The competitive field that businesses compete within - Free Essay Example

Sample details Pages: 5 Words: 1622 Downloads: 3 Date added: 2017/06/26 Category Business Essay Type Argumentative essay Did you like this example? Businesses exist in a very competitive environment and competition happens whenever two or more parties make every effort for a goal which cannot be shared. For example, supermarkets are in competition with each other to offer the best possible value for money goods, and to offer the most appropriate variety of products for their customers. Businesses battle in many ways. Don’t waste time! Our writers will create an original "The competitive field that businesses compete within" essay for you Create order One of the most noticeable ways is over price. Within a market businesses are faced by direct competitors. These are firms that produce the same or very alike goods. However, most products are set apart in some way. For example, although soap powders may look highly similar each will offer some form of special ingredient that sets them apart. A direct competitor is a business that produces or sells a product or service that is the same or highly comparable to another in the same market. Indirect competition happens when firms compete for the same amount of spending, although they might be in different sectors of the same market or in different markets. Every growing or a successful organization has some competitors. If we take an example of McDonalds and Burger King: In making an analysis of McDonalds, the first issue we will examine is their company goals. McDonalds has a goal of one hundred percent total customer satisfaction. They do understand that this goal is not alway s achievable. If for any reason they do not meet that goal, they will do whatever it takes to correct their mistake. McDonalds has a second company goal that sets them apart from most of their competitors. One of there goals is the principle of giving back to the community and that remains one of their major goals today. If we take a look at McDonalds Guarantee states, food will be hot and your service will be fast and friendly. The customer service of McDonalds focuses on one customer at a time. They are much more concerned with the quality of the service rather than the speed. Employees usually take one order at a time and then prepare that order while the customers wait. After the current customer is satisfied, they move on to the next customer. This process allows great accuracy and quality but lacks speed. Employees in McDonalds work at a quick speed but it seemed like they had no time for customers. They acted as if it was a burden for them to stop and answer a simple quest ion or refill a drink Where as Burger King Wants to individualize each customers order and provide the fastest service possible. Burger Kings policy is to give the customer many choices and to accurately and quickly provide whatever the customer chooses. This policy is reflected in their slogan which is YOUR WAY, RIGHT WAY. Operating under this rule makes it very easy to achieve their goals. Through the various choices they give it is easy to customize each order. Burger Kings procedures are also consistent with their goals. In order to individualize each order they provide customers with many options when ordering. Some options include fries or onion rings, cheese, bacon, mustard, ketchup, mayonnaise, lettuce, tomato, pickles, and onion. The customer can pick any mixture of these options that they wish. Burger King takes customer orders on a continual basis. One employee takes the customers order, the customer then moves down the line where another employee is preparing the o rder. Meanwhile, the original employee is taking another customers order. Customers also get their own drinks while they are waiting for their meal. This makes service much faster because employees do not have to prepare drinks. They also provided relaxing music for customers to listen to while dining. Burger King has got more than sufficient communication and leadership. Employees give the customers feedback on their orders. Each customer receives a receipt, which enabled them to double-check their order. The employees also read the order back to the customer before handing them the order. In terms of leadership, there is a manager to sort out things. Organizational Goals Both McDonalds and Burger King share the same basic organizational goals of profitability, sales volume, fast and courteous service, and cleanliness. There are slight differences to these goals by both companies. Organizational Structure When observing McDonalds and Burger king, the organizational structures of the two restaurants are very alike. There appeared to be a crew leader who was a non-managerial employee and, there was a manager who was present behind the counter. The managers of the restaurants seemed to be in command of every aspect of the whole food service procedure. Technology Both McDonalds and Burger King are on the cutting edge of technology. They both employ state of the art cash registers and both have electric timers built into their cooking machines. Although the cooking styles differ between Burger King and McDonalds, the method of production is the same. Large amount of food is cooked at once then placed under heat lamps or put in the microwave when an order is placed. Both stores have the same drive through technology with a speaker and a well-lit menu to relay the message to the cooks. Employee Motivation The motivation of both stores for employees to perform well is hard to ascertain from just observing, but it appears somewhat obvious. The people worki ng in these establishments appear to have a lower social economic status, and the fact that a paycheck is coming at the end of the week may be the only motivation they have. Environment The environment at McDonalds and Burger King seems to be a simple, yet unstable one. It is apparent that the majority of people, who work there, are not choosing their employment as a career option. Therefore, the workforce is constantly changing and adapting to new employees and new situations. Leadership Style There was similar leadership style employed by the management at both stores. Task orientation was essential to meeting the goal of fast food. Each person had to be focused on the task at hand, because during certain hours of the day, both stores were very busy. There seemed to be little flexibility from management if it meant compromising their goals. McDonalds and Burger king have been competing with each other for several years now and theres no sign that its going to stop any time soon. As we all know that the economy is entering into a correction these two super-chains have to fight more and more to win business and defeat all there competitors. Burger King recently announced plans to drop the price of its double cheese burger from $1.99 to just 99 cents even though Burger Kings double cheeseburger is 30% larger than the version offered at McDonalds. This means that they are not making much profit on it. But they have to attract more customers towards them and defeat there competitor. On the other hand McDonalds is ready to drop the double cheeseburger from its dollar menu all together. Many franchisees are upset because the double cheeseburger is not a profitable item for the stores at a $1.00 price point. Complaints have been made that consumers will come in, order two double cheeseburgers and a glass of water and that means the store will lose money from that customer. The main fast food chains often offer special sandwiches and discounted prices on certain items as a way to draw customers back into their stores and keep them loyal to the company so they keep coming back. The method is very successful to draw in business, and as the economy continues to remain on unstable ground, we will likely see the fast food chains come up with better deals and more original food items to effort to draw customers in. https://www.americanconsumernews.com/2007/12/mcdonalds-and-burger-king-entering-into-new-price-war-competition.html Theyre continuously keeping an eye on each other and the competition, and making sure in McDonalds case, making sure Burger King didnt break in on its market share, and in Burger Kings case, finding ways to take away McDonalds market share. If we look at McDonalds versus Burger king 16 years ago, even with some of the challenges theyve had over that time horizon, McDonalds average U.S. sales per unit is up over 20 percent, while Burger King over that same time frame is down 8 to 9 percent. French fries have been a sore point for Burger King Operators for years. The company has tried new formulas in the last couple years, but Burger Kings fries are still considered by many in the industry to not measure up with McDonalds. https://www.msnbc.msn.com/id/3957636/ The relationships between profits and product differentiation expose that both McDonalds and Burger King are better off avoiding close competition if the market area is huge enough. However in small market areas, McDonalds would be located together with Burger King. In contrast, Burger Kings profits always increase with greater differentiation. The balance depends on the markets size. In small markets McDonalds locates near the center of the market, and Burger King locates to the side of the market. In larger markets McDonalds and Burger King choose locations on opposite sides of the market although McDonalds locates closer to the best possible central location than Burger King. https://mktsci.journal.informs.org/cgi/content/abstract/26/6/792 One of the reasons why Burger King is so successful includes many factors but one of them was location. One of the best ways to explain it is Burger King has always found outlets where there is a large attention of people but that wasnt there only strategy because they also had the great idea of going head-to-head with McDonald across the street. By setting outlets in front or near a McDonald outlet they were guaranteeing visibility of their franchise.

I Want At The Grade Level Matrimonial - 1772 Words

â€Å"I want their whole family to suffer!† Ford yelled. â€Å"I shall look forward to the day I let them know it was entirely all their fought for how my son is being treated. The humiliation of receiving no request for a Blind Date from any Eighth Level girl when they outnumber the boys, seven to one is†¦Ã¢â‚¬  â€Å"You can keep your reasons to yourself. Now what can you do for me? This is far from something that is normally done.† â€Å"How would you like if your daughter’s vitals are lifted to the highest marks.† â€Å"I guess you really want your revenge,† I chuckled. (Did the man just offer my little princess to receive the Twelfth Level Matrimonial Top Listing?) â€Å"However, don’t you think it would look strange, even for an Eighth Level, to†¦show more content†¦Ã¢â‚¬Å"Your offer is too good to believe as it is, so why not consider this as a gift.† â€Å"I can work around the traveling server and the 12 seat school shuttle, but she being assigned an AISHA Unite will cause too much attention towards her and start people asking questions. The best I can do is have one of the two lower magistrates speak openly about your daughter having a family member recently obtaining a high matrimonial acceptance and their family has sponsored this minor indulgence. It wouldn’t be the first time that an Eighth Level married into and Tenth or Eleventh Level family. I should know and had received their†¦ gratitude. I had even experienced a Twelfth Level family special request a Ninth Level girl to have the opportunity to choose their son. How they learned the girl was being approached by several Eleventh and one Twelfth Level family had me investigating my staff for trying to steal business from me. Actually it was another Twelfth Level family who had informed them. Although they were a low Twelfth Level family, they wanted their daughter to marry the boy who had convinced his parents to allo w him to marry the Ninth Level girl. Once the Ninth Level girl and her family had agreed to the match, who wouldn’t with an elite Twelfth Level family giving you this honor, the boy was devastated. Before word of the

Methanol As Fuel Essay Example For Students

Methanol As Fuel Essay This section is about methanol fuel cells for our future. Since I have done thisresearch I have never realized how important future fuels are. Methanol is aliquid fuel made form natural gas or renewable biomass resources. Methanol isthe leading candidate to provide the hydrogen necessary to power fuel cellvehicles. The commercialization of methanol-powered fuel cells will offerpractical, affordable, long-range electric vehicles with zero or near zeroemissions while retaining the convenience of a liquid fuel. By 2004 they say oreven sooner, fuel cells operating on methanol will power a variety of cars andbuses in the U.S and worldwide. ( www.mehanol.org) Methanol is predoninantlyproduced by steam reforming of natural gas to dcreate a sythesis gas, which isthen dfed into a reactor vessel in the presence of a catalyst to producemethanol and water vapor. Although a variety of feedstocks other than naturalgas can and have been used, todays economics favor natural gas. Synthesis gasrefers to combination of carbon monoxide and hydrogen while a large amount ofsynthesis gas us used to make methanol, most synthesis gas is used to makeammonia. As a result, most methanol plants are adjacent o or are part of ammoniaplants. The gas fed into another reactor vessel under high temperatures andpressures, where monoxide and hydrogen are came in the presence of a catalyst toproduce methanol. Finally, the reactor product is distilled to purify andseparate the methanol from the reactor effluent. (wwwadfc.nrel.gov.)(Washington, D. C., January 28) A study by the environmental engineering firmMalcolm Pirnie, Inc. finds far fewer environmental threats from using methanolin fuel cell vehicles, compared to gasolines use for internal combustionengines. In addition, a video presentation on methanol and the environmentproduced by the Public Interest Video Network will be premiered at TheRoad to Fuel Cell Vehicles: A National Forum being held on February 4thand 5th at the Hotel Washington in Washington, D. C (www.methanol.org)Methanol will probably be transferred from import terminals or productionfacilities by barge, rail, or truck to eventually reach retail outlets. Whilethe alcohol fuel is a liquid at ambient temperatures and atmospheric pressures,the cannot be moved easily through the existing petroleum product marketnetwork. The worlds major automakers have all announced plans for themarket introduction of fuel cell vehicles by 2003/2004. These fuel cell vehicleswill require a source of hydrogen fuel. As a liquid fuel rich in hydrogen,methanol is the leading candidate to power tomorrows fuel cell cars andbuses. A comprehensive needs assessment should be performed to determine howbest to provide methanol fuel to an emerging market for fuel cell vehicles. (www. The American Methanol Foundation From the information gathered it seemsthat methanol is the number one candidate for future fuels for leading carmanufactures. It is also nice to know that the government has plans to figure Inaddition, this assessment will attempt to forecast methanol fuel direction andtools for consumer education efforts regarding the use of methanol in fuel cellvehicles.

Professional Auditing Vmoto Limited

Question: Discuss about the Professional Auditing for Vmoto Limited. Answer: Introduction Vmoto Limited is an Australian multinational company that specializes in electric vehicle manufacturing and distribution. Ideally, Vmoto Limited is a leading manufacturer and distributor of the global scooter. The firm is traded on the Australian Stock Exchange (ASX) with ticker symbol VMT. According to its 2015 annual report, 2015 was a year of increased growth for Vmoto Limited (American Institute of Certified Public Accountants,' 2006). The company's revenue grew by 11% from $ 42.9 million in 2014 to $ 47.6 million. The fact that the revenue of the firm increased is a clear indication that the company's brands are achieving a greater market share in both Chinese and international markets. The company's net assets increased by 37% from $ 24.8M to $ 34.1M; its operating costs dropped from $ 5.1M to $ 2.1M while its cash at the end of the year was $ 6.7M. An auditor needs to have an understanding of the business and the industry in which it operates in when planning on an audit of th e firm. This report prepares a document to the Audit Manager discussing critical information about Vmoto Limited, that is, understanding the client, assessment of important accounts, planning materiality and audit risk assessment. In light of this, all the procedures were duly followed that is accepting of the appointment and communicating your decision to the client in the engagement letter. In addition, I included a summary of the nature, scope, and extent of the audit and the audit fee to be charged, that is, $ 84,000. Our understanding of the client The extent of planning for an audit will depend on the nature of the client and the experience the auditor had with the client. Ideally, preparing for an audit of a new client is much extensive than that of an existing one. When preparing an audit, it is a requirement that an auditor understands the customer and the industry in which it operates (Allen, Hermanson, Kozloski, and Ramsay, 2006, pp.157-177). For a new customer, the main source of data would be communications with the previous auditor, inquiries from the directors, and client books of accounts. Since I am performing an audit on Vmoto Limited, which is a new client, I would need to obtain information from the previous auditor. Here, I would need to communicate with the former auditor and obtain sufficient and reliable audit evidence that can enable me to form an opinion about the accurate and fair view of Vmoto Limited. Second, I would obtain an understanding of the client by visiting the customer's premises. During my visit to the facilities of Vmoto Limited, I am supposed to meet with the administrative officers and determine the responsibilities of each executive of the company, who is responsible for the audit (Allegrini, and DOnza, 2003, pp.191-208). Besides, visiting the premises of Vmoto Limited would involve an understanding of the organization chart, locations of principal offices of the firm, and the company's Memorandum of Association. It would also require reviewing the purchase and sales terms, related third party transactions, schedule of subsidiaries, customers and suppliers, the books of accounts and who is responsible for their preparation and the tentative audit schedule. Lastly, an understanding of Vmoto Limited would involve visiting the facility, meeting with the management, walking through the production cycle, reviewing the year-end and interim reports, reviewing the income ta x and reviewing the agencies reports. Based on my understanding of the client, Vmoto Limited is a company that operates in a diverse environment faced with both internal and external environmental factors. The company has been able to position itself well in the ever-changing global world. In addition, the company has been able to handle the increase in demand for vehicles internationally and China (Arens, Elder, and Mark, 2012.). Understanding of Vmoto Limited and its industry would help me understand the competitive environment of the firm, and assess whether it meets the needs of its users. If Vmoto Limited does not address the needs of its users, then I would need to plan for materiality. Understanding of Vmoto Limited would entail reviewing of its 2015-audited report that was conducted by the previous auditor. From its 2015 annual report, it is evident that Vmoto Limited discloses the remuneration of the directors. This can be of importance to our audit team in that it can help us ascertain whether the directors are highly remunerated, poorly paid or abnormally remunerated (Arens, Best, Shailer, Fiedler, Elder, and Beasley, 2007). According to the previous auditor's report, the financial statements of Vmoto Limited were prepared in agreement with the Corporations Act 2001. This means that when planning our current audit, there will be no cause of alarm from the previous auditors report. To conclude, understanding of Vmoto Limited would involve performing a benchmark analysis by using both financial and non-financial metrics. Ideally, this would mean using the balanced scorecard as well as the Strategic Performance Measurement Systems (SPMS) to assess whether there some areas of concern in the client's business. Those areas of concern ought to be tested for materiality (Allen, Hermanson, Kozloski, and Ramsay, 2006, pp.157-177). Here, the balanced scorecard approach would involve looking at the customer perspective, the financial standpoint, the learning and growth viewpoint, and the internal business process perspective. Knowledge of these key performance indicators (KPIs) would help me understand Vmoto Limited. Our assessment of significant accounts As an external auditor of Vmoto Limited, I am required to identify five important accounts that are mostly at risk of being materially misstated. The five significant accounts of Vmoto Limited as per their 2015 annual report are cash, sales, purchases, salaries and wages, and debtors. The first important account of Vmoto Limited is cash (Boynton, and Johnson, 2006). It is at risk of being materially misstated since if the integrity of the management is questionable, there can exist loopholes on cash disbursements and receivables. As an auditor of Vmoto Limited, I would ensure that there is segregation of duties and that no single person has control over the entire cash process. If I find that there is no separation of functions at the cash point, then the cash is at risk of being materially misstated. In addition, I would ascertain that the money is subject to accountability, approval, and authorization that is the cash is accounted for, adequately documented and traceable at the par ticular cash handlers. If the money is not authorized and it cannot be accounted for, then there is a risk that it can be materially misstated. Besides, I would ensure that the cash is secured by making sure that the management of Vmoto Limited has put it under lock and key. If the money is left unattended and it is left unsecured, or it is not immediately, then it will be exposed to loopholes thus facing the risk of being materially misstated. The second significant account of Vmoto Limited is sales (Carnaghan, 2006, pp.170-204). Ideally, if the personnel of Vmoto Limited who processes an order is the same who disburses the goods to the customers and receives the payments, which means that there is no segregation of duties in the company, Vmoto Limited will likely face teeming and lading fraud. Teeming and lading fraud would occur in a scenario where the person responsible for sales is the same individual responsible for cash proceeds from those sales. If this exists, then the sales will be at risk of being materially misstated. The third significant account of Vmoto Limited is debtors (Cosserat, and Rodda, 2009). The same scenario as stated in the sales would occur for the debtors. Ideally, debtors are sales made on credit. The debtors are significant accounts since they are exposed to teeming and lading fraud. If the person responsible for borrowers is the same individual responsible for cash, then he can create a loophole by manipulating the records. For instance, if debtor A owes the company $ 1 million, debtor B owes the company $ 2 million, and debtor C owes the company $ 3 million, the personnel can loot the $ 1 million received from debtor A. As soon as debtor B pays his outstanding balance of $ 2 million, the staff can use it to offset the amount of debtor A. The same procedure will happen for borrower B and C and any balance that remains at the end of the period, he will record it as bad debts written off. As an auditor, I must, therefore, ensure that there is segregation of duties in the debtors. If this is not the case, then the debtors will be at risk of being materially misstated. The fourth significant account of Vmoto Limited is purchases. This is an important account since it is prone to loopholes (Chen, Pany, and Zhang, 2008, pp.236-251). If the person who is responsible for purchases is the same individual responsible for cash disbursements on those purchases, then he can circumnavigate the internal control procedures put in place over the purchases. For example, personnel of Vmoto Limited can order goods from a supplier worth $ 1 million. However, when requesting for funds from the management to pay for those goods, he may overstate the cost so that he can benefit from the purchase. If such a scenario exists, then the purchases will be at risk of being materially misstated. The last significant account of Vmoto Limited is salaries and wages (DeZoort, Harrison, and Taylor, 2006, pp.373-390). Loopholes may exist in Vmoto Limited concerning payment of workers. For instance, the company may be paying ghost workers who in reality do not exist, or they do not work for the firm. As a result, there may be mismanagement of cash, which may not be accounted for. This leads to the misstatement of money and salaries and wages, and therefore the payroll would be at risk of being materially misstated. The information would be material if the omission or misstatement of certain information in the financial statements of Vmoto Limited would influence the economic decisions of the users of its financial statements. To test whether the salaries and wages are material, I would look at whether they are pervasive, relevant, and reliable and if they have the potential of influencing the decisions of its users. Our planning materiality When establishing an audit strategy, I will need to determine the materiality of the financial statements at the planning stage (Glover, Prawitt, Liljegren, and Messier Jr, 2008, p.42). I would determine performance materiality at the planning phase to assess the risk of material misstatement and to evaluate the nature, extent, and timing of the audit procedures. According to IFRS, inaccuracies and omissions are considered material if they may influence the decisions of their users. Planning materiality is, therefore, the maximum amount of error that an auditor can tolerate and accept in the financial statements of the company. In this case, planning materiality would be the maximum error that I would be able to tolerate in the financial statements of Vmoto Limited. It can be ascertained by calculating the tolerable level. In the planning stage, I would be required to use planning materiality to make judgments concerning the size of the omissions or misstatements that would be considered material (Hayes, Wallage, and Gortemaker, 2014). Here, I would be required to ascertain the tolerable level of materiality. The judgments concerning the size of misstatements would provide a basis for assessing the risk of material misstatement, determining the nature, timing, and extent of audit risk assessment procedures and other review procedures. The concept of materiality is, therefore, an important aspect at the planning phase of an audit as it will help us ascertain the tolerance level as shown below. Our assessment of what can go wrong When planning for an audit, I would need to perform an audit risk assessment to discuss and evaluate what constitutes a risk in the important accounts of Vmoto Limited stated above, that is, cash, salaries, and wages, sales, debtors and purchases (Huss, and Jacobs, 2011, pp.16-32). Ideally, audit risk is the risk that an auditor will form an incorrect or inappropriate opinion about the financial statements of the company. For example, he may have issued an unqualified opinion where the financial statements ought to have been qualified; he may have failed to release an emphasis of the matter paragraph where it was required or even where he provided a biased opinion about the financial statements. There are three types of audit risks involved: inherent risk, control risk, and detection risk. Inherent risk is the risk that the omissions and error may lead to material misstatement (Knapp, and Knapp, 2001, pp.25-37). Inherent risk is considered high when the preparation of the financial statements involves a lot of judgment, estimation and where the transactions are highly complex. Control risk is the risk that the internal control system implemented in an enterprise may lead to material misstatement (Ismail, Haron, Nasir Ibrahim, and Mohd Isa, 2006, pp. 738-756). Control risk would be considered high in instances where the management has not implemented a sufficient and strong internal control system. Assessment of the control risk would be higher where entities have not clearly defined the aspect of segregation of duties. Lastly, detection risk is the risk that in the completion of an audit some errors may go undetected. It is evident that inherent risk and control risk are relevant in the planning stage while detection risk is essential in the reporting phase. If audit risk affects cash balances of Vmoto Limited, information that is omitted or misstated may be considered to be material (Low, 2004, pp.201-219). An inherent risk may arise in this case since the users of the financial statements of Vmoto Limited may rely on it to determine if the firm has an adequate liquid cash to continue in a going concern. In a case where the internal control system implemented is not strong enough to prevent the existence of errors and frauds in the cash cycle, it may result to control risk (Zadek, Evans, and Pruzan, 2013). As the external auditor of Vmoto Limited, I must assess the audit danger in the cash cycle at the planning phase. If the cash is materially misstated, then it may mislead its users and thus lead to financial loss. Audit risk may also occur in salaries and wages (O'Donnell, and Schultz Jr, 2005, pp.921-939). For instance, if the employees are not paid for work done, if ghost workers are paid, if wages are unauthorized, or not correctly calculated, it may lead to inherent and control risk. Ideally, if there is inherent risk in the payroll account, payroll cash may go unaccounted for leading to mismanagement of money. If the internal control system implemented by the management of Vmoto Limited does not prevent the occurrence of loopholes in the salaries and wages department, control risk may arise (Yang, and Jia, 2013, pp. 1717-1726). Third, audit risk may occur in sales (Porter, Simon, and Hatherly, 2014). For instance, when teeming and lading fraud happens, it would be evident that any omission or error may lead to material misstatement thus resulting in inherent risk. When Vmoto Limited has not implemented a strong and adequate internal control system over the sales, the company's sales may contain material misstatement thus resulting in controlling risk (William Jr, Glover, and Prawitt, 2016). As an auditor of the firm, I ought to assess the audit risk at sales account and ascertain that it is free from any material misstatement. If the sales contain material misstatement, then I need to include the sales department as a weak area in the audit schedule. Fourth, audit risk may occur in the debtor's account (Rennings, Ziegler, Ankele, and Hoffmann, 2006, pp. 45-59). If the omission or misstatement of individual borrowers accounts in Vmoto Limited may influence the decisions of the users of the financial statements, then that information that has been omitted or misstated in the debtor's account would be considered material to the financial statements and thus resulting in inherent risk. If the internal control system, on the other hand, were not strong enough to prevent misstatement of the debtor's account, it would be considered material and thus leading to control risk (Wells, 2008, pp. 277-90). Lastly, audit risk can also occur in the purchases department (Rittenberg, Johnstone, and Gramling, 2010). If the omission or misstatement of individual purchase items is material to the financial statements of Vmoto Limited, inherent risk may be considered to have occurred. Control risk, on the other hand, may occur the internal control system implemented by the management of Vmoto Limited on the purchases does not prevent the occurrence of errors and frauds (Wang, Wang, Ren, and Lou, 2010, pp. 1-9). Conclusion Vmoto Limited is an enterprise that deals with the manufacture and distribution of scooters. According to its 2015 annual report as presented by the board of directors, the firm realized an increase in revenue and net assets and a decline in the operating costs (Wang, Chow, Wang, Ren, and Lou, 2013, pp. 362-375). As a result, the key performance indicators indicated that Vmoto Limited was performing well as compared to its competitors since the firm realized a greater market share of its brands in China and internationally. As a recently appointed external auditor of Vmoto Limited, I was mandated by my audit manager to prepare a document on the planning of the audit of Vmoto Limited. The first step is to understand the client business and the industry in which it operates. Here, I communicated with the previous auditor to gain an understanding of the firm. In addition, I visited the premises of the client to understand how Vmoto Limited works (Socol, 2008, pp.209-216). In the second step, I assessed the important accounts of the company and determined what constituted materiality. Lastly, an audit risk assessment on the selected accounts indicated that there may be inherent and control risk in the enterprise. References American Institute of Certified Public Accountants. Auditing Standards Executive Committee, 2006.Codification of Statements on Auditing Standards. Commerce Clearing House. Retrieved on 24th January 2017. Allen, R.D., Hermanson, D.R., Kozloski, T.M. and Ramsay, R.J., 2006. Auditor risk assessment: Insights from the academic literature.Accounting Horizons,20(2), pp.157-177. Retrieved on 24th January 2017. Allegrini, M. and D'Onza, G., 2003. Internal auditing and risk assessment in the major Italian companies: an empirical survey.International Journal of Auditing, 7(3), pp.191-208. Retrieved on 24th January 2017. Arens, A. A., Elder, R. J., and Mark, B., 2012.Auditing and Assurance services: an integrated approach. Boston: Prentice Hall. Retrieved on 24th January 2017. Arens, A. A., Best, P., Shailer, G., Fiedler, B., Elder, R. J., and Beasley, M., 2007.Auditing and assurance services in Australia: an integrated approach. Pearson Education Australia. Retrieved on 24th January 2017. Allen, R.D., Hermanson, D.R., Kozloski, T.M. and Ramsay, R.J., 2006. Auditor risk assessment: Insights from the academic literature.Accounting Horizons,20(2), pp.157-177. Retrieved on 24th January 2017. Boynton, W. C., and Johnson, R. N., 2006.Modern Auditing: Assurance services and the integrity of financial reporting. Wiley. Retrieved on 24th January 2017. Carnaghan, C., 2006. Business process modeling approaches in the context of process level audit risk assessment: An analysis and comparison. International Journal of Accounting Information Systems,7(2), pp.170-204. Retrieved on 24th January 2017. Cosserat, G. W., and Rodda, N., 2009.Modern auditing. Wiley. Retrieved on 24th January 2017. 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