The Role of External Auditors in Accounting

The Role of External Auditors in Accounting Introduction Auditor liability has always been one of the main concerns of the public. Often falling under common law, tort law or both, public liability claims can arise out of unfair or unjust practices when it comes to auditing a companys financial standing (Lambe, 2007). The auditors can be held liable for approving a fraudulent account on behalf of a business organisation. Auditor liability, or failure to detect and report illegal manipulations of financial statements, could lead to serious damages for the shareholders of the company (Schaefer, 2004). In most cases, a fraudulent act exists when one or more auditors, on behalf of a company, approve inaccurate accounting for the reason of tax evasion or to strategically register for an Initial Public Offering (IPO). To prevent moral hazard associated with auditor liability, the British Serious Fraud Office has imposed heavy penalties on swindlers and white collar criminals in order to shut down or suspend suspicious businesses (Country Updates, 1997). On the other hand, auditors who are found guilty of professional negligence may end up facing a monetary loss or penalty through punitive fines and/or the confiscation of their licence to practise in the United Kingdom. According to Priddy (2011, p. 59), as stated by Michael Power of the London School of Economics, it was not reasonable to expect auditors to be challenging business models and raising strategic issues with finance directors, because that was not their job and if we want it to be their job, then things would have to change quite substantially à ¢Ã¢â€š ¬Ã‚ ¦ The direction of my comment is that we might be expecting too much from this black box [External Audit] in terms of what it actually delivers. In response to Powers statement, this report will first discuss the roles and responsibilities of external auditors and then provide a brief overview of corporate governance. In line with this, there is a strong need to go through some business theories and concepts that will enable readers to have a better understanding of how businesses function in the corporate world. Based on the individual offices and duties of shareholders, internal and external auditors, the board of directors, and the Chief Executive Officer (CEO), this report will explain the limitations of the roles and responsibilities of external auditors when it comes to detecting and controlling fraudulent business activities. Roles and Responsibilities of External Auditors External auditors are professionals who are hired to conduct audits based on the rules or laws on creating financial statements for the government, a private company, or a legal organisation (The Institute of Internal Auditors, 2011). According to Kwok (2005, pp. 151-161), accounting irregularities can be made for the purpose of tax evasion or theft, for instance, creating ghost employees, skimming from the proceeds, or stealing an asset. Specifically in the United Kingdom, Chartered Accountants and Certified General Accountants are the groups of individuals who are qualified to conduct external auditing. According to Poorter (2008), auditors practising within the United Kingdom have to perform a special duty of care towards a liable third party. This means that external auditors are made responsible for the fair, just and reasonable treatment of the companys external shareholders. In case of a binding contract between the company and its shareholders, it is a general rule for the external auditor(s) to fulfil his or her statutory duty as an auditor to shareholders collectively. As a standard operating procedure, external auditors are expected to evaluate the financial statement of an organisation on a yearly basis (Hicks and Goo 2008, p. 261). Upon going through the financial statement of a government, a private company, or a legal organisation, external auditors are expected to come up with a professional opinion regarding the financial statement presented to them by the organisation (Kwok 2005, p. 178). Correspondingly, external audit committees are expected to determine whether the accountants are able to adapt along with generally accepted accounting principles or whether they have made appropriate judgments, estimates, and complete disclosures in the financial statements (Hicks and Goo 2008, p. 259; Kwok 2005, p. 178). Given that the external auditors find something inappropriate in the presented financial statement, they should report their complaints to the company to allow the board of directors to review. As part of protecting the company and its shareholders, external auditors are expected to determine any possible damages that could result from the company owners major business decisions. Considering that external auditors are liable to both the company for which they work and the shareholders of the company as a third party, external auditors should avoid coming up with a biased judgment by making use of their best professional knowledge to protect the interests of everyone involved. Although internal and external auditors technically have the same roles and responsibilities when it comes to auditing a financial statement, an important difference between the two is that an external auditor is an independent party outside the organisation being audited (The Institute of Internal Auditors, 2011). Another difference between internal and external auditors is that the general public, large groups of investors, and government agencies have the tendency to rely more on the audit report coming from the external auditors than the report presented to them by the internal auditors. Brief Overview with regards to Corporate Governance According to Colley et al. (2005), corporate governance refers to a system of authoritative direction or government which carefully examines the individual roles and responsibilities of the business owners, the shareholders, the board of directors (executive and non-executive), the CEO, and accountants. Since corporate governance is composed of both neutral and objective corporate values (Solomon 2007, p. 4; Haller and Shore 2005, p. 18), a lot of people consider good corporate governance as an acceptable model of business ethics and a moral duty on the part of a corporations executives and board of directors. Board of Directors Aguilera et al. (2008) revealed that corporate governance is often considered as the basis for making policy for a business organisation in relation to the actual structure of the board, the activism of the shareholders, and overall business performance. With regards to organisational policies and procedures, the board of directors within a business organisation has a significant role to play when it comes to successfully implementing corporate governance (Nordberg, 2007; Kim and Nofsinger 2006, p. 41). For this reason, the members of the board are required not only to carefully analyse the corporate financial report, but also to meet regularly to discuss the proposed strategic plans and issues that will significantly affect the success of the business (Solomon 2007, p. 103). Executive and Non-Executive Directors The board of directors is composed of executive and non-executive directors. As part of strengthening corporate governance, the companys board of directors is given responsibility for making important decisions in the best interests of the company and its shareholders (Mallin 2007, p. 125). Aside from determining corporate goals, developing strategic plans that will enable the business to meet those corporate goals, and implementing organisational policies to meet the businesss objectives (Mallin 2007, p. 124; Kim and Nofsinger 2006, p. 41), the board of directors is responsible for controlling operations, making decisions for resource acquisitions, and driving improvements in the quality of service (Carpenter, 1988; Pfeffer and Salancik, 1978). Since not all of the members of the board are directly or actively engaged in the daily business operations of a company, readers should be aware of some crucial distinctions between the roles and responsibilities of executive and non-executive directors with regards to corporate governance. It is common business knowledge that the executive directors are the ones who are directly involved in the daily business transactions that occur within and outside of the company, whereas the non-executive or outside directors are not. Despite the differences between the responsibilities of executive and non-executive directors, the Commission has publicly announced under the Action Plan Modernisation of company law and enhancing corporate governance in the European Union that all of the board of directors (regardless of whether they are executive or non-executive) should at all times ensure their collective responsibility when it comes to monitoring the financial and non-financial information behind the corporation (Communication from the Commission to the Council and the European Parliament, 2003). Unlike the non-executive directors, the executive board of directors can easily access valuable business information such as corporate financial statements. By accessing this information, executive directors are able to examine company records on daily sales and expenses and other major business transactions like public shares, loans and investments. In the process of going through the companys financial statements, executive shareholders should be on the lookout for any signs of unusual business activity that could adversely affect the long-term operation of the business. Similar to the role of executive directors in corporate governance, it is the role and responsibility of the non-executive directors to reduce conflicting interests between the actual shareholders, the executive board of directors, and the management team who works behind the company (Solomon 2007, p. 82 and 92). For this reason, Waldo (1985, p. 5) strongly suggests that the best way for the executive and non-executive directors to perform their duty effectively is to actually go through the companys business information, including the corporate financial statement. Even though the non-executive directors are inactive in terms of monitoring the daily operations of a company, several studies revealed that the non-executive directors are expected to strictly and regularly monitor the progress of the overall business, its legal and ethical performance, strategic choices and implementation techniques used by the top management, including the appointing or removal of the members of the senior management aside from giving the rest of the board members some advice with regards to the strategies used in enabling the company reach the corporate goals and business objectives (Solomon 2007, p. 82; Carpenter, 1988)  [1]  . By closely monitoring the daily activities of the companys executive directors, the non-executive directors should make the executive directors accountable for the companys shareholders and external investors (Mallin 2007, p. 132; Solomon 2007, p. 88; Fama and Jensen, 1983). Solomon (2007, p. 86) revealed that there is a link between the role of non-executive directors and the role of institutional investors in the sense that the non-executive directors effort in ensuring that the business is free from any forms of corruption could somehow protect the socio-economic welfare of the companys public investors. Several authors suggest that the non-executive board of directors is strongly encouraged to actively participate in the board meetings with the rest of the directors and shareholders to protect the interests of the public investors (Mallin 2007, p. 125; Solomon 2007, pp. 86-88). Roles and Responsibilities of Accountants In general, accountants are not only made responsible for producing an accurate, true, and fair financial statement that not only enables the senior managers to make important business decisions, but also give the public stockholders the privilege of accurately monitoring their investments in the company. Because corporate accountants maintain accurate and transparent financial accounting information at all times, accountants play one of the few most important roles in the development of effective corporate governance. To ensure that the company is able to come up with an accurate corporate financial statement, the business organisation should hire internal and external auditors who are qualified in monitoring fair and true financial values. Discussion Romano (1996) explained that the shareholders have the authoritative power to influence the manifestations of legal and/or illegal business transactions. Given that most of the corporate shareholders are the business owners, these individuals are the ones who are in the position to select and elect their preferred members to the board for the purpose of managing the business affairs. On the other hand, it is the board of directors who appoint, hire, and delegate specific roles and responsibility to a selected CEO. In a normal business setting, it is the CEO who is in charge of managing the actual business operations. For this reason, the CEO is often made accountable not only to the business owners but also to the board of directors. Upon analysing the corporate structure that is commonly used in large-scale companies, it is often the business owners together with the voluntary participation of the executive directors, the CEO, and the accounting manager who have the authoritative power to manipulate the companys official business documents. By going through the corporate financial statement, the non-executive board of directors should search for any signs of unusual business activities that could create serious consequences for the company. To prevent coming up with a biased judgment, the non-executive board of directors should consult with the internal or external auditors regarding any signs of unusual business transactions. Due to the flow of authoritative power within a business organisation, it is possible on the part of the shareholders, the members of the board, and the CEO to enter into business collusion with the business owners. By engaging the cooperation of accountants, business owners and corporate leaders may easily manipulate corporate financial records at the expense of the stakeholders and external shareholders. According to Becht, Jekinson and Mayer (2005), collusion among corporate leaders makes corporate governance one of the most controversial topics related to business and finance. Cassill and Hill (2007) explained that according to the principles of corporate governance, by voting on major financial decisions, the board of directors is made responsible for ensuring a balance between the business owners monetary interests and actual profit-sharing with the companys employees and the rest of the other stakeholders. Several authors agree that corporate governance should be based on neutral and objective corporate values (Solomon 2007, p. 4; Haller and Shore 2005, p. 18). Since there is plenty of opportunity for the business owners to manipulate the board of directors to support their own personal interests, the concept of corporate governance can easily be violated at the expense of the majority of employees and public investors. A corrupt business culture is one that not only does not balk at accepting bribery, but may also be open to the practise of illegal offshore financing or the intentional manipulation of the actual financial statement (Dine, 2008). Within a business organisation, the board of directors and executives are among the few individuals typically behind the practise and development of a corrupt culture. For this reason, Dine (2008) revealed that European corporate law, following the UK model of corporate governance, is focused on investigating shareholders and the board of directors. Two good examples of real-world scenarios in the history of finance are the cases of WorldCom and Enron. In the case of WorldCom, its board of directors failed to fulfil their duty in terms of closely monitoring the executives management activities (Monks and Minom 2004, p. 509). This made them unable to protect the interests of their stakeholders. In the case of Enron, a total of 18 directors, including the CFO, ex-CEO, chief accounting officer and chief risk officer, voluntarily participated in the CEOs decision to manipulate the companys financial statement (Kim and Nofsinger 2006, pp. 52-53; Davis, 2005; CNN Money, 2004). Limitations in the Roles and Responsibilities of External Auditors when it comes to Detecting and Controlling Fraud Activities in Business Although the general public, government agencies, and a large number of investors rely heavily on the audit reports coming from the external auditors, there are still some limitations with regards to what the external auditors can do in detecting and controlling fraud activities that could happen within a profit or non-profit organisations. Hicks and Goo (2008, p. 258) explained that it is the managements responsibility to prepare complete and accurate financial statements and disclosures in accordance with the financial reporting standards and applicable rules and regulations. Therefore, it is wrong to believe that the external auditors are solely responsible for preventing the incidence of financial fraud. As stated by Kwok (2005, p. 168), an audit does not guarantee the detection of all material misstatements because of such factors as the use of judgment, the use of sample testing, the inherent limitations of internal control, and the fact that much of the evidence available to the auditors is persuasive rather than conclusive in nature. Since external auditors are auditing financial statements that are presented to them by the corporate accountants, it is expected that external auditors could only provide the general public, investors, and government agencies with a reasonable assurance that the audited financial statements are free of misstatements, alteration of the accounting records, honest accounting errors, or falsification of the financial statements. Based on the Courts decision in the case of Caparo (Richards, 2004), in the absence of any contract between the auditor(s) and either the investor, a potential investor, or any other third party involved, no duty of care will be owed.  [2]  Despite the external auditors responsibility to double check the accuracy of a companys financial statements, external auditors who work for a public company owe no duty of care outside the existing shareholders who purchase stocks in reliance on a statutory audit. It simply means that the external auditors can only be held liable to investors, potential investors, or any other third party involved only if there is a written contract stating that the external auditor owes them duty of care. In fact, external auditor(s) who are held liable for pure economic loss are considered as a case of simple negligence under contract law. Schaefer (2004) explained that the case is different when the auditor(s) are being judged based on tort law because tor t law does not include a pure economic loss as a negligent act. Considering the difference between a contract law and a tort law, external auditor(s) who are found guilty of negligence will be held responsible and will be obliged to pay for the victims loss. In case an external auditor violates any of the auditing guidelines and is found guilty, the accused external auditor(s) will not be held responsible to compensate the victims loss because of the fact that tort law excludes liability of a pure economic loss. In other words, the victim of a wrong audit can demand a claim against those people guilty of the wrong audit under a contract law (Ewert, 1999). Given that the general public can prove that both external auditor(s) and the managers of the company colluded against the outside stakeholders, the stakeholders of a given company can demand a claim against both the parties involved. Even though external auditors can be held liable for negligence and misconduct, there is still a limit as to whether an auditor can be held liable for a misconduct or not. For example, in case an external auditor has not provided the actual report to the company he works for, any law suit filed during the time frame wherein the external auditor has not yet submitted his final report will not be considered punishable by the Court, because technically there is no duty of care that exists between the company and the external auditor(s) (Poorter 2008, p. 70).  [3]  In other words, the duty of care between an external auditor(s), the company, and the shareholders of the company will only exist when the external auditor has already submitted his final report to his client, the company. Basically, the extent of auditor liability will depend on the Court judgment and the degree of damages caused by the act of negligence that has occurred in the process. In line with this, it is possible for an act of negligence to occur when the external auditor(s) and the owner or manager of the company agree to underestimate the actual revenue of the company in order to pay lower taxes to the government; or both parties may agree to overvalue the company in order to be able to get a better price when selling the companys shares to the public. Since there are different ways in which auditor liability may occur, the Court will be responsible for the investigation behind the said act of negligence. According to Schaefer (2004, p. 9), external auditor(s) with a binding contract towards the third party involved should not be held responsible for the loss that may occur in the purchase of stocks as long as the auditors did not take any actions that could trigger the decline in the stocks value. Therefore, external auditor(s) who did not manipulate the value of stocks are free from being held responsible in case the value of stocks depreciated. Rather than considering the loss of a public investor as a result of negligence on the part of the external auditors, the public investors are expected to be responsible enough to study the market first before they invest their money in the stock market. In case the general public is able to prove that external auditors were behind the manipulation of stock prices in such a way that they depreciated over time, then the Court has the option to make the company, including those people who were directly involved in the process of the fraudulent act, partially liable for the victims monetary losses. However, if a buyer was able to sell his share of stocks at an overvalued price for the reason that the internal and external auditors were not able to accurately detect the true market value of the companys stocks, the person who bought the overpriced stocks will have to compensate for the loss simply because it was the buyers decision to purchase an overpriced share of stocks. Conclusion The personal obligations of external auditors to the general public or public investors is limited for the reason that the roles and responsibility of the external auditors are limited in terms of determining whether the accountants were able to present the financial statement based on the rules or laws accepted for the development of financial statements for the government, a private company, or a legal organisation. Likewise, external auditors are also made responsible for detecting any potential accounting irregularities made for the purpose of tax evasion or theft by the creation of ghost employees, skimming of the proceeds, or theft of an asset. Under the principles of corporate governance, the board of directors (executive and non-executive directors), the Chief Executive Officer (CEO), and the accountants have different roles and responsibilities in protecting the socio-economic welfare of the corporate stakeholders, including public investors. In case of a fraud scandal, it would be a misconception to put the blame purely on external auditors, since the board of directors (executive and non-executive directors), the Chief Executive Officer (CEO), and the accountants share responsibility in protecting the socio-economic welfare of the corporate stakeholders, including public investors.

Police: Racial Profiling in America

POLICE: RACIAL PROFILING IN AMERICA Naomi D. Hopkins Stevens-Henager College APP 101 9 February 2013 Abstract This paper will discuss the relationship between Fear and how it relates to Racial Profiling in Police Practices. We will also discuss and illustrate real life examples under which Racial Profiling has occurred and how it is scientifically defined. The communication between peace officers and ordinary everyday citizens will also be examined. Police: Racial Profiling in America The issue of Racial Profiling in America by our Police Force is an undeniable truth and tragedy.Steve Holbert and Lisa Rose in their book the color of Guilt & Innocence recount a story of a Caucasian woman who is forced to walk alone with her young daughter down dark unfamiliar San Francisco streets at night in the dark. We’ll call this woman Lisa. She had just exited a train car with her young daughter and was walking down the dark streets unsure of her surroundings when she noticed that a stran ger man, whose features she couldn’t make out, was following her and her daughter.Lisa had heard and seen reports about a young man in his mid-20s that was dark complected and had been robbing tourists. She felt her body tighten as she began breathing rapidly and she had quickened her pace pulling her daughter along without realizing it, until her daughter started pulling her in the opposite direction because she had dropped her candy cane that she had gotten from the cable car employee earlier that evening. After her experience in the city, she began to question whether the irrational fear of monsters conjured up in the mind of a four year old was so different from the â€Å"monsters in the closet† we perceive as adults, the only difference being that the â€Å"monsters† we see as adults have a face and the face is of those who are different or those whose skin color is darker than our own. (Holbert, S; Rose, L 2004). This begs the question, â€Å"Did she fear this man because it was nighttime and she couldn’t see him and was unsure of her surroundings?Or was it because the man following her reminded her of that minority man who had been on the news who was robbing tourists? This brings to mind another quote I found while writing this paper: â€Å"Rather, racial profiling is more about our human response to an instinctual and primitive fear buried deep in each one of us. † (Holbert, S; Rose, L 2004) On the subject of Fear and Racism, I’m led to another quote in the book used primarily for my research on this very subject as it relates to American Law Enforcement practices. When we ponder the concept of fear in the comfort of a classroom, almost all would agree that to fear a person because of skin color, religious affiliation, or appearance is irrational. In the phobic sense, this fear is xenophobia, the fear and/or hatred of foreigners or anything that is foreign. † (Holbert, S; Rose, L 2004). I would even go so far as to say that contempt prior to investigation is in itself, a form or fear and intolerance. How can we judge a situation, let alone a person, accurately without all the facts?Do we assume we are Gods or Goddesses that are worthy to judge our fellow men or women? If so, what makes us so different, or dare I say, â€Å"Superior† to another? I am reminded of my own feelings, when as a small child; I made the decision to say that â€Å"all white people are racist. † This statement in and of itself is in fact, a form or racial profiling. That is, I was judging a certain race of people, in this case, whites and assuming that I had gathered enough information to do so.This brings me to another quote out of my research, â€Å"To understand the complexities of prejudice, racism, and racial profiling, we must first explore the origin of fear and understand how it can dictate the way in which our body responds to outside stimuli long before we become consciously aware of the racial implications. † (Holbert, S; Rose, L 2004). In fact, the word â€Å"fear† comes from the old English word for â€Å"danger. † When we, as human beings, experience fear our brains respond to perceived danger by using three distinct systems.The first is called Primal or Primitive fear system, and is found in most animals and mammals. This system responds first by alerting the body to any danger. This reaction is automatic and triggers our â€Å"fight or flight† response. The second is triggered by the â€Å"fight or flight† response and is the mind’s Rational or logical fear system. â€Å"This system takes over in an effort to assess the potential danger and weighs options for survival or escape. † (Holbert, S; Rose, L 2004). This system effectively plans possibilities we need to consider to escape an immediate or future threat.The third system is called a person’s Consciousness or Awareness, and acts as a mediator bet ween Primal Fear and Rational Thought. This system will strike a balance between the mind’s emotion and reason and will become the ultimate decision maker in the entire process. Now, let’s examine some history on racial profiling that is actually quite interesting. This thought brings me to another quote I pulled out of this book I used to research this topic/ â€Å"Start with a good idea. Test it thoroughly, and use it with care.Put it in the hands of those who don’t have the experience and training to apply it properly. Add a little discrimination and pressure, and turn up the heat for 20 years. What do you get? Racial Profiling. (Holbert, S; Rose, L 2004). â€Å"In a nutshell, this is the story of Howard Teten, a former FBI Chief of research in the late 1950s who many criminologists credit with popularizing the concept of â€Å"criminal profiling. † A man who lived the best of both worlds, Mr. Teten studied psychology at the University of California at Berkeley while working crime scenes in San Leandro, California.Back in the 1950s, cops typically looked for clues at a crime scene to try to tie the crime to a particular suspect. Teten took this concept one step further by looking at the manner in which the criminal committed the crime in order to develop a psychological profile. This profile ultimately helped officers identify a criminal’s personality traits and mental state and led to a classification of potential suspects who could have committed the crime. † (Holbert S; Rose, L 2004). This very method, which is called â€Å"criminal profiling†, has been widely distorted, especially when it comes to the United States â€Å"War on Drugs. For example, it is assumed that if a person, particularly a person belonging to a minority group (that is not white or Caucasian), is seen wearing gold jewelry that is large in size, a â€Å"corn roll† hair style, baggy clothes, and perhaps gold teeth, Law Enforceme nt Officials automatically assume that this individual is a â€Å"drug courier,† or an individual that smuggles drugs or money into or out of the country. It can be said that a person’s appearance, jewelry, and travel habits can be used as a basis for identifying and prosecuting those involved in the â€Å"drug trade. The end result of these discriminatory attitudes is that these â€Å"profiles† do not demonstrate â€Å"good science† or offer sensible approaches to productive Law Enforcement procedures. Now, let’s examine the other side of the coin, as it were as it relates to basic race relations. When we all think of a police officer, we all have this stereotypical view that they are tough, intimidating, and very arrogant. In actuality, police officers have learned their very behavior and personality traits from the general public. Most people, when contacted by a police officer, become irritated, hostile, overbearing, and even belligerent.So, i n turn, officers have learned how to desensitize or become â€Å"numb† to their emotions and feelings. It wouldn’t be a far cry to say that they have learned to behave as â€Å"not human† just so that they can get through their day without having to worry about what they said, was it rude, right or wrong, what the repercussions might be, and so on. So it is accurate to say that the general public ourselves, have contributed to the attitudes and behaviors of our own Police Force in America. What we don’t hear about or realize often times is that when an officer goes on duty, he or she faces any number of different variables.For example, having a gun pulled on them, being attacked, being shot, taken hostage, being kidnapped, and any number of other things that would threaten or endanger their lives either mortally or fatally. I will illustrate an example of what ought to be advertised when hiring police officers: WANTED: LAW ENFORCEMENT OFFICERS: Must be a social worker, mediator, a fighter, a priest. Must be savvy to the criminal element yet have an unblemished criminal background. Candidates should be compassionate yet distant. Intimidating yet gentle. Aggressive yet always in control. Daily risk of death.Low Pay. Must be willing to work all hours of the day and night in hazardous and extreme conditions. The Faint of Heart need not apply. (Holbert, S; Rose, L 2004) WANTED: LAW ENFORCEMENT OFFICERS: Must be a social worker, mediator, a fighter, a priest. Must be savvy to the criminal element yet have an unblemished criminal background. Candidates should be compassionate yet distant. Intimidating yet gentle. Aggressive yet always in control. Daily risk of death. Low Pay. Must be willing to work all hours of the day and night in hazardous and extreme conditions. The Faint of Heart need not apply. Holbert, S; Rose, L 2004) Realizing these facts, we all ought to be a little gentler with the officer next time we are pulled over for speedi ng or contacted about a conflict resolution issue. Police Officers deserve respect, but they also do not have the right to demand respect, and it is the same with the rest of us. That being said, when we think of â€Å"use of force† by police officers, we all know the familiar image conjured up; the Rodney King beating on March 3 1991. In case you’re wondering, the case went to trial and all of the officers involved were NOT convicted. The result was the L.A. Riots of 1992. When we think of this case, we wonder, what could have gone so wrong in our justice system? The answer is not as clear as one might speculate. The â€Å"code of silence† is as much to blame as ignorant and wrong attitudes are to blame. â€Å"The Code of Silence† also known as â€Å"The Blue Wall of Silence† is based on the premise that an officer does not reveal negative information about a fellow police officer. (Holbert, S; Rose, L 2004). I can recall an experience I had in Ca lifornia with an officer who responded to a call about me when I was homeless and sleeping in my vehicle.The officer responded alone, without backup, and contacted myself and two friends of mine. He falsely accused us of smoking weed, arrested my friend for a warrant she had, shined his flashlight deliberately in my face, and pulled his Taser on me when I reacted unfavorably to his â€Å"bullying behavior. † I then had to demand that he call his Watch Commander, or Supervisor out to the field to discuss what happened and what I wanted done about his misconduct. I told the Watch Commander that I wanted an apology, both written and verbal, but to my dismay, he responded and told me, â€Å"I’m sorry ma’am I cannot do that.If I promise to talk to him about this incident, will you refrain from reporting it? † I was appalled to say the least. I later had to go through the channels to report this incident at the Police Department in person, but this is a prime r eal-life example of â€Å"The Code of Silence† in action. How many times has this happened to other citizens, but for whatever reason, they are too afraid or intimidated to report such misconduct. If we as a society wish our Police Force to be more accountable, we must take the action to make sure that happens. Otherwise, we are just birds preaching to a choir with deaf ears.The sad fact is that many Police Departments still retain the right to â€Å"police† themselves on such issues of misconduct and â€Å"use of force† incidents. This is the main reason that the officers involved in the Rodney King beating of 1991 were cleared of guilt. First of all, to even file a complaint against a police officer, citizens must endure a lengthy and time consuming process that involves appearing in person at the police department, then weeding through the trouble and intimidation of even telling a department employee or filling out a report about the alleged incident, and so metimes are refused and intimidated out of that process.Second and most important, even after all that trouble has been endured by the complainant, little or nothing is ever done about the problem other than to refer it to the Internal Affairs Division of the police department and they in themselves have their own policies and procedures which may or may not include final review by the Chief of Police and even then, the issue may not be resolved to the satisfaction of the complainant. In conclusion, I have learned it is sometimes better to ignore arrogant and racist comments by officers unless I have the time to devote to a complaint and investigation process.I’ll end with this quote from Martin Luther King, Jr. â€Å"We will have to repent in this generation not merely for the hateful words and actions of the bad people but for the appalling silence of the good people. † (King Jr. , Martin Luther 1963) References Holbert, S; Rose, L (2004) the color of GUILT & INNOCEN CE RACIAL PROFILING AND POLICE PRACTICES IN AMERICA King Jr. , Martin Luther (1963) â€Å"Letter from Birmingham Jail† April 16, 1963 Retrieved from www. history1900sabout. com/od/martinlutherkingjr/a/mlkquotes. htm

Towards the Quality of Higher Education

TOWARDS THE QUALITY OF HIGHER EDUCATION Brief review of the quality of Higher Education in Ancient India: The system of higher educaton is started from the ancient times in India. During the ancient times, Education was closely linked with religon. It was taken up by Teachers as a labour of love and by the students as part of their training for culture and citizenshp. It was not universal education. In regard to higher instituton of learning – Tols (Higher Education) was developed among the Hindus and Madrassah (Higher Education) was existed among the Muslim.Although the Hindu and Muslims had separate learning institution, many features were common to both the types of institution. Under the Buddhist rulers in India, Learning was fostered by the numerous monasteries under the guidance of monks and nuns. The Brahmanical system of education mainly centered at home of Individual Teacher was superseded by monasteries system of Buddhist education. For the first time in India, and p erhaps in the whole world, a great famous Buddhist seat of higher learning like Taxila, Nalanda, Vikramshila and Vallabhi Universities were flourished in India which can be compared with modern Universties.These Universities were better well organised than the Brahmanical higher education because they recieved state endowment for many centuries from the successive kings from the time of Buddha. The Universities introduced regular course of studies in different subjects and admission test for all students. There was no discrimination in admission and Technical Education and Women Education were also introduced as it recieved encouragement from the ruler and the rich people. Amongst these Universities of ancient India, Nalanda Universities was take its specialities.Students from China, Nepal, Tibet, Korea etc came to study and obtain valuable knowledge. Entrance examination was very strict and only 20 percent of the candidates succeeded in getting admission during this period. Brief r eview of Indian Education Commission in Modern India: The system of higher education, which we find today in our country, started after the advent of the British in India. When the Brtish established their authority in India, they did not willing to take responsibility of educating the Indian people. In order to trained some Indians for minor jobs in the company’s office, they started schools and colleges.By the charter act of 1813, only one lakh of rupees for the improvement of the quality of education was left. The British rulers only established many government and private colleges and the higher education was in a very disorganise at the time. Within a period of time, The British rulers realised that the necessity to organise and improved the quality of education and appointed Wood’s Despatched of 1854. As a result of the recommendations made by Wood’s Despatched of 1854, the Universities of Culcutta, Bombay and Madras were established n 1857 on the model of London University.On the model of the formers, Allahabad University was also established in 1882. But all universities performed the functioned of only conducting examinations and affiliating bodies and undertook no teaching and research. In order to enquired the standard of Indian education and prepared recommendations, the Government of India appointed various Indian Education Commissions and selected eminent educationist as a members. Within a period of hunhred years, sixth Education Commissions were appointed.The recommendations of sixth Indian Education Commissions can be conveniently studied under the following:- i) Indian Education Commission or Hunter Commisson, 1882:By accepting the recommendation of Hunter Commission 1882, the college education recieved a great impetus and a number of colleges were established during 1901-1902. ii) Indian Universities Commission in 1902:During the period of Lord Curzon, University Education made a great progress. In order to improve the q uality of University Education in all branches, Lord curzon adopted the policy of control and improvement.He appointed Indian Universities Commission in 1902 in order to enquired the conditions and working of the Indian Universities and made necessary suggestions. Two years later, Indian University Act 1904 was passed. This act brought many important change in the organisation, jurisdiction, powers and administration etc of the universties. The expansion of the university education was checked for sometime, due to lack of revolutionary change in the system of universities. But it was admitted later on which improved and reforms the conditions and standards of the contemporary universities and colleges. ii) Culcutta Univesity Commission or Sadler Commission, 1917:After the establishment of Allahabad Universities 1882, no new universitiy was established till 1917. However, a number of colleges were increased. In order to cope with the increased work, the Culcutta Univesity Commission or Sadler Commission was appointed by The British Government. Although, the commission was mainly interfere in the problems of Culcutta University, it gave out reforms and change which were great value into higher education in India as a whole. Now, the Universities were not only examining body, but became a centre of teaching and learning.By accepting recommendation of the Commission 1917, more than 16 universities were established in different places of India till 1947. iv) Indian University Education Commission or Radhakrishnan Commission, 1948:The expansion of higher education has recieved a great impetus after Independence. Number of institution in the field of higher education and enrollement of students in the centers of higher studies were increased year by year. The university education was imparted through arts, science and commerce and professional colleges, researched institution.The institutions deemed to be universities under the University Grants commission Act, 1956. In adition to Central universities, state universties and their affiliated colleges, Indira Gandhi Open Universty and other Open Universities are doing commendable job in the field of higher education. In order to meet the present and future requirements of the country, the Government of India appointed Indian Education Commission or Radhakrishnan Commission in 1948 to suggest improvements and extentions of th Indian Universities. The terms of reference of the commission were very wide and vast.It suggested that various aspects of the university Education in India and means for the improvement and reorganisation of the university education. Research and other standard of university educaton, problems of teachers, curriculum, medium of instructon, religious education, problem of discipline, health and residence of the students an such allied problems in the perspective of the natonal and international conditions. In fact, The report of this Commissions is the most comprehensive repo rt on education, but its recommendations is very important and far reaching consequences. ) Secondary Education Commission or Mudaliar Commission, 1952 vi) National Education Commission or Kothari Commission (1964-66): Since Independence, there has been a good deal of quantitative development of education but qualitative has lagged behind. Unimplementing of the policy of the directive principles of the constitution to make free and copulsory education below 14 years, problem of literacy, low standard of primary and secondary edcation, diversification of curriculum and problem of educated unemployment were the the main problems since Independence.In order to evaluate the different stages of education and to evolved a National system of Education, the Government of India appointed the Kothari Commission in July 14, 1964. The Commission submitted its report and recommendation in June, 1966. People expressed high hopes when the Reports of the Education commission was first published in 1966. Already, several years have passed, nothing has practically been done to achieved the targets as recommended by the commission. The commission give any useful suggestion an the source of finance, on which the implementation of the recommendations entirely depends.If it si of course a fact that it was not the bussiness of the commission to deal with the financial side, but we cannot ignore reality. The suggestion made by the Kothari Commission in respect of different organs of education were very important. The Government have already implemented some of the suuggestions and the effort are still being made to make important the rest of the suggestion. Taking all things into consideration, we may say that the report of the education Commission is a sincere attempt to improve the existing system of education in all aspects and in all stages.If it can be implemented, it will remove some of the glaring defects of our educational system. Problems Higher Education: It is clear from t he above discussion that the expansion of higher education has recieved a great impetus since independence. The policy of the government still has been to increase the number of the institutions of higher education rather than the aim at the qualitative progress of higher education. Besides this, the government did not pay proper attention to the multi-lateral problems of higher education and not made special effort to remove the defects of higher education.Since recommendation made by the Kothari Commission, the government declared National Educational Policy of 1986. It is good that is being given to the specializaton in higher education. The problems of the higher and University education in india is nothing but the problems of Indian society in general. If we want to established a society based on the principles of democratic socialism, we must have reoriented the entire educational structure. Without a hgh standard of general, vocatonal and professional education, democracy can not survived. But there is a still a lag between our Ideal and reality.Our Universities have not been able to shake off the heavy load of bookish knowledge. The main problems for the falling of the standard and quality of higher and universities education in India are under the following:- 1. No definite aims among students of higher education:One of the problem which checked the standard of higher education is its aimlessness. Most of the student are recieved higher education without having any definite aim. the student must have definite aim before starting hgher education. In order to raise the standard of higher education, the university should change the aims and objectives.Newmen remarks the aims of university education in 1952, â€Å"If a practical and must be assign to a university course, the i say it is training of good members of the society. † 2. Increase of Wastage and Stagnation:The problem of wastage and stagnaton exist in a greater degree at the stage of highe r and university education. Most of the important causes of wastage and stagnation are Ineffective methods of teaching, unhealthy environment of institution and society, defective system of curriculum and examination and lack of finance among the students etc.In order to solve this problem, it suggest that to make healthy environment of institutions and society, revised and reforms of curriculum and examination system, raise the standard of teaching and given grants and loans to effort the study of students. 3. Lack of interesting subjects in Curriculum:Most of the the curriculum of college are old and out of date and failed to fulfil the interest of the student which checked the intellectual developmentof the student. Radhakrishnan Commission remarks, â€Å"A curriculum which had validity in the vedic period or the renaissance cannot continue unaltered in the 20th century. To solve this problem, the curriculum should revised and reforms for the interest of young advanced students. 4. Specialisation in Education:University emphasized spacialization in different subjects. After completed University education, students acquired special knowledge and skills in some particular subjects. Their outlook remains narrow and unbalanced to became completely educated in real sense. This narrow specializaton can be remove by establishing harmony between general education and specialization which developed the personality of the students and will became dutiful citizens. Absence of proper Guidance and Councelling for student:The absence of proper guidande and councelling, the students select their course according to their own choice or with thw advice of some inexperience persons. Consequently, most of the students make a wrong choice in their subjects and lost interest in their study. In order to solve this problem, the educational institution should make provision of experience and trained persons to provide proper guidandance and councelling of students from the beginn ing till the end. 6. Low standard of Teaching:The standard of teaching in our colleges and university is very low.Many suggestions has made to raise the standard of teaching in education. The more prominents are – increase the salary of the teachers, balanced workload of teachers, improvement of service condition of teacher, provision of tutorial classes, well-organised libraries and laboratories, encouragement of debates and discussion, Professional training for Junior Lecturers and Re-orientation Course for new Lecturers. 7. Defective Examination System:The present examination system of our universities has many defects and severely criticized by ndian and foreign educatonist.The university education commission of 1949 points out that, â€Å"If we are any single reforms in universty, it should be that of examinaton. † It can be reforms through scientific method. In order to reforms Examination system, it suggest that adoption of continous comprehensive internal evalu ation, semester system and grading system. It also suggest to developed question banks, demarcation of syllabus, setting and moderations of question, Evaluation of answer script and conduct of examinations. 8. Indiscipline among the Student:The problem of indiscipline among students is very serious and complicated in educatonal institution.Financial irregularity, minor and disorderly misconduct, theft and burglary, sex misconduct, misuse of privledge and cheating n examination were the main problems of institutions. Professor Siddhant remarks, â€Å"the best way to solve is to divert the activities into healthy channels including sports, games, cooperative, living in hostels, self-management of masses, organise debates and symposia, councelling of indiscipline students etc. 9. Too much Interference of Student Societies in College Affairs:The student societies in educational institutions of higher education also make a serious problem.They were too much interfered in the affairs of the institutons which prove to be a scourge. In order to reduce this problem, the uiversity ntroduced legislaton for keeping control of student societies. In order to developed the intellectual powers of student and homely atmosphere of instituton, the student societies should also organised programme like leadership training, Life skills training, seminars, workshop etc. 10. Rapid increase of the number of Student:The development of higher education in India is taking place rapidly since Independence. The numbr of students in higher institution is constantly increasing.University Grants Commission remarks that, â€Å"If increasing number admtted in our universites without corresponding expansion of facilities, there is a great risk of the academic standard being imparted further. † In order to checked the ncreasng number of students in university, It has been suggested that the new and modern method of selective system of admission should be adopted. 11. Non-availability of Educatioal Facilities and Lack of Funds :The main reason for the low standard of education in universities is non-availability of educational facilities and lack of funds.The student face shortage of books, libraries are not well-equiped. In many degree college, no proper building and classroom and do not possess even playgrounds. To solve this problem, a high level committee should be appointed for providing necessary funds to the institution. The Government of India, the State Government and non-governmental organisations and the rich people should provide necessary funds and donations to raise the standard of higher education. 12. Poor conditions of the salary Teachers:The teachers of colleges and universties are getting less salaries and allownces in order to meet their expense.Consequently, they are not able to devote themvelves with heart and soul into the teaching works. The Commission has made important provisions to increase the salaries and allownces of the teachers at dif ferent stage should be implemented by the Government. 13. Too much burden of the works and service of the Teachers: The teachers also have been burdened with too much work. and not able to performed th teaching work properly. The prominence teacher of university were given research work.The Kothari Commission has remarked, â€Å"There is much serous concern that in many places there is too much teaching but relatively too little of good teaching. † The Education commission has made important provisions to improvement the works and service of the teachers should be implemented by the Government. 14. Wide gulf between the Teachers and Students:The increasing number of students in higher education making a wide gulf between the students and the teachers. The teachers not able to recognise each students of the class and no interaction between them.While in western countries the students and teachers work together like family and build good relationship between them, there is no r elatinship between the students and teachers and separated their interest in India. In order to build relationship between the students and the teachers, it is necessary to adopt tutorial system. Beside this, the educational institution should also organise more interaction programme like debate and discussion, seminar, workshop etc which help the students to increase their knowledge with the help of the teachers.Almost all the above problems have attracted the attention of the University Education Commission, which has made many suggestions to solve these problems. Most of these suggestions have been accepted by the government and many of them have already been implemented. It may, therefore, be hope that after solving all our present problems, the higher education will make the complete development of the personality of the youth and by developing their intellectual and physical powers will make them able citizens of the country.

Globalization Is A Positive Development For Both Business...

Globalisation has been a positive development for both business and government The expression globalization brings out numerous reactions both positive and negative. What precisely is globalization. Globalization refers to increasing integration and global interconnectedness of trade, market, products and culture. It is enabled by technological innovations and underpinned by shifting power relations that sees finance capital as relatively dominant and transnational corporations as very powerful vis a vis the nation state(Capling et al 1998). There has been a constant face off going between companies and government to have a fair share from increasing globalisation. This paper will argue the positives and negatives globalisation have†¦show more content†¦It likewise means firms would have a worldwide achieve subsequently expanding the potential clients. Samsung and Lucy-Goldstar are two tremendous firms in the Korean electronic and telecom industry that profit by globalization and now 45% piece of the overall industry in these commercial ventures (Bloom , 1993). They changed low assembling expenses into a worldwide piece of the overall industry by subcontracting less vital parts of their generation operations to organizations where the economy had low work fetched and both sides could profit by it. They outsourced outside firms who had generation advancements, item plan aptitudes and notwithstanding advertising and dispersion channels (Bloom, 1993). However some contend that these advantages for apply for multinational organizations which are included in youngster work and are misusing the shoddy work cost economies. Taking a gander at Taiwan at the end of the day, a local firm Cha for Tea obtained the Starbucks ideas and made their national tea custom well known and is currently expanding in the United States and in Japan. This would not have been conceivable without the assistance of globalization (Norberg, 2006). The two principle parts of globalization included here are; the globalization of business sectors and the globalizati on of creation. The globalization of businesses alludes to the arrangement of isolated countries into one