The Factors Affecting Auditor Independence Accounting Essay

The Factors Affecting Auditor Independence Accounting Essay The issue of auditor independence is a crucial element and very important for the audit profession. This concept has been discussed widely and many definitions have been presented in literature. Independence refers to the auditors ability to present his opinion about the reliability of financial statements honestly and impartially away from his interest or the pressure of clients  [1]  (Ahmad, 1985). Literature has contemplated two standards for assessing auditor independence. Mautz sharaf(1961), who are among the pioneers in the study on auditors independence have developed a concept of independence with two components: practitioner-independence (independence in fact) and profession-independence (independence in appearance). The Public Oversight Board emphasized that the members of Certified Public Accountant firms should protect the profession by being independence both in fact and in appearance (Lowe et al, 1999). Independence in fact refers to the mental attitude of the auditor characterized by the integrity and the objective approach to the audit process. Also, the practitioner independence requires the auditor to be free from personal interest and susceptibility to excessive pressure  [2]  ( Moizer Sutton, 1997). However, since this mental process is unobservable and auditors also have incentives to violate their independence through satisfying their clients so as to maintain the economic bonding to the client  [3]  (DeAngelo, 1981), there is a need for the auditors to be perceived as independent(named independence in appearance) from the management team who prepares the financial statements. Orren (1997) states that independence in fact refers to the actual, objective relationship between auditing firms and their clients whereas independence in appearance is the subjective stated of that relationship as perceived by the clients and the third parties. Church and Zhang, (2002) argue that independence in fact is necessary to enhance the reliability of financial statements. On other hand, independence in appearance is necessary to promote public confidence such that users will rely on audited financial statements. Securities and Exchange Commission, 1979 asserts: The [auditor independence] issue is both one of appearance and of fact; if public confidence in the integrity of financial reporting is to be maintained, it is of the utmost importance that public confidence in the objectivity of independent auditors be similarly maintained. American Institute of Certified Public Accountants (Public Oversight Board, 1979): While it is, of course, essential that an auditor preserve his objectivity and integrity from his own viewpoint, commonly called independence in fact, it is also important that the auditor appear independent to all users of the financial information he provides. This latter concept is an essential ingredient to the value of the audit function because users of audit reports must be able to rely on the independent auditor. The need for Auditors independence Independence is an important auditing standard because the auditor adds justification and credibility to financial statement even when there are no material misstatements or omissions in the financial statements prepared by management (okolie 2007). The author Gupta (1999) is of opinion that is auditor is not independent of management; his opinion would mean nothing to shareholders, prospective investors, bankers, government agencies, and others who are concerned with the financial statements of a company. The author Ezeipe(2004) describes the concept of auditors independence in three dimensions  [4]  : Programme independence: Sometimes client manager have the intention to restrict or modify the procedures that the auditor want to perform. Thus auditors should always remain free from interference of client managers. Reporting Independence: The auditor should never let any feelings of loyalty towards the client to affect his work. He must fully and fairly disclose his obligations. Management are never allowed to pressurize the auditor. Investigative Independence: The auditor should have access to all necessary materials required on the content of an audit. For example, the auditor must have access to books and records; also active co-operation from management personnel during audit examination is required (salehi 2009). Factors affecting auditor independence In theory, there are many factors that affect independence of an auditor and these factors which have been studied can be: The effects of gifts The purchase of discounts arrangement The audit firm size The provision of management advisory services by the audit firm The client financial condition The nature of conflict issue The audit firms tenure The degree of competition in the audit services market The size of the audit fees The audit committee Practising non-audit services by auditors In this study, only factors such as the provision of non audit services, the audit firm size, the audit firms tenure, the degree of competition in the audit services market, the size of audit fees and non audit fees and the audit committee will be analysed and whether these factors will impair or enhance auditors independence. The provision of non audit services by auditors Audit failures  [5]  reported in the past have affected the profession of auditor worldwide because the interests of shareholders and stockholders have not been safeguarded. This problem has arisen as a result of the provision of non-audit services (Salehi and Moradi 2010). Non- audit services can be any services other than audit that an auditor provides to an audit client. Over the late 20th century, demand for business expert services has increased, wattington and Pany (2001) identified the different range of services which are offered by auditors to private and public sectors and these non-audit services include: training, services for payroll, risk management advice, mergers and acquisition, taxation, public offering, portfolio monitoring, recruitment and human resources and corporate governance. An auditor needs to pay much attention when both audit and non-audit services are provided to the same client, because these non-audit services may threaten the independence of auditor. Although there are market-based incentives for auditors to remain independent, there are also forces that potentially threaten auditor independence. Specifically, the SEC is concerned about two effects of non-audit services. One is a fear that non-audit service fees make auditors financially dependent on their clients, and hence less willing to stand up to management pressure for fear of losing their business  [6]  . The other is that the consulting nature of many non-audit services puts auditors in managerial roles, potentially threatening their objectivity about the transactions they audit. Auditors services relationship raises two types of independence concerns. First, the more the auditor has at stake in its dealing with the audit client, particularly when the non-audit services relationship has the potential to generate significant revenues on top of the audit relationship. Second, certain types of non-audit services, when provided by the auditor, create inherent conflicts that are incompatible with objectivity. In the United States, the Sarbanes Oxley Act of 2002 implemented a ban on nine non-audit services which include: Bookkeeping and other services related to the audit clients accounting records or financial statements. Financial information systems design and implementation Appraisal or valuation services and fairness opinions Actuarial services Internal audit services Management functions Human resources Broker-dealer services Legal services Ojo (2009) suggested that the provision of non- audit services by audit firms does not necessarily affect auditor independence. However, where the fees generated from non-audit services are relatively high (in proportion to the audit fees earned by such accounting firms), this creates a situation whereby the auditors independence is likely to be compromised since the auditor may be denied profitable contracts  [7]  where he gives a qualified opinion on the financial statement being audited. Proponents of the provision of audit services argue that synergies of knowledge spill over and audit efficiency arise from providing both audit and non- audit services. Nevertheless, following the collapses, auditing profession as a whole has been affected and changes were proposed to ensure that audit firms reduce their over-reliance on NAS (The Star, 2002). In order to ensure the independence of auditors and to protect the interest of investors, the accounting profession in most countries has come up with a code of ethics that spells out guidelines for auditors competency and independence. Audit committee An audit committee consists of a selected number of members of a companys board of directors whose main duties are to help auditors remain independent of management (Arens at al, 1999), that is, committee should support the auditor instead of management in different audit disputes. Braiotta (1999) and Goldman (1974) maintained that audit committees could monitor the financial reporting process and provide recommendations in the selection of auditors, negotiation of fees and termination of external auditors, which would ultimately diminish managements power over the auditor. Thus, the audit committee is anticipated to ensure that the firm has sufficient internal controls, proper accounting policies, and independent external auditors that will prevent the incidence of fraud and promote high quality and timely financial statements. The members who participate in the audit committee can be non-executive directors, corporate managers, academicians and retired partners of CPA firms (Knapp, 1987). In the U.S., the Securities and Exchange Commission (SEC) chairman, Levitt (2000) pointed out that, à ¢Ã¢â€š ¬Ã‚ ¦qualified, committed, independent and tough-minded audit committees represent the most reliable guardians of the public interest SEC requires Audit Committees to evaluate the independence of the companys external auditor when deciding whether or not to hire the auditor for providing non-audit services. In so doing, Audit Committees also are encouraged to consider how the auditor provided non-audit services may improve audit quality and enhance auditor independence. Size of audit firm  [8]   The size of audit firm is an essential characteristic that reflects auditor independence. Auditor reputation is directly associated with audit quality. Large audit firms will make sure to provide an independent quality audit service as the larger audit firms tend to have better research facilities and efficient financial resources, more advanced technology and more skilled employees who will be able to undertake large company audits compare to smaller audit firms. Large audit firms have larger client portfolios which enable them to resist management pressures whereas small firms provide personalised services as their client portfolios are limited and they have to succumb to management requirements (Lys and Watts, 1994). The issue of maintaining auditor independence is more crucial for smaller firms than larger firms. Pearson (1980) found the larger size of audit firms will enhance auditors independence, because, smaller firms would experience more difficulty in resisting client pressures in situations of conflict. As a result, the information content of audit reports certified by large firms is considered to be more and reliable than those of smaller audit firms  [9]  (Titman and Trueman, 1986). However, as pointed out by Goldman Barlev (1974), it cannot be concluded that large CPA firms are more resistant to pressures from their clients. This is so because the few court cases which challenge the assumption that CPA firms acted independently indicate that there is no guarantee that large CPA firm has the ability to resist pressures from clients, as happened with Arthur Andersen and Enron  [10]  . Level of competition in audit service industry Competition  [11]  has been identified as an external factor affecting auditor independence (Shockley 1981). Many firms which operate in an intensely competitive environment may have difficulty remaining independent as the client can easily acquire services of another auditor. The  [12]  AICP Cohen Commission (1978) in its report affirms that there are excessive competitions among public accounting firms and this excessive competition among different firms has been consistently identified as a factor threatening auditor independence  [13]  (Farmer et al., 1987). . Shockley (1981) had found that audit firms operating in an environment characterized by a high level of competition for audit clients would have a greater risk of decreasing their audit independence than where audit firms operated in a low-competition environment. However as suggested by Linberg and Beck (2004), Competition in the audit market makes the auditor more careful and concerned with the audit assurance level in their services. Tenure of an audit firm serving the needs of a given client An audit firms tenure refers to the length of time required to fill the audit needs of a given client. A lengthy association between a company and an accounting firm is likely to result a close identification of the firm with the interests of its clients, thus an independent action by the accounting firm become difficult. (U.S. Senate 1976). The author Mautz Sharaf (1961) added that after a long association, less rigorous audit actions, complacency and confidence in the client may arise. However, long auditor tenure may lead to a cozy relationship between the client and the auditor ad this may impair auditor independence due to a decrease in the auditors due-diligence and also becomes more prepared to turn a blind eye to inappropriate managerial actions. On the other hand, long auditor tenure is beneficial as auditors gain expertise in the field they audit and may reduce the auditors ability to detect irregularities or material misstatements (Gul et al., 2009) Size of audit and non audit fees The IFACs Code of Ethics for Professional Accountants (1996, para 8.7) propose that client size which is measured from size of fees could raise doubts as independence of auditor is concerned. The EFAA (October, 1998, p.4) clearly states that, the (total) fee from one client should not exceed a certain percentage of the total turnover of the audit firm. In cases of accounting scandals (for example Enron and WorldCom), the audit firm appeared to be in collusion with the management in hiding fraudulent activities. The major factor behind such reservation was the amount that the auditors received as non-audit fees from these clients. Anderson, the auditor for Enron, received US dollar 27 million as non audit fees in addition to US dollar 23 million as audit fees. The fact that the accounting firm received more than half of its Enron revenue from NAS gives an appearance of a lack of independence in the audit (Flaming 2002). In addition, the fees for non-audit services has also increased substantially and are more profitable than fees from audit services, thus strengthening the economic bond and substantially lead to impairment of AI . The regulatory bodies in the U.S. like the SEC, the POB and the AICPA emphasized that significant high non audit fees can negatively affect auditor independence and also impair auditor decision-making, when those decisions involve a substantial amount of professional judgment. In Malaysia the MIA By-Law (Section B-1.98 on Professional Independence) has emphasized that if the total fees (arising from assurance and non-assurance services) generated by one assurance client or its related entities exceed 15% of the firms total fees in each year over two consecutive financial periods, financial dependency shall be considered to exist, in which case, a self-interest threat to independence is created. In such event, the only course of action is to refuse to perform or withdraw from the assurance engagement. This 15% criterion has also been the level generally used by the ICAEW and Australia at which auditors have to consider their independent position.

Election of Lincoln and Civil War Essay examples -- history

Election of Lincoln and Civil War How did the election of Lincoln to president in 1860 lead to civil war in the United States of America? Essay: In 1860 Abraham Lincoln was elected as president of the United States of America, the repercussions of which led to civil war. However it was not only Lincoln’s election that led to civil war but also the slavery debate between the northern and southern states and the state of the economy in the United States. Together with the election of Lincoln these caused a split, both politically and ideologically, between the North and South states which manifested into what is now refereed to as the American Civil War. When Lincoln won the 1860 election it was not by a majority vote. As stated by the historian Neville he in fact won less than 40 percent of popular votes. However because the American election system is based on the college votes system (where each state is worth a certain number of points and if a candidate wins the majority of votes in that state he wins all the points for that state, regardless of how much he wins by. To win the entire election a candidate must win the most amount of points) he was able to win the election with a minority of votes. Lincoln won all the states in the north and in the west which, because of their high population, were worth the most points. This election caused the civil war because of what the southern states, the Confederate, perceived Lincoln to be. He was thought to be an abolitionist, meaning a person who wishes to abolish slavery completely. In fact Lincoln only wished to stop the spread of slavery, not to abolish it completely. He had no intention of changing the established social order in the south. Historian J. J. Cosgrove sees Lincoln’s election as the straw that broke the camel’s back. He claims in his book, co-written with J. K. Kreiss, Two Centuries that the civil war can be put down to five causes; slavery; political collapse that eliminated compromise; sectional economic rivalry; Southern nationalism; and the effect of fractional minorities such as abolitionists. This can be summed up as a rift between the north and south states. A rift between the north and the south had been present since the late eighteenth centaury. It began with the industrial revolution, which saw the northern states prosper. The north changed industries from fa... ...eadership of the democrats, believed in popular sovereignty ie the population of a state choosing for itself on the matter of slavery. The other member also aiming to rule the democrats was Breckinbridge, who believed in slavery being permitted in all states. The democrat party split into the northern and southern democrats. Because of the split Lincoln was able to win the election, upon which the southern states succeeded from the union. In conclusion the election of Lincoln as president in 1860 caused a civil war because it was falsely perceived by the south that Lincoln would threaten the state’s constitutional right to slavery. This false idea was due to a rift between the northern and southern states in both an economic and ideological manner. That is the north was based on industry and generally was opposed to slavery. But the South was an agricultural society which ran on slavery and, due to Nat Turner’s Insurrection and John Brown’s stand at Harper’s Ferry, was fearful of the north’s involvement in the governing of states as well as being opposed to this on the basis of state’s rights. The election of Lincoln caused the south to succeed from the union causing civil war.

Leadership Activity

II. Reality Check Author: Tom Siebold is a writer and consultant in Minneapolis. He is also co-owner of Collegegrazing. com–a site to help college bound teens to learn more about what they need and want in a college. Objective (s): To pinpoint actual leadership behavior and to set behavior goals How the author has used this exercise:   I have had success using this exercise as a pre- workshop self-inquiry activity. I have also used it as a homework assignment. Its strength lies in the fact that it paints a picture of actual behavior and then helps the leader see how he or she can redistribute behavior. Activity Description: * Have the participants think about what they actually do on a daily basis. Then ask them to draw generalizations about how they spend their leadership time. Each participant completes the Leadership Behavior Chart below (In blue font). * You can follow up with full group or small group discussion. The central question is this: Is your leadership behavior out of sync with the way that you feel an effective leader should be spending his or her energy? Think about your daily interaction with the people who you lead. Generally speaking, determine the actual behaviors that define that interaction. Using the list of behaviors below, determine the amount of time (in percentages) that you generally spend on each behavior. Then in the second column, determine what you feel would be ideal distribution of time (in percentages). Behavior | Percentage of time spent on each behavior | Ideally the percentage of time you would devote to each behavior | Informing |    |    | Directing |    |    | Clarifying or Justifying |    |    | Persuading |    |    | Collaborating |    |    | Brainstorming or Envisioning |    |    | Reflecting (Quiet Time for Thinking) |    |    | Observing |    |    | Disciplining |    |    | Resolving interpersonal conflicts |    |    | Praising and/or encouraging |    |    | Follow Up Questions 1. Is there a gap between how you should spend your energy and how you actually spend it? 2. Are there some behaviors that are taking up too much of your leadership time? Why? 3. Are there some strategies that you can employ that would move you closer to your ideal distribution of behavior? Options:   A. Some groups may want to calculate behavior totals to see how their peers are spending their energy. B. From the third column it is easy to move into a discussion about â€Å"ideal† leader distribution of energy. C. You may also use this same format with both meeting and team interaction. Added thoughts or considerations: Since this activity helps participants see what they are actually doing, it helps them translate leadership theory into real behavior. Once participants review their charts it is easier for them to design strategies to align their leadership behavior. –Return to Top– III. Your Leadership Calendar Author: Tom Siebold is a writer and consultant in Minneapolis. He is also co-owner of Collegegrazing. com–a site to help college bound teens to learn more about what they need and want in a college. Objective (s): To extend leadership learning beyond the workshop. How the author has used this exercise:   This exercise is a good follow up or homework activity. Activity Description: Ask the participants to mark twelve different days on their calendar spread out over four or six months. At the end of each marked day, participants should write down some leadership behavior (either positive or negative) that they exercised during that day. Each behavior should be followed by a reaction statement that answers two questions: â€Å"How did I feel about my action or behavior? †Ã‚   and   â€Å"How does this action or behavior jive with what I know about leadership best practices? Options:   On each marked day, the participant can send his or her personal leadership comments to a selected partner from the original workshop. This is a good method for accountability and feedback. Added thoughts or considerations: I almost always use the strategy in the Options section above. When people leave the workshop, they get caught up in daily mainten ance and frequently don't get around to doing the follow up exercises. By having them contact a selected partner from the workshop, it puts a little pressure on them to follow through. –Return to Top– IV. Leadership Dance Card Author: Tom Siebold is a writer and consultant in Minneapolis. He is also co-owner of Collegegrazing. com–a site to help college bound teens to learn more about what they need and want in a college. Objective (s): To encourage participants to talk to one another about specific leadership best practices How the author has used this exercise:   Very simply, I use this activity to get participants to share best practices. This format will work with almost any professional topic. Activity Description: Each leader has his or her own style of leadership. Some styles will work for you while others won’t. In this activity participants mix with the full group and sign up the names of three other participants on their â€Å"interview dance card. †Ã‚   Then during a set period of time (this may be done over an extended break or even a lunch period) participants seek out their â€Å"dance partners† to conduct a short leadership interview. They ask each other a set of questions provided by the facilitator and record the responses. Below are some leadership interview questions that I have used in this activity: 1. How do you motivate your reports? 2. How do you keep your reports meaningfully informed? 3. How do you maintain your team's focus on specific goals? 4. How do you set, clarify, and hold your reports accountable to   your expectations? 5. How do you recognize successful work? Note: you may want to restrict each interview to one or two questions depending on the amount of time you want to devote to this activity. When the full group reconvenes, the facilitator asks participants to share leadership tips and strategies that they picked up in their interviews. The facilitator may want to make a master list of these to pass out later. Options:   Have the group brainstorm for interview questions to be used in the interviews. Added thoughts or considerations: This activity serves many purposes: it gets the participants moving around, it connects people, and it is an efficient strategy to share best practices. –Return to Top– V. Center Stage Author: Tom Siebold is a writer and consultant in Minneapolis. He is also co-owner of Collegegrazing. com–a site to help college bound teens to learn more about what they need and want in a college. Objective (s): To visualize different leadership styles How the author has used this exercise:   If the group is comfortable with one another, a role playing activity can have some impact. I have used this activity to set up my   information about leadership styles. However, this same format can be used with a variety of different topics. Activity Description: Ask for four volunteers. One volunteer plays the role of a   team member who recently has missed meetings or arrived late. The other three volunteers each play the role of a different kind of leader. To save time I usually give the leader volunteers a personality trait from which they can create their persona: the by-the-book leader, the self-absorbed leader, the paternalistic leader, the softy, the blamer, the lecturer, the know-it-all, etc. Allow the volunteers to have some time to think about their role. Gather the full group in a circle and place two chairs in the middle. In turn, have each leader confront the team member. Explain the situation to the group before the role playing begins: Loren, the late team member, has not only been missing meetings or arriving late, he has also appeared to be very tired and disjointed. Some team members have suggested that Loren’s wife is ill, but others say the situation is rooted with Loren himself. As a leader, what is a good way to handle Loren? After all three scenarios have been played out, ask the full group to comment on the different leadership approaches—What worked? What could the leaders have done differently? How would the â€Å"ideal† leader handle this situation? This activity is a good spring board to exploring different leadership styles. Options:   You may want to have the full group identify three different role playing situations. Added thoughts or considerations: I try to check with some of the participants before the workshop begins to see if the group would be comfortable or willing to engage in a role playing activity. -Return to Top– VI. Leaders you Admire Author: Tom Siebold is a writer and consultant in Minneapolis. He is also co-owner of Collegegrazing. com–a site to help college bound teens to learn more about what they need and want in a college. Objective (s): To seek leadership characteristics through personal experience How the author has used this exercise:   I ha ve found stories to be a powerful way for participants to connect to the workshop subject matter. Generally people like to tell and hear stories. Activity Description: Divide the group into small groups. Ask participants to share a story about the best or most influential leader that they have encountered. After each story, identify leadership characteristics by asking the question: â€Å"What was it that made this person such an effective leader? †   Then as a group, identify the traits that all the leaders seemed to share. All groups then write the shared traits on a white board. You can use this traits list as a springboard to explore more about what makes a good leader. Options:   You can ask the groups to share stories about the worst leaders they have encountered. You will get some dandy stories. Added thoughts or considerations: I like to insert an activity like this into a workshop when participants are starting to run a little low on energy. A good story swap frequently revives energy. Be sure not to drag this activity out too long. Encourage the participants to include details in their leadership examples. –Return to Top– VII. Leadership Swap Author: Tom Siebold is a writer and consultant in Minneapolis. He is also co-owner of Collegegrazing. com–a site to help college bound teens to learn more about what they need and want in a college. Objective (s): To exchange leadership ideas and build participant rapport How the author has used this exercise:   Sometimes it is helpful to allow the participants to have some time just to swap leadership examples. In short they have some time to portray their own leadership style by giving examples. Activity Description: This activity is a structured leadership example exchange. Divide the group into groups of three. From the list of â€Å"situations† below, instruct the groups to take turns giving examples of something they have done or witnessed. Leadership Situations * A creative twist on a situation or issue. * A clever improvisation–â€Å"dancing on your feet† * A pleasant surprise * An Aha moment * Something that generated a great deal of excitement * A conflict resolved * A breakthrough insight or solution * A really tough situation * A blindside experience * A moving (emotional) situation Options:   You may want the groups to identify their own Leadership Situations Added thoughts or considerations: Remember that this is a set up activity, so don't let it go on too long.

Analysis Of The Book The Principle - 977 Words

Selected lithograph Paper (Edited) The â€Å"The Principle† was lithographed in 1918 by the artist named â€Å"Oskar Kokoschka†. The Principle is a stationary, bust sculpture like lithograph that depicts a sad laughing clown. The lithograph seems like it takes place in a large bare room with the clown bust gazing up and to the right of the room as if is pondering or thinking and has been for a very long time which gives the bust like lithography life. The Principle, was published in 1919 on cream, smooth, Japanese woven paper. Was published by Verlag Gustav Kiepenheuer from Berlin with the theme of death and war with political. The art work has blood splatter all over it, especially from the mouth the meaning is war with the clown face showing some type of comic sadness, and sadness is the heart of all comedy. He was friends with a sculptor and critic named Adolf Loos, which influenced Oskar to turn away from many of his old ways of decorative ideas and move on an expressive style of painting. 1910 he was in contact with many expressionist circles in Berlin, one specifically was Herwarth Walden who pushed and spread his work out to many others. Oskar was in the Great War, he volunteered for the Austrian Army when the war started, but was heavily wounded in 1915 and left the army. From 1916 to 1931 a fellow named Paul Cassirer who supported and showed many of Oskar works of art in his gallery and published many of his works, during this time Oskar had moved to Dresden in 1917 andShow MoreRelatedA Research On Malcolm Knowles1589 Words   |  7 Pagesrefuses his claims, but only support them with additional arguments. Knowles model claimed that there were four critical anagogical assumptions of adult learning, which differs from the assumptions of pedagogy (New Orleans 2004). 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The reasons were mainly because of failure to follow major accounting principles, lacking morals and lacking strong work ethics. If even a major corporation can fall into this â€Å"trap†, then avoiding doesn’t sound easy, although accountants can easily avoid scandals by following a precise set of given rules and ethics. OneTelRead MoreFinancial Collapse : The And Enron1320 Words   |  6 Pagesdominating the competition that they faced although - everything changed. Both of these companies operated in the same era, coincedently both suffering financial collapse. The reasons were mainly because of the failure to follow major accounting principles, lacking morals and lacking strong work ethics. If even a major corporation can fall into this â€Å"trap†, then avoiding doesn’t sound easy, although accountants can easily avoid scandals by following a precise set of given rules and ethics. OneTel

Human Cloning Ban An Ethical Debate

Human cloning is illegal in some states, and institutions that receive U.S. federal funding are prohibited from experimenting with it, but there is no federal ban on human cloning in the United States. Should there be? Lets take a closer look. What Is Cloning? Cloning refers to the development of offspring that are genetically identical to their parents. While cloning is often referred to as an unnatural process, it occurs quite often in nature. Identical twins are clones, for example, and asexual creatures reproduce by cloning. Artificial human cloning, however, is both very new and very complex. Is Artificial Cloning Safe? Not yet. It took 277 unsuccessful embryo implantations to produce Dolly the Sheep, and clones tend to age rapidly and experience other health problems. The science of cloning is not particularly advanced. The Benefits of Cloning Cloning can be used to: Produce embryonic stem cells in large quantities.Genetically alter animals to produce organs that can more easily be transplanted into humans.Allow individuals or couples to reproduce through means other than sexual reproduction.Grow replacement human organ tissue from scratch. At this point, the live debate in the United States is over cloning of human embryos. Scientists generally agree that it would be irresponsible to clone a human being until cloning has been perfected, given that the cloned human would probably face serious, and ultimately terminal, health issues. Would a Ban on Human Cloning Pass Constitutional Muster? A ban on embryonic human cloning probably would, at least for now. The Founding Fathers didnt address the issue of human cloning, but its possible to make an educated guess about how the Supreme Court might rule on cloning by looking at abortion law. In abortion, there are two competing interests—the interests of the embryo or fetus, and the constitutional rights of the pregnant woman. The government has ruled that the governments interest in protecting embryonic and fetal life is legitimate at all stages but does not become compelling—i.e., sufficient to outweigh the womans constitutional rights—until the point of viability, usually defined as 22 or 24 weeksIn human cloning cases, there is no pregnant woman whose constitutional rights would be violated by a ban. Therefore, it is quite likely that the Supreme Court would rule that there is no constitutional reason why the government cannot advance its legitimate interest in protecting embryonic life by banning human cloning.This is independent of tissue-specific cloning. The government has no legitimate interest in protecting kidney or liver tissue. Embryonic Cloning Can Be Banned—Should It Be Banned in the United States? The political debate over human embryonic cloning centers on two techniques: Therapeutic cloning, or the cloning of embryos with the intention of destroying those embryos to harvest stem cells.Reproductive cloning, or the cloning of embryos for the purpose of implantation. Nearly all politicians agree that reproductive cloning should be banned, but there is an ongoing debate over the legal status of therapeutic cloning. Conservatives in Congress would like to ban it; most liberals in Congress would not. FDA and the Prohibition of Human Cloning The FDA has asserted the authority to regulate human cloning, which means that no scientist can clone a human being without permission. But some policymakers say theyre concerned that the FDA might one day stop asserting that authority, or even approve human cloning without consulting Congress.

The Correlation Between Looking Preferences And Reaching...

This current study has been formulated on the basis that infants 2 years of age, and even below, have the cognitive capacity to express preference when manipulating objects. Previous research which has been observed shares similar concepts with this current study. This study, conducted by Christopher Newman, Janette Atkinston, and Oliver Braddick (2001) in which the relationship between looking preferences and reaching was explored in infants 5-15 months’ old infants. To be more specific, they used preferential reaching between objects of different sizes in infants of different ages to explain the dissociation in the development of visual processing and orientation in object manipulation. The infants were presented with cylinders of different sizes, a small, medium, and large cylinder was presented for the infants to interact with. According to Newman, Atkinson and Braddick (2001), â€Å"The largest object was too large for the younger infants to grasp easily with one handâ⠂¬  (p. 563), and this had most likely had a role to play in the preference of the infants. In regards to the results of the study, Newman, Atkinson and Braddick (2001) found â€Å"Infants of all ages in this experiment reached almost compulsively for objects presented to them. However, although 5-8’/2-month-old infants showed no preference when reaching to objects of different sizes, 8’/2-12-month-old infants showed a strong preference for smaller objects† (p. 568). â€Å"It is likely, therefore, that this effectShow MoreRelatedAffirmative Action Is Important For The Future Of The Diversified Generations Of America Essay1641 Words   |  7 PagesSpeech, he states â€Å"I look to a day when people will not be judged by the color of their skin, but by the content of their character† for this reason affirmative action in higher education admission should alter for it creates a perpetual racial preference in admission. Affirmative action is controversial due its issue of whether the generation of today should pay for the past injustices done to certain ethnicities. 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Management Organizational Changes Fector

Question: Discuss about the Management Organizational Changes Fector. Answer: Introduction Each and every organization needs to adopt the change in order to sustain in this competitive world. On the other hand, the role of HR manager is one of the critical factors that influence the impact of change on the organization. Besides that, Dubai Financial Market is one of the most reliable supermarket chains of the UAE. Various types of factors and approaches which involved managing change will be discussed in this report. Also, the impact of change on the employees and the stakeholders will also be explained in this paper through proper arguments and justification. Moreover, how the management of Dubai Financial Market manages change by implementing innovative idea and techniques that also is focused on this assessment. Apart from that, this report is based on the change management that will enhance the performance of Dubai Financial Market by improving the Human Resource Management. Also, the selection and recruitment system are the significant elements which influence a succe ssful change process. Internal and external factors for change management Today, business is moving fast, and change is needed to develop the business in a proper way. Change is needed in Dubai Financial Market to meet the new demands of the customers. Based on technology, a change that results from the adjustment of new technology is standard in most organizations. Change can lead to the development of economic and financial situation of the company. A strong economy of the company states that the organization will be engaged in recruiting new skilled staffs and employees (Alexeev, 2014). Moreover, a change also leads to competitive advantage. A change management has internal and external forces which are described below: External factors Competition- change is needed in the competitive landscape like mergers and acquisition, offering of new products, bankruptcies and so on. These changes impact the operation and strategy of Dubai Financial Market (Call for Papers: Journal of Change Management, 2015). Technology- The technological changes are a constant threat and it embraces new technologies ahead of the competition needs flexibility. If Dubai Financial Market can implement a unique technology, then they can achieve future objectives. New Laws and practices Several researches and theories say that newly created and identified laws could dramatically change the way in which operations are conducted in the organisation. For example, nowadays companies have to spare certain percentage of their profit to contribute in the field of social responsibility and environment sustainability. Failing to keep in pace with new legislations may affect the companys reputation. Globalization Globalisation is one of the factors which majorly affect the organisation. With an advent of globalization, an organisation needs to adopt the global product, services, culture, people, and religion locally (boundless.com, 2016). Internal factors Change in Management- A management change includes new CEO which impact on corporate strategy and culture. The management change also includes identification of risk associated with the business (Change management, 2007). Restructuring the organization- Organizational restructuring is an internal factor for change management. The development of new strategy or modifying the existing one helps to grow the business. Besides, training is needed during change management. Intrapreneurship When we talk about internal factors which drive change in an organisation, the Intrapreneurship cant be missed out. Irrespective of the external ideas and changes in the environment, there are possibilities where new creative opinions arise within the wall of organisation. People within the company can carry different thoughts and ideas to change the existing system and that needs certain internal reconsideration. Impact of change management on the organization A modification of an organization affects the company positively or negatively. Change can lead to the employee turnover. Some of the employees of Dubai Financial Market may not like the change and wants to leave the company. At that time, new employees are hired. If the change is technological change, the hiring of new skilled employees benefits the company. After the change, the company can respond faster to the demands of the customer (Fernndez-Prez, Fuentes-Fuentes and Bojica, 2012). It also helps to align the existing resources within the enterprise. Besides that, an effective change in a particular business reduces the risk connected with the firm. It also helps in managing the cost of change. Three ways by which change management impact on the organization: Communication- New channels of communication are opened after a change management. After the modification, Dubai Financial Market should improve the communication process or modify them so that they can deal with the customer appropriately. Coping with change- Both the organizations and the employees need to address the modification. The effectiveness and efficiency of Dubai Financial Market are maintained by acknowledging the concerns of employees (Newton, 2010). The coping process increases trust and confidence among the workers of Dubai Financial Market. Capturing learning After the change, the existing members of the company needs to capture fast the new rules and regulation of the enterprise. The rapid learning technique made an average employee and experienced one (Greener and Hughes, 2006). More knowledge will lead to an increase of more experience level. Role of approaches with a process of the change management There are various types of approaches are engaged in the process of change management implementation. One of the major approaches is selection process of efficient HR manager, active communication system, and employee retention. Each and every factor are related to employee performance, organization structure and culture. In other sense, the recruitment process that is in use within the organization and influenced by three major approaches such as communicate with candidate deeply, analyse the knowledge of candidate and determining decision-making sense in the difficult situation. On the other hand, the management of Dubai Financial Market needs to focus on the Human Resource department and appoint efficient HR managers who eligible to recruit appropriate employees for the organization. In other sense, the HR managers should strictly conduct the interview process and analyze the ability of the candidates (Newton, 2010). First of all, HR managers should provide the laptop to display i ndividual projects of the candidates. Besides that, with the help of the internet, the HR managers can identify and justify the personal details of the candidates through accessing various resources. In other words, the management should provide effective training to each and employees who get selected by the HRM of Dubai Financial Market. Behavioural response of change inside the organization After a change takes place in an organization, a change in the behaviour of the employees is observed. Some of the employees fear the unknown, and they get worried about the change. As a result, there are three behavioural responses in the organization to those who are interested in participating in the change management. They enrol themselves in the modification. They get training on adapting the new situation of the company. The individuals devote their energy and time to the particular moment. The individuals accept and face the challenges which arise during a change procedure. Besides that many employees could not properly adopt changes which recently occur in the organization. As a result, the managers have to pay additional time to rearrange the activities of the employees. In addition, the behaviour of employees becomes violent when the authority declares the notice of required training for change management (Fernndez-Prez, Fuentes-Fuentes and Bojica, 2012). Moreover, the resp onse of HR manager will become mature and he/she helps the employees to adopt change in the organization. On the other hand, efficient and intelligent employees started to behave more obediently with the management for promotion through employee performance. Model for change management Let us now discuss the several models for change management. These models will demonstrate how the change can be cultivated and managed within the organisation with minimum opposition. The report will study three change management models which are given by Lewin, Kotter, and McKinsey (Normandin, 2012). The first model is Lewins model where there are three stages: Un-freeze, transition and refreeze the moment. Here, first we would motivate people to change their perspective, convince them for a change and then implement the change in the organisation. The second model is about 7 S Mckinsey model which says that change is the integral part of any organisation when it expands its business in new demographics or places. It has to identify the possible opportunities and threats in order to avoid the uncertainty. It covers seven aspects of the system Shared values, Strategy, Structure, Systems, Style, Staff, Skill. The third model is about Kotters change model where the author emphasis on the need for change in an organisation. It follows the seven step process to execute the change at the workplace. It is a little bit lengthy process to follow all seven steps which are Increase the urgency for change, Build a team dedicated to change, Create the vision for change, Communicate the need for change, Empower staff with the ability to change, Create short term goals, Stay persistent, Make the change permanent. Implement Lewins model for managing change in an organisation Out of the three, Lewins model is broadly utilized by many of organisation in todays corporate world and I would like to implement this model in my organisation. Unfreeze It is observed that people resist the change strongly. So in order to make the change process smooth, we need to motivate people by explaining the benefits of change in their work life and career. It will help us to unfreeze the moment. And then we can go to transition stage. Transition When we unfreeze the resistance, it means that the change has originated. The employees will move towards the transition phase and change the direction of thoughts. This stage will last for some time and here employees can be led as per the leadership command and opinions. Refreeze Once the transition stage is complete, it means that change has been acknowledged approved by the organisation. Now the organisation will be stable again and the change will be executed successfully. Role of Human Resource Management to support the change management There is a significant role of Human Resource Management in the organization. With the help of some ways, the HR can support the change management. The management is an organ which is used in multipurpose. It manages the HR manager; it administers the employee, and it also controls the organization. So to run the organization in a right way, the HR manager needs to support the every employee in the organization. In other words, HR manager should recruit such employees who are eligible for that process. They should have different abilities about different works. As if when any changes will come in the organization; they can solve this by applying their intelligence. On the other hand, the HR manager has to be professionally friendly to improve their contribution to work. He or she also has to make a favourable environment by implementing some technology. The HR has to improve the training process through providing proper technology about the organization and has to make a good workpla ce. The HR should give the feedback to the employee and receive the feedback from the employee. For that, the employee will be updated about the current position of the organization and can easily handle any problem correctly and meet the challenges. Besides that, the HR has to help all the employees about their job. HR has to understand their requirement and motivate them in the job by fulfilling this at the time. Then they will be more motivated to accomplish their job (Bojica, 2012). The development of the organization depends on the proper management and HR needs to manage every employee in a perfect way. By all together, the HR manager plays a unique role to influence the support of individuals during the change. Conclusion This paper clearly notifies the significance of change management which seriously improve the organizational performance. The management of the Dubai Financial Market needs to focus on their old employees and training process. Besides that, the management should recruit more efficient trainer who able to provide effective training to all newly appointed employees. In addition, the HR manager should observe the activity of trainer and report to the higher authority of the Dubai Financial Market. Moreover, in order to implement a successful change management, Dubai Financial Market needs to rectify above mentioned internal and external factors which critically influence the change. References Alexeev, D. (2014). Russian Politics in Times of Change: Internal and External Factors of Transformation.Connections: The Quarterly Journal, 14(1), pp.105-120. boundless.com. (2016, May 31). Inside and Outside Forces for Organizational Change. Retrieved March 2017, from https://www.boundless.com/ Call for Papers: Journal of Change Management. (2015).Journal of Change Management, 15(3), pp.253-255. Change management. (2007). 1st ed. Oxford: Pergamon Flexible Learning. Fernndez-Prez, V., Fuentes-Fuentes, M. and Bojica, A. (2012). Strategic flexibility and change: The impact of social networks.Journal of Management Organization, 18(01), pp.2-15. Greener, T. and Hughes, M. (2006). Managing change before change management.Strategic Change, 15(4), pp.205-212. Newton, R. (2010).Change management. 1st ed. Harlow: Financial Times Prentice Hall. Normandin, B. (2012, August 28). Three Types of Change Management Models. 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