Audits serve as the basis for a financial and economic activity analysis which allows identifying the strengths and weaknesses of a business. Furthermore, the work of auditors allows making informed decisions and preventing administrative penalties. An audit can be compared to a medical examination or technical diagnostics of a car. According to Mactavish et al. (2018), every experienced and successful manager fully understands the need for audits and as a rule, involves specialists to complete such procedures in time. The purpose of this paper is to describe what the staff of a company department should expect auditors to do within the examination.
Since the conduction of audits is significant, it is regulated by several acts. The most important one is The Sarbanes-Oxley Act enacted by President Bush on July 30, 2002 (Chu & Hsu, 2018). The ground is that it has brought the most significant changes to US federal securities laws over the last 60 years (Chu & Hsu, 2018). The act was named after its creators, Senator Paul Sarbanes (Democratic Party, Maryland) and Rep. Michael Oxley (Republican Party, Ohio) (Chu & Hsu, 2018). The Sarbens-Oxley Act might be regarded as a result of numerous corporate scandals associated with dishonest managers of large corporations.
In fact, the regulation significantly tightened the requirements for financial reporting and the process of its preparation. The act analyzed created a new regime for the control and regulation of financial activities for open joint-stock companies (Chu & Hsu, 2018). It also addresses the issues of auditors’ independence, corporate responsibility and financial reporting, conflicts of interests, full transparency of finance, and others (Chu & Hsu, 2018). Moreover, according to the provisions of The Sarbanes-Oxley Act, an Audit Committee must be established in each public company (Chu & Hsu, 2018). Thus, the regulation has a great influence on the procedure of an audit.
On the basis of the above information and the situation given, it might be stated that the company under analysis is conducting an internal examination of financial reporting. In fact, the main purpose of any audit is t is to verify the reliability of the reports, with the major condition for its implementation being the independence of an auditor (Mactavish et al., 2018). The result of such a check is officially recorded in the established form. It consists of an auditor’s competent opinion on the accuracy of the financial information contained in the reports for a certain period (Mactavish et al., 2018). Speaking about internal audits, they are initiated by the management of an enterprise for several objectives. They include identifying problems in the company’s activity and finding ways to improve them and increase the effectiveness and potential of the business (Abbott et al., 2016). Other purposes are determining inconsistencies in the maintenance of tax and accounting records with applicable regulation and identifying risks associated with the control of different services.
The procedure of an audit is difficult because it is usually conducted in short periods. That is why a good organization based on planning is required for such examinations. At the initial stage, auditors define the main goals and objectives, the objects to be studied, and the most effective analytical methods for carrying out an audit (Abbott et al., 2016). Then, the staff of the company should expect an auditor to collect all the necessary documentation, including accounting and tax reports (Abbott et al., 2016). In accordance with the legislation and conditions specified in the contract, the auditor will then check the documents. He or she will also study and evaluate the accounting and internal control systems to make a professional opinion on all areas of financial and economic activities of the audited object (Abbott et al., 2016). The last stage of the procedure analyzed is finding audit evidence (Abbott et al., 2016). In conclusion, the work of auditors consists mainly of working with documents of different kinds and making a report on the results of the examination.
References
Abbott, L. J., Daugherty, B., Parker, S., & Peters, G. F. (2016). Internal audit quality and financial reporting quality: The joint importance of independence and competence. Journal of Accounting Research, 54(1), 3-40.
Chu, B., & Hsu, Y. (2018). Non-audit services and audit quality: The effect of Sarbanes-Oxley Act. Asia Pacific Management Review, 23(3), 201-208.
Mactavish, C., McCracken, S., & Schmidt, R. N. (2018). External auditors’ judgment and decision making: An audit process task analysis. Accounting Perspectives, 17(3), 387-426.
Black Lives Matter: Analyzing A TED Talk
Introduction
The problem of systemic oppression of African American people in the U.S. remains tremendous injustice and a shameful part of everyday reality in the U.S. The level of violence that African American people experience has been unprecedentedly high particularly over the past several years (“An interview with the founders of Black Lives Matter,” 2016). Therefore, there is a pressing need to address the problem of racial profiling and violence toward African American people in American society. In their TED talk devoted to the movement of Black Lives Matter, its founders Alicia Garza, Patrice Cullors, Opal Tometi, and Mia Birdsong unravel the challenges that the Black Lives Matter movement is facing, describe its goals, and outline the further steps that the movement is likely to be taking.
TED Talk Analysis
Purpose
The goal of the TED Talk in question was to provide insight into the main objectives, accomplishments, and strategy of the Black Lives Matter movement. The history of the Black Lives Matter movement, which the activists delved into in quite great detail, was particularly interesting to hear. Although the narrative of systemic oppression and the effects that it has had on the women that headed the movement were quite expected, the vivid details of the stories that were told made a huge impression. As a result, the main premise of the movement as the idea of equity in American society was distilled during the conversation.
In addition, to offer a better insight into the concept of the movement, the invited experts provided their perspective by describing their personal experience of racism. Namely, the recollections of the childhood trauma caused by injustice. Specifically, as one of the founders of the movement told about her house being raided as she was a kid, the understanding of the racism and injustice of the situation was staggering to her (“An interview with the founders of Black Lives Matter,” 2016). Thus, the main purpose of the TED Talk in question can be defined as providing the background to the movement and making the general audience aware of the goals of Black Lives Matter.
Rhetorical Situations and Evidence
The retrospect into the childhood of the narrators mentioned above can be seen as a powerful rhetorical device that allowed starting the conversation and transitioning to the main theme of it very smoothly and almost seamlessly. In addition, the inclusion of the specified details allowed the audience to relate closer to the participants and understand the goals of the movement better. In addition, the speakers incorporate the evidence from the latest events and occurrences related to the mistreatment of African American people, thus building the feasibility of their argument.
Style
The manner in which the participants introduced their argument and incorporated the rhetorical devices mentioned above in their speech shaped the flow of the discussion to a great extent. In addition, the composed fashion in which the conversation took place has helped to reinforce the message of the significance of peace and cooperation. Namely, the importance of addressing the lack of awareness about the subject matter by transferring the focus from representatives of the white American community to those of the African American background is essential.
Namely, the approach based on which the suitability of regulations and standards is defined primarily by its effects on the well-being of white people first needs to be reconsidered as the approach that is rooted in racism. Specifically, the needs of African American people will have to be recognized as equally important to those of the white community. Likewise, the visibility of African American people must be increased. Thus, the severity of the issues that the members of the Black community are facing currently can be addressed properly. The style that the participants of the conversation have chosen to contemplate the problem of racism, as well as the role that Black Lives Matter plays in its eradication, contributes to the perception of the issue and the understanding of its importance.
The combination of a clear delivery of the key information and the importance with which the news was delivered allowed to make the specified piece of information convincing. As a result, the participants of the specified performance were not subjected to any risks, including the risk of physical harm, which participating in it. However, it was the calm, composed, and imperturbable attitude that produced the greatest emotional impact on all these participating in the discussion. In the conversation that addresses a topic as heated as the problem of police violence and the inherent racism that allows for police violence to take place, one is expected to observe a significant amount of racism to be expressed by the members of the local community.
Conclusion
By exploring the concept of the Black Lives Matter movement in-depth, the participants of the TED Talk conversation have managed to convey the core principles of the change that the movement is expected to bring. Namely, the speakers voiced the demand for social justice and the significance of building relationships based on the concepts of equity and respect as the foundational ideas that the movement supports. The evidence used during the conversation, as well as the calm and composed style of communication used by the participants, has helped to further the dialogue and discuss the problem objectively. In addition, the passion with which the speakers addressed the problem at hand contributed to a more emotional and, thus, more profound perception of the issue.
Reference
An interview with the founders of Black Lives Matter. (2016).
Supply Chain Management: Global Expansion
Transportation Regulations and Policies
Firstly, it is essential to examine the policies associated with the expansion. The goal of the Department of Transportation (DOT, n.d.), which oversees all transportation in the U.S., is to ensure that all the logistical activities nationwide do not harm the environment, the public, and the businesses and are used cost-effectively. The presence of a controlling body is essential since it monitors the quality and safety of transportation.
As per national security, DOT oversees the transportation of various goods, such as laptops, phones, and tablets, with specific attention. Products like these are considered sensitive technology that can be used by foreign nationals to disrupt American safety. International Traffic in Arms Regulations is a law that controls the export of technology. As it concerns public safety, DOT (n.d.) establishes the necessary regulations and policies to control the transportation of potentially dangerous goods and monitor that the logistical process is conducted safely. Given that the product line under review consists of technology, it is essential to guarantee that the transportation of products does not harm or destroy them, potentially leading to the leakage of dangerous chemicals.
DOT also aims to secure the environment by controlling what transportation modes are used, how businesses tackle emissions and banning specific transportation due to their environmental imprint. These measures are taken to secure the ecology and minimize the harm. Lastly, DOT’s (n.d.) essential task is to guarantee that no unrestrained competition is possible since it leads to monopoly and other illegal activity. DOT (n.d.) establishes corresponding rules and regulations to ensure that businesses do not become a dominant hegemon in a niche.
Transportation Methodologies
After considering the aforementioned policies and regulations, the paper proposes the multimodal methodology. Seo et al. (2017) research the regional implications of multimodal transportation for Europe and China and found that the air mode is not only the fastest but also the most optimal for technological goods. From the economic viability perspective, the flight mode of transportation is seemingly ineffective due to the high transportation costs. However, if to assess the demand and supply of technology for both international regions, it is essential to recognize that timeliness and efficiency will become the key to market share expansions (Seo et al., 2017). In addition, the air mode of transportation is forecasted to have a minimal effect on the product, as opposed to prolonger sea or road shipment.
Given that product safety is critical for technology, air transport is the most viable methodology. Once the product is safely transported overseas, road transport can escort it to the nearest distribution center. The multimodal method is the best framework given the “transport cost, transfer cost, transit time, transport distance, document charge, port congestion surcharge, customs charge, confidence index and so on” (Seo et al., 2017, p. 156). As it concerns the practical use of the methodology, the company will have to develop a comprehensive network of transportation nodes to minimize costs and maximize time efficiency.
Applying the intermodal methodology described above has cost-efficient implications for both international and domestic logistics. For instance, in the United States, the thoughtful combination of road and aid transportation will ensure that goods are delivered not only in a timely but also cost-efficient manner. In its turn, China has been developing its airport infrastructures in industrial regions, making air travel more accessible and cheaper (Seo et al., 2017). Lastly, the given methodology has many applications in the European context since its air network with the U.S. is relatively developed, which is also perpetuated by the extreme ease of road transportation within the borderless union.
Warehousing and Distribution
Principles and Design
The main principles of any warehouse are optimizing inventory capabilities, maximizing the time-efficiency of operations, controlling the movement of goods, and linking warehousing processes to the business operations. Since the warehouse has to accommodate the needs of international export and consider the specificity of the given product, the design of inventory by its stage in the supply chain is the best framework. It separates the inventory by raw materials, intermediate inventory, finished goods, and returned items (Yener & Yazgan, 2019). The design is the most time-efficient since the warehouse will maintain the constant flow of production and minimize the time for sorting the items by type.
Storage and Handling
The warehouse should adopt the palletized storage and handling system for better results. The powered pallet truck should be used to move the goods around the warehouse since this option is easy to use and safe for the transported products compared to other options (Yener & Yazgan, 2019). Drive-in and drive-through racking should accompany this type of in-house transportation since it ensures the goods’ security due to low crushability and allows for easy access to goods in a fast-paced production process.
Information Systems and Information Technology
Bar code technology applications and GPS/GIS technology should be practiced in warehouse management. Bar code technology enables warehouses to quickly register and then find the needed goods (Yener & Yazgan, 2019). GPS aids in in-house transportation by guiding the truck to the required location, which is essential in giant warehouses. Overall, the integration of technology is a viable option to minimize risks and maximize profitability.
Third-Party Logistics Providers (3PL)
While most operations will be done by the business itself, third-party logistics providers (3PL) may be employed to facilitate excess storage and product inspection operations. Firstly, in the case of company-owned warehouse overload, a 3PL warehouse can be rented to store the excess inventory, which is a more cost-effective option than purchasing another building (Yener & Yazgan, 2019). Secondly, the outsourced product inspection will enable the business to dedicate more time to actual product assembly than quality checks.
Inventory Management
Inventory Functions for Intermediate and Final Products
As it concerns inventory management, the separation of dependent and independent inventory will be the most useful operational framework. The intermediate products needed to assemble the finished goods such as laptops or cell phones are labeled as dependent inventory (Aro-Gordon & Gupte, 2016). This category includes technological parts, microchips, and other technology pieces that are required to be included in the finished product (Aro-Gordon & Gupte, 2016). The function of the final good will be categorized as independent demand as it is determined by the need for a good among customers, not by the internal operations.
Packaging Techniques
Packaging is an essential aspect of inventory management since it affects the ease of transportation, security of the product, and customer satisfaction. Given that the products that need to be handled in the warehouse and transported later are sensitive technology, rigid packaging is the most appropriate option (Aro-Gordon & Gupte, 2016). Such packaging enables businesses to maintain the integrity of the sold item.
Future Opportunities
In conclusion, it can be said that the proposed warehouse, storage, and transportation plan will aid the business in its international expansion. The success of the given strategy can be assessed by regular measuring of cost-effectiveness of the logistics operations two months into the development. This constant monitoring and improvement scheme will ensure that the customers receive goods promptly and in good shape, increasing the business’ profitability. The next steps are the actual implementation and monitoring processes to start the infiltration into the European and Chinese markets.
References
Aro-Gordon, S., & Gupte, J. (2016). Review of modern inventory management techniques. The Global Journal of Business and Management, 1(2), 3-22. Web.
Department of Transportation. (n.d.). Priorities. Transportation. Web.
Seo, Y. G., Chenb, F., & Rohc, S. Y. (2017). Multimodal transportation: The case of laptop from Chongqing in China to Rotterdam in Europe. The Asian Journal of Shipping and Logistics, 33(3), 155-165. Web.
Yener, F, & Yazgan, H. R. (2019). Optimal warehouse design: Literature review and case study application. Computers & Industrial Engineering, 129(1), 1-13. Web.