Auditing in business world Essay Example | Topics and Well Written Essays - 1750 words

Auditing in business world - Essay Example This paper aims to discuss whether it is just to involve or blame the auditors for companies' failures or bankruptcies or even fraudulent activities. Are auditors really part of the blame-game or is the public just reacting on what they perceive as the auditor's failure to see and to report these bankruptcies and fraudulent activities' Is there really a gap on what the public expects auditors to do and to report and what the auditors are really tasked to do' According to Robert K. Elliot (1998), the purpose of the audit is to provide assurance that the investors and the stakeholders can rely on the information presented by management in the company's financial statements and that they are not taking on undue financial risk when they invest in such a company. The auditors' report, the ultimate output of the external auditor, is meant to communicate the various claims of the auditors. These claims are: that the auditors have complied with the required auditing standards, that they are independent of the company they are auditing and that they are stating that the balances of the company (as presented in the accompanying financial statements) are free from material misstatements and are thus, reliable to the outside readers and users. The website, www.abrema.net, defined expectations gap in auditing as "the gap between the auditors' actual standard of performance and the various public expectations of auditors' performance (as opposed to their required standard of performance)". The same website enumerated the various expectations of the public. These expectations include (but are not limited to the following): (1) that the auditors should have "prime responsibility for the financial statements" that they audited; (2) that auditors 'certify' the financial statements; (3) that when auditors provide a clean opinion, this means that the financial figures are accurate and free from error; (4) that auditors "should give early warning about the possibility of business failure; and (5) that auditors are "supposed to detect fraud". Another definition, according to Stanley Martens, is that this gap is "the difference between (1) what the public and other financial statement users perceive auditors' responsibilities to be and (2) what auditors believe their responsibilities entail" (2001). Mr. Martens went on to state that this expectation gap has been in existence for several years (even decades) now and may have stemmed from previous "well-publicized hearings" in a previous fraud case. Still another definition from Marianne Ojo is that is the expectations gap is "the difference between what users of financial statements, the general public perceive an audit to be and what the audit profession claim is expected of them in conducting an audit" (2006). In fact, there is also a distinction between the expectations of the audit profession of an external audit and the perception of the external auditor. Thus, even within the accounting profession, such an expectation gap exists. Components of Expectation Gap Www.abrema.net further divides expectations gap into the "requirements gap", where there is a difference between the actual performance of the auditor and what is required by the "current standards of the society" and the "feasibility gap", is the difference between "society's required standard

The Marketing Planning of L'Oreal Organisation Essay

The Marketing Planning of L'Oreal Organisation - Essay Example This research will begin with the statement that L’Oreal Group is a leading company that markets a wide range of cosmetic products. The corporate products are sub divided-well in order to help the company to become an important player in beauty industry across the globe. Notwithstanding the intensity of competition that exists, it is beneficial to analyze the company’s internal and external profile to gain an understanding of its strategic planning process. The term marketing as an exchange process refers to a concentrated term in relation to the marketing concept. It is originally defined as a transaction by which two or more parties offer a benefit or value to others with a view to satisfying their prospective needs. Companies receive a benefit of selling goods through a market which incorporates a wide range of products and services while end-users obtain commodities they desire from the market. Therefore, both parties including the firms and end users/customers gain in this exchange process. This can occur in a transactional form which means that a consumer buys a particular brand because of self-interest or in form of relational exchange if long-term orientation has taken place. In case of L’Oreal, it can be seen that the company utilizes this concept when conducting its business. The exchange between L’Oreal and its customers result in transactions where the customers buy the products offered and the company gets money. The main goal of L’Oreal is to facilitate and increase its sales transactions through convincing the existing customers and potential customers to purchase its products. As such, it uses the marketing exchange process to assess the trade-offs it needs in order to satisfy its wants and needs, as well as its customer’s wants. L’Oreal’s objective is to create safe and effective quality beauty products for its customers. It is a company that values establishing a strong consumer relations hip.