Assurance Hand Note in Kl

Mahedi 01914919285 Subject: Assurance Level: Knowledge Chapter: 1 (Concept of & Need for Assurance) Assurance: a conclusion of an opinion designed to enhance the degree of confidence of the intended users by evaluating or measuring of a subject matter. Assurance engagement: is a process by which a practitioner can obtain the authority to express a conclusion opinion about the outcome of the evaluation or measurement of a subject matter against criteria to enhance the degree of confidence of the intended users. Key elements of assurance engagement: †¢ †¢ †¢ †¢ †¢ Three parties A subject matter Suitable criteria Sufficient criteria ReportReasonable assurance: is the high but not absolute level of assurance, depends on evidence obtaining during the time of audit. Importance and benefits of assurance: †¢ †¢ †¢ †¢ †¢ †¢ Independent professional opinion Confidence Prevention of error and fraud Acceptance Recognition/reliability Credibi lity True: that id factual, confirmation and reality Fair: free from discrimination and bias Assurance never be absolute: assurance provider never obtain the absolute level of assurance due some limitations. So assurance never be absolute. Limitations of assurance engagement: †¢ †¢ †¢ †¢ †¢ †¢ Over see the preparation of F.S. Inherent limitation Evidence obtain Test basis checking Estimates Nature of assurance report Tarek 01712-049032 †¢ †¢ Short time Shortage of man power Assurance engagement process: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Obtaining the engagement Continuous risk assessment Engagement acceptance Scope of the engagement Planning the engagement Obtaining evidence Evaluation the result of assurance work Concluding and reporting on the engagement Reporting to the engagement parties Keeping record Audit: the objective of an audit of F. S. is to enable the auditor to express an opinion whet her the F. S. re prepared, in all material respects, in accordance with an applicable financial reporting framework. There are many issues users want assurance on: * Value for money studies †¢ Circulation report †¢ Cost/benefit report †¢ Due diligence †¢ Review of specialist business activities †¢ Internal audit †¢ Report on website security †¢ Fraud investigations †¢ Inventories and receivables report †¢ Internal control report †¢ Reports on business plans or projections Examples of assurance engagement †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Local authority audit Bank audit Insurance audit Pension scheme audit Charity audit Solicitors audit Environmental audit Branch auditExpectation gap: difference between expectation level and practical audit performance. Tarek 01712-049032 Company Act: 1994 Chapter: 2 (Process of Assurance) Scope/step/process of assurance engagement: †¢ †¢ †¢ †¢ †¢ Source of information of new client Enquiries from other source Document review Previous auditor Review rules, regulation and standards Assurance engagement letter: 1. Starting: †¢ †¢ Flow of communication auditor Vs client Address- To responsible parties/client 2. Body: †¢ †¢ †¢ †¢ Introduction/reference Management and auditors responsibility to F. S. Scope of audit work-test limitation Other responsibilities . Conclusion: †¢ †¢ Audit fees and other charges Conclusion Para (depend on nature of business) Audit accepting an engagement: †¢ †¢ †¢ †¢ Proposed auditor must communicate with previous auditor (on the permission of client). If their audit engagement date is valid Refusal reasonable cause If any fraud/error in the client Assurance appointment considerations: †¢ †¢ †¢ †¢ Ensure professionally qualified Ensure existing resources are adequate Obtain reference Communicate with previous auditor. Tare k 01712-049032 ** Read interactive questions and self test from manual. Chapter: 3 (Planning and Assignment)Planning: is a process by which assignment will be performed in an effective manner. Audit plan: is a process by which auditor will perform all activities regarding audit in an effective manner. Audit strategy: is a technique which sets scope, timing and direction of the audit and guides the development of the audit plan. Importance/requirements of audit plan: †¢ †¢ †¢ †¢ †¢ †¢ Appropriate attention to important areas Identify potential problems and resolve timely Ensure the audit work done properly and organized way Assigned the audit work to the member of audit team Direction and supervision of audit work Facilitate review of workStructure of audit plan: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Ethical requirements Ensure team of engagement Establishing audit strategy Development audit plan including risk assessment proced ure/audit test Determining the relevant characteristics Discovering key dates for reporting & others Determining materiality & preliminary risk assessment Consideration team members availableTarek 01712-049032 Key elements of an overall audit strategy: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Understanding the entities environment Understanding the accounting & internal control system Risk and materiality Consequent nature, timing and extent of procedures Co-ordination, direction, supervision and review Other matters Budget and fees StaffingProfessional skepticism: An attitude of professional skepticism means the auditor makes a critical assessment with questioning mind, of the validity of audit evidence obtained and is alert to audit evidence that contradicts or bring into question, the reliability of documents and responses to enquiries and other information obtain from management and those charged with governance. Analytical procedure: means evaluation of f inancial information made by a study of possible relationship among financial and non-financial data.Sources for risk assessment by using analytical procedure: †¢ †¢ †¢ †¢ †¢ †¢ †¢ Interim financial information Budget Management information Non-financial information Bank and cash records VAT returns Board minutes Show ratio analysis formula (manual page 50) Materiality: relates to the level of tolerable error that affects the decision of users and accountant. Tolerable error: the maximum error that an auditor is accept in a class of transactions or balances in the F. S. Tolerable error percentage (%): On sales 0. 5-01% Gross profit 0. -1% Total asset 1-2% Net asset 2-5% Profit before tax 5% Profit after tax 5-10% Tarek 01712-049032 Audit risk: the risk is define, that auditors give an inappropriate opinion on the F. S. Audit risk: material misstatement risk (for co. ) + detection risk (for auditor) Material misstate risk = inherent risk + control r isk Inherent risk: the susceptibility of an account balance or class of transaction to misstatement that could be material individually or when aggregated with misstatements in other balances or classes assuring there where no related internal controls.Characteristics of inherent risk: †¢ †¢ †¢ †¢ †¢ Estimates of balances If co. is in trouble Seeking for fund raising Motivation of director/management (profit related issue) Choices of methods for financial transactions Control risk: the risk that a material misstatement would not be prevented, detected or corrected by accounting and internal control systems. Detection risk: the risk that, auditors procedure will not detect or misstatement that exits in an account balance or class of transaction that could be material.Steps for assessing the audit risk: †¢ †¢ †¢ †¢ Step 1: identify the risks throughout the process of obtaining and understanding the entity. Step 2: relate the risk to what ca n go wrong the assertion level. Step 3: consider whether the risks are magnitude that could result in material misstatement. Step 4: consider the likelihood of risk considering material misstatement. Chapter: 4 (Evidence and reporting) Documents: All information which obtain/gathered by the auditor during audit period is documents. Audit evidence: all information/documents gathered by the auditor and on which based auditor conclude the opinion.Tarek 01712-049032 Test of control: audit evidence obtains evaluating the effectiveness of controls in preventing/detecting and correcting material misstatement at the assertion level. Substantive procedure: test of details of classes of transactions account balance and disclosure substantive analytical procedure. Quality/source of evidence: †¢ †¢ †¢ †¢ †¢ external auditor entity written oral F. S. assertion level: A) Class of transaction †¢ †¢ †¢ †¢ †¢ Occurrence Completeness Accuracy Cut-off Classification B) A/C balance: †¢ †¢ †¢ †¢ Existence Rights and obligations Completeness Valuation and allocationC) Presentation and disclosure: †¢ †¢ †¢ †¢ Occurrence Completeness Classification and understandability Accurate and valuation Sufficiency: is the measure of quantity of audit evidence. Appropriateness: is the measure of quality or reliability of audit evidence. F. S. assertion: the presentations by management, explicit or otherwise that are embodied in the financial statement. Audit opinion: Tarek 01712-049032 A) qualified B) non-qualified Qualified opinion: 1. 2. 3. 4. modified scope of limitations adverse disclaimer Read self test and interactive question. Chapter: 5 (introduction to internal controlBSA 315: internal Control Internal control: is the process designed and effect by those charged with governance, management and other parts to provide reasonable assurance about the entities objectives with record to reliability of f inancial reporting, effectiveness and efficiency of operations and compliance with applicable laws and regulations. Reason for internal control: †¢ †¢ †¢ Minimizing business risk Ensuring the continuing effective function of the company Ensuring Co. complies with relevant laws and regulations. Limitation of internal control: †¢ †¢ †¢ †¢ †¢ Expense Human elements Unusual transaction Management oversee Regular monitoringComponents of internal control: †¢ †¢ †¢ †¢ †¢ The control environment Risk assessment process Information system Control activities All system should be monitored Tarek 01712-049032 Control environment: the control environment includes the governance and management functions and the attitudes, awareness and actions of those charged with governance and management concerning the entities internal control and its importance in the entity. Audit committee: a subsection of the board of directors which has a p articular interest in the finance and accounting activities of the Co.Function/duties of audit committee: †¢ †¢ †¢ †¢ †¢ †¢ †¢ To review the integrity of the F. S. To review the Co. internal financial control Monitor the effectiveness of the Co. internal audit function To make recommendations to the board in relation to the external auditor Monitor the independence of the internal auditor To implement policy on the provision of non-audit service by the external auditor Entities risk assessment process: the process by which management in a business identifies business risk relevant to financial reporting objectives and decides what actions to take to address those risks.Business risk: The risks inherent to the Co. in its operations. It is risk at all levels of the business. Control activities: The policies and procedures that help ensure that management directives are carried. Business risk assessment process: †¢ †¢ †¢ †¢ Identif y relevant business risk Estimate the impact of risks Asses the likelihood of occurrence Decide upon controls Reporting objectives: includes the procedures and records designed to initiate, record, process and report entity transactions and to maintain accountability for the related assets, liabilities and equities.Types of control activities: †¢ †¢ †¢ †¢ †¢ Authorizations Performance review Information processing physical control Segregation of duties IT control: the internal control in a computerized environment includes both manual procedures and procedures designed to computer programs. Tarek 01712-049032 Application control: are manual or automated procedures that apply to the processing of individual applications to ensures that transactions occurred, are authorized and are completely and correctly recorded and processed.General controls: are policies and procedures that relate to many applications and support the effective function of application cont rols by helping to ensure the continued proper operation of information systems. General control examples: †¢ †¢ †¢ †¢ †¢ Development of computer applications Prevention or detection of unauthorized changes to programs Testing and documentation of program Controls to prevent unauthorized amendments to data files Controls to ensure continuity of operationsExamples of application control: †¢ controls over input: completeness †¢ controls over input: accuracy †¢ authorization control †¢ processing control †¢ control over master file and standing data Steps to recording of internal control: †¢ †¢ †¢ Narrative (short note, background information) Questioners/checklist Diagrammed (flow chart, organization chart, family trees and record of related parties) Internal control procedure: †¢ Initiative †¢ Authorization †¢ Accuracy †¢ Recording †¢ Documentation Tarek 01712-049032Chapter: 6 (Revenue System) R isk objective on selling goods: †¢ †¢ †¢ Order may be taken from customer who are not able to pay Order may be taken from customer who are paid after long time Order may not recorded properly Taking steps to prevent this risk: †¢ †¢ †¢ Goods and services are only supplied to customers with good credit rating Customers are encouraged to pay promptly Chapter: 9 (Internal Audit) Internal Audit: A monitoring activities established within an entity as a service to the entity.Its function includes, amongst other things, examining, evaluating and reporting to management and the directors on the adequacy and effectiveness of components of the accounting and internal control system. External Audit: An audit carried out by an external. The objective of an external audit of financial statements is to enable auditors to express an opinion on whether the F. S. is prepared in accordance with the applicable financial reporting framework. Difference between internal an d external audit: Subject Definition Reason Internal Audit †¦Ã¢â‚¬ ¦.Is an activity design to add value and improve an organizations operation Audit report to the board of director or audit committee Audit works relate to the operations of the organization He/they are the employees of the Co. except some exception External Audit †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. To express an opinion on F. S Reporting Relating to Relationship with the Co. Auditors report to the shareholder to Co. on the truth and fairness of the F. S Audits works to the F. S They are independent not the employee of the co. Internal Audit functions: †¢ Monitoring internal controlTarek 01712-049032 †¢ †¢ †¢ †¢ Examining financial and operating information Review of the economy, efficiency and effectiveness of operations Review of compliance with laws and regulations Special investigations, for instance into suspected fraud Operational Audit: Operational Audit is the review of operational process of the organization. They are also known as management or efficiency audit. Their prime objective is the monitoring if management performance, ensuring Co. policy is adhered to. Function of Operational audit: †¢ †¢ Ensuring policies is adequate Ensuring policies work effectivelyChapter: 10 (Documentation) Audit evidence: Working paper with relevant evidence to draw opinion and helping assurance provider for assurance report. Audit Documentation: Audit documentation is the record of procedures performed, relevant audit evidence obtained and conclusion related. Form and content/work of documentation: †¢ †¢ †¢ †¢ †¢ †¢ Procedure of audit Risk identification Judgment Significance Problem/expectation Audit methodology Automated working paper: Working paper package have been developed which can make the documenting audit work much easier.Advantages of evidence: Tarek 01712-049032 †¢ †¢ †¢ Risk and error reduce Key of analytical informat ion Less time consuming Permanent audit filing: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Engagement letter Questioner Memorandum of Article and A/A Legal documents Detail history of business Board minutes of continuing relevant Previous F. S. Accounting system notes Current audit file: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ F. S. Checklist Management details Review notes Letter of representation Budget and summarized Management letter Notes of board minutes Communication with 3rd partiesWorking paper decoration: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Name of client Balance sheet date Name of the preparer Date of preparation Subject of the working paper Name of reviewer Date of review Object of the work done Source of information Sample size determine The work done The result obtained Analysis of error Other significant observation The conclusion dr awn Tarek 01712-049032 Tarek 01712-049032 Chapter: 11 (Evidence and Sampling) Evidence: All of the information used by auditor to drawn an opinion. Source to obtain evidence: †¢ †¢ †¢ †¢ †¢ †¢ †¢ Inspection Observation Inquiry Confirmation Re-calculation Re-performance Analytical procedureTest of control: Perform to obtain audit evidence about the effectiveness of controls in preventing or detecting and correcting material misstatement at the assertion level. Substantive procedure: Audit procedure to detect material misstatement at the assertion level test of details of transactions. * Account balance * Substantive analytical procedure Computer assisted audit technique: †¢ †¢ †¢ Dummy data Rent data Dummy data against verified copy Quality of audit evidence: †¢ †¢ †¢ †¢ †¢ External Auditor Entity Written OriginalTarek 01712-049032 Analytical Procedure – BSA 320 Audit reliability factors: †¢ Analyz ed †¢ Availability of information †¢ Accuracy †¢ Frequency †¢ Relevant of the information †¢ Comparability of the information †¢ Previous auditor Source of information about client: †¢ Interim financial information †¢ Budgets †¢ Management accounts †¢ Non-financial information †¢ Bank and cash records †¢ Sales tax returns †¢ Board minutes †¢ Client/3rd party Audit sampling: Involve the application of audit procedure to less then100% of the items within an account balance or class transactions such that all sampling units have a change of selection.Population: Is the [entire set of data from which a sample is selected and about which an auditor wishes to draw a conclusion. Statistical sampling: Is any approach to sampling that involves random selection of a sample, and use a probability theory to evaluate sample results, including measurement of sampling risk. Non-statistical sampling: Is a substantive approach to inference, in that mathematical terms are not used consistently in determining sample size, selecting the sample, or evaluating sample result.Error: Means either control deviations, when performing test of controls, or misstatements, when performing substantive procedure. Tarek 01712-049032 Expected Error: Is the error that an auditor expects to be present in the population. Sampling units: Are the individual items constituting in a population. Tolerable error: Is the maximum error in the population that the auditor would be willingly to expect. Random selection: Ensures that all items in the population have an equal chance of selection, e. g. y use of random number tables or computerized generator. Sequence or block selection: It may be used to check whether certain items have particular characteristics. Monetary unit sampling: This is a selection method that ensures that, every CU1 in a population has an equal chance of being selected for testing. Anomalous error: Means an error t hat arise an isolated event that has not recurred other than on specifically identifiable occasions and is therefore not representative of errors in the population.Sampling method: †¢ random selection †¢ systematic selection †¢ haphazard selection †¢ sequence block selection †¢ monetary unit sampling Name of some data analytical software for auditor: †¢ ACL (Audit Command Language) †¢ IDEA †¢ ESCORT computer audit †¢ Active data for Excel †¢ Top CAAT for Excel †¢ ACL service Ltd †¢ Case ware international †¢ Intra com IT service Tarek 01712-049032 †¢ †¢ Information active Inc Reinvent data Tarek 01712-049032 Chapter: 12 (Management Representation) Management: Means officer (director and Co. secretary) and others who perform senior managerial functions.Elements of management representation letter: †¢ †¢ †¢ Entity letter head To auditor and date Tarek 01712-049032 Chapter: 13 (Substantive Procedu re) Key issues/risk of non-current assets: †¢ †¢ †¢ †¢ †¢ Right and obligations assertion Existence assertion Completeness assertion Valuation assertion Presentation and disclosure assertion Source of information/observation matters: †¢ †¢ †¢ †¢ †¢ †¢ †¢ The non-current asset register Purchases invoices for assets during the year Valuation carried out by 3rd party Purchases deeds or receipt documents Hire purchases documents of assets Physical inspection Depreciation calculationIntangible non-current asset: means the assets which cannot touch or show but has a market value. Examples of intangible non-current assets: †¢ †¢ †¢ Goodwill Patent right License and development cost etc. Key issues and sources of information of intangible non-current assets is as like as tangible non-current assets. Key issues/risk of inventory: †¢ †¢ †¢ †¢ †¢ †¢ Existence Completeness Obsolete or damage goods Miscalculation Rights and obligations Cut-off dates Prevent risk of inventory: †¢ The Co. control over inventory countingTarek 01712-049032 †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Auditors regular physical counting Check inventory register Physical verification from warehouse Check purchases invoices Check work-in-progress records for inventory Post-year-end sales invoices for inventory Post-year-end price lists for inventory Post-year-end sales Sources of information for non-current assets: †¢ †¢ †¢ †¢ Invoices 3rd party valuation Auditors inspection Client schedule and calculation Source of information for inventory: †¢ †¢ †¢ †¢ †¢ Auditors attendance at count Invoices 3rd party confirmation Client control over count Clients production scheduleInventory count procedure/various types of inventory count: 1. organization of count: †¢ †¢ †¢ †¢ Supervision by senior staff Tidying and ma rking Restriction and control movement during counting Identification of damaged, obsolete, slow moving and returnable goods 2. Counting: †¢ †¢ systematic counting independence counting 3. Recording: †¢ †¢ †¢ †¢ †¢ Serial numbering Information count records Quality, controls and work in progress counting Inward and outward counting Reconciliation with recordsTarek 01712-049032 Key issues of receivables: †¢ †¢ Rights and obligations Valuation Source of information of receivables: †¢ †¢ 3rd party confirmation Cash payment after date Key issues of bank: †¢ †¢ †¢ †¢ Completeness Existence Rights and obligations Valuation Source of information about parties bank A/c: †¢ †¢ †¢ †¢ Confirmation from bank Bank statement Client schedule Reconciliation with cash book Payable key issues: †¢ †¢ †¢ Completeness Rights and obligations Correct valuation Source of information of A/P: †¢ †¢ †¢ Suppliers statements Payable ledger records Payment documentsKey issues of long term liabilities: †¢ †¢ †¢ †¢ Completeness Accuracy Disclosure Particular papers Source of information of long term liabilities: †¢ Loan documents Tarek 01712-049032 †¢ †¢ †¢ †¢ †¢ Statutory books Confirmations from lenders Client schedule Board minutes Client calculation Key issues of income statement: †¢ †¢ Completeness Accuracy Steps for observing long term liabilities: †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Compare opening balances to previous years working paper Test clerical accuracyCompare balance to nominal ledger Check nominal ledger Trace additions and repayments to entries in the cash book Confirm repayments with loan agreement Examine cancelled cheques Verify the borrowing limits Examine sign of board minutes Obtain direct confirmation from lenders Verify inter est check Review any correspondence review minutes, cashbook and loan books. Chapter: 14 (Codes of Professional Ethics) Fundamental principles of code of ethics: †¢ †¢ †¢ †¢ †¢ Integrity Objectivity Professional competence and due care Confidentiality Professional behaviorIndependence of mind: The state of mind that permits the expression of a conclusion without being affected by influence that comprise professional, allowing an individual to act with integrity. Independence in appearance: Tarek 01712-049032 The avoidance of facts and circumstances that are so significant that a reasonable and informed 3rd party, having knowledge of all relevant information, including safeguard applied, would reasonably conclude a firms, or a member of the assurance teams, integrity, objectivity or professional skepticism have been compromised.Threats of code of ethics: †¢ †¢ †¢ †¢ †¢ †¢ Self interest threat Self interest threat Advocacy threat Familiarity threat Intimidation threat Management threat Safeguards of code of ethics: †¢ †¢ †¢ †¢ †¢ †¢ Ethical training and experience Continuing professional development requirement Corporate governance regulation Professional standards Regulatory monitoring and disciplinary procedure External review Chapter: 15 Integrity: Means that an accountant must be straightforward and honest. It implies fair dealings and truthfulness.Objectivity: State of mind that exclude bias, prejudice and compromise and that gives fair and imperial consideration to all matters that are relevant to the task in hand, disregarding those that are not. Independence: Is related to and underpins objectivity, it is freedom from situations and relationships. Self-interest threats are: †¢ †¢ Financial interests Close business relationship Tarek 01712-049032 †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Employment with assurance client Partner on c lient board Family and personal relationship Gift and hospitality Loans and guarantees Overdue fees Percentage and contingent fees High percentage of fees Low-ballingFinancial interest: Exits where an assurance firm has a financial interest in a client. Direct financial interest: Exits where an assurance firm has a directly financial interest in a client. Immediate family: means a spouse (or equivalent) or a dependent. Assurance team: means all member of the engagement team for the assurance engagement and all others within the firm who can directly influence the outcome of the assurance engagement. Safeguards from interest: †¢ †¢ †¢ †¢ Disposing the interest Removing the individual from the team if required.Informed the client audit committee of the situation. Using an independent partner to review work if necessary Close business relationship: will involve a commercial financial interest, which in addition to a self-interest threat, could cause an intimidation threat. Dual employment: means the same person being employed by both an assurance firm and a client is not permitted. Safeguard from dual employment: †¢ †¢ †¢ Modifying the audit strategy Involving an additional professional accountant Carrying out a quality control review of the engagementPartner on a client board: mean a partner or employee of an assurance firm is also serve on the board of an assurance client. This is not permitted. This can also cause of self-review threat or a management threat. Tarek 01712-049032 Close family: means parent, child or sibling who is not an immediate family member. Contingent fees: fees calculated on a predetermined basis relating to the outcome or result of a transaction or the result of the work performed. Safeguards from high percentage of fees: †¢ †¢ †¢ †¢ Discussing the issues with audit committee Taking steps to reduce the ependency on the client Obtaining internal/external quality control review Consulti ng a 3rd party such as ICAB Self-review threat: †¢ †¢ †¢ †¢ †¢ †¢ †¢ Service with assurance client Preparing accounting records an F. S Valuation service Tax service Internal audit service Corporate finance Other service Advocacy threat: †¢ †¢ †¢ Legal service Corporate finance Contingent fees Familiarity threat: †¢ †¢ †¢ †¢ †¢ Family and personal relationship with client Employment with assurance client Recent service with assurance client Long association with assurance client RecruitmentIntimidation threat: †¢ †¢ †¢ †¢ Close business relationship Family and personal relationship Assurance staff members move to employment with client Litigation The ICAB code sets out a framework that professional accountant can follow when seeking to resolve ethical problems. It states that the professional accountant should consider: Tarek 01712-049032 †¢ †¢ †¢ †¢ †¢ †¢ The relevant facts The relevant parties The ethical issues involve The fundamental principles related to the matter in question Established internal procedure Alternative course of actionChapter: 16 (Confidentiality) The following security procedures are probably wise to prevent accidental disclosure of information: †¢ †¢ †¢ †¢ †¢ †¢ Don’t discuss client matter with any party of outside Don’t discuss client matter in a public place Don’t leave audit files un-attendant Don’t leave an audit file in a car or unsecured place Don’t remove audit working papers from the office unless strict necessary Don’t work on electronic working papers on systems that do not have the requisite protectionInformation only be disclosed where consent has been obtained from the client, employer or other proper source: †¢ †¢ If there is a public duty to disclose If there is a legal or professional right or duty to disclose Safegua rds of confidentiality: †¢ †¢ †¢ †¢ †¢ †¢ Disclosure of the circumstances of the conflict Obtaining the informed consent of the client to act Establishing information barriers Regular review of the application of safeguards by a senior individual not involve with the relevant Ceasing to act Physical separation of teams. Show interactive questions and self-test. The End

Lady Agnew of Lochnaw by John Singer Sargent

John Sargent was one of the most prominent portrait painters during the late nineteenth and early twentieth centuries.   Sargent was born in Italy to American parents that moved constantly throughout his childhood.   Perhaps painting portraits allowed him to get close to individuals since he did not during his childhood.  Ã‚   There is no denying that Sargent was observant in the physical details as well as the details of the subject’s personality because the subjects look as if they are ready to step out of the painting and join the world of the living.   This is especially true of Lady Agnew of Lochnaw painted in eighteen ninety-three. The subject of the painting Lady Agnew of Lochnaw is Gertrude Vernon, the wife of Andrew Noel Agnew.   He commissioned the painting soon after he inherited the barony in France.   In the painting, Lady Agnew seems to be staring out into the eyes of the viewer and even though she is in a relaxed pose, she is dressed formally.   From her intense gaze, one can tell that Lady Agnew is a strong person who is not afraid to look someone straight in the eye. Blue green silk fabric was used for the background in the painting.   Even though Sargent uses more green near the shadows, blue is the predominant color.   At first glance one does not notice the tiny peach and white flowers that are scattered throughout the fabric.   However, they lend an elegant quality to the fabric because they give an oriental look to the silk which also comes from the orient. It is also expensive so it makes a statement of wealth.   Sargent achieves the texture of silk in the background with his use of lights and darks which shows quality of his talent.   The blue green color also compliments the soft white chiffon dress with the sheer sleeves.   The lilac colored satin sash blends with the faint hint of pink used in the peach flowers.   The lightness of the color of Lady Agnew’s dress gives an ironic contrast of freedom and innocence. The Chair in which Lady Agnew is sitting is reminiscent of the furnishings of Marie Antoinette which is symbolic of her and her husband’s new titles.   The wood of the chair is painted in a cream and gold colored French provincial style.   The elegance of the furniture is displayed in the light cream background with light blue and deep mauve colored flowers giving the fabric the style of country French.   The cream of the chair contrast the white of the dress, but the blue and pink still bring the colors together by complimenting the lilac sash. Lady Agnew wears very little jewelry, but the pieces she has chosen are sophisticated.   Around her neck she wears a deep rose colored undefined cameo necklace suspended from a gold chain.   The cameo is encircled with jewels that appear to be diamonds.   Again the wealth of the Agnews is displayed with the quality of the jewelry. She also wears a wide yet delicate gold bracelet on the wrist that is slightly draped over the arm of the chair.   The gold in the bracelet blends so well with the colors of the chair that it is barely noticeable.   The understatement of the jewelry symbolizes the taste of the titled Agnews. When one gazes on a John Sargent portrait, such as Lady Agnew of Lochnaw, it is easy to see how he was such a renowned artist in this area.   The realistic portraits and his use of color brought to life those who sat before him.   Sargent could also present the subject’s social status of his subject without being ostentatious. References Sargent, J. (1893).   Lady Agnew of Lochnaw. Wallace, N. (2005) Lady Agnew of Lochnaw.   JSS Virtual Gallery. Retrieved April 29, 2008 from http://www.jssgallery.org/Paintings/Lady_Agnew.htm

ICT and Society Essay

My mobile phone is a Nokia 6020. I got it a year ago, for my birthday. It is on a pay as you go tariff, and I have to pay it all my self. I have had to get myself a paper-round to contribute towards some of the costs. I use it to make phone calls, but mainly to text, and take pictures, with the camera. I often use the video camera to make low quality videos. I quite like the look of my phone but it is getting slightly old now. It is still a very good, basic phone however I think that the memory is much too small. It can acess the internet; but I don’t use that mainly because of the cost. Describe how you use the ICT technology. My phone is mostly used in the social category because I use it most to communicate with others. However, it can also come under the personal category because I use it to entertain myself by playing games on it among other things. Because I have to pay for it myself I tend not to spend as much as my friends, who’s parents pay for it. I am probably more conscious about the cost than them too. I am not someone who relies on it completely, I have lost it for a whole week before, without even realising. Saying this I do tend to text friends who don’t live near me. This way I can keep in touch with them. I would like to text them more but a phone is quite expensive to run and I would rather spread out my remaining money on other things. I also use my mobile to arrange outings with my school friends during the holidays or weekends. I like to text them because it is quick and easy. I don’t really use any kind of predictive text when I write text messages. This is becaus e I don’t really like it that much. The avantages of it is that it writes texts quicker with less movement of fingers. However it doesn’t have text talk words in the program, like â€Å"2moro† so therefore the text is longer and you can’t fit so much in the text. I find having a camera on the phone very useful too. Like most people I can take a picture any time, any where. This means I can caputure really cool pictures. I can send the good pictures to people via multimedia messages. If I’m on holiday they can see what I’m doing and generally keep in touch. Another thing which makes my phone more personal is the fact that I can change the background and the order of the lists in menu. I like to do this but it is quite complicated to do. I also use my phone for entertainment, I play games when I am bored like on the train. Although the games are not that advanced, they keep me entertained. I use the calculator appliance a bit but I can’t use it in school because the school has banned mobile’s. I often use the calander. The calander, if set, will remind me of people’s birthdays a week or so before. However it does take a while to set and add information. My phone also has an alarm, which I use when I am camping or sleeping in a hotel. I use most of the things that are on my phone and usually they work well. What are the advantages of using the ICT technology. One of the things which I find most useful about having a mobile phone, is having so many things on one device. It has endless uses all in one tiny object. It saves people carrying around lots of different devices each with one use. The other thing which I find most useful about having a mobile is that it gives me freedom. This is so important. My parents will let me go out and know that I can phone them at any time. They’ll say â€Å"well, as long as you have got your mobile with you†. For my parents, it gives them a slight chance to relax. My parents also know that they can log onto a website and track my phone, this is an advantage for them. Say, should the worst happen, I was hurt and got rushed to hospital. The paramedics could look at my phone and find ‘mum’ in my contacts and immediately let her know. Another reason for having a phone with lots of things on it, is money. It could actually save money, not having to buy a digital camera, ect. What are the disadvantages, if any, of the ICT technology. There were several studies recently that warned of a possible health risk to teens who use their phone a lot. It was worried about the waves that a phone uses damaging heavy users. Now I don’t use my phone that much but I don’t exactly like the thought. Nothing has been proved yet but, then again, nothing has been not proved. So at the moment I am just cautious. For me, the fact that my parents can track my phone is generally a bad thing. I don’t want my parents to know exactly where I am all the time, they’ve got to learn to let go a little. But if I got into trouble I think that I would be really glad so as long as they only use it when they are really worried it’s OK. The fact that it costs quite a lot to run a phone also is a bad thing. Handsets cost a lot to buy, the better and more features it has, the more expensive the price. Packages where users are lured into by the promise of â€Å"free weekend texts† or â€Å"100 free picture mes sages† are often not right for the customers. Most people end up paying a set amount per month, say à ¯Ã‚ ¿Ã‚ ½20. That’s fine if they would use à ¯Ã‚ ¿Ã‚ ½20 credit on pay as you go tariff but most won’t. They don’t realise that they’d get a better deal if they went onto another tariff. I think this is how phone companies make all their money. Bullying is another major problem. More and more, younger and younger children possess phones for all the reasons I have listed above. Bullying via text messages is becoming a substantial problem, big enough for many schools to start to ban mobile phones. This leads us onto the next disadvantage. Many schools have banned phones completely. My school still allows us to have phones in school however we’re not allowed to use them or get them out during the day. We can turn them on at the end of the school but not otherwise. If a teacher sees them they confiscate them. This is a real pain because a parent needs to come in and collect it. A wider problem is security. If you have a phone apparently some hackers can hack onto phones, steal personal information and stuff. Also having a phone makes you a target to thieves and muggers. They will just whip your phone anytime. It has now been made harder for thieves as you can block the SIM card and make it un-useable. However if you take out the blocked SIM, and put in another the handset will still work perfectly. This still makes stealing a phone worth it. What companies need to develop is a way of blocking the handset too. If I lived and the mobile phone wasn’t around today I wouldn’t be able to keep in touch with my friends as easily or arrange to meet up with them. My parents would feel less comfortable with me going out so I would have less freedom and if I got into trouble I couldn’t ring for help. The mobile is so convienient that many people would have to change too. So although there seem to be more disadvantages than advantages I still find a mobile the most useful piece of IT I use, secondary only to the computer. This is simply because it gives me the freedom I want in more than one way. The freedom to go out without my parents worrying and the freedom to walk around with one little device in my pocket.

Meaningful Use Essay Example | Topics and Well Written Essays - 1250 words

Meaningful Use - Essay Example The modern world is evolving fast in technology innovations and the medical field is part of this evolution. The medical sector has a lot of data from the many patients that are treated on a day to day basis and it is a universal service. There is therefore need for a streamlined form of storage for its data records. The EHR system has to have the following features: simplicity, it should be natural, consistency, relay feedback, effective language use, minimise cognitive load, preserve and safeguard data. The selection for the EHR system was not done at a corporate level only, clinicians were also included in the process. Videos from various vendors were viewed by the board at Wellness Healthcare and an elimination process followed based on the product description and the board’s analysis. Those left were circulated to different departments in the organization and opinions taken down. The videos were circulated to the physicians who would be using the system. The most appropriate system was then effected. The criteria used was as follows: the system must integrate with the outpatient care, technical support offered by the vendor in installation of the system and monitoring its function ability, its customization aptitudes for Wellness Healthcare procedures and its capability to keep up with technological developments in terms of software updating. The EHR system aids in providing better healthcare services through: provision of up-to-date information regarding patients’ medical data. Enabling quick access and retrieval of information regarding patients especially in emergency situations. Storing the data in a secure manner that reveals the information securely to the patients and the physicians. Accuracy through elimination of technical errors in recording of information, billing and streamlined coding and in so doing provide safer healthcare. Improving the provider-customer relation and convenience.

Changes in the American Society and Culture in 1945-1968 Essay

Changes in the American Society and Culture in 1945-1968 - Essay Example Some of the stand out developments that characterized this period includes a consumer-driven economic boom, the civil rights movement and the heightened drive for liberation on a personal level especially among the young Americans. This study explores these three aspects guided by the thesis that they were the greatest forces for change in the American society between 1945 and 1968. Consumerism as a Driver of the Economic Boom - 1945-1968: The twenty years after the World War II were characterized by an unmatched economic expansion in the western world. The GDPs of many countries rose gradually to double the prewar figures, while the living standards grew proportionately. It was an era characterized by the dawn of mass consumerism. However, it is starkly discernible that the US led the way by a huge gap, achieving in the early 1950s the average per capita GDP that western European nations would only reach by the late 1960s. A brief overview of the economic boom indicates that the per capita GDP grew by an average of 2.7% annually and continuously from 1949-1968 in comparison to under 1.5% per capita GDP growth per year from 1913-1949 (Junker and Wagner 256). The consumer culture was also driven by media, as the telling impact of the Seventeen Magazine on teenage consumption and the accompanied attention by the corporate world (Griffith and Baker 122-3). ... Mass consumption included purchase of mass-produced homes in sprawling suburbs as the domestic market drove economic growth forward. This perhaps explains the reason behind the USA experiencing the economic boom much earlier than the rest of the western world. The birth rate was at an all time high bringing forth the baby-boom generation whose parents intended to provide with good life they never had as they grew up during the global recession (Elcott 7). One aspect of this mass consumerism is in the growth of television and its impact. By 1950, less than 3 million Americans had television sets, spectacularly increasing to over 50 million a decade later. This was accompanied by creation of a more uniform culture in the US. It is clear that the surge of capitalism was driven by the heightened consumerism and people’s growing incomes. Pervasive television imagery, booming suburbs and unrestricted spending power changed the culture of Americans and how they viewed themselves (Cob bs-Hoffman and Gjerde and Blum 331-2). A strong home economy was also important in the establishment of US global economic power and influence as efforts could be diverted to global economic issues. Hence, consumer-driven economic expansion is one of the main stand-out aspects and defining phenomena that characterized the period between 1945 and 1968. The Civil Rights Movement: The USA is a nation built upon a melt-point of different cultures, races and ethnicities and thus from inception was plagued by the problem of racism, providing the divisions that shook the very foundations of democracy that the nation prides itself in. Dubois cofounded the National Association for the Advancement of Colored people (NAACP) with the aim of protesting the accommodation being pursued by the likes of

Analysis of LivingWell Inc. Strategic Approach to Environmental Essay

Analysis of LivingWell Inc. Strategic Approach to Environmental Factors - Essay Example This essay evaluates the alternative or additional strategic options available for adaptation to ensure surviving and thriving of the LivingWell Inc. company in to the next decade. The researcher states that in today’s intensely competitive world, organisations are increasingly pressured to achieve targets and goals with limited and scarce economic resources. Effective deployment of organisational strategy directs the scare resources and efforts towards a charted course, eliminating waste arising from lack of direction. In crafting organisational strategies, the impinging internal and external environment factors needs to be analysed. The researcher of this essay aims to analyse the strategic approach taken by LivingWell Inc., in responding to the environmental factors influencing the industry. In conclusion, it can be noted that LivingWell has responded to business conditions prevailing and anticipated, through a mixture of corporate, business and functional level strategies. The company with its strong financial backing is in a strong position to benefit from attractive industry opportunities. The Health, Fitness and Leisure industry is still at its developing stages across the world and there is significant for growth. The researcher concluds his analysis and states that the company should continue with those strategies, which are proven effective while considering the deployment of alternative strategic options to retain and develop its competitive positioning in the industry.

Case study Example | Topics and Well Written Essays - 500 words - 15

Case Study Example ligence Grid (Natgrid) aims to monitor the activities of private citizens1, a move which presses on the boundaries of a citizen’s fundamental liberties. It’s an echo of Big Brother in the guise of public interest; the concept is noble, but there’s so much opportunity for abuse that it cancels all intended benefits. The Natgrid will surely speed up the functions of the bureaucracy with a centralized intelligence system, but it’ll also make data accessible to a lot of unscrupulous personalities and agencies. Although a data protection law already exists (The Information Technology Act), it only goes so far as to cover an individual’s activity. The individual is set apart from the act. The UPA has to set specific ground rules to ensure both aspects coexist but remain separate. The freedom to information shouldn’t be absolute; there has to be a limit to how much the government can access. The law should protect the individual first and foremost. Everything else follows accordingly. 2. â€Å"Convenient and personal are the flip-side to private and anonymous† according to Greenfield. Indeed, convenience comes at a steep price nowadays, and the technological juggernauts of the Information Age admit it. P3P is an essential component of the Web-browsing experience; it allows users to navigate the byways of the Internet without leaving crumbs for the hounds to sniff and follow. This provides a perfect analogy to the online cookies implanted in your browser’s cache; they’re there to monitor online activities, but the exact coverage of this policy is never fully described. As a measure of courtesy, some sites do live up to their word by restricting their own access to user data. The opportunities exposed by a database of unlimited information is too tempting to resist, though, especially when everything of value is now stored in a remote corner or crevice on the web. The competition for technological supremacy between Google, Microsoft, and everyone else is

Management of information technology Essay Example | Topics and Well Written Essays - 2500 words - 1

Management of information technology - Essay Example That same ability raises the specter of nightmarish Orwellian scenarios in which consumer purchasing behavior is captured in databases that are manipulated by corporations and government as a tool for spying. RFID utilizes a tag containing a computer chip that stores data relating to the tagged item, such as color, size, brand, warranty information, etc. Tags can also be affixed to pallets and cartons to identify contents of shipments during the distribution process. An antenna in the tag transmits and receives data through radio waves, which are picked up by a reader (Carlson 2006). In one type of RFID system known as passive, a signal is sent out by the reader creating a magnetic field, which is broadcast by its antenna to create a sensitive detection zone. When a RFID tag enters this zone it picks up the reader’s signals, which turn on the microchip’s transmitter, thus informing the reader of its presence. Passive RFID is a short range system in which the reader must range from one inch to a few feet from the tag in order to engage a signal (Kasavana 2006). Another type of RFID technology is known as active. This is a longer range system because both the tag and reader have power supply units and are capable of sending and receiving signals. The transmission range may be up to one hundred feet due to this mutual transmission. The data on active RFID microchips can also be rewritten (Kasavana 2006). Active tags are far more expensive than passive tags (up to $40 as compared to 15 cents for passive tags) and are therefore less attractive and appropriate in a commercial retail environment (Carlson 2006). Nevertheless, given their long range scanning potential, active RFID has a broader range of potential applications. It also drives greater concerns regarding potential abuse. RFID is considered to be more effective at inventory tracking than traditional bar codes for several reasons. First, it is

Quotes Essay Example | Topics and Well Written Essays - 500 words

Quotes - Essay Example However, there is still a life which goes on behind bars and a continuation of life which should be supported. While a prisoner is certainly placed under boundaries of law, s/he does not stop being a human being and it must be noted that s/he has the same right to be treated humanely and with as much importance as those who are not with him/her in prison. The treatments and the rights are controlled by those who are supposed to manage prisons and things such as college degree earning program for prisoners can improve conditions for many prisoners. Instead of simply waiting for their time in prison to pass, they can be educated and taught to enhance their abilities and as a ‘captive’ audience, they would be receptive to the education which is given to them. Simply put, with the program, the prison system can put out educated college graduates while without the program the prison system is only putting out ex-convicts. All true stories become unbelievable as soon as we are told that they are true story or the events which are told to us are based on a true story. While we accept them as the truth, the element of disbelief and wonder is not taken away and we have to keep reminding ourselves that the story itself is true. We can certainly find examples of such stories in the media and even in anecdotes that we tell each other. For example, a baby that survives a burning building, a child who is able to beat grandmasters at chess, a person fighting against unbelievable odds, social stigma as well as other barriers that have been placed in his/her part and becoming successful in their endeavors. Most recently, we saw true events unfold in front of us as jetliners were used by terrorist as weapons against America. However, I feel that the most unbelievable true stories are the ones which take place everyday around us but are simply not reported. For example, a young high school student that does not take

Contemporary International Relations Essay Example | Topics and Well Written Essays - 3750 words

Contemporary International Relations - Essay Example It is then an attempt to the resolution of such disputes, the experts and philosophers presented different possible theories that can explain the said case. The most prevalent of such theories are the theory of the clash of civilization and the theory of the clash of fundamentalism. These theories pointed out the possible reasons for the conflicts that had been occulting in relation to the contemporary International Relations. Upon the determination of the said theories, it can be considered that the problems, conflicts and disputes that are being faced by the international community can be resolved. To be able to determine the feasibility of the two theories, it is important to determine the issues that are covered by the two theories. Upon determination of the background information regarding the said concepts, a comparative analysis can be undertaken. There are different views that can be related to the Clash of Civilization. The most common and dominant of which are the views of Samuel Huntington and Bernard Lewis. Generally, the theory of the Clash of Civilization is aimed to explain and analyse the different conflicts that can be observed in the contemporary era specifically in the international community and the relationship among nations. Samuel Huntington presented the Clash of Civilization as a view on the International Relatio... Specifically there factors are considered as the main reasons for conflict in the international community according to the theory of Huntington which is founded on the different events and scenarios in the political and economic world. In addition, the said theory is a presentation in relation to the work of Francis Fukuyama's work (Huntington 1). On the basis of his view then, differences can arise on the basis of cultural backgrounds. The differences and the individuality along with other sources of differences that can be related to the culture and traditions of the people can considered covered even the different philosophies, language, history and religion. In general, he referred to civilizations as the highest form of the said grouping. The civilizations divide the world into different groups. The Western civilization though is one of the most evident, thus, in terms of the view with regards to conflict, the nations that are included in the West are commonly included and often seeking allies from different regions (Huntington 1). Such view then can explain the division of the contemporary era, the west and the eastern civilization. Although there are other civilizations, the clash in the present era commonly involves the Western civilization and the area wherein the Muslim religion had originated. This can be related to the other theory which is the Clash of Fundamentalism. Bernard Lewis' View The view of presented by Bernard Lewis can be considered as the earlier one, basically due to the fact that the term can be traced from the study that he had undertaken and presented that was entitled The Roots of

Economic evaluation Essay Example | Topics and Well Written Essays - 5000 words

Economic evaluation - Essay Example In this paper, the roles of NICE in the provision of guidance are outlined with a specific reference made to the guidance on domestic violence. Also, the other organizations that provide similar guidance are discussed in the essay. The political, social, environmental, and economic contexts of the guidance are also outlined in the paper. Further, the cost-effectiveness of the guidance is assessed and compared to the previous methods and the implications of the guidance are discussed. Part B of the paper focuses on a publicly funded healthcare system in a country. The National Health Service of the United Kingdom is selected for the study. The various wayhs in which the organization obtains funds and resources are discussed. In addition, the economic models are evaluated within the section and the various health funding by different governments are compared in part B of this paper. NICE involves five different areas of public guidance. The first area is the guidance on the behaviour change. This guidance is mainly focussed on the individual approach. The aim of the guidance is to change the behaviours of persons at individual levels. It, therefore, recommends various behaviours that can result into healthy lifestyles amongst different group of people living in a region or area (NICE, 2014). Secondly, NICE offers guidance on exercise-referral-schemes. This guidance has more emphasis on physical exercises as stated on the definition. It aims to improve on the quality of physical exercises administered by medical practitioners or professionals. It helps the healthcare professionals to provide effective interventions in addition to the sensitization on the methods which can be used to promote physical activity. The methods are four in total. Also, Nice has been very active in the guidance on the various interventions to be used by schools to get rid of smoking. That demonstrates the roles of NICE in the fight against drug abuse. In that case, NICE makes use

Investigation of temperature on catalase activity Essay Example for Free

Investigation of temperature on catalase activity Essay The aim of this experiment is to find out the effect of temperature on catalase or hydrogen peroxide. This will enable us to tell at what temperature hydrogen peroxide is most efficient. This (degradation) reaction will help us determine some of the catalases different attributes. HYPOTHESIS In this experiment it would be safe to hypothesise that no activity would take place at 1 to 20 degrees. It would be probable that a little activity would take place around 40 degrees. When the water gets to around 60+ the oxygen bubbles start to froth. It is almost certain that this will happen due to the behaviour of the atom. This means that the hotter the water gets the more active the water molecules become. Thus the colder the water gets the less active the water becomes. Another theory is that different things adapt according to their habitat. Therefore, catalase would be most active at around 37 degrees body temperature. This means that in this experiment catalase would be most active in the water bath that is at 40 degrees Celsius. METHOD Before the experiment could be started the following apparatus needed to be obtained: Cork Borer Water Baths at 3,20,40 and 60 degrees Celsius Potato Ruler Stopwatch Detergent Hydrogen Peroxide Now that all this apparatus has been obtained, it is possible to start the experiment. Eight test tubes will be required because the experiment is being done twice in each water bath. Use a marker pen to mark the specific temperature on the test tubes so as to make sure that there are no possible errors. Now place these test tubes in a test tube rack. Take the cork borer no. 4, and take a cylinder of potato using the cork borer. Do this until you have eight cylinders. If there are any cylinders that are uneven in size, then take the cylinder again using the cork borer. Now that you have good cylinders, cut them to equal length equal to 1.5cms. cubed. Once this has been done, put each potato cylinder in a test tube. Now it is almost time to start the experiment, so have a stop- watch at the ready. Pour 5cms cubed of hydrogen peroxide (H2O2) into each test tube. Now go to the first water bath that is 3 degrees Celsius and take a pipette and pour 10 drops of detergent into the first 2 test tubes (the test tubes that are labelled 3 degrees Celsius). Once you have done this, immediately start the stopwatch and simultaneously put the 2 tubes into the water bath. Repeat this process for the next 3 water baths. Although only 1 stopwatch has been used, the time will be fairly accurate since a delay has been created. When 5 minutes is up go to the first water bath with a ruler and measure the amount of froth on each test tube. RESULTS Experiment No.Temperature (oC)Height of Froth (cm)Average Height of Froth (cm) 133.33.15 2333.15 1203.43.5 2203.63.5 1406.56.0 2405.56.0 16032.95 2602.92.95 CONCLUSION In conclusion to this experiment, it is evident that catalase is most active at 40 degrees Celsius. There is a trend in a graph that shows the froth increases up towards 40 degrees Celsius and dips when reaching 60 degrees Celsius. It is not just a case of the Enzymes activity decreasing it becomes denatured shortly after it reaches its optimum level of activity. EVALUATION In this evaluation, the flaws and the limitations of this experiment will be outlined. The procedures in this experiment were very effective. Unlike many other experiments the control of the variables was without fault, because a machine was controlling them, i.e. the water bath. There were not many limitations of equipment, and the only way the equipment could have been improved would have been to have the experiment monitored by computer. All the sources of error in this experiment were with the non-variables. Firstly, there was no way of being sure that each potato was the exact same length or mass. A way of improving this would be using a guillotine-type device, meaning that the potatoes were at least the exact same length since  they were cut at equal angles all together. Another flaw is the amount of H2O2 poured into each separate test tube. This is cannot be improved upon unless done by machine. Other sources of error that could only have been improved upon by machine are height of froth, and amount of detergent. A major defect that could have affected the results is the timing. This is because of the delay system used. The only way that the delay system could have worked like clockwork is if it took the exact same time to measure froth as to pour detergent. There are two ways of improving this. The first is to make the experiment last longer. This would mean that it would not matter if there were a few seconds difference in the times, because no more froth could have been produced. The second is that if the experiment was timed separately for each bath.

Alcohol Composition Analysis

Alcohol Composition Analysis ALCOHOL Chemical Composition (ingredients) of 4 types of alcoholic beverages: The ingredients differ according to each beverage but there are a couple that are available in all of them, these are water and ethanol. These two ingredients are essential in every alcoholic beverage. Champagne can only be made from white Chardonnay grapes and red Pinot Noir and Pinot Meunier grapes. It’s usually a blend of two or three of the grapes, but is sometimes just made from one (though rarely is Champagne made from just Pinot Meunier). Champagne made entirely from Chardonnay is called â€Å"blanc de blancs† (meaning white wine from white grapes), and Champagne made entirely from Pinot Noir is called â€Å"blanc de noirs† (meaning white wine from black grapes). Even though black grapes are used, the wine itself is never red. The skins (where the pigment resides) are removed immediately after the grapes are pressed, which keeps the juice clear. The only exception is with rosà © Champagne. Rosà © can be produced by leaving the skins in the juice just long enough to tint it, or by producers adding red Pinot Noir wine directly to the blend. This second method allows them to create the same color each year. Carbon dioxide is added in the process which cre ates the fizzy bubbles. Vodka is usually made from rye or potatoes if it is from Eastern Europe and molasses from other parts of the world. It contains flavors derived from wheat, grain or starch. Apart from the main raw material, the other major constituent of your bottle of Vodka is water. Over 60% of your bottle is composed of water, so its purity is of utmost importance to the taste of your vodka. Quite an elaborate purification process is undertaken. Tequila is made with the fermented sap of the blue agave plant; tequila is produced in and around the town of Tequila in Mexico’s Jalisco province. Many superior brands of tequila are made entirely from Blue Agave, and will say so on the label. Tequila can also be made with a mixture of agave and other ingredients, like sugarcane—these products are called mixto tequilas. Malt whisky must contain no grain other than malted barley and is traditionally distilled in pot stills. Grain whisky may contain unmalted barley or other malted or unmalted grains such as wheat and maize (corn) and is typically distilled in a continuous column still. Color and flavoring chemicals are added to create that unique color and taste Methods and Procedures used in the production of alcoholic beverages: If the sparkling wine is produced outside of Champagne, France, but is made by the French Method, it is usually labeled Mà ©thode Champenoise. This is true of most American sparkling wines. Mà ©thode Champenoise, which is the method used in Champagne, involves several distinct steps. The key reaction of winemaking is alcoholic fermentation, the conversion of sugar into alcohol and carbon dioxide by yeast. The maximum amount of alcohol attained through alcoholic fermentation is about 15% because the yeast cells are killed by high alcohol concentration. The maximum alcohol content can be determined by multiplying 0.55 times the percent sugar initially present in the grape juice before fermentation. For example, if 24% sugar is initially present, about 13% (0.55 x 24) alcohol will be realized. Most still wines (i.e., table wines) contain 12 to 14% alcohol. The key process in producing Champagne is a SECOND fermentation that occurs in a sealed bottle. Theoretically, vodka can be made from almost any fermentable organic material from whey to molasses. Absolut Vodka, however, is made solely from grain, which more than 400 years of tradition has proven to produce the best and purest vodka possible. Absolut Vodka uses a special method of distillation that retains a smooth grain character and is extremely low in unwanted by-products. A few thousand years ago, someone made the bright discovery that when deprived of oxygen, the yeast cell turns sugar into carbon dioxide and ethanol. Fermented beverages are born. These beverages were eventually distilled, giving us dozens of different spirits, one of which is vodka. Fermentation is an extremely delicate and complicated process where the yeast cell converts the sugar in the mash to ethanol. The result is a mixture with an 8% alcohol content and a hundred or so by-products, some unpleasant tasting, some harmful. A concern for quality from the very beginning of the production process minimizes these impurities using only high quality grain, preparing the grain, safeguarding against bacteria and carefully controlling the fermentation process. Virtually all remaining impurities are removed in the distillation and rectification. Turning the fermented grain mash to vodka takes distillation. The principle has remained unchanged ever since it was discovered over a thousand years ago. There are two kinds of distillation: batch distillation and continuous distillation. Batch distillation is an age-old method used for many types of spirits. Refined to a high degree of sophistication, this method is still used in areas like Cognac and the Scottish highlands to make cognac and whisky. Absolut Vodka, however, is distilled using the second method, continuous distillation. This type of distillation builds on the same laws of physics as batch distillation. The essential difference is that the spirit is cycled back and forth producing a very pure final product. Continuous distillation turns the 8% fermented mash into crude spirit with an alcohol concentration by volume of 85-90% (170-180 proof). The last step is rectification, a method of removing unwanted by-products introduced over a century ago by the man on the bottles medallion Lars Olsson Smith. The crude spirit passes through a number of columns, each designed to remove a different set of impurities. One column extracts unpleasant tasting solvent compounds; another removes fusel oil; a third methanol; a fourth concentrates the spirit 96% pure alcohol by volume and extremely low in impurities. It is here we are faced with the dilemma of vodka production distillation and rectificati on technology have advanced so far towards producing absolutely pure vodka that it has also succeeded in removing trace elements that give vodka the character of the raw material from which it is made. Absolut Vodka has solved this dilemma by, parallel to the main distillation, producing a spirit where the goal is to retain the fine character of the grain. The final composite spirit, produced at or above 95% alcohol by volume (190 proof), has that unique smooth and fine character. Exactly how this is done is a well-kept secret. The process of making tequila begins with the jima, the harvest, and the jimadores, those responsible for growing and eventually harvesting the agave plant. The plant will be weighed, cut up in halves or quarters, and cooked. The modern method involves using steel pressure cookers called autoclaves. The latter approach cooks the plant faster. Fortunately, flavor doesnt vary with either process. Agave is cooked to transform starches into sugars, which will then become transformed into alcohol. To extract the agua miel, or honey water, the cooked fruit passes through grinding blades. Fibers are sprayed with water, ensuring all sugars are released. Leftover fibers, known as bagazo, are generally used as fertilizer for agave fields. The juices are now ready to be fermented. This is each tequila starts to acquire its unique taste and classification. If the producer wants 100% agave tequila, then the juice passes straight to fermentation vessels. However, if he wants mixto tequila (not 100 % agave tequila), then the agua miel (honey water) must be placed in formulation tanks. Sugarcane or molasses sugar are then added to the juice. Only then can the mixto be placed in fermentation vessels. Now’s the time alcohol begins to appear. Producers will introduce yeasts. These can either be chemical catalysts or natural ingredients. The tanks are lightly heated and carbon dioxide is released, giving the agave juice 5% alcohol content per volume. The mosto, or fermented agave juice, is finally ready for distillation. The juice will be heated to alcohol’s vaporization point and then cooled and condensed to create ordinario (ordinary in English). Tequila is distilled to increase its alcohol content. Becomes tequila blanco. You could try to drink this ordinario, but chances are you’d be blinded and intoxicated afterwards! That is why Mexican law requires all tequila to be distilled twice. The mosto can be distilled three or even four times for top-shelf tequil a. The first distillation will remove all â€Å"heads† and â€Å"tails†, the first and last portions of the distilled product. These contain bad alcohols and other impurities, which is why they must be discarded in favor of a quality (and safe) drink. A second distillation determines the percent of alcohol the tequila will have. Premium tequila will aim for 40% alcohol per volume. A bulk, mixto, or lower quality spirit instead aims for 55% alcohol per volume, which will be later diluted with purified water. Tequila then will be aged depending of the final product that is wanted. There are five stages in the production of whiskey, malting, mashing, fermentation, distillation and maturation. Barley contains starch and it is this starch which needs to be converted into soluble sugars to make alcohol. For this to occur, the barley must undergo germination and this first part of the process is called malting. Each distiller needs a type that produces high yields of soluble sugar. The barley is soaked for 2-3 days in warm water and then spread on the floor of a building called a malting house. When the barley has started to shoot, the germination has to be stopped by drying it. The barley is now called malt and this is ground down in a mill, with any husks and other debris being removed. Now we begin the â€Å"mashing† step. The ground down malt, grist, is now added to warm water to begin the extraction of the sugars. The liquid combination of malt and water is called the mash. It is put into a large vessel called a mash turn and stirred for several hours. The liquid that comes out of that is called wort. This process is normally carried out three times with the water temperature being increased each time to extract the maximum amount of sugar. Only wort from the first two times is used. The third lot is put back into the next batch of new grist. Any residue, such as husks, is called draff. This is collected and used in the production of farm feed. â€Å"Fermentation† begins when the wort is cooled and passed into large tanks called washbacks. These are traditionally made of wood, but now a number of distilleries use stainless steel. Here the yeast is added and the fermentation begins. The yeast turns the sugars that are present into alcohol. As with the barley and water, the distiller will carefully select the strain of yeast that they use and it can also have a small effect on the final flavor of the spirit. The fermentation normally takes around 48 hours to run its natural course, although some distilleries will let it go fo r longer so as to create further characteristics that they require. The liquid at this stage is called wash and is low in alcohol strength (between 5-10% ABV), like beer or ale. Alcohols from the beginning of the distillation (called foreshots) are very high in alcohol level and very pungent. Alcohols from the end (called feints) are weak but also pungent. It is only the alcohol from the middle or heart of the distillation that is used and this is skillfully removed by a stillman and collected through the spirit safe. The foreshots and feints are then mixed with the next batch of low wines and re-distilled. The heart is the spirit that is then taken to be matured and that will become whisky. This heart has an alcoholic strength of 65-70% ABV. The final step is â€Å"maturation†. The spirit is put into oak casks and stored. The most common types of oak casks are those that have previously been used in the American bourbon and Spanish sherry industries. The spirit must mature i n casks for a minimum of three years before it is legally allowed to be called whisky in Scotland. During maturation, the flavors of the spirit combine with natural compounds in the wood cask and this gives the whisky its own characteristic flavor and aroma. Why do people drink? People resort to alcohol for many reasons. Some people drink it because they like the taste and feeling that alcohol gives them

FDI Trends in India and China: An Analysis

FDI Trends in India and China: An Analysis Chapter 1: Aim and Objectives All nations need a vision for future which stirs the thoughts and motivates different segments of society to a greater effort and thus inclines them to work toward the common cause that is economy growth of the individual nation. The market oriented policies normally have exclusionary impact which needs to be prevented through articulate response of the policy makers. India is the third-largest economy in the world in PPP (purchasing power parity) terms foreign direct investments (FDI), But China is currently a favourite nation and is more successful in attracting FDI over India Ballabh (2008). Hence, this thesis strives to analyse the past trend of FDI in India and China, its types, its critical analysis with regards to host country and investing firm, important factors of globalisation and foreign direct investments (FDI) strategies to be adopted, Finally, Its comparison with Chinas FDI and empirical evidences would help us cover aim of our thesis which is among India and China, Wh y is China more successful in attracting FDI than India and is favoured over India? Therefore this paper has been divided in seven sections. It starts with brief introduction to FDI and its types in section 1. Section 2 covers background information and literature review that gives us a picture of the FDI policies in the past, Its trends and impact on MNCs in context to India and China, FDIs role on host economy and MNCs, , Its critical analysis based on Morans model, and finally investment strategies adopted by MNCs where to invest and what to invest. This would give us greater insight into the chosen topic by discussion of various forms of FDI, its impact on MNCs, on host economy and presenting an argument on discussion. Section three; presents the discussion on methodology to be used for the data collection and analysis. Section four is our data analysis and discussion section that is further divided into two sections, first half covers Chinas FDI spread-its Sectoral regional trends, the figures from the data sorted to analyse the growth in FDI over years and in different sectors, FDI distributions and opportunity sector that is playing increasingly important role by embracing FDI growth. The other half covers Indias FDI Spread-Sectoral and Country wise distribution. Again we use graphs and charts to analyse the trend. Comparative analysis of China with India would act as an indispensable step in structuring a consensus on a broad national development strategy to attract foreign investors that encompasses the roles and responsibilities of different agents in the economy, like Central, the private corporate sector, State and local government. Therefore finally presenting a logical explanation why China is a favourable nation over India and is highly successful in attracting FDI, hence the same is to be discussed in section five. Section Six is about building a feasible policy framework toward attracting FDI for the interest of the MNCs and host economy with reference to Chinas successful strategy in attracting FDI and summary of the literature followed by the concluding remarks are presented in the last section. The Concept of FDI is now an integral part of every nations economic prospect but the term remains vague to many, despite the thoughtful effects on the host economy and MNCs, despite the extensive studies on FDI, there has been little illumination forthcoming and it remains a contentious topic. The research findings will throw up a range of interesting possibilities in two countries, critical issues and crucial decision-points for government and private bodies to decide upon investment for future action in the favoured country. Therefore, the paper would explores the uneven beginnings of FDI in two countries, examine and present many important theoretical and empirical evidences on FDI and its impact on economy and MNCs, and would find reasons why China is more successful in FDI over India develop a feasible policy framework towards FDI in particular sector in India or China and making most out of it. Chapter 2: Introduction Foreign direct investment has multiple effects on the investing firm and on the economy of a host country. FDI influences the production, employment, income, prices, exports, imports, balance of payments, economic growth, and general welfare of the receiving economy Maniam (1998). Hence this section covers definition and types of Foreign Direct Investment, FDIs role been so far based on background information, discussion of resources and finally the theoretical aspect of why and where firms decide to invest abroad for benefits with special reference to India and China alongside host countrys motive to attract FDI. Definition of FDI Bergman (2006) defined FDI as a direct or portfolio investment. A direct investment is an acquisition or construction of physical capital by a firm from one source country into another (host) country. The FDI is an investment that involves a long-term relationship and control by a resident entity of one country, in a firm located in a country other than that of the investing firm. There is more involved in the direct investment than only money capital, for instance, managerial or technical guidance. FDI is generally defined as resident firms with at least 10% of foreign participation (UNCTAD, 2002). Types of FDI MNCs have various options to enter into a foreign market. FDIs Different types have different levels of control and risks. For example, Green field investment is when a firm establishes a subsidiary in a new country and starts its own production. In this type of investment a new plant is constructed rather than the purchase of an existing plant or firm. For this reason, there is large risk and has high set up costs because the foreign firm most likely does not have enough legislation knowledge, nor it has an existing distribution network and neither a local management skills. But still, the foreign firm has more control. On the contrary, Brown field investment is FDI that involves the purchase of an existing plant or firm, rather than building of a new plant. Joint venture is an equity and management partnership between the foreign firm and a local firm in the host market. Most host countries prefer the formation of joint ventures, as a way to build international co-operation, and to secure technology transfer (Samli Hill, 1998). In This type of investment the foreign partners contribute toward technology or products, the financial resources, and at the same time the local partner provides the manpower, skills and knowledge required for managing a firm in the host country (Bergman 2006). On UNCTADs website we can have a comprehensive understanding of it and its types. It defines FDI as an investment that involves a long-term relationship and reflects a permanent interest of a resident entity in one economy (direct investor) in an entity resident in an economy other than of the investor. The direct i nvestors idea is to put forth a significant degree of influence on the management of the enterprise resident in the other economy. FDI covers both the opening and subsequent transaction between the two entities and among affiliated enterprises, both incorporated and unincorporated. FDI may be undertaken by individuals, as well as business entities. It further is classified as follows: FDI Stock: it is the value of the share (For associate and subsidiary enterprises,) of their capital and reserves (including the retained profits) attributable to the parent enterprise (this is equal to the total assets minus total liabilities), plus the net indebtedness of associate or subsidiary to the parent firm. For branches, it is value of fixed assets and the value of current assets and investments, excluding amounts due from parent, less liabilities to third parties. Reinvested Earnings: The part of an affiliates earnings accruing to the foreign investor that is reinvested in that enterprise. FDI Flows: FDI flows (For associate and subsidiary enterprises) consists of the net sales of shares and loans (including non-cash acquisitions made against equipment, manufacturing rights, etc.) to the parent company plus the parent firms share of the affiliates reinvested earnings plus total net intra-company loans (short- and long-term) provided by the parent company. And, for branches, FDI flows consist of the increase in reinvested earnings plus the net increase in funds received from the foreign direct investor. Equity Capital: The foreign direct investors net purchase of the shares and loans of an enterprise in a country other than its own. Other Capital: Short- or long-term loans from parent firms to affiliate enterprises or vice versa. Also included are trade credits, bonds and money market instruments, financial leases and financial derivatives. Chapter 3: Background Information and Literature Review History of FDI in India Indias foreign trade and investment regime has been identified in two different phases- Pre-1991 reforms phase and the post-1991 phase. Pre-1991 reforms phase that stretched over to four decades is worth reviewing in some detail as although the regime was marked by extensive regulation of trade and investment, it did not shun foreign enterprise participation in the economy and the nature of the regulatory framework was mostly complex and cumbersome. This has been extensively analysed by Kidron (1965) Kumar (1994). The specification of sectors in which both foreign financial and technical participation were allowed, those in which only technical collaboration was permitted, and those in which neither technical and nor financial participation was allowed, reflects the desire to restrict foreign ownership and control to sectors of the economy in which its contribution was deemed to be essential. A preference to technical collaboration agreements instead of foreign equity ownership refl ects the desire to promote the twin objectives of preserving freedom from foreign control over operations and simultaneously gaining access to foreign technology and know-how. The Foreign Exchange Regulation Act (FERA) of 1973 under Prime Minister Indira Gandhi was considered a hostile act. The FERA required foreign firms to dilute their equity holdings to less than 40% or export a substantial share of their total output. This resulted to closure of renowned MNCs like IBM and Coca Cola to shut their operations in India.1967-79, the number of collaborations agreements per year reached an all-time low of 242. The Mid- 1980s saw a considerable though not a radical relaxation of the dirigiste trade and investment regime, with a relatively benign attitude towards foreign enterprise participation. The major crucial change during this period was a significant change in the pattern of foreign investment in India away from plantations, minerals and petroleum toward the manufacturing sector. By the end of decade of eighties manufacturing accounted for nearly 85% out of total stock of FDI of about Rupees 28 billion. Inflows of private capital remained meagre in the 1980s: they averaged less than $0.2 billion per year from 1985 to 1990 (Kapur Athreye 1999). In the year 1991, India too liberalised its highly regulated FDI regime, in place for more than three decades. Arguably Balasubramanyam (2004) in his book stated that, it took an economic crisis for India to liberalise its trade and FDI regime rather than a fundamental change in attitude towards the role of FDI in development process. Nonetheless, the 1991 reforms marked a major break from the earlier dirigiste regime with its regulation of the spheres of foreign enterprise participation on its mode of operation. And the policy framework was opaque with the implementation of policy based on bureaucratic consideration of each case on its merits. Hence the 1991 reforms were to change all this: The abolition of the industrial licensing system, controls over foreign trade and foreign investment were considerable relaxed, including the removal of ceilings on equity ownership by foreign firms. The reforms did result in increased inflows of FDI during the decades of the nineties as it consi derable relaxed the dirigiste regime that prevailed for more than four decades (Balasubramanyam Mahambare 2004). Hence with the liberalisation of the economy, fresh foreign investment was invited in a range of industries. Inflows to India rose steadily through the 1990s, exceeding $6 billion in 1996-97. The fresh inflows were primarily as portfolio capital in the early years (that is, diversified equity holdings not associated with managerial control), but increasingly, they have come as foreign direct investment (equity investment associated with managerial control). This was further supported by historically low interest rates in the US that encouraged global investment funds to diversify their portfolios by investing in emerging markets. International flows of direct investment, which had averaged $142 bn per year over 1985-90, more than doubled to $350 billion in 1996, with the developing countries receiving $130 billion (Kapur Athreye 1999). 1996-1998, the period of the coalition government has been an imperative period in our study; Singh (2005) classified this as a period when government has shown willingness to understand FDI by placing policies that would result in an increase in FDI and further liberalization for the common cause. There was an increased understanding on the role of FDI in all sectors. Industries still lead the reforms whereby automatic approval of FDI was increased up to 74% by the Reserve Bank of India (RBI) in nine categories of industries, including electricity generation and transmission, non-conventional energy generation and distribution, construction and maintenance of roads, bridges, ports, harbours, runways, waterways, tunnels, pipelines, industrial and power plants, pipeline transport , water transport, cold storage and warehousing for agricultural products, mining services including silver and precious stones, manufacture of iron ore pellets, pig iron, semi-finished iron and steel and man ufacture of navigational, meteorological, geophysical, oceanographic, hydrological and ultrasonic sounding instruments and items based on solar energy (indiabudget.nic.in). January 1997, Government announced the first ever guidelines for FDI speedy approval in areas that are not covered under automatic approval. Above trends illustrates the earlier point of the government recognizing and carrying forth of the previous work done by the Rao government. While the advantage of FDI did not reach the mindset of the common man but government seemed to show possibilities of overall development through FDI. For example when Indian industry registered a modest growth rate of 7.1% in 1996-97, which was much lower than the 12.1% in 1995-96, there was research carried out which revealed this was partially attributable to the mining and electricity generation sectors which recorded very low growth rates of 0.7 % and 3.9 % respectively. Hence, the policy was immediately rectified and re-enforced by expanding the list of industries eligible for foreign direct equity investment under the automatic approval route by RBI in 1997-1998 (indiabudget.nic.in). 2004-05, embraced FDI for being an integral part of national development strategies. Its global popularity along with positive output in augmenting of domestic capital, productivity and employment; has made it an essential tool for initiating economic growth for nations. During this phase, India evolved as one of the most favoured destination for FDI in Asia. It has displaced US as the second-most favoured destination for FDI in the world after China. According to an AT Kearneys FDI Confidence Index, India attracted more than three times foreign investment at US$ 7.96 bn during the first half of 2005-06 fiscal, as against US$ 2.38 bn during the corresponding period of 2004-05. FDI in India has contributed effectively to the overall growth of the economy in the recent times. FDI inflow has an impact on Indias transfer of new technology and innovative ideas, improving infrastructure, a competitive business environment (Indianground.com). Ballabh (2008) in his article mentioned about the Balance of payments (BOP) since independence, Indias BOP on its current account has been negative. Since liberalisation in the 1990s (precipitated by a BOP crisis), Indias exports have been consistently rising, covering 80.3% of its imports in 2002-03, up from 66.2% in 1990-91. Although India is still a net importer, since 1996-97, its overall BOP (including the capital account balance), has been positive, largely on account of increased FDI and deposits from NRIs; until this time, the overall balance was only occasionally positive on account of external assistance and commercial borrowings. As a result, Indias foreign currency reserves stood at $141bn in 2005-06. Indias recently liberalised FDI policy (2005) allows up to a 100% FDI stake inventures. Industrial policy reforms have significantly reduced industrial licensing requirements, removed restrictions on expansion and facilitated easy access to foreign technology and foreign dir ect investment FDI. History of FDI in China FDIs main source in China from 1950s had been Soviet Union. However, it was after 1978 that China began to open up itself to the rest of the world for FDI inflows. From the start of 1978 China witnessed its exit from its self-dependent strategies since Maos era with the country announcing a remarkable program to reform its economic system by opening itself up to the outside world. From the beginning of 1978, FDI in China became desirable and began to add in the development of the Chinese economy. In general, the development of FDI in China can be divided into following five stages. Experiment Stage (1979 1983) China started from an experimental approach, which they called crossing the river by feeling the stones under the water. FDI was permitted into China in a step-by-step manner. One key action of the first step was the establishment of four Special Economic Zones (SEZs), namely Shen Zhen, Shan Tou, Zhu Hai and Xia Men, in July 1981. These SEZs were chosen for the absorption and utilization of foreign Investment. These provided foreign investors with preferential treatment for their Businesses. As Chinas window to the world, these zones succeeded in attracting FDI. Meanwhile, China was putting up effort to complete its legislative system. First to come was, the Equity Joint Venture Law (the Law of Peoples Republic of China on Joint Ventures Using Chinese and Foreign Investment) that was enacted in July 1979. The legislation validated the existence of FDI in China and guaranteed the right and benefits of foreign investors. Second important policy taken at this stage included Regulation f or the Implementation of the Law of the Peoples Republic of china on Chinese -foreign Equity Joint Ventures (1983). Growth Stage (1984 1991) Until 1984 there were flaws in Chinas handling FDI. Chinas restraints on FDI outside the SEZs remained rigid. Laws and regulations limited foreign ownership. FDI projects often encountered a long approval process even though they provided sufficient materials and explanation. This was simplified gradually between 1983 and 1985. Following is the list of new laws and regulations at this stage year on year basis. Wholly Owned Subsidiaries (WOS) Law (1986) Provision for the FDI Encouragement (1986) Constitutional Status of Foreign invested Enterprises in Chinese Civil Law (1986) Adoption of Interim provision on guiding FDI (1987) Delegation on approval of selected FDI projects to more local governments (1988) Laws of cooperative joint ventures (1988) Revision of equity joint venture law (1990) Rules for implementation of WOS law (1990) Income tax law and its rules for implementation (1991) 1984 witnessed two historic activities. First was when Deng Xiaoping remarked that China needed to open wider instead of checking upon the opening process (Zheng, 1984). Second was when Chinese government announced the decision on reform of the economic structure, and called for the building of a socialist commodity economy by assigning a larger role to the market in the domestic economic. Besides SEZs, Chinese government took a further step to give FDI access to other parts of the country. Fourteen coastal cities were announced to be opened to the outside world. They are Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang and Beihai. The local government from these cities could approve FDI projects with capital investment up to certain level. For example, Shanghai could approve all FDI projects under 30 million USD (Yuan, 2006). They were also given the right to spend foreign exchange yielded by local FDI for t heir own growth. The approval procedures for FDI projects were eased. The Law of Peoples Republic of China on Wholly Foreign-owned Enterprises (WFOEs) of 1986, was laid to protect the profits and interest of foreign investors. In addition to this series of other laws and regulations further relaxed Chinas restriction in promoting FDI with measures for enterprise autonomy, profit remittances, labour recruitment and land use. In December 1990, the central government promulgated Detailed Rules and Regulations for the Implementation of the Peoples Republic of China Concerning Joint Ventures with Chinese and Foreign Investment. The regulation aimed to encourage joint ventures that adopted sophisticated technology or equipments, saved energy and raw materials and upgraded products. Peak Stage (1992 1993) This stage has witnessed the rise of Shanghai as Chinas economic hub. The Chinese government wanted to develop Shanghai into an international hub for finance, economy and trade. Their intention was to carry out the experiment of new policies and apply successful practices within the rest of Shanghai and across the country. Shanghais location in Southeast China drew attention of Chinese governments in shifting emphasis to the area to avoid overly concentration of FDI. Hi-tech enterprises, established manufacturers and financial companies were encouraged to set up their China operation at Pudong with various preferential treatments from central and local government. With the implementation of a new framework for further opening up the economy, the Chinese government showed great effort to encourage FDI. A number of new Sectors were also opened up to foreign investors, including banking and insurance, accounting and information consultancy, wholesaling and retailing at the same time, go vernmental procedures were simplified in terms of FDI administration. The year of 1992 witnessed the remarkable growth of FDI in China. In the same year, the Chinese government announced its intention to adopt the strategy of socialist market economy and improve the economic framework for standard market Operations. Following are the series of laws and regulations related to market operations were passed during 1992 and 1993, which included: Adoption of Trade Union Law (1992) Company Law (1993) Provision regulations of value-added tax, consumption tax, business tax and Enterprise income tax (1993) Adjustment Stage (1994 2000) After 1994, the growth rate of FDI in China went down to a steady level from the relatively high rate in past two years, which indicated that a new stage had arrived. 1995s Provisional Guidelines for Foreign Investment Projects provided preferential treatment to various enterprises in various industries. The directory of the Guidelines categorized all the FDI projects into four types: encouraged, restricted, prohibited and permitted (Yuan, 2006). The projects in infrastructure or underdeveloped agriculture and with advanced technology or manufacturing under-supplied new equipment to satisfy market demand fell into the encouraged category. Those whose production exceeded domestic demand and those who engaged in the exploration of rare and valuable resources were put into restricted. The prohibited category included projects that would risk national security or public interest, or those endangering military facilities.. The last one is classified as permitted. Annual utilization of FDI reached to its peak in 1997 and 1998 but then moved downward in the following two years. Post-WTO Stage (2001 present) November 11, 2001, saw Chinas admission as an official member of the World Trade Organization (WTO), after a 15-year negotiation. It was after accession to WTO, China started to fulfil its obligation such as basic principles of non-discrimination, pro-trade and pro-competition. This historic event had significant Impact on FDI inflows to China. This gave incentives to more export-oriented FDI. Chinas export market becomes larger and more predictable. Also, Chinas domestic market attracts FDI in industries where there is large market potential. Usually, these industries used to be dominated by relatively inefficient state-owned enterprises, such as telecommunication, banking and insurance. Foreign investors, especially large multinational companies (MNCs), have now growing interest in these industries. Becoming a WTO member, China had to restructure its legal framework. This, in consequence, improves Chinas business environment and helps attract more foreign investment. Yuan (2006), in his literature has revealed, throughout the years, China has steadily reduced its industrial tariffs in a wide range of sectors. Foreign firms are granted direct trading rights for the first time, which means they can import and export themselves without going through a Chinese state-owned trading firm. Clearly, Chinas acquiring WTO membership boosts investors confidence the Chinese economy and its market and thus attracts more FDI inflows. FDIs: Critical Analysis FDIs in other countries are now been continuously studied. There are numerous factors and studies motivating this type of investment for the benefit of source and host countries. There has been a substantial change in policies and attitudes towards FDI on the part of most developing countries in recent years. Disbelief and suspicion of FDIs in the past now appears to have given place to a new found faith in its ability to encourage growth and development for the investing firm and host countries. This perception is due to number of factors: steep fall in alternative sources of finance such as bank credit in the wake of the debt crisis, the self-evident success of Asian countries like India and China, and growth in Knowledge and understanding of the nature and operations of multinational enterprises (Balasubramanyam Mahambare, 2004). In regards to stability aspect of FDI toward the growth of investing firm and host countries, empirical studies have found FDI to be more stable than ot her forms of capital (UNCTAD, 1998, World Investment Report, Geneva). Examination of a variety of capital flows in developing countries during East Asian financial crisis revealed FDI was more stable than other capital flows past studies analysis that FDI is the result of certain competitive advantage. Paul et al. (2002), revealed in their book; many developing countries like India favour FDI over other capital inflows and there is a substantial benefit that such investment benefit the host country and thereby attracting more foreign firms for investment as the benefits in this form of investment is both ways. Knowing the benefits of FDI in host countries would make the legislation system clear and simple and would enable foreign firm for investment based on long-term profits. Swamy (2000) in his book has done calculation the rate of return of FDI in India. His results revealed the rate of return on FDI in India higher than the rate of return obtained on global outward FDI. To quote from his studies, FDI Enterprises were able to earn relatively higher profit rates in India, despite higher level of taxation and tariffs etc. Thus the low level of FDI Inflows until the end of 1980s seems to have been caused restrictive policy environment rather than profitability considerations. Pradhan (2000) has scrutinised the various aspects of FDI from source as well as Host countries point of view, with a focus on the risk from the firms perspective and on the strategies to attract FDI to be adopted by host countries. His study thereby revealed that the higher rate of return for an MNC comes with FDI is, in fact, the result of existing market opportunities combined with the host countries policies towards FDI. Thereby, Indicating strong signals of overall growth of Host countries (developing) in conjunction with FDI and higher rate of return for MNCs. Lensink Morrissey (2001), literature suggests that FDI by MNCs is one of the major channels in providing LDCs (least developed countries) with access to advanced technologies and generating high revenue for MNCs involved in investment for them. The underlying theory differs illustrates the benefits of FDI for MNCs and host countries. The imitation channel is based on the view that domestic firms may become more Productive by imitating the more advanced technologies or managerial practices of Foreign firms for foreign firms and at the same time adding to GDP for their own country. Also, the competition channel emphasises that the entrance of more foreign firms from abroad intensifies competition in the domestic market, thereby encouraging domestic firms to become more efficient and productive by upgrading their technology base. The linkages channel stresses that foreign firms may relocate new technology to Domestic firms through transactions, and would develop buyer-seller relationship. This would necessities Training from the foreign firm to the domestic firm. Hence the training channel needs to be enforced on new technologies. This can only be adopted when the labour force feels comfortable to work with their foreign partner and when embraced works for the benefits of foreign firms as well. Beside these studies, in some of the literature the contribution of FDI to foreign firm and host countries economic growth has been debated quite extensively. Findings reveals that FDI has both benevolent and a dangerous impact. Empirical evidence that FDI generates positive spillovers for firms is mixed. Few studies have found positive spillover effects, few finds no effects and few even conclude that there are negative effects (see Aitken and Harrison, 1999). The conventional argument is that an inflow of FDI positively contributes as; it brings technology, know-how and management techniques. It integrate the operation of local firms into the networks of foreign investors, it helps to place local production on international markets and integrates the national economies into worldwide production and distribution systems. Hence, concluding that FDI can contribute positively and increase the export activity of the host economy (Adam 2002). On the other hand, some of the recent literat ure points to the role of FDI as a channel of international technology transfer. It can deliver rather controversial effects. Foreign firms can out-compete local producers, reduce local production capacities close down research and development units, break up traditional subcontractor relationships and substitute them with imported goods, and repatriate profits thus deteriorating the balance of payments position of the host economy. Sometimes, could lead to absolute shut-down of foreign firms when opposed by local people of host countries. For example Coca-Cola Company had shut down bottling plant in India during a community-led campaign that demanded the closure of the Coca-Cola bottling plant because of indiscriminate pollution as well as illegal occupatio