 is greater then return on asset by 12.55% across the year it means that company is utilizing its asset perfectly as well as optimizing its debt effectively. It also shows that management is generating good result from shareholdersà ¢Ã¢â€š ¬Ã¢â€ž ¢ investment. Account receivable turnover: Account receivable shows cr edit policy of a company according to which average time allow to customer to pay their debt. In 2013, 12.64 days took to recover their credit sales. Among the three year, in 2012 company was recovering their sales quickly at the rate of 7.70 days as compare to the rest of years. Operating Risk: can be defined as the more the proportion of fixed cost and lower variable cost is said to be high operating leverage. A ratio which is commonly used to determine the effect of operating leverage at given level on the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s potential earning is calculated by dividing, % change in EBIT by % change in Sales. Financial Risk: is the use to debt in it is calculated by dividing % change in EPS by % change in EBIT. Financial risk is not dependent on sales because whether a company has high or low sales it has to pay fix interest. By calculating financial leverage of AG BARR it appears that only 1% change in EBIT, Earning per share would change by 0.93. Preparation of fina ncial statement: Financial statements of A.G. BARR p.l.c. have been prepared in accordance with International Financial Reporting Standards (à ¢Ã¢â€š ¬Ã‹Å"IFRSà ¢Ã¢â€š ¬Ã¢â€ž ¢) as adopted by the European Union. They have been prepared under the historical cost accounting rules except for the derivative financial instruments and the assets of the Group pension scheme which are stated at fair value and the liabilities of the Group pension scheme which are valued using the projected unit credit method. FINANCIAL MARKETS AND THEIR IMPACT Financial market is a market where an individual and corporation can trade financial securities, commodities. This table shows classification of market and instrument through which corporations can raise funds. Market Financial Asset Non-marketable Assets National savings certificate Certificate of Deposit Saving Deposit Money Market Treasury bills Commercial Paper Repurchase agreement Euro dollar Bankers acceptance Negotiable certificate of deposit Capital Market Common stock Preferred stock Fixed Income Corporate Bond Municipal Bond Investment Companies Unit Investment Trust Open End Mutual Fund Close End Exchange traded fund Raising funds from equity market may lead the investor to think that the company financial flexibility is weak, and they are unable to get funds from banks or other sources. Stock issue leads to decreased earnings per share. Raising capital from foreign investor involves two main risks which are relevant for foreign investor. They include economic risk and political risk. Economic risk is less in countries with strong and stable economy situation. On the other hand political risk is linked with the economic stability of a country. Political decision and policies plays an important role in an economy. Political risk also called sovereign risk, the ability of a company to pay its foreign financial obligation. Risk is defined as uncertainty. The indication of risk and reward guide the investor that it would have a possibility to loss some or whole of its investment, an investor may experience bullish trend on his investment. Risk and return are directly correlated. The more you tak e risk, the more the likely return is, because investor demands additional return for additional risk. In finance this relationship is known as the security market line. Common stock and corporate bonds are two asset classes. Corporate bond is a debt instrument and common stock is equity. Corporate bonds and, TFCs are issued by a corporation and sold to investors. Government bonds are less risky then corporate bonds. Common stock is riskier then corporate bond because if an organization goes bankrupt, common stock holders get last priority until debt holders and preferred stock holder have received their assets. But common stock holders have the possibility to earn greater or lower return as compare to stable return on corporate bonds. As far as A G BARR, capital structure for the last two years shows that debt weight-age of the total asset was 42.64% and 50.44% in 2012 and 2013 respectively. So the company has raised fund through debt in order to meet the financial need of compa ny. One of the major benefits by using debt financing is tax advantage and borrowing has a fixed return to stock holder. It has positive impact on the firm but because company failed to control its operating expenses, net profit in 2013 is less than 2012. Future Prospects A.G. BARR has observed a healthy performance in a marketplace impacted by the mixture of very poor summer weather conditions and the continuing economic challenges faced by consumer goods companies, especially raw material cost pressures and unpredictable consumer demand. Looking ahead it is doubtful that these challenges will significantly change, however they remain carefully confident that the combination of our established operating model, continued focus on efficiency, building brand equity, sound balance sheet and ability for growth prospect leave them well placed to continue to build on this performance. In the year ahead, they expect some decrease in the pace of input cost inflation which we expect to be at a low single digit level. Current market pricing for PET is down year on year, fruit pulp costs are lower but the cost of sugar remains persistently high Conclusion A.G. BARR has delivered strong financial performance in challenging year markets. Their products continue to respond well to equity investors. They have driven strong growth in revenue and volume and have continued to increase market share across the soft drinks market. Product and supply chain innovation enabled numbers of consumers to their brands. They are further investing in assets, acquiring additional capacity that enables them to grow according to consumer demands and in line with the market pace. Following a challenging 2011, last financial year survived with strong in terms of operational performance. Last year reported growth in products availability and customer service has improved and cost managed effectively. During 2012 the potential merger received overwhelming shareholder support. In 2013, financials reported profit before tax increased to  £ 35.0 million, showed 4.3% increase from the previous years. Earnings per share increased during the year by 10.9%. Their balance sheet measures have improved, showed net assets of  £130.6 million, during the year company also generated free cash flow to the firm of  £ 22.0 million. A.G. BARR p.l.c. group brands, as well as their franchise brand Rock star, showed 8.6% growth. This performance is above as compare to the market reflects that they continued opportunities to develop availability, innovation and distribution among their brands. Their geographical growth rates grew by 4%, and investment except U.K. grew by 12%, showing both important long term growth opportunities and comparably important share from their brands. Reference A.G. BARR p.l.c. Annual report 2013 pages 70 124 https://www.agbarr.co.uk/pdf/Final Results Announcement January 2013.pdf [Accessed: 12th May 2014] A.G. BARR p.l.c. Annual report 2012 pages 62 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 94 https://www.agbarr.co.uk/pdf/Final results announcement January 2012.pdf [Accessed: 12th May 2014]

Innovations of Employee Benefits Essays - 1876 Words

The succeeding paragraphs will explain how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. In order to maintain their competitive edge, companies need to fully understand that as the needs of their employee’s change, so does their benefit plans. Companies need to find innovative ways of engaging employees that encourage and support their commitment and improve their performance. The first way is by helping the company to attract and retain talent. A company is only as good as its workforce so having an innovative benefit plan will help to attract high potential candidates and also retain them within the organization. McKeown, J. (2002) states that, â€Å"Effective retention begins†¦show more content†¦The third way is to help the company to increase productivity. Employees can tend to lose focus on their work when they are having issues with their personal life. An innovative benefit plan can afford employees with the flexibility to handle these issues in order to give the employees more availability to concentrate on their work. This also causes employees to believe that their company cares for their overall wellbeing, creating loyalty amongst the employees which will in addition increases overall productivity, but retention as well. The fourth way is to help the company increase employee commitment and engagement. In addition to increasing productivity, companies want to ensure that their employees are committed and engaged to the organization. This will produce employees that put more effort and take pride even in the smallest of tasks, employees that are constantly thinking of ways to better improve their productivity, and employees that motivate and inspire other employees that may have a negative attitude about the organization. The fifth way is to help the company to reduce health care costs. The lack of control and employee has over their own job has been believed to lead to serious health conditions. Employers are coming to the realization that in order to get a handle on health care issues, they need to take a more activeShow MoreRelatedNew And Improved Rewards At Work. Creating And Implementing1534 Words   |  7 Pagesto boost employee morale and to allow their employees â€Å"me time†. Throughout the course of this paper, I will determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. Next, I will explain how innovative benefits could be tied to specific jobs. Thirdly, I will critique the effectiveness of equity-based rewards systems versus those with more creative approaches. 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Employees who offer success, want more than the typical health insurance and retirement savings plan. Different workers want and different things out of their benefits, which is why companies need their benefit package a bit more tailed-made, to meet the need of all employees within the company. According to Rose Stanley, a total rewardsRead MoreNew and Improved Rewards at Work1627 Wor ds   |  7 Pagesto determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. Then, it explains how innovative benefits could be tied to specific jobs. After that, it critiques the effectiveness of equity-based rewards systems versus those with more creative approaches and discusses the key elements of integrating innovation into a traditional total rewards program. And last, it recommends a process that optimizes an employee-based suggestionRead MoreThe Leadership Skills Of The Workplace1545 Words   |  7 PagesInnovation in the workplace is a competitive force that give businesses like Apple and Samsung a competitive advantage over other competitors. Innovation is not a new concept for businesses in the workplace, it has been around for a long time. However, businesses are focusing on innovation because they understand the key benefits of innovation. Innovation is supported in organizations through differen t leadership practices. Discover skills are important in the business and help drive innovation forRead MoreCompensation Is A Critical Component Of A Strong Hr Strategy Essay1423 Words   |  6 Pagesadditional costs incurred in offering the product. It is important to find a way to encourage the creativity and collaboration needs to move the agenda forward for companies that are developing an innovation strategy. It is critical to recognize and reward the risk associated with a focus on innovation. Not every idea is going to work right away and team members have to be comfortable trying and failing. The initial pay structure has to be good enough that employees do not need to think about salaryRead MoreEssay on Human Resource Roles and Responsibilities743 Words   |  3 Pagesindividuals. Human resource management focuses on securing, maintaining, and utilizing an effective work force, which organizations cannot survive without. Human resource management can also be described as the relationship between the employer and the employee. There are basic functions all managers perform which are planning, organizing, staffing, leading, and controlling. These represent what is often called the management process. Staffing, personnel management, or human resource management is the functionRead MoreIndustries Are In A Changing Cycle And Every Day Is A Mission1526 Words   |  7 Pagesevery day is a mission to survive in the business world. Historically, the innovation at Microsoft was driven by one person (Bill Gates) without any consideration of the other employee s ideas. The whole company relied on one person to generate ideas to develop products and services. Then the Innovation Team at Microsoft realized the current situation of the competitors evolution and the need for the grassroots innovation implementation as a new horizon to gain ideas within the firm. Of course,

Auditing and Assurance and Auditor Independence in Australia

Question: Discuss about the Auditing and Assurance in Australia. Answer: Identification of threats that relates with auditor independence Auditor need to follow the generally accepted standards of auditing while they prepare the audits of accounting firm (Soh, Leung and Leong 2015). Addition to that, Auditor independence explains about the independence of internal auditor or an external auditor from parties who have the financial interest in business activities that requires to be audited through use of fair means. Independence actually means integrity and objective approach that require at the time of process of auditing. It is necessary for an auditor to act independently from the client company when the audit provides opinion and will not get influenced by their relationships. It is expected from an auditor to provide unbiased and honest professional opinion after viewing the financial statement of the business and explain it to the shareholders (Soh and Martinov-Bennie 2015). In case of first situation, proper explanation is given on non-audit services where the services are offered by the auditors to his clients that are out of scope. These types of audit services include management services, tax related services and client promotion (Simnett, Zhou and Hoang 2016). In that case, these non-audit services are provided in exchange of additional income or any other type of non-monetary advantage. Auditors who involve in non-audit services leads to independence impairment when they provides services to the client There are various impacts of non-audit services in the given segment where audit quality is hampered and receive criticism from the stakeholders and regulators at the same time. In that case, advocacy is serious threat to independence present for an auditor especially in the given situation. Furthermore, advocacy means a situation where an auditor gives an audit opinion but the client feels that the quality has been compromised largely (Simnett, Carson and Vanstraelen 2016). Therefore, auditors who use advocacy services at the time of providing audit opinion then they will be compromising ethics aspect and that negatively affect independence to an auditor. In case of second situation, it is important to consider the fact that independence of an auditor gets threatened hugely when they start taking monetary and non-monetary benefits that are not ethical (Simnett and Huggins 2015). These benefits are in addition to the prescribed fees that are offered to the auditor at the time of conducting audit report. In some cases, it is noted that auditors take up benefits that are nowhere written in the audit agreement or engagement that affect the independence of an auditor. After evaluating the given situation, it is understood that the client was offered a holiday package voucher for the audit firm member. When the auditor accept the offer made by the client, then that case leads to auditor independence as they are using extra non-monetary benefits from the clients. It becomes a case of threat to independency of an auditor, if the auditor receives extra benefits and makes use of that for rendering audit opinion to the client (Sethi, Martell and Demir 2015). In case of third situation, it has been viewed that auditors spouse, parent, siblings and dependent comes as close family members (Redmayne 2013). Addition to that, financial interest involves debt guarantee, ownership and short-term or long-term securities that actually owned by the person in relation with the persons or through intermediary. It is the case when individual participates and supervises for making investment decisions as it controls over the intermediary. For this, the father of the proposed accounting is the financial controller for the given business. Therefore, if Michael accepts the offer for being a part of the audit team that will actually endanger the independency of an auditor (Rahim and Idowu 2015). In case of forth situation, it is important to understand the fact there is positive relationship between client, officers, employees and directors who actually get influenced by the risk in a given business environment of the potential client. In other words, an auditor is needs to be sympathetic and patience with the potential client. Furthermore, there is positive relationship between the client that builds trust level and presents the data in proper way (Pearson 2014). When an auditor have the necessary information because they have worked with the previous client and been a part of LTH It was essential for the auditor to carry out the proper services as it include the required tax calculations at the time of passing journal entries that ends at 30th of June 2015. It is not possible or neither feasible for an auditor to audit his or her own work (Moroney et al. 2014). Identification of any safeguards to the above-mentioned threats In this part, it is noted that the forbidden services are given by the clients and the auditor who are rendering services that compromise their independence (Knechel and Salterio 2016). There are number of measures that actually are implemented for strengthening the independence of an auditor and some of these as under: Out of several measures, rotation of auditor partner is one of the major measure where there is application used (Junior, Best and Cotter 2014). It reveals the fact about rotating system where audit partner engages in eliminating the danger over knowledge and the sincerity. This will lose the courage of an auditor to act independently without any kind of substantial cost. It is necessary gain knowledge on attributes such as historical and institutional that is essential for the team members to understand the importance of maintaining high quality of audit (Hardy 2014). Efficient audit committee will help in maintaining transparency in their audit opinion. This will help and considered as an effective tool where the auditor independence are not hampered by any case. It is necessary to have well qualified auditors who have the required resources for assessing the objectivity and made available to the public (Cohen and Simnett 2014). It is responsibility of the auditor to work in a regulated environment so that they can be a reason for maintaining high quality standards in their audit opinion. They should not engage in any political affairs and biasness of operations. They should be transparent and given true and fair audit opinion to the client. They cannot misuse any data of the company and maintain the secrecy of confidential matters (Carson et al. 2016). An auditor should be following the ethical standards that are present in the Auditing Standards and the Code of Ethics. Auditors should be following the international set of high quality independence and ethical standards so that complexities are reduced in a given audit process (Botica?Redmayne 2013). Involvement of risks with the spare-parts inventory It is necessary to manage risk that takes place from the spare-parts inventory. In that case, managing the inventory is very poor and need proper attention at the same time (Soh, Leung and Leong 2015). It is necessary for the business enterprise on matters relating to risk management factors so that risk are analyzed and taken the major steps in a way where risk is reduces as and when possible. Commercial risk, health and safety risks, and reputational risk are some of the risk that needs to be identified by the business enterprise. Downtime risk is also included when there is risk to financial loss as business fails to implement any latest technologies. It may be related to managing the spare-parts inventory. Purchase of spare-parts and equipment are two types of business risks that need to be evaluated while the audit plans the audit function. There are two viral risks that need to be taken into consideration are strategic risk and the other is operational risk (Soh, Leung and Leon g 2015). The first identified risk is strategic risk that is not related to any way with the business strategies and selection of enterprise (Soh, Leung and Leong 2015). This risk involves to those who decide over what is wrong and what is right with the particular product as well as market. Strategic risk is that risk that involve from managing of spare parts inventory in case the company gets engaged with the management parts in an effective way. It is noted that the business enterprise selects the ad-hoc facilities where the enterprise spends on the items so that they can purchase and there is no definite formal policies that can be used or implemented in any case. It is necessary for any organization to appoint experienced managers who can give correct judgment on daily issues that prevails at workplace (Simnett, Zhou and Hoang 2016). Spare parts inventory must be managed by the organization through investing more on financial management activities. It is essential for any business organi zation for investing in finance for managing the inventory that relates to potential loss. Downtime loss should be taken into consideration the gets related to the way for handling the risk through use of large quantities purchase at the same time. Business organization needs to implement the ad-hoc strategy where they can implement the required strategies at the correct time. In case when a business fails to follow the extended downtime, then they need to find the best strategy so that they can manage with the spare-parts inventory in an efficient form (Junior, Best and Cotter 2014). It is thereby important to evaluate the alternative strategies so that the business organization can avoid the future probable losses and lead to smooth functioning of business enterprise. The other risk identified is the operational risk that is directly related to operational downtime; it is the risk that is concerned with particular approach after depending upon the executive level (Simnett, Zhou and Hoang 2016). Every business enterprise should be properly setting strategic management approach and execute it in the most appropriate way. They should be finding ways for implementing the policy so that they can stock up the inventory while taking any proper decisions on matters relating to standardization. Business organization is responsible for managing the operational risk so that they can involve in proper implementation of strategies and manage with the stock in an effective way (Junior, Best and Cotter 2014). Therefore, managing risk is important because it needs to identify the best suitable approach that has the ability to correct the issues as and when applicable. Audit risks and impact on account balance It is important to understand the fact that associated risk relates with the inherent risk (Soh, Leung and Leong 2015). This risk actually takes place due to any omission or error that is present in the financial report as it brings out various factors after comparing to control failure. There is complex transaction present after viewing at the risk and nature of transaction where it is require to conduct high level of judgment in case for predicting financial projections. In that case, there is different risk association that has an overall impact and views at the balance between the account receivables amount. Some account actually shows transactions that are highly related with the inherent risk like risk that is related to inventory management (Junior, Best and Cotter 2014). This management hugely takes into consideration the accounting balances based on transaction classes. Operational risk and detection are two most important risks that need to be taken into consideration by the business enterprise (Simnett, Zhou and Hoang 2016). It may happen that an auditor at the time of auditing fails to note the misstated figures as presented in the financial statements. Mostly, it is viewed that an organization performs analysis and substantive test procedures in their operational activities for smooth functioning of business enterprise. In case of detection risk, an auditor could not find any types of errors at the time of preparing the audit report. Here, auditor reviews the risk after evaluating the accounting balances and contacting the accountant at the same time. These activities actually greatly affect the balances on accounting transactions. It is the case when accounts are susceptible and associated risk relates with accounts such as inventory, sales, revenue and purchase (Soh, Leung and Leong 2015). References Botica?Redmayne, N., 2013. Auditing and Assurance Services in Australia: An Integrated Approach.Pacific Accounting Review. Carson, E., Fargher, N. and Zhang, Y., 2016. Trends in Auditor Reporting in Australia: A Synthesis and Opportunities for Research.Australian Accounting Review,26(3), pp.226-242. Cohen, J.R. and Simnett, R., 2014. CSR and assurance services: A research agenda.Auditing: A Journal of Practice Theory,34(1), pp.59-74. Hardy, C.A., 2014. The messy matters of continuous assurance: Findings from exploratory research in Australia.Journal of Information Systems,28(2), pp.357-377. Junior, R.M., Best, P.J. and Cotter, J., 2014. Sustainability reporting and assurance: a historical analysis on a world-wide phenomenon.Journal of Business Ethics,120(1), pp.1-11. Knechel, W.R. and Salterio, S.E., 2016.Auditing: assurance and risk. Routledge. Moroney, R., Campbell, F., Hamilton, J. and Warren, V., 2014.Auditing: A Practical Approach. Wiley Global Education. Pearson, D., 2014. Significant reforms in public sector auditstaying relevant in times of change and challenge.Journal of Accounting Organizational Change,10(1), pp.150-161. Rahim, M.M. and Idowu, S.O., 2015.Social Audit Regulation. Springer International Publishing: Imprint: Springer,. Redmayne, N.B., 2013. Auditing and Assurance Services and Ethics in Australia: An Integrated Approach.Journal of Accounting Organizational Change. Sethi, S.P., Martell, T.F. and Demir, M., 2015. Enhancing the role and effectiveness of corporate social responsibility (CSR) reports: The missing element of content verification and integrity assurance.Journal of Business Ethics, pp.1-24. Simnett, R. and Huggins, A.L., 2015. Integrated reporting and assurance: where can research add value?.Sustainability Accounting, Management and Policy Journal,6(1), pp.29-53. Simnett, R., Carson, E. and Vanstraelen, A., 2016. International Archival Auditing and Assurance Research: Trends, Methodological Issues, and Opportunities.Auditing: A Journal of Practice Theory,35(3), pp.1-32. Simnett, R., Zhou, S. and Hoang, H., 2016. Assurance and other credibility enhancing mechanisms for integrated reporting. InIntegrated Reporting(pp. 269-286). Palgrave Macmillan UK. Soh, D.S. and Martinov-Bennie, N., 2015. Internal auditors perceptions of their role in environmental, social and governance assurance and consulting.Managerial Auditing Journal,30(1), pp.80-111. Soh, D.S., Leung, P. and Leong, S., 2015. The development of integrated reporting and the role of the accounting and auditing profession. InSocial Audit Regulation(pp. 33-57). Springer International Publishing.