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- 1. Auditing Standards
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- 3. Risk Assessment and Internal Control
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- 6. Audit of limited companies
- 7. Rights, duties, and liabilities of auditors; third party liability
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- The Companies Act, 1956
- (a) Accounts and audit
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- Advanced Management Accounting
- Cost Management
- 1 Development in Business Environments
- 2 Just in time
- 3 Manufacturing resource planning (MRP)
- 4 Synchronous manufacturing and back flush systems to reflect the importance of accurate bills of material and routings
- 5 World class manufacturing
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- Information Systems Control & Audit
- Information Systems Concepts
- Systems Development Life Cycle Methodology
- Introduction to SDLC/Basics of SDLC
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- Strategic considerations : Acquisition decisions and approaches
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- Hardware contracts and software licenses
- System implementation and Post-implementation review
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- Brief note on IS Organisation Structure
- Control objectives
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- Responsibility for control – Management, IT, personnel, auditors
- Cost effectiveness of control procedure
- Control Objectives for Information and related Technology (COBIT)
- Preventive and detective controls
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- Authorization controls
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- Classification of information
- Logical access controls
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- Environmental controls
- Security concepts and techniques – Cryptosystems, Data Encryption Standards (DES)
- Public Key Cryptography & Firewalls
- Data security and public networks
- Monitoring and surveillance techniques
- Data Privacy
- Unauthorised intrusion, hacking, virus control
- Role of IS Auditor in Access Control
- Audit Tests of General and Automated Controls
- Risk assessment methodologies and applications
- Meaning of Vulnerabilities
- Meaning of Threats
- Meaning of Risks
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- Fraud
- Error
- Vandalism
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- Business
- Interruption
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- Statutory sanctions, etc
- Risk Assessment
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- Preventive strategies
- Detective strategies
- Corrective strategies
- Business Continuity Planning and Disaster recovery planning
- An over view of Enterprise Resource Planning (ERP)
- Information Systems Auditing Standards, guidelines, best practices
- Drafting of IS Security Policy, Audit Policy, IS Audit Reporting – a practical perspective
- Information Technology Act, 2000
- Direct Tax Laws
- The Income-tax Act, 1961 and Rules thereunder
- The Wealth-tax Act, 1957 and Rules thereunder
- Tax considerations with regard to specific management decisions
- Tax considerations with regard to foreign collaboration agreements
- Tax considerations with regard to international taxation
- Tax considerations with regard to amalgamations
- Tax considerations with regard to specific tax incentives
- Tax considerations with regard to personnel compensation plans
- Inter-relationship of taxation and accounting
- A basic understanding of ethical considerations in tax management
- A basic understanding about the compliance with taxation laws
- New legislations
- Indirect Tax Laws
- Central Excise
- Service Tax & VAT
- Service tax rules
- new legislations
- Backdrop for State-Level VAT
- Taxonomy of VAT
- Input tax credit
- Tax invoices
- Small dealers and composition scheme
- VAT procedures
- VAT in relation to incentive schemes
- VAT in relation to works contract
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- VAT and Central Sales Tax
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Communication
Communication |
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| Information asymmetry | |
| Asymmetric Information:Investopedia explains Asymmetric Information | |
| A situation in which one party in a transaction has more or superior information compared to another. This often happens in transactions where the seller knows more than the buyer, although the reverse can happen as well. Potentially, this could be a harmful situation because one party can take advantage of the other party’s lack of knowledge. | |
| With increased advancements in technology, asymmetric information has been on the decline as a result of more and more people being able to easily access all types of information. | |
| Information Asymmetry can lead to two main problems: | |
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| Information asymmetryInvestorWords defines Information | |
| Condition in which at least some relevant information is known to some but not all parties involved. Information asymmetry causes markets to become inefficient, since all the market participants do not have access to the information they need for their decision making processes. opposite of information symmetry | |
| Information asymmetryBusinessDictionary defines Information | |
| Situation that favors the more knowledgeable party in a transaction. In most markets (especially where the goods being traded are of uncertain quality, such as used equipment), a seller’s is usually in a more advantageous position because his or her store of information is based on numerous sales conducted over the years. A buyer’s information, however, is based usually on an experience of only a few purchases. A similar situation exists between a commercial lender and a borrower. | |
| The Market for Lemons | |
| “The Market for Lemons: Quality Uncertainty and the Market Mechanism” is a 1970 paper by the economist George Akerlof. It discusses information asymmetry, which occurs when the seller knows more about a product than the buyer. Akerlof, Michael Spence, and Joseph Stiglitz jointly received the Nobel Memorial Prize in Economic Sciences in 2001 for their research related to asymmetric information. | |
| Information Asymmetrymoneyinstructor.com explains Information Asymmetry | |
| An economy is said to be characterized by information asymmetry when some parties to business transactions may have an information advantage over others. | |
| Types of information asymmetry | |
| The first is adverse selection. Adverse selection occurs because some persons, such as managers and other insiders know more about the current condition and future prospects of the firm than outside investors. There are various ways that managers and other insiders can exploit their information advantage at the expense of others, for example, by biasing or otherwise managing the information released to investors. This may affect the ability of investors to make good investment decisions. Financial reporting is one of the mechanisms that are used to control the problem of adverse selection by credibly converting inside information into outside information.
The second one is moral hazard. This problem occurs because of the separation of ownership and control that characterises most medium and large businesses. It is almost impossible for shareholders to observe directly the extent and quality of top managerial effort on their behalf. A manager may take advantage of this by shirking on effort and blaming any deterioration of firm performance on factors beyond his or her control. If this happens there are serious implications for investors. Accounting net income can be one of the effective antidotes to the problem of moral hazard. Net income can be incorporated into executive compensation contracts to motivate manager performance. Net income can also inform the securities and managerial labour markets, so that a manager who shirks will suffer a decline in income, reputation, and market value over time. |
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| Importance of Information asymmetry: Information asymmetry is a very important concept because securities markets are subject to information asymmetry problems. This is because of the presence of inside information and insider trading. Insiders know more than outsiders about the true quality of the firm. They may take advantage of their privileged position of information to earn excess profits. They may take actions that are beneficial to them but are detrimental to the interests of investors. | |
| Agency Theory and Information Asymmetry | |
| It recognizes that management at all times knows more about the business than the company’s shareholders (and directors) do, and that this information asymmetry is one of the key factors that allows management, if it is so inclined, to pursue goals that are divergent from shareholders” interests. | |
| How is the internet changing the economics of information and business models? | |
| Asymmetric information and market failure | |
| Studies into issues of information in the business world by Reuters | |
| Since 1994, Reuters has conducted three studies into issues of information in the business world.The first To know or not to know: the politics of information, revealed that despite the proliferation of office technology, we were still a race of information misers.
The second: Information as an asset: the invisible goldmine, showed how companies failed to realise the value of their information. In October 1996, Reuters conducted the first ever study into Information Overload, called Dying for information, which revealed the significant extent to which overload is becoming a problem in the information age. |
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