Auditing & Assurance Services Trans Pacific Partnership

Question: Describe about the Auditing Assurance Services for Trans Pacific Partnership. Answer: 1. Pseudodoxia Epidemica" is a theory of concentration on the fact of common error' the following concept was laid by Thomas Browne in the aim of laying the superstition caused during the age (Hayes et al., 2014). Browne factor which will be adopted for recognizing the theory are as follows: Earlier authority of the Author Empirical act justified by the reason. Empirical experience According to Browne, some hypothesis needs to be taken before arriving at any conclusion. Browne has conducted this theory based of same based on some facts and experience form the real life. The experiment is conducted by focusing on some empirical evidence of the research. According to Browne accounting decision should be taken by some experiment and then only it should be applicable in the industry. According to the theory, one of the common error which will be done and repetition should not occur. The manager or the supervisor can say the error to be a fraud. The error can also lead to a misconception of the accounting theory which may lead to the wrong entry of the accounts. Thomas Browne again says that before arriving at any conclusion one should look to the fact which has already taken place. In the context of auditing and accounting the fact and the concept should be first checked and then only applied (Phillips 2015). Then a justified reason should be provided before the in corporation and in the accounts. Finally, some event should be drawn which earlier resulted in the mode of a decision taken in the event which has occurred. The conclusion will be drawn in the event of incorporation of the theory in accounting and auditing. There has to be the incorporation of the scientific experiment that to after drawing some idea and conclusion of the auditing as well as accounting. Accounting theory and auditing needs are done to provide the correct solution to the financial performance of the company. Thomas Browne has conducted an experiment based on some experiment and facts of auditing and accounting which has been very helpful for many of the auditor and accountants for giving the solution to the financial performance of the company. Moreover, for arriving at the conclusion, it can be said that Browne has helped some accountant and auditor giving the solution to the problems occurring due to common errors faced by the company while assessing the results of the company (Browne et al., 2012). 2. Trust takes years to build, seconds to break and forever to fix the quoting implies trust needs a large span of time for building because it is not a cup of tea task, but trust can be easily broken by easily broken by anyone in a couple of second. So, one should be careful in breaking the trust of a person. Trust is the fact of ethical and morality so it should be done on the by looking to the carefully (Trieloff Buys 2013). As being a human being, it is the responsibility of an individual, not to break trust either in the personal life or the professional life. Sometimes breaking of trust is said to be a fraud done in an organization if it is related to the ethicality of the company. It is observed that relationship between audit and management are working in parallel to each other, and sometimes it is even depended on each other. The relationship of the managers and auditors has number of functions to be fulfilled for the organizations which are as follows: Management will help in the development of the framework and audit will be maintaining adequacy and effectiveness in the framework of the management (Moroney et al., 2014). Management will be implementing the risk of a framework, whereas, an audit will be implementing the risk of the management framework. On the operated integration of the business, management will be getting advice and auditors will be taking risk and role of the management. Management is providing advice on the accountability for control and risk with allocation. Whereas, the auditors supervises the task of the managers for the proper fulfillment of the duties and responsibilities (Callen Fang 2016). The board and the management are getting the suggestion from the internal management of data relating to the management's risk. Similarly, auditing is providing the assurance of the independent in the risk management factor. Management is providing updates related to risk and performance to a board of audit. Audit checks the reliability, relevance, and credibility of data which will be provided by the managers of the board. Management is acting as an advisor and mentor for the company. Auditors are the reviewer in helping the assurance which will be based on the capacity and rating of management. Functions of the audit and manager are reported to one single authority, who is presenting a combined report to the board. Managers and the auditor have to work hand in hand so that the organization is running its operations properly. Both of them will be reporting to a single manager so that neither of the works is getting judged in the factor of governance (Zadek et al., 2013). The factor of governance explained above for the purpose of distinction in management and audit. Cultural factor stands as a point of making the comparison of both the department. In the management department line, managers are the ultimate person for delivering and performing the companies' outcomes. The auditors are the person for the maintenance of ethical issues about the company's accounting. Managements person is responsible for over viewing the operation of the company for the maximization of wealth and profit of the company. An auditor observes the factor which is needed for running the organization. Management and auditors are the most important person of the company, who will be responsible for performing the core task of the company (Dhaliwal et al., 2015). 3. Martin Shkreli was born at New York, the United States on April 1, 1983. Martin's parents Albanian and Croatian were working as the immigrant of Janitors. Martin is former CEO and founder of "Turing Pharmaceuticals" as well as co-founder of the hedge fund "MSMB Capital Management as the entrepreneur and corporate executive live streamer. In the year 2015, during the September, when Turing received the license for manufacturing of "antiparasitic drug Daraprim this lead to increase in the price with 5556%, from 13.5-750 $ US. Due to this Martin Shkreli received a large criticism and he was named as Most hated man in America by media. In the year 2006, Marlin worked as the analyst in "Intrepid Capital Management and UBS Wealth Management and after that, he opened his hedge fund as "Elea Capital Management. In 2007, Marlin was sued in the New York court because he failed to cover the put option transaction in which Marlin had quoted the incorrect process for broadening the line of th e market. In the year 2014, Marlin was CEO of Retrophin, in which his employees were using the alias of Twitter accounts for producing "gangster rap jokes" as well as encouragement, was done for the short selling of Biotech in another stock. In 2015, December Marlin was arrested for getting sued as frauds in securities, and he was sued after the investigation of duration in his tenure of MSMB Capital Management (Yang Jia 2013). Due to which he was terminated from the post of CEO in Kalo Bios Pharmaceutical. Marlin was getting accused of running the "Ponzi like Scheme. Marlin was advertising the short position for doing investment on the website as "Seeking Alpha" in which he was encouraging the other for going through that lead. In Washington, there was an occurrence of another problem of citizenship responsibility and ethicality. There was research conducted by the non profit organization on the action of MSMB. After that inquiry was conducted on by SEC and the Department of Jus tice by the USA for the investigation made the allegation to Marlin, on this matter SEC and justice department did not agree. Any evidence was not found by both the spokesman and the formal probe. In the debate, the matter related to the short selling of the topic which was general, Marlin was one of the better antagonists. In June 2011 he was going to present to FDA for which his appeal to the subject was known, i.e., Navidea Biopharmaceuticals." Navidea's stock was decreased to $ 3.29 with 33% in a month by July 2011; This was an example of the proposes suspicious made on the exchange of Biotechs stock which warrants tiresome investigation (Rimmer 2015). 4. If I had eight hours to chop down a tree, Id spend six hours sharpening my ax. It was said by Abraham Lincoln. According to him, this statement means that says before conducting a work one must properly understand the rules, regulations, applicability, do's and don'ts. But in the accounting concept the sentence says that before applying the concepts, theory and standards in the accounts, one must properly aware. So before arriving at any conclusion, one must be fully capable of all the rules and regulation of the concerned accounting. The accounting theories and concept must be clear so that there are no obstacles while the preparation of the financial statements. As per Lincoln, the accounts are the core root of any business so all the concepts should be clear on the minds of the accountant (Carson et al., 2014). A small misconception in the rules of the accounting may lead to huge loss of the accounting system. He further says that an accountant is a person who engages in the op eration of conducting the financial operation of the business. Misconception in the account may lead to issues which will be unethical in the accounting concept. Auditors are the who is responsible for doing the rectification and auditing process of the accounts. Auditing is very much necessary in each and every organization. Auditing of account helps an investor to analyze the originality of the performance as given in the financial statement (Porter et al., 2014). Auditing has numerous advantage which is it helps in assessing the capital market of the public limited company. The satisfaction level of the auditing must be achieved as it is the compulsion laid by the official authority of the business. Unless and until auditing of the company is done it is not marked as a safe category for the purpose of investment. Auditing helps in lowering value of the cost of capital which further helps in reducing the information related to a risk of the company (Messier 2016). If there is any fraud conducted by the employees of the company that will also be known with the help of auditing. The ineffectiveness of the accounting employee can lead to a decrease in the performance of the company. Auditing further helps in improvement and controlling of the operations done by the accounts department (Wang et al., 2013). If there is an independent auditor that will help in giving a correct decision related to the company. Instead of having many advantages there are many disadvantages in Auditing. The auditors are not the direct person for taking decision-related to money from starting to end. The frame works of the bookkeeping are impediments which are born because of the confirmation of the supplier which puts forward an additional dependency. All the audit confirmation are convincing rather than enticing. Confirmed suppliers will not be testing the whole portion of the topic (Furnham Gunter 2015). The auditor can help in getting an intentional escape and plotting in extorti on for the related reason by the staff and its customer. An arrangement of the affirmation can be subjective as well as proficient in making any judgments. Providers of the certificates are depended on the responsibility of the person and the staff should be given information which is relevant and correct. Restrictions can be done on the people who are providing the confirmation because of some reason. The company is providing an audited statement to its shareholder, gains confidence of the investor easily. Auditing of the financial statement has been made compulsion in many of the authorities of accounting (Millichamp Taylor 2012). Reference List Browne, T., van Hove, F. H., Keck, T., Digby, K., Ekins, N. (2012). 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