The Role of the Manager Essay Example | Topics and Well Written Essays - 1000 words - 1

The Role of the Manager - Essay Example This paper illustrates that for several years, sociologists refer to management as a class consisting of influential individuals. According to James L. Lundy, management refers to the job of organizing, planning, controlling and directing people and resources towards the attainment of organizational aims and objectives. F.W. Taylor believes that management is the task of identifying your aims and objectives and ensuring that those aims and objectives are attained in the most efficient manner. Management is mostly defined as a procedure of helping organizations obtain their aims and objectives by making people work towards the attainment of those aims and objectives. In a broader view, it is the directing and planning of what goals need to be accomplished and how they will be accomplished along with the organizing and obtaining of resources that will be needed to obtain those objectives. For years it has been argued whether the nature of management is scientific or it is an art. The v ery fact that people who have assumed the responsibility of management have to learn theories and principles that need to be further applied and experiment makes management a scientific process. On the other hand, the fact that management is related to humans in every aspect makes management an art as well as science. A manager has access to various scientific tools which help him in making day to day decisions, but managers have to heavily rely on their intuition in order to make the correct decision. Managers have four basic functions as discussed earlier and they have to perform various roles for the accomplishment of these functions. One of the roles played by managers is that of a figurehead. The top-level management acts as a figurehead while representing their organizations in societal, legal and symbolic activities. Managers are even responsible for conducting various tasks such as hiring employees, training and developing employees, and performing appraisals.

Materiality in Auditing Essay Example | Topics and Well Written Essays - 2000 words - 6

Materiality in Auditing - Essay Example Materiality levels of organization are often undisclosed to avoid fraud that may be conducted by the parties involved in preparing financial statements. Analysis of the fundamentalism and the secrecy of materiality are essential in understanding how this concept is applicable in the auditing profession. Materiality is a concept that describes discrepancies in the financial statements that may mislead the decision making process of users of those records (Stuart, 2012). The discrepancies may be included or omitted in the financial statements intentionally or as a result of errors in recording. If users of accounting records would not change their decision after the correction of the discrepancies, the misstatement are said to be immaterial. However, if users of financial statements would change their decisions after the corrections, then the discrepancies are said to be material (Messier, Martinov-Bennie, & Eilifsen, 2005, p. 5). Materiality in the financial statements may be individual or collective. Individual materiality is the one that occurs when a record in an account is recorded wrongly. Collective materiality, on the other hand, is the one that arises when the total discrepancies in two or more accounts of a similar classification mislead decision makers (FRC, 2013). Auditors have to determine the level of discrepancies that they will find to be immaterial and those that are material at the planning stage. The materiality level is usually stated in quantitative figures such as percentages. For example, the auditors may state that a misstatement of the income before tax by 5% and below is immaterial while the error is material of it exceeds this allowance (Lessambo, 2013). Examiners use professional judgement to determine the materiality allowances because there is no formula of calculating the amount. Auditors make their judgements based on their understanding of the factors that influence the decisions of users of financial reports (IAASB, 2009).