Internal Auditing Concepts for Small and Medium Enterprises

Internal Auditing Concepts for Small and Medium Enterprises INTRODUCTION 1.0 Background Internal auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes (IIA, 2007). It delivers greater value to an organization by championing good governance, supporting enterprise risk management rollout, consolidating compliance processes, and potentially coordinating various other corporate monitoring functions (Rick Todd, 2008). Corporate governance is a set of processes, controls, and structures generally performed within the organization by, or on behalf of, stakeholders (including the board or other body directly appointed by stakeholders, to ensure that their interests are protected and their goals are achieved (Norman, 2007). Over the past years, there has been a loud call for â€Å"good governance† of organizations (Zeleke, 2007). In the wake of corporate scandals, widespread unethical behavior, and illegal activity in some of the most respected organizations, corporate governance has become important in both public and private organizations (Tumuheki, 2007). These accounting scandals and legislation highlight the critical role the internal audit function plays in corporate governance (Deborah et al, 2008). It is therefore not surprising that the Institute of Internal Auditors (IIA) puts a lot of effort in guiding its members to become corporate governance specialists, capable to assist both management and the board (Jan, 2005). Uganda, like other transition economies, now increasingly recognizes that corporate governance is an essential tool for prosperity and economic growth. (Tumuheki, 2007). For Small and Medium Enterprises, especially those with a serious desire to grow and perhaps someday get stock exchange listings of their own, they should consider adopting key elements of corporate governance as this will help them gain access to information and resources for growth. The presence of proper accounting and bookkeeping practices increases confidence in SMEs and makes them less risky to invest or finance. According to Wee Teck (2003), there has been a recent growing call for the application of corporate governance to SMEs. They argue that, corporate governance has similar benefits to SMEs as to listed companies and therefore similar guidelines that apply to listed companies should also be applicable to SMEs. 2.0 Statement of the Problem Small and Medium Enterprises (SMEs) are critical for Uganda because of their role in economic growth and poverty reduction. A dynamic and vibrant SME sector will provide sustainable growth, generate jobs and therefore reduce poverty levels .As companies globally face issues relating to transparency, accountability and timely disclosure of material information, the concept of corporate governance and business ethics in SMEs has gained significant importance (Shahnawaz, 2003). In Uganda, SMEs which form 90% of the private sector, lack organised in-house procedures to manage and supervise internal controls, risk management, business performance and cash flows. This has caused a high collapse rate, with 40 % failing within one year and 80 % within five years (Kasule, 2008) despite the high formation rate. This has prompted me to look at the relationship between internal audit proficiency and corporate governance in the small and medium scale enterprises in Uganda. 3.0 Purpose of the Study The purpose of the study seeks to evaluate the relationships between internal audit proficiency and internal controls; internal controls and corporate governance; internal audit proficiency and risk management; internal controls and risk management; and risk management and corporate governance in Ugandas SMEs. 4.0 Objectives of the Study The specific objectives of the study are stated below: i To establish the relationship between internal audit proficiency and internal controls in SMEs ii To establish the relationship between internal control systems and corporate governance in SMEs iii To establish the relationship between internal audit proficiency and risk management in SMEs iv To establish the relationship between internal controls and risk management in SMEs v To establish the relationship between risk management and corporate governance in SMEs. 5.0 Research Questions i) What are the causes of lack of internal audit proficiency in Ugandas SMEs? ii) What role can internal audit proficiency play to promote good corporate governance in Ugandas SMEs? 6.0 Scope of the Study The study will focus on internal audit proficiency, internal controls, risk management and corporate governance practices in Ugandas SMEs. It will be conducted within Kampala District since Kampala area has the largest number of SMEs in Uganda. The SMEs will be studied under the following categories; trade and commerce, service and manufacturing. 7.0 Significance of the Study The study will benefit the SME sector since it will highlight areas of emphasis that they should take advantage of. Scholars and academicians may be inspired to carry out further studies based on these findings. The study is expected to boost the literature gap on internal audit and corporate governance in the SME sector. Policy makers and other stakeholders will benefit from the findings of this research since they will be able to draw conclusions based on the findings. 8.0 Conceptual Framework The conceptual frame work draws upon the works of Faudziah et al, (2005), Laura Michael, (2002) and Tushabomwe (2006) with adjustments made to fit SMEs in Uganda. It explores the relationship between two variables; internal audit proficiency and corporate governance in Ugandas SMEs. According to Gerrit Ignace (2006), internal controls more specifically and risk management have been considered fundamental elements of organizational governance and that, it is the job of internal auditors to help organisations accomplish their objectives by bringing systematic and disciplined approaches to evaluate and improve the effectiveness of risk management, control and governance processes. Internal auditors have an important role in the corporate governance process (Jan, 2007) and therefore need to be out in front, leading organisations with regards to the internal control systems and also focusing on strategic business objectives. They also need to establish themselves as vital cogs in their organizations, rather than as observers who watch from the periphery and wait for events to impact them (Sawyer Vinten, 1996). Therefore their experience and skill in carrying out audit work is of great importance since constructive advice to the Board and management adds value to organizations. The following conceptual frame work will be used to guide the study.

His Excellency George Washington

His Excellency George Washington His Excellency George Washington, written by Joseph J. Ellis, provides us a look at one of the most influential men in American history. However, instead of looking at the monumental titan as most did, Ellis wrote about the man behind the monument; his successes, failures and desires that few if any have written about before.While not as formal sounding to the reader with many questions and out of the way comments by the author based on opinion instead of fact, like on page 194 where in moment about Washington saying formal etiquette of the levees combined with Washington's natural dignity (or was it his aloofness? ) to create†¦. ‘ with the content in the parentheses being his own. This statement of his was neither followed up by any fact nor further discussion entirely which is necessary in these situations. Or is it?Ellis spent his book not focusing on the monolith but on the man, dating back to before the French and Indian war where Wash ington started to receive recognition for his services, to his death in 1799. Ellis looked past all the brass and silver of his success in the public and thoroughly explored his private and personal life. Ellis painted Washington as a man who focused intently on his bottom line, as seen on page 165 where Ellis describes that the main reason for Washington wanting to get rid of his slaves was not for moral reasons but for economic reasons, as the slaves were no longer worth the investment.Ellis harped on the fact that only 3 letters of correspondence survived between George and Martha Washington (page 42), which was one of the few times e released his emotions considering his natural stone exterior. Ellis also put considerable effort in to focusing on his home in Mount Vernon which was a centerpiece in Washington's life. His life was changed forever by his wife Martha who, even though they originally married for economic reasons, became a ‘mutually affectionate bond' (Ellis, 42 ). From the beginning Washington was concerned about his future in the aristocratic- like planter class of Virginia.Being the 2nd son in the family George was not slated to receive his father's fortune, so he would need to find another career where he could aka one. He got his first Job as a surveyor sent to check on land in the Shenandoah Valley (Ellis, 10). It is presumed by Ellis that this is the point at which Washington saw the expansive and untouched land to the west, a driving force behind his ambitions both at the start of the revolution (Ellis, 57) and during his presidency. During his youth, America was a land where most identified themselves as British, Virginian ‘army and worked alongside the British intently during the French and Indian war.However many of the colonists believed they fought the French and Indian war to be allowed to expand west. This thought was extinguished when the proclamation of 1763 was released, forbidding colonist expansion westward. This w as one of the starting points where colonists began to feel some resentment to the British Crown, and only snowballed with every act thereafter. As more taxes and acts were being placed on colonists more and more anger about a lack or representation in parliament began to seep into American politics.Many of the more radical members who wanted full separation/retaliation became to be known as the Whig arty (Ellis, 62). These Whig were inspired by the Country Party (Ellis, 62-63) of England and wanted to establish a republican like government that better represented the colonists in the Americas. As time went on and the revolution ended, while the framing of the constitution took place and there on after, 2 political parties in the United States began to take route. The first major group was the Federalists led by Alexander Hamilton which Washington was a supporter of.The Federalists are precursors to modern day republicans. On the other hand a large group of people in the south didn' t like the centralist ideas of the Federalists, fearing that the Federalists would destroy their agriculturally based economies (Ellis, 204-205). These men went on to form the Republican Party, or Anti-Federalists, which is the modern precursor to the Democratic Party. While a member of it Washington hated and despised these 2 parties as he feared it would lead to a deadlock (which we can see today). Many decisions that would affect Americas social future were decided in Washington's era.A large one, the legality of slaves was one that was with him from the time of the revolution where he considered offering freedom for those who fought for him, until he finally passed away (Ellis, 263). While personally against slavery from a moral stand point later in his life at the beginning he took advantage of slave labor to help create his massive estates that were pivotal to his position in Virginia society. He did have 1 condition however that most slave owners didn't have; he would never s ell members of a slave family, only the whole family together (Ellis, 258).Joseph J. Ellis created a biography that changed some perspective of Washington. No longer an immovable figure of greatness, he was portrayed as a man who went through hardships, strife, and success, while still keeping his goals and ideals alive. He was a man with a deep capacity for emotion who had learned self-control and was always looking towards the future. He saw George as a man who would do what it took to get the Job done, and extend his legacy forever. Most importantly, Ellis shed new light on the man and not the monolith of His Excellency George Washington.

Macbeth Theme

One of the most fascinating ways in which Shakespeare explores the theme of appearance and reality is through the characters of the witches. The witches bring with them confusion, which infects the natural order. Night becomes day. Duncan’s horses eat each other, Fair is foul, and foul is fair. This quote is fairly early in the text, and sets the tone for the rest of the play. It alludes to the deceptive nature of the play, referring to the idea that things are not always as they seem.The quote itself foreshadows the apparent sinister and deceitful nature of the play, in that it brings forth the idea that things that seem fair, good and true may well in fact be evil or foul. Likewise, things that appear evil may possess elements of good in them. This quote is a key component of the play, as the play itself centres around the idea of deception and that what appears on the outside is not always a true reflection of what lies beneath,. the course of the play, they lead to greater confusion in Macbeth’s mind.They seem to promise him good things, but his life subsequently begins to deteriorate. On the night of the murder, Macbeth sees a floating dagger, but can not decide if this â€Å"air-drawn dagger† is real or a figment of his imagination proceeding from his â€Å"heat-oppressed brain†. His confusion between what is real and what is not seems to increase as the witches’ influence over Macbeth grows. As Macbeth’s actions become more tyrannical and savage, the strain of hiding their (Macbeth and Lady Macbeth’s) true nature surfaces. The pair quickly begins to lose their grip on reality.Following Banquo’s murder, Macbeth sees his ghost at the feast. Macbeth has lost the ability to differentiate between appearance and reality. The cause behind Macbeth’s murder of Banquo was his inability to accept anything at face-value. Macbeth turns to the witches when he begins to become â€Å"cribb’d and conf ined†. These are the very â€Å"hags† behind Macbeth’s original confusion. They very quickly bring Macbeth into a state of mind where he becomes totally disconnected from reality. He takes the witches apparitions and predictions literally, believing that he is safe from any harm.The prediction that Macbeth will be safe until â€Å"Birnam Wood reaches Dunsinane† appears to indicate that he will not be threatened any time in the near future. In reality, it is showing him his impending downfall. It is at this stage that the forces of good come together and travel to Scotland to overthrow Macbeth. As the tide turns on Macbeth, the king and queen become more disillusioned and reach the brink of insanity. Suffering from memories of the murder, Lady Macbeth is unable to make a distinction between reality and fantasy.In her panicked state, she takes her own life. Meanwhile, Macbeth is forced to acknowledge that the witches â€Å"lie like truth†. They have e quivocated. Macbeth is at this stage ready to see the world for what it is, not for what he wishes it to be. The play Macbeth is undoubtedly a very shocking and disturbing play. In the course of the play, the boundaries between reality and appearance are in a constant state of flux. As a result, very little is as it seems in the play. The characters are regularly concealing their true natures and their true ambitions and desires.

Italian Immigrants Holiday Traditions - 1262 Words

Americans have become so accustomed to holiday traditions today that the meaning of how they arrived here has been lost. Immigrants of Italy brought to America their family-centered culture of celebrating these holidays. Their culture was so influencing that villages for the Italians were actually formed. The Italians celebrated numerous holidays in Italy; most celebrations included their fine foods and wine. Although, after the immigrants arrived in America they no longer observed many of the holidays that they did in Italy. The Italians’ holiday culture helped to make America a more diverse nation. Their family-centered culture and regional affiliations resulted in highly concentrated settlements called, Little Italies. Entire villages in Italy would travel over to America to form these settlements. Many were heavily clustered in cities in the mid-atlantic and midwest states. The immigrants typically viewed themselves as residents of a particular region or village, not as â€Å"Italians.† Their daily habits and life reflected this, as they usually only associated with fellow kin or villagers called paesani. The Italians were working on becoming a member of American society while still trying to maintain their old customs. During holidays, Italian immigrants still utilized traditional customs such as folk songs, folklore, and dances for special events. However, like so many of the Italian aspects of life, they were so regionally specific that they defied easy characterization.Show MoreRelat edItalian Music1489 Words   |  6 Pagesmore than four and half million Italian immigrants arriving to American between the years of 1876-1924, traditions, food, literature and an immense amount of Italian culture was slowly spread nationwide. With that, Italian music was also brought across seas. 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