Auditing Assignment Example | Topics and Well Written Essays - 2000 words

Auditing - Assignment Example The research delves on five of the major areas of heightened audit risk of Havelock Europa Plc (Havelock Europa, 2013). The basis for including the accounts as heightened risk involves two factors. The two factors are internal control and inherent risk (Messier, 2011). Certain financial report accounts have higher probabilities of errors or frauds. The current research centres on five such financial report accounts. The accounts are sales, receivables, payables, cash, and inventory. There is an audit risk that there is error or fraud in the  £ 100,778 thousand Revenue amount during 2012. There is a probability that sales completed during January of 2013 were included in the 2012 sales figure. This can be fraudulently done in order to present a falsely higher sales figure, improving the company’s financial report image (Lyn, 2011). Similarly, there is a probability that uncompleted sales transactions were included in the 2012 financial reports (Dauber, 2009). The uncompleted sales amount includes customer’s promise to purchase the company’s products and services that were never completed. Another possibility is that products returned by customers were not recorded as sales revenue reductions (sales returns). Similarly, discounts given to customers who pay early or pay in case are not reflected as deductions from the gross revenue amounts. Further, sales allowances given to customers to satisfy their complaints concerning poor product and service quality may not be deduction from the gross revenue amount. Further, another possibility is recording a Revenue transaction when there is actually no sales transaction started, processed, or completed (Dauber, 2009). Likewise, there is a possibility that the sales amounts were erroneous recorded or fraudulently recorded. In addition, the financial reports may erroneously or fraudulently not include some realized

Challenges in Containing Health Care Costs Essay - 1

Challenges in Containing Health Care Costs - Essay Example payments to Medicare Advantage plans will be reduced or how pharmaceutical companies will have to pay rebates to Medicaid plans, among other revenue-generating schemes (Cutler, 2010, p.1131). The question that begs to be addressed, however, is whether they will suffice. Cutler raised the feasibility of the cost reduction requirements, stressing that it is difficult to sustain (p.1131). He pointed out, for instance, how some reductions can only be made once such as how "overpayments" cannot be eliminated twice. It is clear, hence, that there is a need for an effective savings scheme that is consistent and long-term in scope. One of these is the elimination of unnecessary expenditures incurred in erroneous medical practice. According to Chiapelli (2010), medication errors, particularly in the area of patient safety issues affect 1.5 million people and incur billions of dollars in expenses (p.56). In order to treat patient infections resulting from erroneous practices, for instance, an estimated figure of $30 billion is already incurred every year (Scott 2009). Addressing this challenge, thus, can yield huge potentials in terms of savings and the realignment of resources, wherein funds are allocated to areas that need it the most. The current strategies involves variations of mandatory and voluntary regulations such as those implementing process measures, the use of information technology, attention to hygiene, along with performance measures and standards of safety in patient care. Then, there are also mechanisms in place that monitor, maintain, evaluate and improve medical practices. These include public quality reporting and performance benchmarks, including those requirements and evaluation tools in approaches such as incentives-based or pay-for-performance schemes. It is imperative that policymakers are aware of this strategy, especially the benchmarks and their results because they will effectively inform decisions that make public policy. The information