Escolar Documentos
Profissional Documentos
Cultura Documentos
Liviu-Mihail Marinescu
2016
CONTENTS:
In planning and performing our audit of the financial statements of the Town
of Harpswell (the Town) for the year ended December 31, 2005, we
considered the Towns internal control in order to determine our auditing
procedures for the purpose of expressing an opinion on the financial
statements and not to provide assurance on the internal control.
However, during our audit we became aware of several matters that are
opportunities for strengthening internal controls and operating efficiency. The
attached schedule summarizes our comments and suggestions concerning
those matters. This letter does not affect our report dated January 20, 2006,
on the basic financial statements of the Town.
The accompanying comments and recommendations are intended solely for
the information and use of management and others within the organization
and should not be used by anyone other than these specified parties. We
wish to express our appreciation for the cooperation and assistance we
received from the officials and employees of the Town of Harpswell during the
course of our audit.
We will review the status of these comments during our next audit
engagement. We have already discussed them with various Town personnel,
and we will be pleased to discuss them in further detail at your convenience,
to perform any additional study of these matters, or to assist you in
implementing the recommendations.
Sincerely,
Runyon Kersteen Ouellette
Contracts are documents that make personal and business agreements official and
binding, ensuring both parties' safety in entering such an agreement. Contracts are
invaluable tools that help contracting parties understand the terms agreed upon and
mutual individual obligations. Although all contracts may - in fact should - vary in order
to accurately reflect the intent of the parties in particular circumstances, the following
sales contracts are samples of what such documents may look like. They are intended to
be mere starting points and guides to help you create contracts in English, that includeall
of the terms relevant to your possible future business interactions, after graduating from
this Master Programme of Danubius University.
Paragraph 4. Buyer agrees to accept the goods and pay for them according to the
terms further set out below.
o Half upon receipt, with the remainder due within 30 days of delivery.
Paragraph 7. Buyer has the right to examine the goods upon receipt and has ____
days in which to notify seller of any claim for damages based on the condition,
grade, quantity or quality of the goods. Such notice must specify in detail the
particulars of the claim. Failure to provide such notice within the requisite time
period constitutes irrevocable acceptance of the goods.
D. Sellers Obligations
Paragraph 8. Until received by Buyer, all risk of loss to the above-described goods is
borne by Seller.
Paragraph 9. Seller warrants that the goods are free from any and all security
interests, liens, and encumbrances.
E. Attestation
Paragraph 10. Agreed to this _____ day of _____, in the year ____________.
I certify that I am authorized to act and sign on behalf of Seller and that Seller is
bound by my actions. ______ [initial]
I certify that I am authorized to act and sign on behalf of Buyer and that Buyer is
bound by my actions. ______ [initial]
CONTRACT BETWEEN,
Both parties declare an interest in the sale and purchase of goods under the present
contract and undertake to observe the following agreement:
Article 1 - Products
Under the present contract, the Seller undertakes to provide, and the Buyer to
purchase:
[Alternative B]: the Products and quantities as set out in Annex 1 of the present
contract.
Article 2 - Price
The total price of the Products which the Buyer undertakes to pay the Seller shall be
.................... (figure in numbers and letters). The aforementioned price:
[Alternative A]: is the sum total of the prices of all Products and quantities as set
out in Article 1.
[Alternative B]: is the sum total of the prices of all Products and quantities as set out
in Annex 1.
Both parties undertake to renegotiate the agreed price when affected by significant
changes in the international market, or by political, economic or social situations in
the country of dispatch or destination of the Product, which may damage the
interests of either party.
The Seller shall deliver the Products to ................... (mention the place: warehouse,
port, airport, etc.), ..................... (city and country), under conditions: .....................
(INCOTERMS). The goods shall be delivered at the agreed place, and to the
transport agent designated by the Buyer, at least twenty-four hours before the
deadline established in the present contract. Should the Buyer fail to take charge of
the goods on arrival, the Seller shall be entitled to demand the fulfilment of the
contract and payment of the agreed price.
Article 4 - Packaging
The Seller undertakes to deliver the Products hereunder, suitably wrapped and
packaged for their specific characteristics and for the conditions of transport to be
used.
The Buyer undertakes to pay the total price which appears in the present contract.
Payment of said price shall be effected by:
[Alternative A]: cash, cheque or bank transfer to the account and bank branch
designated by the Vendor.
[Alternative B]: bill of exchange or direct debit to the account and bank branch
designated by the Vendor.
[Alternative C]: within .......... calendar days of receipt of the goods by the Buyer.
The Seller undertakes to deliver the goods within .......... calendar days of receipt of:
ISA = International Standards on Auditing (ISA) are professional standards for the
performance of financial audit of financial information. These standards are issued by
International Federation of Accountants (IFAC) through the International Auditing and
Assurance Standards Board (IAASB).
IAASB = International Auditing and Assurance Standards Board. It serves the
public interest by:
- setting, independently and under its own authority, high-quality International Standards
on Auditing (ISAs) and assurance standards, and
- facilitating the convergence of national and international auditing and assurance
standards.
This contributes to enhanced quality and uniformity of practice in these areas throughout
the world, and strengthened public confidence in financial reporting.
financial audit = A financial audit is the critical analysis of a business's financial records
and documentations. It can be done at any level, from local to governmental. A financial
audit or financial profile of the company will be released by the auditor or forensic
accountant after completion of the analysis. These financial analyses are usually done by
certified public accounting firms and forensic accountants who provide an objective view
of the true financial integrity of a company. Audits are intended to show whether a
company's financial documentation matches its financial claims. It is not uncommon for a
business to employee an internal auditor to monitor financial controls of a company in
addition to hiring outside auditors.
Auditor = an individual qualified (at the state level) to conduct audits. An auditor may be
an internal auditor, i.e. an individual whose primary job function is to audit his or her
own company, or an external auditor, i.e. an individual from outside the company, who
typically is employed by an auditing firm who handles many different clients.
PIATA - MARKET
piaa manipulatoare - false market
piaa monetar - money market
piaa monopolizatoare - money trust
piaa restrns - narrow market
piaa secundar - secondary market
piaa de schimb - (foreign) exchange market
EURO - EURO
eurobon - euronote
eurocard - eurocard
eurocec - eurochecque
eurocredit - eurocredit
eurodepozit - eurodeposit
eurohrtii comerciale - eurocommercial papers
euroopiune - eurooption
europia - euromarket
europia de capitaluri - eurocapital market
europia monetar - euromoney market
eurovalute - eurocurrencies
PRET - PRICE
preul energiei - energy cost
pre cerut - asking price
pre competitiv - competitive price
pre convenit - agreed price
pre correct - true and fair price
pre de acceptare - acceptance price
pre de achiziie - historical cost
pre de cerere - demand price
pre de factur - invoice price
pre de ncepere a licitaiei - opening bid
pre de livrare - delivered price
pre de ofert - tender price
pre de prob - probate price
pre de rambursare - redemption price
pre de rscumprare - repurchase price
pre de referin - shadow price
pre de vnzare - sale / selling price
pre en detail - retail price
pre en gross - wholesale price
pre net - net price
pre unitar - unit price
BANCA - BANK
banc emitent - issuing bank
banc eitent a creditului - openind bank
banc pltitoare - paying bank
banc central - central bank
banc colectoare (ncasatoare) - collecting bank
banc de investiii - investment bank
banc naional - national bank
banc negociatoare - negotiating bank
banc universal - full service bank
Banca European de Investiii - European Investment Bank/EIB
Banca European pentru Reconstrucie i Dezvoltare - European Bank for
Reconstruction & Development / EBRD
Banca Internaional de reconstrucie i Dezvoltare / BIRD - International
Bank for Reconstruction & Development/IBRD
Banca Reglementrilor Internaionale / BRI - Bank for International
Settlements/BIS
English for Specific Purposes (ESP) is a sphere of teaching English language including
Business English, Technical English, Scientific English, English for tourism, etc.
Characteristics:
- ESP is defined to meet specific needs of the learners.
- ESP makes use of underlying methodology and activities of the discipline it
serves.
- ESP may be related to or designed for specific disciplines
- ESP may use, in specific teaching situations, a different methodology from
that of General English
- ESP is generally designed for intermediate or undergraduates or master
students.
- Most ESP courses assume some basic knowledge of the language systems
Therefore, ESP points at a specific language area in our case FINANCIAL
AUDIT COMMUNICATION IN ENGLISH - and does mainly refer to specific items of
vocabulary (semantics and pragmatics) together with other linguistic issues liable to
connect with audit activities.
Or, to put it differently, every profession has its own lexicon. To communicate
with auditors and supervisors or else, as a future auditor having to communicate with
the audited companys staff you, must know key auditing phrases. As an audit master
student, knowing these English terms becomes helpful if you are reading the international
technical literature in the field - which is quite obliging if you are or will be only a
business owner who will be audited in the future, because auditors sometimes forget to
switch from audit-specific talk to regular language when speaking with you a specialist
in the field. Such particular vocabulary, which will be encountered in many translations,
are items are:
- Audit evidence: Facts gathered during the audit procedures that provide a
reasonable basis for forming an opinion regarding the financial statements
under audit.
- Audit risk: The risk of forming an inappropriate opinion on the financial
statements under audit.
- Control risk: The risk that a companys internal controls wont detect or
prevent mistakes.
- Due professional care: Taking the time to gather reasonable audit
evidence to support the fact that the financial statements are free of
material misstatement.
- Generally accepted accounting principles (GAAP): Standard U.S.
accounting guidelines for reporting financial statement transactions.
(necessary in translating US technical literature for getting informed)
- Generally accepted auditing standards (GAAS): Standard U.S. auditing
guidelines for planning, conducting, and reporting on audits. . (necessary
in translating US technical literature for getting informed)
- Going concern: The expectation that a business will remain operating for
at least another 12 months.
- Independence: Having an arms-length relationship meaning no
special or close relationship with the client under audit.
- Inherent risk: The likelihood of arriving at an inaccurate audit conclusion
based on the nature of the clients business.
- Internal controls: The operating standards a client uses to prevent or
uncover mistakes.
- Management assertions: Representations the managers of a company
make on the financial statements.
- Materiality: The importance placed on an area of financial reporting
based on its overall significance.
- Objectivity: The ability to evaluate client records with no preconceived
notions or prejudices.
- Professional scepticism: Approaching an audit with a questioning mind-
set.
- Sampling: Selecting a small but pertinent and representative number of
records to represent the entire population of records.
Here we are to refer to only the financial audit contracts as main documents
describing the relationship between the performer and beneficiary of audit
activities:
si
Plata se face prin virament n contul auditorului nr. .........., deschis la Banca ..........
Onorariul se poate renegocia anual.
Auditorul se oblig:
Beneficiarul se oblig:
Art. 7. CONFIDENTIALITATE
Partea care invoc nendeplinirea obligatiile contractuale de ctre cealalt parte, poate
cere daune interese.
Dup ncetarea cazului de fort major, partea care l-a invocat, si va relua obligatiile
contractuale n termen de 3 zile si va anunta cealalt parte. Dac nu procedeaz la
anuntarea, n termenele prevzute mai sus, a nceperii si ncetrii cazului de fort major,
partea care l invoc va suporta toate daunele provocate celeilalte prti prin neanuntarea
n termen.
Prezentul contract nceteaz prin rezilierea de ctre oricare dintre prti cu o notificare
prealabil de 15 zile nainte de data propus pentru reziliere.
Litigiile care vor izvor din prezentul contract sau n legtur cu prezentul contract,
inclusiv cele referitoare la validitatea, interpretarea, executarea sau desfiintarea lui, vor fi
solutionate pe cale amiabil.
Dac prtile nu vor ajunge la o ntelegere amiabil, atunci litigiile vor fi naintate spre
solutionare instantelor competente.
Art. 12. Prezentul contract se ncheie n . exemplare, din care un exemplar se depune la
Filiala Corpului Expertilor Contabili si Contabililor Autorizati din Romnia n raza creia
si are sediul prestatorul, n termen de ..... zile de la ncheiere.
AUDITOR, BENEFICIAR
6.2. SAMPLE AUDIT AGREEMENT IN ENGLISH
Task: Fill in the blanks and translate it into Romanian:
Pitching potential clients - When you freelance or own a business, your livelihood
depends on your ability to sell your services. You need to be able to convince prospects
that you are the best person for the job, and the communication details in this third
chapter will help you understand that a good start in a business involving foreign partners
is well supported by a solid knowledge of English and clearly-defined communication
skills.
Communicate Professionally - Your professionalism can win you contracts, and your
communication skills add to the complete package. Take time to proofread all emails
prior to sending; use a business email address with a proper signature; answer the phone
professionally; and speak articulately and competently at all times.
Client meetings, even those that take place over the telephone, are an integral part of
every successful business.
Schedule and Prepare Thoroughly - Were all busy these days, so scheduling your
meetings in advance ensures that you and your clients have an adequate amount of
uninterrupted time to speak. Once your meeting is scheduled, take time to prepare an
agenda that outlines focus points and sets a structure. Sharing the agenda for the meeting
gives both you and the client an opportunity to fully prepare. Because you may not be
using the same calendar or scheduling program as your client, confirming the date and
time of your meetings in an email and sending a reminder and the agenda the day before
is good practice. If you are unsure how to format an agenda, plenty of templates are
available for free online.
Speak, Pause, Listen - When you have several topics to tackle, rushing through them
to get all of your ideas out may be tempting. But this causes confusion and makes the
client feel that their input is not important. Slow down, and remember that
communication is a two-way street. Establish a give-and-take that allows both parties to
have their say.
One way to become a better listener is to limit or eliminate distractions during your
conversations. That may mean closing your email client, turning off the television and
closing the door to your office. By doing these small things, you ensure that the client has
your full attention, and they will sense that, too.
Follow Up in Writing - While you may be taking notes during phone or in-person
meetings, the other party might not be, so follow up after the meeting with a written
message, giving an overview of the discussion to make sure you are both on the same
page. Summarize what was agreed, repeat questions that were raised and outline the next
steps and responsibilities for both parties. In addition to sending your notes, invite the
other party to give their feedback on what you have sent. This way, it becomes a
collaborative document and not just one persons view.
Ask for Feedback - One way to maintain long-term relationships with your clients is
by keeping open lines of communication. This means asking them for their input on how
things are going and how they feel about the service youre providing. This can be
accomplished by inquiring at the end of a project, during day-to-day conversations or
through formal surveys. The format matters less than the actual act of it, so work it into
your business and fine tune as you go along.
In Teams:
1. Introduction of Team Members-
2. Title of theme- Outline of the whole presentation-
3. General Purpose- Interest arousal-
4. Presentation style + Enthusiasm-
5. Introduction & Conclusion of theme (including thesis statement + restatement of
thesis)-
6. Collaboration among/transition between team members- Questions elicited-
7. Visual Aids used in common-
8. Timing of presentation.
Individually:
1. Title of the topic presented- Goal of presentation (explanation)-
2. Outline of individual presentation + Organization.
3. Introduction: Interest arousal + thesis statement.
4. Facts provided (remember to paraphrase) along with sources/references
(A statement about where information used in the presentation was obtained from)
5. Personal Analysis
6. Activities used to make sure the students have grasped the information
provided (ex: short quiz, questionnaire, item ranking...).
7. Presentation style combined with enthusiasm.
8. Language.
9. Visual aids used: overhead transparencies or PowerPoint slides to visually present the
major points.
10. Conclusion/brief review of all major points covered in the presentation.
To,
The Members of XYZ (India) LTD.
1. We have audited the attached Balance Sheet of XYZ (India) Ltd. Jaipur. As
at 31st March 2008 and also the Profit and Loss Account for the year ended on
that date annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) Order,2003 and amendments
thereto issued by the Central Government of India in terms of Sec 227(4A) of
The Companies
Act 1956, we annex hereto a statement on the matters specified in the paragraphs 4
and 5 of the said order, to the extent applicable to the Company.
4. We further report that :
(i) We have obtained all the information and explanations which to the best of
our knowledge and belief were necessary for the purposes of our audit;
(ii) In our opinion, proper books of account as required by law have been kept
by the company so far as appears from our examination of those books;
(iii) The Balance Sheet and Profit and Loss Account dealt with by this report
are in agreement with the books of account;
(iv) In our opinion, the Balance Sheet and Profit and Loss account dealt with
by this report comply with the accounting standards referred to in sub-
section (3C) of section 211 of the Companies Act, 1956;
(v) On the basis of written representations received from the directors, as on
31st March 2008, and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31 st March 2008 from being
appointed as a director in terms of clause (g) of sub-section(1) of section
274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956, in the manner so required and give a true and
fair view in conformity with the accounting principles generally accepted
in India:
(i) in the case of the Balance Sheet of the state of affairs of the Company
as at 31st March 2008; and
(ii) in the case of Profit and Loss Account, of the Profit for the year ended
on that date.
ForXYZ & CO..
Chartered Accountants
JAIPUR
Dated: September 05th, 2008
(CA NAME)
M. No.
As required by the companies (Auditor Report) Order , 2003 and amendments thereto
and according to the information and explanations given to us during the course of the
audit and on the basis of such checks of the books and records as were considered
appropriate we report that:
(i) a) The company has maintained proper record showing full particulars including
quantitative details and situations of fixed assets.
b) All the assets have been physically verified by the management in accordance with a
phased programme of verification, which in our opinion is reasonable, considering the
size and the nature of business. The frequency of verification is reasonable and no
material discrepancies have been noticed on such physical verification.
c) The assets disposed during the year are not significant and therefore do not affect the
on going concern assumptions.
(ii) a) The inventories have been physically verified by the management during the year
at reasonable intervals.
c) The Company has maintained proper records of inventories and discrepancies noticed
on physical verification of inventories as compared to books records were not material.
(iii) a) The company has not granted unsecured loan to party covered in the register
maintained under section 301 of the Companies Act, 1956.
b) In view of our comments in Para (iii) (a) above, clauses 4 (iii) (b) (c) and (d) of the
said order are not applicable to the company.
c) The company has taken unsecured loan from two parties covered in the register
maintained under section 301 of the Companies Act, 1956 on all basis. The Maximum
amount outstanding during the year was Rs. 420800/- and Rs. 120000 the year ended
balance was Rs. 560800/-.
d) The other terms and conditions on which the loans have been taken are prima facie,
not prejudicial to the interest of the company;
e) In view of our comments in para (iii) (c) and (d) above, clause (iii) (g) of the said
order is not applicable to the company
(iv) There are adequate internal control systems commensurate with the size of the
company and the nature of its business with regard to purchase of inventories, fixed
assets and for the sale of goods and services. During the course of our audit no major
weakness has been observed in the internal control system.
(vi) The company has not accepted any deposits from the public within the meaning of
the sections 58A, 58AA or any other relevant provision of the Act and the rules framed
there under any directives report issued by the Reserve Bank of India. No order in
relation thereto has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal.
(vii) The Company has formal internal audit system commensurate with its size and
nature of its business.
(viii) The Central Government has not prescribed for maintenance of cost records under
section 209 (1) (d) of the Companies Act, 1956 for the company.
(ix) a) According to the records of the company, the undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty and Excise Duty, Cess have regularly deposited with the
appropriate authorities. There are no undisputed amount payable in respect of such
statutory which have remained outstanding as at 31st March, 2008 for a period more then
six months from the date they became payable.
b) There are no amount in respect of any disputed income tax, sales tax, wealth
tax, service tax, custom duty, excise duty and cess.
(x) The company has accumulated losses of Rs.10.55 lacs at the end of the financial
year 2006-07 and it has incurred losses in current financial year of Rs.0.45 lacs.
(xi) The Company has no defaulted in repayment of its dues to banks and financial
institutions.
(xii) The company has not granted any loans or advances on the basis of security by
way of pledge of shares, debentures or other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund, Nidhi Fund or
Mutual Benefit Fund/Societies are not applicable to the company.
(xiv) In our opinion and according to the information and explanations given to us, the
company is not a dealer or trader in shares, securities, debentures and other investments.
(xv) The company has not given any guarantee for loan taken by others from banks
and financial institutions.
(xvi) In our opinion, the term loan have been applied for the purpose for which they
were raised.
(xvii) On an overall examination the Balance Sheet of the company, we report that no
fund raised on short term basis have been used for long term investment.
(xviii) The company has not issued any equity shares and debentures during the year.
(xix) The company has not raised any money by way of public issue during the year.
(xxi) During the course of our examination of the books and records of the company,
carried out in accordance with the generally accepted auditing practices in India, we have
neither come across any instance of material fraud on or by the Company, noticed or
reported during the year.
Nitin Goyal
Mem No.: 400572
Place: Jaipur
Date: 5th September, 2008
The word "negotiation" originated from the Latin expression, "negotiatus", past
participle of negotiare which means "to carry on business". "Negotium" means literally
"not leisure".
Negotiation in trade and tourism is a dialogue between two or more people or
parties, intended to reach an understanding, resolve point of difference, or gain advantage
in outcome of dialogue, to produce an agreement upon courses of action, to bargain for
individual or collective advantage, to craft outcomes to satisfy various interests of two
person/ parties involved in negotiation process. Negotiation is a process where each party
involved in negotiating tries to gain an advantage for themselves by the end of the
process. Negotiation is intended to aim at compromise.
Negotiation occurs in business, non-profit organizations, government branches,
legal proceedings, among nations and in personal situations such as marriage, divorce,
parenting, and everyday life. The study of the subject is called negotiation theory.
Professional negotiators are often specialized, such as union negotiators, leverage buyout
negotiators, peace negotiators, hostage negotiators, or may work under other titles, such
as diplomats, legislators or brokers.
Negotiation typically manifests itself with a trained negotiator acting on behalf of
a particular organization or position. It can be compared to mediation where a neutral
third party listens to each side's arguments and attempts to help craft an agreement
between the parties. It is also related to arbitration which, as with a legal proceeding, both
sides make an argument as to the merits of their "case" and then the arbitrator decides the
outcome for both parties.
There are many different ways to segment negotiation to gain a greater
understanding of the essential parts. One view of negotiation involves three basic
elements: process, behavior and substance. The process refers to how the parties
negotiate: the context of the negotiations, the parties to the negotiations, the tactics used
by the parties, and the sequence and stages in which all of these play out. Behavior refers
to the relationships among these parties, the communication between them and the styles
they adopt. The substance refers to what the parties negotiate over: the agenda, the issues
(positions and - more helpfully - interests), the options, and the agreement(s) reached at
the end.
Another view of negotiation comprises 4 elements: strategy, process and tools,
and tactics. Strategy comprises the top level goals - typically including relationship and
the final outcome. Processes and tools include the steps that will be followed and the
roles taken in both preparing for and negotiating with the other parties. Tactics include
more detailed statements and actions and responses to others' statements and actions.
Some add to this persuasion and influence, asserting that these have become integral to
modern day negotiation success, and so should not be omitted.
Skilled negotiators may use a variety of tactics ranging from negotiation hypnosis,
to a straight forward presentation of demands or setting of preconditions to more
deceptive approaches such as cherry picking. Intimidation and salami tactics may also
play a part in swaying the outcome of negotiations.
Another negotiation tactic is bad guy/good guy. Bad guy/good guy tactic is when
one negotiator acts as a bad guy by using anger and threats. The other negotiator acts as a
good guy by being considerate and understanding. The good guy blames the bad guy for
all the difficulties while trying to get concessions and agreement from the opponent.
When a party pretends to negotiate, but secretly has no intention of
compromising, the negotiator is considered to be negotiating in bad faith.
Shell identified five styles/responses to negotiation.
Individuals can often have strong dispositions towards numerous styles; the style
used during a negotiation depends on the context and the interests of the other party,
among other factors. In addition, styles can change over time.
Accommodating: Individuals who enjoy solving the other partys problems and
preserving personal relationships. Accommodators are sensitive to the emotional states,
body language, and verbal signals of the other parties. They can, however, feel taken
advantage of in situations when the other party places little emphasis on the relationship.
Avoiding: Individuals who do not like to negotiate and dont do it unless
warranted. When negotiating, avoiders tend to defer and dodge the confrontational
aspects of negotiating; however, they may be perceived as tactful and diplomatic.
Collaborating: Individuals who enjoy negotiations that involve solving tough
problems in creative ways. Collaborators are good at using negotiations to understand the
concerns and interests of the other parties. They can, however, create problems by
transforming simple situations into more complex ones.
Competing: Individuals who enjoy negotiations because they present an
opportunity to win something. Competitive negotiators have strong instincts for all
aspects of negotiating and are often strategic. Because their style can dominate the
bargaining process, competitive negotiators often neglect the importance of relationships.
Compromising: Individuals who are eager to close the deal by doing what is fair
and equal for all parties involved in the negotiation. Compromisers can be useful when
there is limited time to complete the deal; however, compromisers often unnecessarily
rush the negotiation process and make concessions too quickly.
The first philosopher of note to break down the process of persuasion was
Aristotle.
He determined that there are three components necessary to effective persuasion:
Logos which is the application of a logical argument
Ethos which is basically the integrity of the messenger
Pathos which is the emotional connection that that drives the action
In that respect logos is logic, ethos is ethics, and pathos is emotion.
In order to inspire your interlocutor to take action you must deliver a logical
reason for him to do so. Since people dont buy based on logic though, it is necessary to
infuse your sales message with an emotional appeal. And in order for them to even
consider your message in the first place you must be perceived as a person of integrity
from whom they would want to buy.
In order to make a sale you must inspire your potential customer to take action.
He must decide to do this on his own, you cant push him into it and expect the decision
to stick. Thats where buyers remorse comes from.
To make a legitimate sale that lasts long after you are gone all that is necessary is
to create conditions that make it easy for your prospect to naturally say yes to your
proposal in the first place.
Why should they buy?
That is where the logic in your pitch comes in.
Why should they buy from you?
That is where your own integrity comes into play.
Why should they buy now?
That is where your emotional connection with them builds up desire until you give
them the release valve of a buying action.
These three elements must be present in any sales presentation you make in order
to consistently make sales.
Integrity is something we must work at maintaining every day. Empathy for our
customers is something we must value and convey. And a logical reason to buy now must
always be constructed in such a way that the message matches your chosen market.
Persuasion is a form of social influence. It is the process of guiding oneself or
another toward the adoption of an idea, attitude, or action by rational and symbolic
(though not always logical) means.
Persuasion methods are also sometimes referred to as persuasion tactics or
persuasion strategies.
Robert Cialdini, in his book on persuasion, defined six "weapons of influence":
Reciprocity - People tend to return a favor. Thus, the pervasiveness of free
samples in marketing and advertising. In his conferences, he often uses the example of
Ethiopia providing thousands of dollars in humanitarian aid to Mexico just after the 1985
earthquake, despite Ethiopia suffering from a crippling famine and civil war at the time.
Ethiopia had been reciprocating for the diplomatic support Mexico provided when Italy
invaded Ethiopia in 1937.
Commitment and Consistency - Once people commit to what they think is right,
orally or in writing, they are more likely to honor that commitment, even if the original
incentive or motivation is subsequently removed. For example, in car sales, suddenly
raising the price at the last moment works because the buyer has already decided to buy.
Social Proof - People will do things that they see other people are doing. For
example, in one experiment, one or more confederates would look up into the sky;
bystanders would then look up into the sky to see what they were seeing. At one point
this experiment aborted, as so many people were looking up that they stopped traffic. See
conformity, and the Asch conformity experiments.
Authority - People will tend to obey authority figures, even if they are asked to
perform objectionable acts. Cialdini cites incidents, such as the Milgram experiments in
the early 1960s and the My Lai massacre in 1968.
Liking - People are easily persuaded by other people whom they like. Cialdini
cites the marketing of Tupperware in what might now be called viral marketing. People
were more likely to buy if they liked the person selling it to them. Some of the many
biases favoring more attractive people are discussed, but generally more aesthetically
pleasing people tend to use this influence excellently over others. See physical
attractiveness stereotype.
Scarcity - Perceived scarcity will generate demand. For example, saying offers
are available for a "limited time only" encourages sales.
In their book The Art of Woo, G. Richard Shell and Mario Moussa present a four-
step approach to strategic persuasion.
They explain that persuasion means to win others over, not to defeat them. Thus it
is important to be able to see the topic from different angles in order to anticipate the
reaction others have to a proposal.
Conditioning plays a huge part in the concept of persuasion. It is more often about
leading someone into taking certain actions of their own, rather than giving direct
commands. In advertisements for example, this is done by attempting to connect a
positive emotion to a brand/product logo. This is often done by creating commercials that
make people laugh, using a sexual undertone, inserting uplifting images and/or music etc.
and then ending the commercial with a brand/product logo. The thought is that it will
affect how people view certain products, knowing that most purchases are made on the
basis of emotion. Just like you something bring back a memory from a certain smell or
sound, the objective of some ads is solely to bring back certain emotions when you see
their logo in your local store. The hope is that by repeating the message several times it
will cause the consumer to be more likely to purchase the product because he/she already
connects it with a good emotion and a positive experience.
1. Debt balances: when calculating the value for shares consideration in the sale and
purchase agreement, the seller could argue that balance sheet items are not debt (i.e. are
not involved in the long term financing of the business). The seller could argue that these
items shouldn't be deducted when moving from an initial headline debt-free-cash-free
offer to the value for shares consideration. If debt items are not included and not deducted
from the headline offer, shares consideration for the seller goes up.
2. Working capital: the seller could argue that the business has enough working capital.
The seller could argue that the buyer should have known about working capital
requirements for the business based on information previously released. This should help
avoid a situation where a buyer tries to "chip" the sale price at the last minute, on the
basis that the business does not carry enough working capital.
3. Target net asset value: the seller could argue that target net asset value should be
referenced against an older balance sheet released early on in the transaction process, the
same one the buyer referenced when they submitted their offer. Post deal completion
auditors will measure the net asset value for the business. If actual net asset value, as
measured by the audit, is relatively high compared to the target net asset value, the buyer
will have to pay more to the seller.
4. Completion accounts: the seller could argue against the introduction of new
accounting policies (for example, discounting old debtors) that might result in lower asset
values as determined by a post-completion audit. If asset values are robust, actual net
asset value (as measured by the audit) will compare favourably against target net asset
value. There will be less chance that the seller has to compensate the buyer.
10. ESSENTIAL ENGLISH ABILITIES FOR AUDIT TRAINING COURSES
Financial audit activities require specific skills, among which the knowledge of
English has quite a great deal of importance. Auditors have to continuously improve their
professional knowledge field by reading the international technical literature and performing
exchanges of experience with foreign experts. Therefore, the mastering of a very specialised
vocabulary in the field at issue is more than significant in this particular context. The
following list, added with the proper explanations is an invaluable tool for master students
willing to improve their English with usage in audit:
o acceptance sampling is sampling to determine whether internal control
compliance is greater than or less than the tolerable deviation rate.
o accounting records are the records of initial accounting entries and supporting
records, such as checks and records of electronic fund transfers; invoices;
contracts; the general and subsidiary ledgers; journal entries and other
adjustments to the financial statements that are not reflected in journal entries; and
records, such as work sheets and spreadsheets, supporting cost allocations,
computations, reconciliations, and disclosures.
o accounting research bulletins (ARBs) were issued years ago to set generally
accepted accounting principles. Some have not been superseded by
pronouncements of the Financial Accounting Standards Board. Those old
pronouncements still qualify as generally accepted accounting principles.
o allowance for sampling risk The difference between a sample estimate and the
projected population characteristic at a specified sampling risk. This allowance is
also the difference between the expected error rate and the tolerable deviation
rate.
o audit planning is developing an overall strategy for the audit. The nature, extent,
and timing of planning varies with size and complexity of the entity, experience
with the entity, and knowledge of the entity's business.
o audit risk A combination of the risk that material errors will occur in the
accounting process and the risk the errors will not be discovered by audit tests.
Audit risk includes uncertainties due to sampling (sampling risk) and to other
factors (nonsampling risk).
o business risks are risks that could adversely affect an entity's ability to achieve its
objectives and execute its strategies or from the setting of inappropriate objectives
and strategies.
o collusion A secret agreement between two or more parties for fraud or deceit.
o efficiency The ratio of the audit evidence produced to audit resources used.
o embedded audit modules are included in the clients data processing systems to
facilitate the acquisition of data needed by auditors.
o financial projections are prospective financial statements that present, given one
or more hypothetical assumptions, an entity's expected financial position, results
of operations, and changes in financial position. A financial projection includes
several alternative scenarios while a forecast is the single most likely scenario.
o general ledger A record to which monetary transactions are posted (in the form of
debits and credits) from a journal. It is the final record from which financial
statements are prepared. General ledger accounts are often control accounts that
report totals of details included in subsidiary ledgers.
o gross margin percentage The gross margin from an income statement divided by
net sales revenue.
o hard copy A printed copy of information as opposed to information stored in
computer readable form.
o hash total A control total that has no meaning in itself except for control, e.g.,
total social security numbers of employees paid.
o incorrect acceptance The risk of incorrect acceptance is the risk the sample
supports the conclusion that the recorded balance is not materially misstated when
it is materially misstated.
o incorrect rejection The risk of incorrect rejection is the risk the sample supports
the conclusion that the recorded balance is materially misstated when it is not
materially misstated.
o independent In all matters relating to the assignment, an independence in mental
attitude is to be maintained by the auditors. This means freedom from bias, which
is possible even when auditing one's own business (independence in fact).
However, it is important that the auditor be independent in appearance (that others
believe the auditor is independent).
o inference control is a control used in the output of databases to stop a person who
has access to only summary information from being able to determine (infer) a
particular value for a particular record.
o internal auditors are employees of the client responsible for providing analyses,
evaluations, assurances, recommendations, and other information to the entity's
management and board. An important responsibility of internal auditors is to
monitor performance of controls.
o journal A book of original entry in a double-entry system. The journal lists all
transactions and the accounts to which they are posted.
o nonsampling risk is audit risk not due to sampling. An auditor may apply a
procedure to all transactions or balances and fail to detect a material
misstatement. Nonsampling risk includes the possibility of selecting audit
procedures that are not appropriate to achieve a specific objective. For example,
confirming recorded receivables cannot reveal unrecorded receivables.
Nonsampling risk can be reduced to a negligible level through adequate planning
and supervision.
o overall review The objective of the overall review stage of the audit is to assess
conclusions reached, and evaluate the overall financial statement presentation.
The overall review includes reading the financial statements and notes and
considering adequacy of evidence gathered in response to unusual or unexpected
balances. Results of an overall review may indicate the need for additional
evidence.
o plan Audit planning is developing an overall strategy for conduct and scope of
the audit. The nature, extent, and timing of planning vary with size and
complexity of the entity, experience with the entity, and knowledge of the
business. In planning the audit, the auditor considers the entity's business and its
industry, its accounting policies and procedures, methods used to process
accounting information, the planned assessed level of control risk, and the
auditor's preliminary judgment about audit materiality.
o quick ratio Quick assets divided by current liabilities. Quick assets are current
assets less inventories and prepaid expenses.
o ratio The relation between two quantities expressed as the quotient of one divided
by the other. The ratio of 8 to 2 is written 8/2 and equals four. Financial statement
ratios are used as analytical procedures in audits.
o sampling risk The possibility that conclusions drawn from the sample may not
represent correct conclusions for the entire population.
o service auditor The auditor of an organization that provides services such as data
processing or pension trust administration to other organizations (the users).
Auditors of the users (user auditors) rely on a report from the service auditor
about controls in the service organization that apply to financial statements of the
user organization they are auditing.
o third parties are all persons, including those charged with governance, except for
members of management.
o tick marks in audit work papers are footnotes represented by a symbol instead of
by a number. They indicate procedures that have been carried out on specific
items in the work papers.
o timing of audit testing means when the procedure is performed. If you perform
a test of balances procedure before year end there is a risk that internal controls
are inadequate to provide assurance up through the balance sheet date. There is
less risk if you do the procedure as of the balance sheet date.
o treasurer - The officer who controls the entity's funds. The treasurer normally
signs checks and is responsible for cash management.
o treasury stock - a stock of the corporation that has been issued and later
reacquired. It is not an asset. It is a reduction of stockholders' equity. Treasury
stock can be recorded at either its cost or its par value.
o trial balance - A statement of open debit and credit accounts in a ledger to test
their equality.
o unconditional requirements apply in all cases. Quality control standards use the
words must or is required for an unconditional requirement.
o validity check - Software control over input of data to a computer system. Data
is compared with the type of data properly included in each input field, e.g., only
letters in a name field.
o variable sampling - The characteristic tested has many possible values (such as
dollar value of inventory).
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