The Electrical Market Generation Engineering Essay

In a deregulated electricity market, the coevals, transmittal and distribution sectors are operated by different companies. This may give rise to congestion in transmittal lines due to miss of co ordination between different sectors. It may besides happen in a vertically incorporate market but it can easy be taken attention of since all the three sectors are controlled by one entity. Congestion can interrupt the demand and supply market. It can straight impact the net incomes of the market participants. Without congestion market monetary value will be unvarying but with congestion the monetary values in some countries will increase and in other countries will diminish. Congestion changes the pre despatch program of bring forthing units in order to run into the energy demands with cheaper bring forthing units cut downing their end product whereas expensive units increasing their end products in the engorged countries. This makes the energy market less efficient. By congestion we mean that the transmittal web is unable to incorporate all of the coveted minutess due to misdemeanor of the system bounds. These could be thermic, electromotive force, little signal stableness bounds etc. These bounds are violated due to the breaks in power flow in transmittal lines. Therefore it becomes imperative to take steps that would forestall or acquire rid of congestion in transmittal lines. Let ‘s hold a expression at a congestion illustration. Suppose that there is a part where the electricity supply becomes really inexpensive. This would ensue in an increasing demand as more and more people would desire to travel for that electricity seting a immense sum of burden on the system. In order to run into the increasing demand, there would be heavy flow of power over the transmittal lines. This would incur losingss every bit good as the stableness bounds would be threatened ensuing in congestion. There are two ways to cut down congestion. One is the proficient manner, by utilizing the FACTS devices and the transformer pat accommodations whereas the other one is related to the market e.g auctioning, re-dispatching etc.1.2 AimsThe aims of this thesis undertaking are as follows: To Analyze the FACTS devices To Identify the different jobs due to congestion To show the usage of FACTS devices in pull offing congestion in pool market To smoothen the Locational Marginal Prices ( LMP ) and maximise the societal public assistance Economic consideration in arrangement of FACTS1.3 Scope of ThesisThe thesis will get down with the literature reappraisal on optimum power flow, Power flow restraints, FACTS devices, power flow control, how FACTS are used to increase the transmittal capacity in order to cover with the congestion direction in transmittal systems. Electricity market theoretical account will be generated and by utilizing the FACTS devices the LMP will be smoothened and the societal public assistance will be maximized.. In the terminal based on the consequences, recommendations and decisions would be given consequently.Literature Review2.1 Optimum Power FlowIn 1960 some extensions were made in the conventional economic burden despatch job called optimum power flow ( OPF ) . OPF simulation is used to happen the optimum solution to a job. A system can be modeled by an nonsubjective map. This nonsubjective map could be minimising the production cost, minimising the transmittal losingss etc. It depends on what type of market the nonsubjective map represents. The OPF is used to command different variables in such a manner that the nonsubjective map can be minimized ensuing in the addition in overall efficiency of the system.2.2 Power System ConstraintsWith the growing of electric public-service corporations all over the universe, the transmittal systems are being pushed closer to their stableness bounds whilst more and more quality of power is being demanded. The transmittal of power over an country or a part may be limited due to certain power restraints such as: Steady province power transportation bound Voltage stableness bound Dynamic stableness bound Transeunt stableness bound Oscillations muffling bound Thermal bound These are called the constrictions as they limit the sum of power fluxing through transmittal lines.2.3 Congestion ManagementCongestion direction is a major job faced by the independent system operators ( ISO ) in the deregulated electricity environment as it has a immense negative impact on market monetary values and the market trade ensuing in breaks and pecuniary punishments under some status. FACT devices like TCSC, TCPAR ( more on this in the following chapter ) can assist to cut down congestion, smoothen locational fringy monetary value and maximise the societal public assistance. [ 1 ] The distinguishable congestion direction systems widely being employed are Nodal pricing method Zonal pricing method These are the congestion direction theoretical accounts that are based on optimum power flow algorithm [ 2 ] . In [ 3 ] , two attacks covering with the direction costs are studied. The first attack is the nodal pricing which forms the model for the pool theoretical account. The 2nd attack is based on cost allotment processs proposed for the bilateral theoretical account. Pool and the bilateral theoretical account are compared. The bilateral theoretical account would easy hold been the obvious pick for clients if it had n't been for the particular features of electricity. These features produce two jobs. The first job relates to the presence of transmittal restraints whereas the 2nd one relates to transmittal losingss. The pool adjusts these particular features of electricity in trading procedure. The locational facets of pool theoretical account are based on theory of nodal topographic point pricing. In [ 4 ] , zonary congestion direction has been presented. Importance of existent and reactive power despatchs in relieving the congestion direction has been highlighted. Congestion direction in pool theoretical account is formulated as a Non Linear Programming ( NLP ) and it is solved by utilizing the fittingness distance ratio atom drove intelligence. In [ 5 ] , coordination between the pool and the bilateral trading in congestion despatch in intercrossed market theoretical account is investigated. A mathematical theoretical account of co-ordinated congestion despatch is created which relates the rate of pool buying cost and the curtailment rate of contracts to the precedence of different trades in the intercrossed electricity market.2.4 FACTSThe conventional ways of heightening power system control were to utilize Series capacitance to command the electric resistance, switched shunt capacitance and reactor to command the electromotive force, stage switching transformer to command the angle etc. Now in the modern universe FACTS accountants are being used. The construct of FACTS was foremost introduced in 1990. FACTS stand for Flexible AC Transmission Systems. FACTS is defined by the IEEE as â€Å" a power electronic based system and other inactive equipment that provide control of one or more AC transmittal system parametric quantities to heighten controllability and increase power transportation capableness [ 2 ] . The FACTS devices late became popular due to their efficient power controllability in power transmittal lines. There are a figure of FACT devices that are presently being used each holding their pros and cons. The power is generated and distributed to the consumers over transmittal webs. The power flow is related to the electric resistance of these transmittal lines. Greater the electric resistance lesser will be the power flow. When there is a rush in demand, the power lines with low electric resistance will acquire overloaded before the high electric resistance 1s restricting the power that can be transmitted through the high electric resistance lines. There are two ways through which the lifting demand can be met. They are: – Build more transmittal lines in order to increase the transmittal capacity Use the FACTS devices in the bing transmittal web in order to increase their transmittal capacity by commanding the power flow. The former one is non executable since it requires a immense investing and has some environmental concerns associated with it. The latter 1 is what we would be looking at. The basic applications of FACT devices are: They increase the bing transmittal line power capableness Control the power flow Decrease in reactive power profiting bring forthing companies because lesser the reactive power more will be the existent power. The clients are charged for the existent power they consume. To increase the stableness Voltage control Increase the security of the system. In [ 6 ] , congestion direction methods are considered. The first is the re despatch of the coevals agenda formed by the market. Congestion direction cost is evaluated utilizing the coevals agenda. The installing and the operation of flexible jumping current transmittal systems ( FACTS ) devices in the transmittal lines for the intent of countering congestion is besides considered. A cost benefit analysis is proposed which justifies the economic feasibleness of FACTS devices. After transporting out trials on IEEE 14 coach system, this paper concludes that when FACTS devices are employed in transmittal lines at optimum places they were able to cut down the sum of power to be re dispatched every bit good as the cost of congestion. In [ 7 ] , congestion caused by the increasing figure of bilateral contracts is alleviated by utilizing two methods. Cost free and non cost free agencies. The former trades with the stage shifters, FACTS devices. The system with and without FACTS devices is compared. The optimum power flow ( OPF ) consequence shows that the single power minutess suffer less curtailment with FACTS. The usage of FACTS device called thyristor controlled series compensator ( TCSC ) is discussed. The execution of FACTS devices in bilateral despatch model to keep system stableness and security is proposed. The development of simple and efficient theoretical accounts for optimum location of FACTS devices to undertake congestion direction by the optimum control of their parametric quantities is proposed in [ 8 ] . In a engorged environment, the sensitiveness factors can efficaciously be used to find the optimum location of FACTS devices, TCSC and TCPAR. However this paper does non cover with the optimum location of other FACTS devices such as SVC, STATCOM. In [ 9 ] , steady province theoretical accounts of FACTS devices are formulated based on PIM and incorporated into optimum power flow ( OPF ) . By making this, FACTS tend to acquire flexible due to greater grade of freedom for the OPF solution infinite. The job is solved utilizing consecutive quadratic scheduling ( SQP ) in MatLab. The consequences clearly show that the FACTS devices greatly enhance the electromotive force stableness every bit good as the power transportation capableness.2.5 Controllability of Power FlowThis subdivision will cast visible radiation on the parametric quantities that affect the power flow in transmittal lines. This is indispensable in understanding the working of FACTS for congestion direction. To maintain things simple consider a two coach system in figure 2.1Figure 2.1 Two Bus SystemThe transportation of power between the two points is given by( 2-1 )Where is is Power received is Voltage sent is electromotive force received is characteristic electric resistance of the line eristic electric resistance of the line system in figure 2.1 power flow in transmittal lines. This is indispensable in understand is transmittal angle We have assumed that all the line losingss are neglected. For a short line this equation can be simplified to( 2-2 )Since Equation 2-2 merely states that the power fluxing through a transmittal line depends on three things, electromotive force, angle and electric resistance. The most of import decision that can be drawn from this equation is that higher the electric resistance of a power line lesser will be the power flow through it. Power flow is ever through those lines that have got low electric resistance.Chapter 4Electricity MarketThis chapter negotiations about the deregulated electricity market. How this market construction came into being, what advantages and disadvantages does this current construction has is discussed in the deregulated electricity market subdivision. It so sheds visible radiation on the different market theoretical accounts that are adopted by assorted states. The three market theoretical accounts that exist and discussed in this chapter are Pool theoretical account, Bilateral Model and Hybrid Model. An nonsubjective map for the pool market is formulated. Here the aim is the societal public assistance maximization.MethodologyThe first measure is to reexamine the different sorts of FACT devices. Get familiar with their operation. The following measure involves the use of these FACT devices to relieve congestion in power lines. After that a market theoretical account would be generated that would assist us to analyze the effects of FACTS devices on the market parametric quantities such as LMP, societal public assistance etc. A package will be used to transport out this undertaking. The consequences would be shown with the aid of graphsClasss of FACTS DevicesFACTS devices can be classified into the undermentioned classs.Series CompensationIn series compensation, the FACTS devices are connected in series in transmittal lines to shoot electromotive force. It works as a governable electromotive force beginning. These series FACTS devices can be a variable electric resistance e.g a capacitance. Series induction occurs over long transmittal lines doing a electr omotive force bead. To counterbalance that electromotive force bead, the series capacitances are coupled.Shunt CompensationIn shunt compensation, FACTS devices are connected in analogue to the transmittal lines. These devices inject current at the point of connexion in the transmittal lines. They act as a governable current beginning. Shunt compensation if of two types: – Shunt capacitive compensation This method is implemented when there is a demand to better the power factor. Whenever there is an inductive burden connected to the power system, it ‘s traveling to ensue in a lagging current doing the power factor to dawdle. This is non desirable since the low power factor relates to high sum of current drawn by the burden ensuing in immense energy losingss. A shunt capacitance is connected that draws current taking the electromotive force beginning which helps better the power factor. Shunt inductive compensation This method is used when there is a really low burden connected at the having terminal. This causes a really low current to flux through the transmittal lines. Shunt electrical capacity in the transmittal line causes voltage elaboration. This phenomenon is known as Ferranti consequence. The electromotive force at the having terminal becomes greater than the electromotive force at the directing terminal. To counterbalance, shunt inductances are connected across the transmittal lines.Combined Series-Series CompensationTwo FACTS devices are connected individually in series in a multi line transmittal system. Each of the devices provides independent series reactive compensation for each of the lines.Combined Series-Shunt CompensationIn this constellation, a combination of a series and shunt FACTS devices are used. The shunt device injects current into the system whereas the series device injects electromotive force. In order words this sort of constellation allows to hold an independent control over existent and existent and reactive power fluxing through the transmittal lines.Examples of Series CompensationInactive Synchronous Series Compensator ( SSSC ) Thyristor Controlled Series Capacitor ( TCSC ) Thyristor Controlled Series Reactor ( TCSR ) Thyristor Switched Series Capacitor ( TSSC ) Thyristor Switched Series Reactor ( TSSR )Examples of Shunt CompensationInactive Synchronous Compensator ( STATCOM ) Inactive Var Compensator ( SVC )Example of Combined Series-Series CompensationInterline Power Flow Controller ( IPFC )Example of Combined Series-Shunt CompensationUnified Power Flow Controller ( UPFC ) Unified Power flow accountant ( UPFC ) is the most powerful FACTS accountant yet. It has the ability to command both the reactive and active power flow in transmittal lines whereas the other FACTS accountants named above could either command existent or active power flow. It is capable of commanding all the parametric quantities such as electromotive force, electric resistance and angle that are responsible for the power flow. The most widely used FACTS devices are the 1s that involve the thyristor engineering. We will analyze merely two FACTS devices in item since those are the 1s that will be implemented for congestion direction. Those two FACTS devices are: – Inactive Synchronous Compensator ( STATCOM ) Inactive Synchronous Series Compensator ( SSSC )Inactive Synchronous Compensator ( STATCOM )The inactive synchronal compensator ( STATCOM ) was antecedently known as inactive synchronal capacitor ( STATCON ) . It is based on a solid province synchronal electromotive force beginning that is merely like an ideal synchronal machine without a revolving mass. These devices generate a set of sinusoidal electromotive forces at cardinal frequences with quickly governable amplitude and stage angles. Fig 4.1 shows the generalised construction of a electromotive force beginning convertor. The input of a STATCOM is a DC electromotive force which it converts into an AC end product electromotive force at a cardinal frequence in order to counterbalance for the reactive and active power needed by the system. Qref and Pref are the mention signals that control the amplitude of the end product electromotive force V and the stage angle I? , severally. Fig 4.1 Generalized synchronal electromotive force beginning So by altering the Qref, in other words by changing the electromotive force the reactive power exchange between the inverter and the AC system can be controlled. If the amplitude of the end product electromotive force is greater than that of the AC system electromotive force, the inverter produces reactive power for the AC system. If the amplitude of the end product electromotive force is varied such that it becomes less than the AC system electromotive force, the inverter absorbs the reactive power and if both the AC system electromotive force and the end product electromotive force is the same, there is no reactive power exchange. By changing stage angles between the inverter end product and AC system electromotive forces, the existent power exchange between the inverter and the AC system can be controlled. If the inverter end product electromotive force leads the AC system electromotive force, existent power is supplied to the AC system by the inverter. If the inverter end product electromotive force lags the AC system electromotive force, the existent power is absorbed from the AC system by the inverter. Figure 4.2 shows the basic construction of STATCOM and it ‘s V-I features are shown in Figure 4.3. By detecting figure 3.3 it ‘s clear that the accountant can supply both reactive and inductive compensation and is able to command the end product current between the specified maximal capacitive and inductive scope independent of the AC system electromotive force. It can supply full capacitive end product current at any practical electromotive force. It ‘s more effectual than SVC in supplying transmittal electromotive force support every bit good as bettering the stableness of the system since SVC can provide thinning end product current with diminishing system electromotive force as judged by the designed maximal tantamount capacitive entree. The comparing of STATCOM with SVC can expected to give a 50 per centum decrease in the physical size of the installing. Another advantage of STATCOM over SVC is that it is able to back up higher tonss than the SVC can for the comparable MVAr evaluation. The STATCOM may hold an increased transient evaluation in both the inductive and capacitive operating parts, which can further heighten its dynamic public presentation. The conventional SVC were equipped with transeunt volt-ampere soaking up capableness merely. There was no manner that they could transiently increase the var coevals since the maximal capacitive current it can pull is austerely determined by the value of its maximal electrical capacity and the magnitude of the system electromotive force. The transient evaluation of the STATCOM relies on the features of the power semiconducting materials used and the maximal junction temperature at which each of these devices can be operated. Furthermore, STATCOM does non significantly change the bing system electric resistance, which is another advantage over the inactive volt-ampere compensators ( SVCs ) . To cut the treatment short, STATCOM has better features over SVC ; the maximal reactive power end product will non be affected by the electromotive force magnitude. Therefore, it exhibits changeless current features when the electromotive force falls below the bound. The steady province power exchange between the accountant and the AC system is largely reactive, as active power is merely consumed to provide for the internal losingss. Fig 4.2 Basic construction of STATCOM Figure 4.3 V-I features STATCOM can be controlled in two ways.Phase controlIn this technique the stage displacement I? is varied in order to command the STATCOM ‘s end product electromotive force magnitude.Pulse Width Modulation ( PWM )This technique allows the independent control of the magnitude of the end product electromotive force every bit good as the stage displacement that represents angle of the end product electromotive force. The control of DC electromotive force is separate from that of AC end product electromotive force.Synchronous Series Compensator ( SSSC )A synchronal electromotive force beginning that has a DC to AC inverter with gate turn off thyristor can be used for series compensation of transmittal lines. SSSC is reasonably similar to STATCOM as it involves DC capacitance fed electromotive force beginning input which generates a three stage electromotive force at cardinal frequence. This in bend is injected into the transmittal line with the aid of a transformer connected in seri es with the system.. What SSSC does is that it straight controls the current and indirectly controls the power flow by commanding the reactive power exchange between the SSSC and the AC system. It has got an advantage over another FACTS accountant called TCSC, which is that SSSC does n't endure from the resonance job that can be encountered in TCSC since it does non impact the electric resistance of the transmittal lines that much. Fig 4.4 Basic construction of SSSC Figure 4.4 shows the basic construction of SSSC. It shows a electromotive force beginning that produces an appropriate at the cardinal AC system frequence in series with the line to call off the electromotive force bead, Vc to some extent. The end product of synchronal electromotive force beginning is locked with the dawdling relationship to the current and it is so injected in series with the transmittal line. If injected electromotive force magnitude peers that of the line current, a series compensation tantamount to that provided by a series capacitance at cardinal frequence is acquired. Mathematically it can be represented as where Vc is the counterbalancing electromotive force phasor Iac represents the line phasor Ten is line impedence K is called grade of series compensation The chief thing is to command the rms magnitude Iac of the AC current and the rms magnitude Vc of the accountant ‘s AC electromotive force phasor in other words to command the reactive power injected or absorbed by the accountant. Assuming the reactance of matching transportation is negligible, the AC end product electromotive force can be straight controlled through the inverter electromotive force Vinv which can be controlled by bear downing or dispatching the capacitance. In steady province if the accountant is presenting reactive power, the stage displacement I? of the inverter electromotive force with regard to the AC current is -90 grades. On the other manus if the accountant is absorbing reactive power so the stage displacement of the inverter electromotive force with regard to the AC current becomes 90 grades. Hence we can alter the DC electromotive force Vdc and the corresponding inverter end product electromotive force Vin merely by changing the stage displacement par ametric quantity that would bear down or dispatch the capacitance. Fig 4.5 Operation of SSSC Figure shows the operation of SSSC. By presuming that the injected electromotive force in series with the line can be achieved if the DC energy storage has infinite capacity, the electromotive force stage angle can be chosen individually of the line current over 360 grades with the magnitude that is between 0 and Vc soap. This means that the synchronal electromotive force beginning must be able to bring forth and absorb both the existent and reactive power. The accountant is responsible for the production of the reactive power whereas the existent power comes from the DC energy storage device. This storage device besides generates a small active power that is merely plenty to get the better of the accountant losingss.A Time FrameWeekAims1 2 3 4 5 6 7 8 9 10 11 12 13AAAAAAAAAAAAAAUndertaking proposalAAAAAAAAAAAAAFACTS executionAAAAAAAAAAAAAMarket theoretical account SimulationAAAAAAAAAAAAAFACTS in market theoretical accountAAAAAAAAAAAAAConsequencesAAAAAAAAAAAAAAnalysisAAAAAAAAAAAAADecisionAAAAAAAAAAAAARecommendationsAAAAAAAAAAAAA

What is a Referendum and what are the arguments against them?

1) What is a Referendum? A referendum is when a citizen (18+) is asked to express their opinion on a certain issue or proposal. Unlike an election this process is not binding and the outcome is open to discussion. A referendum can result in a new constitution, law, amendment, the recall of an elected official or simply a specific government policy. It is a form of direct democracy. 2) A referendum is when a citizen (18+) is asked to express their opinion on a certain issue or proposal. Many have been issued in the past; examples of this are, 11 September 1997. Tony Blair issued a pre-legislative referendum held in Scotland asking whether there was support for the creation of a Scottish Parliament with devolved powers, and whether the Parliament should have tax-varying powers. The reason for this was the Labor party had just won the election and included in their manifesto was the establishment of a Scottish Parliament. 4th November 2004, Tony Blair (Labor Party) issued a referendum in Northern England. The votes concerned the question of devolving limited political powers from the UK Parliament to elected regional assemblies in North East England, North West England, Yorkshire and the Humber. The reason for this was Labor government attempted to introduce regional assemblies, to be directly elected. 5th May 2011, the ‘Alternative Vote’ referendum was drawn up as part of the Conservative- Liberal Democrat coalition, to be asked across the whole U.K. The Referendum concerned whether to replace the present voting system with an alternative one. This was because the Labor government, who were previously in power in 2010, used their majority to pass an amendment to their Constitutional Reform Bill to include a referendum on the introduction of AV to be held in the next Parliament, naming a desire to restore trust in Parliament in the wake of the 2009 expenses scandal. 3) Arguments against Referendums In this essay i will talk about the arguments against referendums, the effects and sometimes consequences it can incur. A referendum is when a citizen (18 years and above) is asked to express their opinion on a particular issue. In Britain, referendums date back to 1973 and ever since has been used as a mechanism for feedback on issues regarding laws, voting systems and so on, its a form of direct legislation, used selectively. Those who are against direct legislation will argue that the use of referendums is an opening for politicians to absolve themselves of responsibility for making difficult decisions. When representatives know that ultimately the result of their efforts may be reversed by the process of referendum, they will take little interest in the discharge of their legislative duties. It doesn't even reflect well on the party issuing it. If the measure succeeds at the popular vote the credit for it goes to the people and if it doesn't, the blame goes to the legislature. We elect a Prime Minister, legislatures, to make the decisions of how to run our country. By electing, its an official notion that we trust them to conduct, obviously voting the party who's manifesto we are partial to. Referendums are useful, yes, but how does it make legislatures look when matters such as ‘do you want a Mayer'- 1998, Tony Blair are issued. When was the time when legislatures took the bull by its horns and made decisions for the good of the nation and not based on doing what the people want so they'll get voted in the next election. As Margaret Thatcher once said, â€Å"if you just set out to be liked, you would be prepared to compromise on anything wouldn't you and you would achieve nothing†. Referendums seem to be a vehicle to become the apple of the nations eye to the point that in 1997 elections- The Labor party promised in their manifesto a referendum for the establishment of a Scottish parliament knowing that Scotland wanted it but just didn't get enough votes last time. Governments are also unlikely to hold them unless they are fairly confident they will win the vote, which was the case in 2004, the devolution referendum for the North East. Labor wanted to create English Regional Assemblies and thought they would win the vote therefore created three referendums only for the first one to be rejected by the public. And this being the case, the government are unlikely to be neutral participants and the phrasing of the questions can distort the results. So is a referendum really the government wanting us to tick the yes so they can blame us if something goes wrong? Apart from the time consuming, expensive and tedious way that is involved in a referendum, after all that, who's to say that people will vote? One of the criticisms against direct legislation and a really compelling one, relates to the small size of the votes cast at a referendum. The result of the ballot does not fairly represent popular opinion, because in most cases, opponents of the issue will go to the polls in larger proportion than its supporters. Moreover, when people are frequently asked to cast their votes, as is when Tony Blair was elected in 1997, making referendums a much more important part of politics, they'll begin to abstain from voting. Its nice to be included in the decision but people become tired of voting after a while. The result is that the decision arrived at is that of the minority and it becomes difficult to know whether there is any public opinion at all on the referendum. Seeing as the referendum is time consuming, it sometimes involves harmful delays in passing many laws of vital national importance. All this takes away from the educative value of the referendum. When you have citizens who are not interested in public affairs and the issue is of national importance, the referendum becomes a comedy. As was the case in June 1975 when the Labor government had a power split on the issue of Europe and issued a referendum across the whole United Kingdom- ‘Do you want to stay in the EC?' Because of this time gap, while the ballot is lying on your kitchen table, coverage on the issue from the media whether it is newspapers, TV etc. can significantly influence the result. Whereas if the issue would have been dealt with in parliament alone- you would not get the opinion of people who are paid to keep people entertained. The real difference between direct action and the action of the legislatures are the voters cannot assemble and discuss matters and consequently the opportunity to arrive at truth is lost. Truth emerges from the clash of opinions. Which brings us back to the substantialness of referendums. Finally, some could argue that referendums undermine (or have potential to) Parliamentary Sovereignty. Parliament is certainly threatened by the use of referendums. Referendums put the people before the parliament. The sovereignty of parliament becomes the sovereignty of the people, introducing direct democracy into the political system, challenges the indirect, representative democracy that has been the essence of UK political system. If the people vote one way, their representatives another, who should prevail, who is sovereign? In conclusion the manner in which the referendum is used reflects greatly on the government and at times can make you question the quality of the governments political parties. The referendum can be of great use but whether the pro outweigh the cons or vice versa is relative to the issue at hand. Using the drawbacks we've discussed one can assume or hope that if legislatures had an option, referendums would not be their first choice.

The role of magic in A Midsummers Nights Dream Research Paper

The role of magic in A Midsummers Nights Dream - Research Paper Example Patriarchal dominance is given a thorough overview within the play and revealed through making humor at the expense of its proprietary nature. The play explores the many ways in which love manifests, allowing for its exaltation as well as its trivialization. The play embodies a duality of mythologies from which to create its discourse. While the nature of the fairy is relative to the mythologies of Europe, the play takes place in the setting of Athens, thus bringing into mind the Greek mythologies. This convergence of mythological settings and universes provides a heightened sense of the supernatural within the play. In addition, as the time period of the Renaissance was a time when humanism was the philosophical standard, it is possible that beyond the mythological parallels, there is a contrast intended between the reason of classicism and the magic of the fairy realm. Therefore, the setting provides multiple levels of consideration, creating a world in which contrast and continuit y are both within the framework of the setting. This setting provides a structure in which the shifting shape of the emotion can be explored as it represents contrasts of differing beliefs. Love is often considered to be a magical emotional element in the human experience. In Shakespeare’s fantastical play, magic creates a complication of human emotions by the influence of the fae, As the fae are not human, but creatures of myth and fantasy, their association to love is both more cold and more passionate than that of human love. Therefore, the consequences of love and the intermix of emotional play that is done by the fairy folk becomes a reflection of the nature of man through a sense of exaggeration (Dowd and Pallata 558). As the play is considered to be a romantic comedy, there is an emphasis on love, but the elements of structure and expectation is how the play is formulated in order to convey the message that Shakespeare intended. Thus, while love is of a primary importa nce, the fulfillment of the expectations of complications that get in the way of love which are finally overcome, naturally leads towards an end which includes marriage (Nostbakken and Shakespeare 3). In A Midsummer Night’s Dream, the complications are created first through the unrequited love within the human world, then through the magic within the fairy world as the fairies choose to interfere for their own amusement. The first complication in the human realm is that of Hermia as she loves Lysander while her father has demanded that she marry Demetrius. If she refuses to marry Demetrius she is given two choices by her father, Theseus; â€Å"Either to die the death, or abjure/ Forever the society of men† (Shakespeare Act 1: Scene 1: lines 65-66). Hermia has been given the choice to either love whom her father has chosen to be her husband or to live without love as a nun. The alternative to both is death. This firmly establishes the human world for its patriarchal nat ure. Males have the control over the future of females, thus their own desires are immaterial to the desires of the male. However, in the fairy world, this patriarchal power is less relevant. The magic in the fairy realm provides an opportunity to make

The Life of King Tutankhamun Essay Example | Topics and Well Written Essays - 2000 words

The Life of King Tutankhamun - Essay Example Little is known of King Tut beyond his name, age, and the fact that he was a pharaoh king, but there is endless speculation surrounding him. Archaeologists have historically divided into opposing factions, each side failing to utilize hard evidence to support their claims for validity. There are differing opinions on his parentage, claim to the throne, religious beliefs, and most notably - the manner of his death. A careful examination of the clues and research leads to some, not all of the answers. On November 25, 1922 Howard Carter, Egyptologist and Lord Carnarvon accompanied by his daughter, Lady Evelyn Herbert were the first to glimpse into the tomb emblazoned with the name Nebkheprure-Tutankhamen3. After financing a long and expensive archeological dig, it certainly must have been with much relief that Lord Carnarvon breathed in the stale air of the most complete Pharaoh's tomb ever to be discovered. It was a ground-breaking discovery that owed much to the obscurity of King Tut's life. His tomb, once sealed was forgotten, placed beneath Ramses VI's tomb in an obscure corner of the Valley of the Kings4. At one time, workmen from the XX dynasty were housed in the shifting sands about King Tut's tomb5 proving that his existence was all but wiped away. Slightly more obscure than the location of his final resting p... At one time, workmen from the XX dynasty were housed in the shifting sands about King Tut's tomb5 proving that his existence was all but wiped away. Slightly more obscure than the location of his final resting place is the origin of Tutankhamen himself. The great uncertainties surrounding Tutankhamen are his obscure parentage and the manner of his death. His parentage is never clearly agreed upon because it is never clearly stated. King Tut's birth can be traced to the years between 34 and 35 of Amenophis III's reign6 and dating of the mummified remains assist in knowing how old King Tut was when he died7. This knowledge is useful in attempting to discover the identity of his parents. At the time of the reign of his predecessor Akhenaten, who was the leader of a great religious usurping records on the princes were not kept. Only the princesses were acknowledged in accordance with the beliefs of Aten, the chosen god of Akhenaten.8 This belief system in effect, clouds any written records that might have survived with Tutankhamen's treasure. Two artifacts did survive with his treasure, which serve as an obvious nudge in the correct direction of his parental lineage. "There was in the child king's tomb a small golden statuette showing Amenophis III crouching in the attitude of the solar child, as if to show his oneness with the son in whose flesh he would be reborn. This statuette, wrapped in linen and laid in a tiny coffin, was found beside a lock of Queen Tiye's hair touchingly enclosed like a mummy in its own little sarcophagus"9. Also, an alabaster pitcher with the couple's name is found elsewhere in the tomb along with various other artifacts from various members of the royal family who appear to be

Critical Thinking Argument Paper Assignment Example | Topics and Well Written Essays - 500 words

Critical Thinking Argument Paper - Assignment Example Age has never been an indicator of a person’s ability to produce results. While at the workplace, employees should be assessed basing on their capability to produce results but not on their age. There is no logic in an argument suggesting that, if the elderly are employed, the younger generation would lack the opportunity to work in organizations. In fact such a view is an argument in fallacy. Workplace principles demand that each and every employee should be treated fairly at his/her place of work. The elderly employees at the workplace have the right to employment just like the young. The principles of nondiscrimination at the place of work, therefore, form basic components of the human rights. Such rights should only be ignored if there is proof that continued employment of a particular person results in no significant benefit for the organization he/she works for. In order to fulfill the provisions in the principles that govern workplace discipline, an aged person may be replaced by a younger person only when the aged lacks the manual strength or concentration to effectively perform his/her roles. Discriminatory practices at the workplace affect the economy negatively regardless of the specific gains that may be realized by an organization that engages in such discrimination. Discrimination may result in relevant skills being disposed off. Such disposal may result in losing skills that would have contributed uniquely to the success of the organization. Some aged workers may have a great experience in the running of matters at the workplace which may not be the case with the young employees. In such situations age discrimination may result in organizations incurring economic losses. This in turn results in jobs being matched to workers in an inefficient manner and thus wastage of talents. The participation of the elderly in activities at the workplace results in correct matching of jobs with workers

Why I majoring in communication studies Essay Example | Topics and Well Written Essays - 500 words

Why I majoring in communication studies - Essay Example I am an international student and it partially explains why I am so interested in studying everything related to communication. I came from Taiwan and my cultural and social background is totally different from what I see around me now. Cross-cultural communication is a popular theme for studies and I am proud to know that I can contribute to this sphere being in between the East and the West. Communication Studies help me to grow as a person and keep my mind flexible and open for other people and cultures. It is my path to understanding my place in society and realizing my potential as a professional in the sphere of communication. I believe that theory is not enough to develop solid knowledge, skills and abilities related to communication. It is the reason why I am a proactive member of several organizations that help me to learn. First of all, I am a member of the international student volunteer club where I meet many interesting people from different corners of the world. Working side by side with other international students I feel that my communication skills are improving day by day. Every new task brings me more inspiration to study. Every new person I meet motivates me to learn more in order to make our cooperation pleasant, comfortable and effective. I do not try to blend with people around me and to change my beliefs about communication and approach to it. My desire to feel comfortable has resulted in the decision to become a member of Taiwanese Student Association. Here I am able to share my experience with other people and help newcomers to adapt to new communication situation quickly and effectively. It is a nice opportunity to use knowledge practically and develop new skills relevant for my future profession. Finally, I go to International Student Fellowship in order to learn more about other people around me. This organization gives me many chances to meet new people and share everything I know with them. Active participation

Leadership for Performance Improvement Essay Example | Topics and Well Written Essays - 500 words

Leadership for Performance Improvement - Essay Example This paper seeks to reveal the effects of this entrepreneurial and leadership orientation on firm and individual performance through motivation. The organisation, in the modern day context, has become a body that is made up of its human resource and the quality that this resource base imbibes into the operational sphere of the organisation. (Silberman, 2006) The modern day organisation depends to a great extent on the contribution and quality of its human capital. (Enos, 2007) The human capital may be defined as that element of the organisation's operational sphere that is a living, breathing part of the activities that put the innate resources and factors of production into application. This application results in profits arising out of the activities of the human capital and the efficiency with which this resource carries out its tasks. (Ellis, 2003) This in turn, has a bearing on the achievement of the organisation's goals in the sense that the organisation is structured according to the quality of the HR within it. Also, it shows the principles that are followed by the management in manning the organisation.

The American History Essay Example | Topics and Well Written Essays - 750 words

The American History - Essay Example There arose great tension between Great Britain troops and colonial militiamen in Lexington. April 1775 kicked off the armed conflict, and one year later, the rebels were waging the full-scale war for their independence. France joined to support the Continental Army to force the British to give up their power. Finally the British surrendered at Yorktown, Virginia, in1779, and the Americans won their independence, though fighting did not formally end until 1783. These were the founding fathers of America. Just after the revolutionary war, these men came with a political system that was entirely novel for an era in which monarchs ruled most countries around the world. Just after having being freed from the British Empire, the fledgling king would have no king at all. Instead, an elected head referred to as the President of the United States of America would be elected (Michener). The president would be the leader of the federal government, enforcing the laws of the land, and acting as the commander -in- chief of the armed forces. And yet, while the presidency has since become the emblem of the American way of life, the country might have gone in a very different direction before George Washington took the oath of office on April 30, 1789, many Americans envisioned a crown for the wildly popular Virginia planter. Washington refused, and so did the farmers of the Pennsylvania Avenue in Washington D.C., and a big mansion that would be called the White House. After Washington's reign as president then followed a series of others like John Adams, Thomas Jefferson, Abraham Lincoln, and Theodore Roosevelt all the way up to the current president who is actually the first black president of the United States of America. This constitution established America's national government and fundamental laws and guaranteed the basic rights for all of its citizens. The Constitution was signed on September 17th, 1787 by the delegates to the constitutional convention to the United St ates. In 1791, The Bill of Rights that guaranteed basic individual protections such as freedom of speech and religion became part of the Constitution.

Goole doesnt care Essay Example for Free

Goole doesnt care Essay The inspector calls to discuss the suicide of Eva Smith/Daisy Renton, quite a few working class people used many names in those times, this was because it would be easier to get jobs. Each member of the family had something to do with her suicide; it is unravelled as the play goes on. The inspector has to find a chain of evidence to make them guilty. Even though no one can be to blame legally for a suicide, however they can be morally guilty. Birling sits the inspector down and offers him a glass of port, but he doesnt accept any hospitality from him. Furthermore Birling tries to impress the inspector by telling him that he was an alderman and a magistrate, but Goole doesnt care. The inspector goes on to explain what happened to Eva Smith. Shed swallowed a lot of disinfectant. Burnt her inside out. Preistley portrays a horrid image of the girls death to make the audience feel remorseful and pitiful. He also describes her as pretty, lively, big dark eyes, and soft brown hair. The inspector starts to question Mr Birling over the death. After seeing a photograph of Eva, He admits to sacking her for setting up a strike to get slightly higher wages. He thinks he did the right thing, and he says that he paid his workers the usual rates, and he couldnt see that he had any responsibility for what happened to her afterwards. But Priestley thinks differently, as he shows by what the inspectors says; what happened to her then may have determined what happened to her afterwards, and whatever happened to her afterwards may have driven her to suicide. Birling is a very insensitive man; he shows no remorse for what happened. The next person to be interviewed is Shelia who is a pretty girl in her early twenties, is very pleased with life and quite excited. The inspector reveals that Eva luckily found a job at Milwards, he goes on to say that she again was sacked. Shelia (feeling agitated) begins to realise that she was to blame. She started to explain that she was looking at herself in the mirror when she caught Eva smiling at the assistant in a way that she found offensive. Shelia was furious and told the manager that if he didnt sack her, Mrs Birling would close the account with them. Unlike Birling, Shelia accepted that she was wrong and felt sorry for what she did. It is obvious that she regrets what she done with regard to Eva claiming that, if I could help her now I would. This makes you feel less anger for Sheila who now feels terribly guilty for Eva and has now been punished severely simply by knowing the consequences of her actions. The inspector had now finished with Shelia. It was Geralds turn in the order of how the events happened. After a misunderstanding between Gerald and Shelia, he admitted he knew Daisy Renton. And after Gerald sitting in and listening to the awful thing Shelia had done, she was now determined to find out how he played a part in this ordeal. Gerald had met Daisy at the local variety theatre known as the haunt of prostitutes. He described her as looking young, fresh, and charming. Gerald soon fell in love with her and when he found out she didnt have a penny to her name: he let her stay in his friends flat. Gerald often visited her and gave her a lot of pleasure, he soon ended the affair, as he had to go away on business, he had given her money to help her out for a few months. Eva was obviously upset inside as Gerald gave her a life she could never have. Gerald goes for a walk to get over the news of Daisys death, whilst Mrs Sybil Birling has denied knowing Eva after being shown a photograph of her. She is described as being forty years old, a rather cold woman and her husbands social superior. Mrs B is going to be interviewed out of sequence of events, because Priestley wants to show what an arrogant fool she is. The inspector has made a big impression on Shelia, who is now acting like him by summing up the chain of events, and telling Mrs B that there is no point covering everything up. Mrs B finally admits that she known Eva, who came to the Brumley womens charity organisation for help, as she was pregnant. Mrs B was the chairwoman and turned away a helping hand for the girl, because Eva used the name Birling which Mrs B wasnt happy with. She didnt show any guilt and said that the father was entirely to blame. Mrs B condemns her son Eric, as he is the father of the child, he ought to be dealt with very severely. No regret is felt and it seems that she is totally unmoved by the whole incident, only caring when she discovers that her own son is involved. Sybil is very patronising and sees herself as socially superior to those of a lower class. She finally realises that Eric was the father and is shocked, Eric has arrived, and the audience is left in suspense as the scene ends. Everyone is staring at Eric, the inspector asks him a question and he tells the story of his involvement with Eva. He had met her at the same bar as Gerald and had got drunk and took her back to the lodgings. Eva didnt really want him to come in but he was going to start a row, so she let him in and they made love. This became frequent. It was casual for Eric and Eva having sex but Gerald and Evas relationship had feelings. Eva became pregnant and they didnt want marriage, as they didnt love each other, so Eric insisted on giving her money to help her. She stopped accepting it as she realised it was stolen. Eric had admitted taking à ¯Ã‚ ¿Ã‚ ½50 from his fathers office. This was a lot of money in those times and his parents were enraged. The inspector concludes his visit with Priestleys message: we dont live alone. We are members of one body. We are responsible for each other. And I tell you that the time will soon come when, if men will not learn that lesson, then they will be taught in fire, blood, and anguish. The inspector leaves. Priestleys is saying that if we dont care about everyone in society, then it will end up in conflict and war. Priestley also suggests that the older generation wont change, but the younger generation accept that there needs to be a change. After he has left, the family begin to consider the consequences. Mr and Mrs B are only concerned about their image and are blaming their children for everything. They start to wonder whether he really was an inspector, Birling and Sybil get excited as they thinks it makes all the difference, but Sheila and Eric understand that they are all morally guilty for Eva and that it doesnt matter who the man was. Gerald returns, and is certain that the man wasnt a policeman. Just to make sure, Birling phones the police force and confirms that wasnt an inspector Goole. Eric still shows guilt along with Sheila but the others are not having any of it, they are ignoring the fact that they are dealing with a dead girl. Gerald is trying to get out of the guilt by assuming that Goole had showed them different photographs (which is absurd) and that the girl was not dead, and even if the girl didnt die they still did wrong. Gerald phones the infirmary to see, and he is told that there hasnt been a suicide there for months. The parents and Gerald decide that they want to celebrate and assume they are all now off the hook, while Eric and Sheila maintain that nothing has changed even if the girl wasnt dead. Another message from priestly came out from Shelia: Everything we said happened really had happened. If it didnt end tragically, then thats lucky for us. But it might have done. Birling hasnt got a clue; they think its a joke. Yet the telephone rings sharply. Mr Birling answers it, then tells the family that it was the police, he says a girl has committed suicide and is on her way to the infirmary, and that an inspector is on his way to ask some questions. They stare guiltily and dumbfounded. The whole scenario starts again. In conclusion, I think that the person to blame most is Sybil Birling. She was selfish and heartless leaving Eva to give up on herself. Eva had that little bit of hope left going to the organisation, but Mrs B turns away her helping hand. Maybe Arthur had triggered it off but Mrs B could have sorted out things out if she understood why Eva had used the name Birling. What makes you feel more anger for Sybil is that she thinks it wasnt her fault at all: she had no guilt whatsoever. Although I think it would be unfair to blame just Mrs Birling entirely, as each character played a part to the death of Eva smith. It would be more logical to blame society and the way they lived in those times, no real crime was committed, and it is more a case of social conscience. I think families like the Birlings need to aid others with their actions, not just themselves.

The Indian Culture Essay Example for Free

The Indian Culture Essay Cultural patterns define the people of a country and help in understanding their behavior, mind-set and mode of living. In India, the diverse population of the country shows some singular similarities in communication, inter-personal relations, and views about marriage and family which together constitute the unique structure of the Indian culture. Man-woman equations in the family set-up as well as the position of elders in the house are significant pointers to the culture of India. The Indian Culture Every culture has its unique characteristics which define its identity and amplify the behavioral pattern of its people. In the Indian context, the diverse languages, religions and regions of the vast country play a major part in the multifarious communication and relation markers within the same cultural texture. However, certain qualities remain uniformly similar within the assorted hues of the Indian culture. As Nirad C Chaudhuri writes: â€Å"modern Indian culture was based on a fusion of two independent and unconnected cultures, the European and the ancient Indian† ( The Autobiography of an Unknown Indian 474). The effect of long-term British colonization and the rich heritage of the Sanskrit past combine to give the Indian culture its distinctive color and identity. By nature, Indians are usually verbose and like sharing/discussing ideas with each other, at times personal problems, even communicating thoughts on public issues from politics to sports. Greetings are usually with folded hands (and the accompaniment of ‘Namaste’ in Hindi, the national language), but significantly, respect to elders is shown by touching the feet of the seniors. Greetings normally go hand in hand with queries about health and life in general. However, unlike the Western concept of a strict adherence to one’s privacy, Indians by and large want to know what’s going on in their fellow men’s lives, and the questions are expected to be answered with detailed explanation about the current situation in one’s life. Emotions run high in the horizon of the ordinary Indians’ existence, from the annoyance at the over-crowded bus to the jubilation at the Indian cricket team’s victory. The western concept of direct eye-contact while talking with colleagues or superior suggesting a honest rapport is deemed an act of shamelessness especially with someone senior in age or status. Downcast eyes are a symbol of good values and respect for the other person. The American idea of private space is difficult to follow in the Indian family set-up, especially in the joint-family structure. Time is a relative term of understanding in India, as punctuality and discipline are often dependent on the irregular schedule of public transportation, people’s habit of taking things at their own pace, and long queues everywhere. Marriage is generally a family matter rather than a personal choice in India. Men and women meet in social and professional gatherings and may emotionally bond with each other. While marriage by choice or ‘love marriage’ as commonly referred to, is on the rise in modern Indian culture, most Indians still resort to an ‘arranged marriage’ to the prospective bride or groom selected by family members on the basis of status, education, and often caste, region and religion. As Chitra Banerjee Divakaruni portrays in her Indian characters in Arranged Marriage, it does not matter what the origins of the marriage, the ultimate consideration is the compatibility of the partners engaging in it. ( Transcultural Women of Late Twentieth-century U. S. American Literature 210) Unlike the liberated parlors of Western life, sex or topics about sexuality are considered taboo and it is socially unacceptable to discuss or question one’s sexual preferences openly. The cultural texture of India bars the liberal thoughts and voices on this subject. Premarital sex is discouraged by the unwritten rules of the conservative society. Modesty, virginity are praised in unmarried men and women, especially in the latter. The role of family is of paramount interest to the average Indian. The joint-family set up is an umbrella structure sheltering extended branches of the family grandparents, uncles, aunts, cousins beyond the usual parent-child family of the Western world. Though nuclear families in the lines of the western model are increasingly popular, the common Indian is rooted in the traditions and customs of his family life, especially the joint family-structure. Indian society is predominantly patriarchal in nature, and the head of the family is usually the eldest son of the family. The equation of the genders in family and society is not evenly balanced, as the women normally are submissive to the decisions of the males in the Indian culture. However, the aged play a positive role in the family context, as grand-parents and seniors are treated with respect and love, and cared for in most households. Though old people are at times sent to old-age homes by their family members for reasons of economy or scarcity of care-givers at home, usually the aged are taken care of at home, and they in turn, help with the children, spending time with them and instilling in them values and good morals. The women are expected to be the primary care-givers in the family, performing the duties of the kitchen as well as taking care of children and elders. Even if the woman is a career- person, her family obligations are her first priority in the Indian culture. The man of the house on the other hand is the financial provider, and is responsible for the standard of living. However, in the changing dynamics of modern lifestyle, men and women have become flexible about their roles and responsibilities and the distinct line of difference between their gender expectations is blurred today. References Chaudhuri, N. (2001). The Autobiography of an Unknown Indian. New York: The New York Review of Books. Newton, P. (2005). Transcultural Women of Late Twentieth-century U. S. American Literature: First-generation Migrants from Islands and Peninsulas. Burlington: Ashgate Publishing.

Independence of Mind Example

Independence of Mind Example The word of INDEPENDENCE is defined as freedom from situations and relationships which make it probable that a reasonable and informed third party would conclude that objectivity either is impaired or could be impaired. (Kaplan, 2009, pp.117) There are 2 types of independence, that are independence of mind and independence in appearance: Independence of mind The state of mind that permits the expression of a conclusion without being affected by influences that compromise professional judgment, thereby, allowing an individual to act with integrity, and exercise objectivity and professional scepticism. Independence in appearance The avoidance of facts and circumstances that are so significant that a reasonable and informed third party, having knowledge of all relevant information, including safeguards applied, would reasonably conclude a firms, or a member of the assurance teams, integrity, objectivity or professional scepticism had been compromised. (b) Why is external auditors independence so important? Illustrate with any past or  current audit failures. (10 marks) It is important for external auditors to be independent because external auditors act on behalf of the owners of the business, normally the shareholder, and report on the financial statements prepared by management for the benefit of shareholders. If the external auditors are not independent of their shareholder, for example, if they hold shares in the companies that they audit, their ability to form an objective opinion on the financial statements will be impaired. In addition, external auditors must be also be seen to be independent because if they are not, the owners of the business will not have confidence in the audit reports that the audits issue. This is why it is auditors independent is so important because to prevent further scandals such as those of Enrons and Parmalats case, and etc. For example in the case of Phar-Mor, Inc one of the top 10 deep discount drug store chains in the United States and declared bankrupt in the year 1995. Phar-Mor, Inc declared bankrupt because the company contributing to the frauds and ability to cover it up for so long. Listed below the summarized of the factors contributing to the fraud: Familiarity threat Phar-Mor, Inc knowledge of audit procedure an objectives. Phar-Mors fraud team was made up a several former auditors, including at least one former auditor who had worked for Coopers on the Phar-Mor audit. The fraud team indicated that one reason they were successful in hiding the fraud from the auditors was because they knew what the auditors were looking for. Self-interest threat The Phar-Mor had financial interest in financial reporting, potential self-interest threat may occur. Such the fraud in the Phar-Mor case included: Overstating inventory and recording consigned inventory as owned inventory Recording revenue from receipts from vendors under certain promotion and exclusivity agreements when received, rather than over the life of the agreements Understating the amount of accounts payable by holding disbursement checks Recording revenues and receivables from vendors at budgeted, rather than actual, amounts Integrity The principle imposes an obligation on all professional accountants to be straightforward and honest in professional and business relationships. In the case of Phar-Mor, the Phor-Mor did not perform honest in professional and business relationships. The Phar-Mor provide misstatement of margins, inventories, and earnings in reports to management and in general ledger and financial statements (to cover up other misstatements), and Diversion of assets to affiliated companies via manually written checks (nature of disbursements falsified when recorded in books and records). (c) The following situations may violate ethical codes imposed by regulatory bodies such as the MIA By-Laws (On Professional Conduct and Ethics): Roslan, an audit partner, owns material amount of shares in a trust fund investment company, which in turn owns shares in Roslans largest audit client. Reading the investment company most recent financial report, Roslan is surprised to learn that the companys ownership in his client has increased dramatically. From the case above, a member of the audit team has possible financial interest in the client, potential self interest threat may occur and the gift rise to Roslan possible self-interest. Form my point of view, it seems less significant in terms of threats because the trust fund is indirect investment in the client. However, if the ownership in the client increases resulting in a significant proportion of Roslans fund to be invested in the client, then the threat may be significant. Moreover Roslan is an audit partner who audit in the investment company. Safeguard or action to be taken is since the threat may not be so significant, it may not be necessary to get Roslan to dispose off the financial interest. However, it would be better to remove or re-assign Roslan from the audit assurance engagement. Sofia Ali is doing the audit of a large car dealership. She is just the audit assistant in the audit team. The sales manager of the client tells her there is a sale (at a substantial discount) on new cars that is limited to long established customers of the dealership. Because her audit firm has been doing the audit for several years, the sales manager has decided that Sofia should also be eligible for the discount. Required: Discuss whether the facts in any of the situations above give rise to threats to independence. (15 marks) For the case above, Sofia Ali has been given extended gift and hospitality by client that is in the form of a discount to purchase on new car by a sales manager. This may give arise to possible self interest and familiarity threats. The threats may be significant because of the extent of gift and hospitality that is audit staff is offered discount. However, the threats may not be significant if the gift and hospitality is within clients normal commercial terms, that is client offer to other customers. Safeguard or actions to be taken is the audit staff, Sofia Ali should refer to policies of audit firm prohibiting or getting permission before accepting the gifts and hospitality from senior personnel. Describe the concept of sufficient appropriate audit evidence and explain why external auditors are not expected to gather all information in order to express an opinion on the truth and fairness of the financial statements of an entity. ISA 500 Audit Evidence requires auditors to obtain sufficient, appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion. Sufficiency and appropriateness are interrelated and apply to audit evidence obtained from both tests of control and substantive procedures. (ACCA, 2008, pp.119) Sufficiency is the measure of the quantity of audit evidence. The quantity of audit evidence required is affected by the level of risk in the area being audited. Firstly, it is the level of inherent risk faced by auditors is high. For example, high technology developments in a market which is very competitive can lead to going concern problems and more possibility that the clients Financial Statements will be misstated. This will lead to an increase in the inherent risk and will cause the difficulties for auditors to analyze Financial Statements in a volatile industry due to no consistency in Financial Statements and more evidence is needed during the planning stage. Besides, lack of IT control in a computerized environment may cause the level of control risk faced by auditors is high. This is because more evidence is needed for auditor when auditing the company. (ACCA, 2008) Appropriateness is the measure of the quality or reliable of audit evidence and its relevance to the audit subject matter. If quality is high, then the auditor may need less evidence. The quality or reliability of evidence is affected by several factors, such as external sources, evidence directly by auditor, entity, written documentation, and original documents. Original documents are more reliable than photocopies or facsimiles, which can easily be altered by the client. (ACCA, 2008) Testing control is a test for the auditor to determine whether the control is operating effectively throughout the period under review stage. The auditor must consider the sufficient appropriates audit evidence is to support the assessed level of control risk is audit evidence is obtained from tests of control. For example: Design: the control systems are suitably designed to detect and correct significant departures from the matter of accountability or material misstatements in any assertion Operation: the control systems exist and have operated effectively throughout the relevant period. (ACCA, 2008) The auditor must always carry out substantive procedures on material items. The ISA says irrespective of the assessed rick of material misstatements, the auditor should design and perform substantive procedures for each material class of transactions, account balance and disclose. When obtaining audit evidence from substantive procedures, the auditor must consider the sufficient appropriate audit evidence from such procedures together with any evidence from tests of control to support the audit opinion. (ACCA, 2008, pp.99) In an audit of a financial report, the audit opinion is given on the assertions by management, explicit or otherwise, that are embodied in the financial report. They can be categorized as follows: Assertions about classes of transaction and events for the period under audit One of the examples is occurrence, where a transaction or event took place which pertains to the entity during the period. Assertions about account balances at the period end For example existence is an asset or a liability exists at a given date, rights and obligations is an asset or a liability pertains to the entity at a given date, and etc. Assertions about presentation and disclosure An item is disclosed, classified, and described in accordance with the applicable financial reporting framework. The auditor has a statutory duty to make a report to the entitys members on the truth and fairness of the entitys annual accounts. This report must state the auditors opinion on whether the statements have been prepared in accordance with the relevant legislation and whether they give a true and fair view of the profit or loss for the year and state of affairs at the year end. The duty to report on the truth and fairness of the financial statements is the primary duty associated with the external audit. The assurance given by auditors is governed by the fact that auditors use judgment in deciding what audit procedures to use and what conclusions to draw, and also by the limitations of every audit. The auditors task is to decide whether the accounts show a true and fair view. The auditors are not responsible for establishing whether the accounts are correct in every particular. This is because it can take a great deal of time and trouble to check the accuracy of even a very small transaction and the estimation which means that financial statements can never be completely precise. It is not easy and impossible to examine every single item in the financial reports. Here, as we shall see, auditor provides opinion about the financial statements, but not certificate that the financial statements are correct. Besides, audit procedures are designed to reduce the risk of the misstatements in the financial statements, but not eliminate the error in the financial statements. This is because by providing sufficiently reliable conclusion arriving by way of using the sampling procedures. The sampling risk arises from the possibility that the auditors conclusion, based on a sample, may be different from the conclusion reached if the entire population were subjected to same audit procedure. A sampling risk can be reduced by increasing the sample size for both test of control and substantive procedures. (ACCA, 2008, PP.189) (b) Describe the following audit procedures used in gathering audit evidence and for each procedure, illustrate with an example: Confirmation Analytical procedures Observation Inspection Confirmation This involves seeking confirmation from another source of details in clients accounting records. Example: Confirmation from bank balances by referring to the bank statement. (ACCA, 2008, pp.121) Analytical procedures Analytical procedures mean the study of trends and ratios in financial and non-financial information. It is used within audit planning to identify risk areas and also as a means of gathering substantive evidence, for example by calculating as estimate of a particular figure based on knowledge of the business and comparing this to the actual figure. Example: A comparison of gross profit percentages month by month for a company could be performed and any unusual fluctuations investigated as these could indicate errors such as omission of sales, loss of inventory or other errors. (ACCA, 2008, pp.121) Observation Observation means watching a procedure being carried out. It is usually used as a means of gathering evidence about the internal controls in a company. Example: A appropriate to observe the procedures that are carried out when the post is opened to assess whether controls exist to prevent the misappropriation of cash. (ACCA, 2008, pp.121) Inspection Inspection means looking at documentation, books and records or assets. This could be done to confirm existence of an asset, to verify values or to provide evidence that a control has taken place. Example: The inventory of a company at the year-end could be inspected as part of the evidence relating to its value. The inspection would give evidence as to whether the inventory was in good saleable condition. (ACCA, 2008, pp.121) Inquires Inquires mean requesting information. This could be from individuals within the company, either orally or in written representations, or in formal written requests to third parties. Example: A relevant example would be to send a standard confirmation letter to the companys bank (ACCA, 2008, pp.121) QUESTION 3: (a) Explain what is meant by the term audit risk? (8 marks) Audit Risk is the risk of giving an inappropriate opinion on the financial statements. For example, failing to qualify when the financial statements contain a material error. Audit Risk has three individual components in the formula: Audit Risk = Inherent Risk X Control Risk X Detection Risk Inherent Risk is the susceptibility of an assertion to a misstatement that could be material individually or when aggregated with misstatements, assuming there were no related internal controls. Inherent risk is also a risk that it is impossible for auditors to manage and transfer away due to the nature of the company and its transaction. Control Risk is the risk that material misstatement that could occur in an assertion and that could be material, individually or when aggregated with other misstatements, will not be prevented or detected and corrected on a timely basis by the entitys internal control. Detection Risk is the risk that the auditor will not detect a misstatement that exists in an assertion that could be material, individually or when aggregated with other misstatements. For a given level of audit risk, the acceptable level of detection risk bears an inverse relationship to the assessment of the risk of material misstatement at the assertion level. (ACCA, 2008) (b) Explain why auditors need an understanding of the clients environment, including its internal controls, and list some aspects of clients environment and internal controls. (12 marks) (Total : 20 marks) Auditors should obtain an understanding of the entity and its environment, including internal control, sufficient to identity and assess the risks of material misstatement in the financial statements whether due to fraud or error. Then, the auditors able to design and perform further audit procedures. It is essential for auditors to understand the clients environment, including its internal controls because the knowledge of understanding of the clients environment will guide auditors to build up or maintain a good professional relationship with the client. Listed below are the reasons why auditors need an understanding of the clients environment, including its internal controls. A client may involve in a volatile sector of economy, which means that the industry has rapidly and is planning further expansion which will require additional resources. This will cause the stock obsolete and the obsolete stock may be overstated in the Financial Statements. In such circumstances, there is a risk that creditors will go unpaid and the business will go into liquidation. It is very risky for directors of the company and the auditors if they auditing the company. Todays world is rapidly changing such as technology. It is very competitive with new technology developments in a market because competitive can lead to going concern problems and more possibility that the clients Financial Statements will be misstated. This eventually will increase the inherent risk for the auditors especially in the aspect when the auditors auditing the financial statements. It is also will lead to an increase in the inherent risk and will cause the difficulties for auditors to analyze Financial Statements in a volatile industry due to no consistency in Financial Statements. Besides, the managements attitude, whether are they reliable and trustworthy in the business is suspected. This will indicate that the managements integrity is doubtful and mismanagement may be occurred. This in-turn will cause the Financial Statements may be subject to manipulation by existing auditors when they auditing the company as management is bias. Nevertheless, financial aspect will be taking into consideration if the company is facing financial problems. The company would needs a bank loan to finance the director ambitious plans. However, the loan facilities are scare. The risk for auditors to audit the Financial Statements will increase when the management of the company would use an aggressive accounting tactics to manipulate the Financial Statements. Last but not least, there is a misappropriation to a specific ascertain for a cash transactions or account balances in the. The cash balances may influence the Financial Statements and will cause an increasing risk for auditors to audit Financial Statements and there is a limitation for the auditors to identified completeness of sales and internal controls are insufficient. The aspects of clients environment and internal controls are as follow: Industry, regulatory and other external factors, including the reporting framework Nature of the entity, including selection and application of accounting policies Objectives and strategies and related business risks that might cause material misstatement in the financial statements Measurement and review of the entitys financial performance The control environment Control activities Monitoring of controls (ACCA, 2008) QUESTION 4: An important aspect of an external auditors audit of financial statements is observation of the conduct of the clients physical inventory count. Explain the purposes of the auditors observation of the clients physical inventory count? (4 marks) It is important for auditors to observe clients inventory stock count. This is to verify assertions of existence of inventory items that makes up the balance, means that the stock count done by the client staffs are as per the Stock Taking Instruction (STI). All the stocks are properly allocated, ensure that the stock stated in the stock list are actually exist. If do not have such stock exist as per the stock list, inquire the management or superior for the explanation. Besides, the auditors should ensure that the condition of the stock are clearly stated during the stock count, such as identify evidence of damaged or slow moving inventory because it is useful for the further evaluation of the inventory. This also wanted to prove that the actual stock record data are as per the stock count. Not only that, observation of stock count is to ensure that all the stocks held in the warehouse are particularly owned by client, that is right and obligations assertion. Any stock held for 3rd party, ensure it is properly separated from the clients stock and inspect the agreement between the 3rd party and client regarding about the stock held. Lastly, the auditors should verify by assertions of completeness. That is the audit should ensure all sales and purchases are well recorded and all the inventory at year end is included on the statement of financial position. (b) You encountered the following situations during the 31 December 2008 physical inventory count of Shoe Supplier Sdn. Bhd.: In observing the inventory of liquid shoe polish, you note that one lot is 5 years old. From the inspection of some bottles in an open box, you find the liquid has hardened in most of the bottles. As an external auditor, the audit procedures I would take is to find out or enquire whether this box of liquid is still part of the inventory balance, that is inventory record. Besides, I will ensure that the box of liquid in this inventory is written off and not saleable anymore. Lastly, I will also determine whether the sales of the liquid shoe polish are valued at the lower of cost or net realization value, if it is saleable. If the liquid shoe polish still cannot sell, then dispose the liquid shoe polish. During your observation of the inventory count also, you noticed that some counting staff are using pencils to record down inventory counted. Describe the procedures that you would take as an external auditor? (6 marks) As an external auditor, the audit procedures that I would take is I will ensure that clients staff are following instructions during the inventory count. Besides, no pencil is allowed during the inventory count. This is because by using pencil to record down inventory counted is showing not a good count instruction. Therefore, I will inform the person in charge of count that some staff are using pencils to record down inventory counted to prevent any adjustment easily to be made. Lastly, I will follow up to observe whether the staff are using pen subsequently during the inventory count and observe the condition of the stock properly to ensure it is clearly stated as per during the stock count, as it is useful for the evaluation of the inventory. (c) Describe the audit procedures an external auditor would carry out to verify whether inventory should be valued at cost or net realizable value. (10 marks) (Total : 20 marks) The management of the company is responsible for the identification and reporting of stocks that are worth less than cost to the auditor in a form of a schedule listing all the identified items. The types of inventory that may be worth less than costs include slow-moving, obsolete and damage stocks. Audit procedures for stocks worth less than costs are as follows: Enquire from management as to how they account for and identify such inventories, including the assumptions they made about the age, conditions and value of the inventories. Inspect sales, marketing and other reports, and review the extent to which inventories which are worth less than costs have been reduced to net realizable value (NRV) in prior years. Analytical procedures may be performed to evaluate the appropriateness of the write down in the current year. Analyse the clients computerized records, if available, to identify goods that are old or slow-moving. The records may also show seconds and damaged goods. Any information produced by the computer system for management relating to inventories need to be checked. Computer Assisted Auditing Techniques (CAAT) may be used for these purposes. Auditors need to checked the appropriateness of the definition of old and slow-moving given by the management, by making references to competitors products, technology changes and legislation. For high value items the auditors will need to refer to the experts valuation report to note if any material differences exist. At the inventory count, a note should have been made of any items that appeared to be old, slow-moving or damages and the count records should be inspected to see if they do show such goods. QUESTION 5: Describe external auditors responsibilities to report appropriately on the going concern aspect of an audit client. (Total : 10 marks) [OVERALL TOTAL: 100 MARKS] The auditors responsibility is to consider the appropriateness of the going concern assumption made by management and whether are there any material uncertainties about the entitys ability to continue as a going concern that need to be disclosed in the financial statements. In obtaining an understanding of the entity, the auditor should consider and stay alert to obtain evidence as to whether any events or conditions and related business risks which may occur and cast significant doubt on the entitys ability to continue as a going concern during the auditing. If such event or conditions were identified, the auditor should perform addition audit procedures to consider their impact to the audit assessments. The auditors should : Review managements plan for future actions based on its going concern assessment Gather sufficient appropriate audit evidence to confirm whether or not a material uncertainty exists . Considering the affects of any plans of management and other mitigating factors Seek written representations from management regarding its plan for future action The auditor should also inquire management as to its knowledge of events or conditions beyond the period of assessment used by management that may cast significant doubt on the entitys ability to continue as a going concern. The audit procedure that auditor should undertake to realize that may have affect on company going concern issues are as follow : Analyse and discuss cash flow, profit and other relevant forecasts with management. Analyse and discuss the entitys latest available interim financial statement Review the term of debentures and loan agreements and determine whether they have been breached Read minutes of meetings for the reference to financial difficulties Enquire of entitys lawyer regarding the litigation and claims Consider the entitys position if unfulfilled customers order Assess financial ability to provide additional funds Review events after period end for item affecting the entitys ability to continue as going concern. (ACCA, 2008)

Shabanu Essay :: essays research papers

Shabanu Essay In the novel Shabanu, by Suzanne Fisher Staples, women are portrayed in two distinct ways: obedient and rebellious. The obedient women would include Phulan, Mama, and Auntie. Rebellious women would consist of Sharma, Fatima, and, of course, Shabanu. The protagonist Shabanu, portrays herself as a rebellious woman. Shabanu constantly disobeys her father. In the beginning of the novel, Shabanu attempts to retrieve her camel Mithoo so he will not be harmed by Tipu, another camel. Dadi tells her No several times but she insists. Dadi is furious, ?Don?t ever disobey me? (27). Dadi shakes her so hard that her head flies back and fourth. Shabanu gets home and while she is making chapaties Auntie says to her, ?Shabanu, you are wild as the wind, you must learn to obey. Otherwise?I am afraid for you? (28). Another example of Shabanu?s rebelliousness is when she throws water on the landlord. Nazir Muhammad and his men say the want to ?claim? Shabanu and her sister, Phulan. Shabanu becomes disgusted and decides to throw her head forward, causing the water jug on her head to spill over the embankment and Nazir Muhammad. Sharma, Shabanu?s aunt, is a very rebellious woman as well. Sharma is described as bold, ?Most men don?t like her and are afraid of her? (98). Sharma cares about Shabanu and tries to look out for her. Although Sharma had no intentions of causing Shabanu danger, she gave her some very dangerous advice. ?You try to make him happy so he can?t bare to be away from you a single moment. If he treats you badly, come stay with us? (209). Auntie, unlike Sharma and Shabanu, portrays an obedient woman, with morals. Auntie is traditional, and often criticizes Mama for having no sons in the family. ?If God had blessed you with sons, we wouldn?t have to break our fingers over wedding dresses? (3). Auntie looks down on Shabanu for being ?boy like?. ?A young lady shouldn?t go with her headdress uncovered. You?re too old to act like a boy? (33). Mama is obedient as well. Mama slaps Shabanu as a consequence to non-traditional views. Mama accepts that Dadi takes care of the ?manly? problems such as the selling of the camels. Being the man, Dadi also takes care of the dangerous situations, like getting grandpa after the sandstorm.

Coming of Age in A Tree Grows in Brooklyn :: Tree Grows in Brooklyn Essays

Coming of Age in A Tree Grows in Brooklyn Betty Smith's A Tree Grows in Brooklyn presents the problems of a child growing up, the coming of age when one meets challenges and overcomes obstacles. The protagonist, Francie Nolan, undergoes a self-discovery as she strives to mature living in the Brooklyn slum despite its poverty and privation. Thus, Smith's thematic treatment of the struggle of maturity has become for the reader an exploration of loneliness, family relationships, the loss of innocence, and death and disease. One of the challenges of growing up is loneliness. As a small child living in Brooklyn Francie had no friends her age, the kids in her neighborhood that would have been candidates for friends either found her too quiet or shunned her for being different. Betty Smith describes on page 106 how most of Francie's childhood days were spent: "So in the warm summer days the lonesome child sat on her stoop and pretended disdain for the group of children playing on the sidewalk. Francie played with her imaginary companions and made believe they were better than real children. But all the while her heart beat in rhythm to the poignant sadness of the song the children sang while walking around in a ring with hands joined." As time went by and Francie got older she began to get to know a different kind of loneliness. Betty Smith narrates her feelings on page 403: "Spring came early that year and the sweet warm nights made her restless. She walked up and down the streets and through t he park. And wherever she went, she saw a boy and a girl together; walking arm-in-arm, sitting on a park bench with their arms around each other, standing closely and in silence in a vestibule. Everyone in the world but Francie had a sweetheart or a friend she seemed to be the only lonely one in Brooklyn without a friend." Loneliness is one of the challenges we must all conquer as part of maturing and it helps us learn to be independent and overcome hardship. Family relationships are a second problem faced by all in their coming of age. Francie loves her Johnny Nolan, her father, more than anything, she adores the way he talks and the way that he sings.

Perception Reaction Paper Essay

The first thing my eyes go to is Tye’s sister Shane. She is playing with her hair, with a very skimpy bikini. She us a very pretty young teenager having fun listening to her friend’s IPod tanning up the sun rays. I see Shane’s friend in the background, not very noticeable other than she is the one picking out a song or she might be texting. I look a little more to the right and I see what appears to be a teenage boy probably 16 while his sister is maybe 14. Tye looks a little agitated at his sister maybe some jealousy. He is relaxed kicking back with something on his mind. With the rest of the people in the background there is a few other women tanning as well enjoying the beautiful weather. Also a couple boys that must have been out of the swimming pool for a bit are probably getting hot and ready to make their â€Å"shooting† heard. Everyone seems to be having a fun time but Tye’s face makes me wonder. Part 2 The way the parents tried to handle the situation is pretty much what I would do to my children. Not only is Tye confused about his life, but the family also with all the confusion dealing with a gender issue child. I believe an early teen has pretty much decided if they were â€Å"trapped† in another’s body. Tye is going to have a rough time through high school but when attending college he will be more social acceptable. I understand from personal experience of how confusing gender can be. I was a hard core tomboy but once my parents divorced I changed into a more girly tomboy, now just a tomboy on the inside. Part 3 Wow where do I start with on this article. I have always been that tomboy type but I never could imagine changing my outlooks such as my breasts and so on. Tye seems to know what he wants since a young child. I would have done the same thing by trying to make either my daughter or son the gender they were born with. I guess over time a parent would have to accept what the child decides to be no matter what the outcome is. Maybe, I would be as supportive after the fact is accepted. This article opened my eyes from the teenager’s eyes and understand how hard life can be to be socially accepted. Very good topic to write about.

Centerville School Essay

Studies suggest that homework benefits Jr. High Students. However some schools have different beliefs. For example, Centerville School has decided to change its homework policy. Their new policy does not require students to do homework. I disagree with this new policy, for homework has many benefits such as building responsibility and disciplining students, keeping the parent’s involved with their kids’ education and it gives students more time to practice and absorb what they learnt in class. First of all, homework is a great resource for teaching responsibility and discipline to students. It encourages good work habits. With daily homework, students learn time management, an essential life skill. They realise that not all their free  time should be used for leisure. Some of it should be used otherwise, for their studies. It teaches them responsibility to complete work on time as they may lose marks if they don’t finish it. This keeps them organized. Another benefit of homework is that it keeps parents involved with their child’s education. Parents can’t be with their kids at school, therefore are excluded from many class projects and assignments. If the kids get homework, parents can follow their child’s curriculum throughout the year. It also enhances the communication between the child and parent because it gives them something to talk about. Parents can thus monitor their child’s progress in school. Finally, homework gives students more time to practice and absorb what they learnt in class. They have more time to improve and master the skills they learnt at school. Students need this extra time and if not given as homework, teachers will have to dedicate some class time for this. This loss of class time leads to other issues, like not completing their grade curriculum in time. The extra time devoted at home to school has a positive effect on a student’s study life. All in all, Centerville School has decided to alter their homework policy. The policy was to not give their students homework. Homework teaches kids responsibility and discipline, and it involves parents in their kid’s schooling. Also, it gives students more time to exercise and expand the skills they are learning in class. Homework has many benefits and I don’t think the homework policy in Centerville School should be changed.

Transactional and Transformational Leadership

Harry works in a coal mine laboratory. At the start of each shift, Harry checks the work book which his supervisor completes, where clear instructions are given as to what task is required. Generally each task listed is the same each shift, and every task has a written procedure that must be followed in order to meet Quality Assurance Standards. At the end of each shift, Harry completes his shift report which is generally the same too. Harry has worked here for 25 years under the same supervisor. He knows the work isn’t stimulating but it pays well.The supervisor is always happy with Harry because he completes the tasks that are set, and never deviates from what is expected. Harry’s supervisor is a transactional leader – a rule follower who likes procedures with no deviations and expects nothing more than those written in the work book. Carly is a new employee at the laboratory. At the start of each shift she too checks the work book in hope that maybe something new or contrary to the norm has been written. Most days she will look for something extra to do but is often reprimanded for doing something that the next shift would do.Carly detests the supervisor, wishing the supervisor offered more. Carly dreams of a supervisor who is motivational, encouraging, one who appreciates an employee who goes above and beyond what is required and would appreciate suggested improvements to age old methods. Carly dreams of a transformational leader to provide inspiration, charisma, vision and promote intelligent thinking to an otherwise mundane regulated workplace. So what is transactional and transformational leadership and what can be expected from each style?The transactional leader works with the present cultural work environment within their organisation, following existing rules, procedures, expected outcomes and operating norms (Lindgreen, A et al. 2009). They have an exchange relationship (Erkutlu 2008) with their followers/subordinates/employees, where guidance and motivation is given to ‘their followers in the direction of established goals by clarifying role and task requirements’ (Robbins et al. 2011, p. 342). It can take the form of contingent reward, management by exception (active and passive) and laissez-faire (Xirasagar 2008).Contingent reward refers to an exchange of rewards (whether verbal or tangible) for effort and good performance (Xirasagar 2008). Management by exception (active) is taking corrective action when a follower deviates from established rules and standards (Robbins et al. 2011). Management by exception (passive) is intervention taken by the transactional leader ‘only if standards are not met’ (Robbins et al. 2011, p. 342). A transactional leader of laissez-faire character is one who ‘abdicates responsibility’ and ‘avoids making decisions’ (Robbins et al. 2011, p. 342).As transactional leadership focuses on established norms and protocols, and â₠¬Ëœresults in expected outcomes’ (Erkutlu 2008, p. 711), followers will not extend themselves by going ‘above and beyond the call of duty’ (Robbins et al. 2011, p. 343). In comparison, the transformational leader is ‘capable of having a profound and extraordinary effect on followers’ (Robbins et al. 2011, p. 342) through their charismatic, visionary, inspirational, intellectually stimulating characteristics and their concern for their followers (Erkutlu 2008). They are able to inspire their followers to rise above their own self-interests.Transformational leadership consists of four sub-constructs (individualised consideration, intellectual stimulation, inspirational motivation, idealised influence) which transformational leaders can use to invoke behaviour of followers that exceeds expectations ‘for the sake of the organisation’ (Robbins et al. 2011, p. 343). Individualised consideration is displayed to the follower by ‘giving per sonal attention’ (Robbins et al. 2011, p. 342) to their development needs, support and coaching (Erkutlu 2008). Intellectual stimulation ‘promotes intelligence, rationality and careful problem solving’ (Robbins et al. 2011, p. 342).Transformational leaders are able to demonstrate idealised influence by providing vision and a sense of mission, instilling pride and gaining respect and trust (Robbins et al. 2011) along with inspirational motivation by communicating ‘high expectations’ (Robbins et al. 2011, p. 342). Although a distinction between the two could be categorised as a difference in leadership flexibility, Robbins et al. (2011) maintains that each leadership style does not actually oppose the other; rather transformational leadership builds upon transactional leadership where levels of follower effort and performance exceed that of transactional leadership alone.However each style of leadership has its own individual strengths and weaknesses. Transformational leadership appears to be heralded as the superior leadership style; although transactional leadership does have its strengths. As ‘transactional leadership results in expected outcomes’ (Erkutlu 2008, p. 711), it is effective in organisations where the desired outcome is measured against ‘clear and precise financial measures, such as revenues per customer segment or the dollar volume of cross-selling’ (Lindgreen et al.2009, p. 26).Research conducted by Liu et al. (2011) has found that in occupations of low emotional labour, transactional leadership has made a positive contribution to team innovation. Whilst Wells & Peachey (2011, p. 5) have found that there is a negative relationship ‘between transactional leadership and voluntary organizational turnover intentions’. The application of equity theory’s procedural justice (‘the perceived fairness of the process used to determine the distribution of rewards’ (R obbins et al. 2011, p.191) and distributive justice (‘perceived fairness of the amount and allocation of rewards among individuals’ (Robbins et al. 2011, p. 191) may explain this negative relationship (Wells & Peachey 2011). Conversely, transactional leadership is not without its weaknesses.Subordinates of transactional leaders may feel a lower sense of organisation commitment and job satisfaction or commit sabotage against the organisation (Erkutlu 2008). As transactional leadership relies upon defined outcomes with leaders possibly dealing with deviations from the norm ‘with harsh criticisms’ (Liu et al.2010, p. 284), subordinate performance beyond what the leader has requested should not be expected; nor the discovery of new methods of problem solving as subordinates continue using tried and tested solutions ‘for fear of reproach’ (Liu et al. 2010, p. 284).Innovation amongst employees employed in high emotional labour positions is also likel y to be depressed under a transactional leader (Liu et al. 2010). Transactional leadership doesn’t allow for followers’ self-actualisation needs to be met; therefore followers may not reach their full ‘potential and self-fulfilment’ (Robbins et al.2011, p. 177).Where transactional leadership has clear weaknesses in respect of followers performance, transformational leadership builds upon this and bolsters followers’ willingness to perform above what is required. Transformational leadership can be thought of what transactional leadership is not. Transformational leaders are acutely aware of the organisations present culture but have a definite vision for the future. They enable this vision by changing the fundamental ‘values, goals, and aspirations of followers’ (Lindgreen et al. 2009, p.15) as the followers embrace the leader’s values.The result is that the followers perform their respective duties not because they expect to be r ewarded, but because it is in agreement with their new found values (Lindgreen et al. 2009). By strategically using positive emotions, the leader is able to encourage ‘optimism and positive approaches to group tasks’ (Mitchell & Boyle 2009, p. 463). Followers of transformational leadership experience heightened motivation through their leaders’ inspirational motivation and individualised consideration.Mitchell & Boyle’s (2009, p.462) research states that this ‘increases their cognitive flexibility to accept new ideas and comments from others’. Transformational leadership has proven advantageous where customer relationship development is important, for example formal customer introductions and personal selling (Lindgreen et al. 2009). Research conducted by Camps & Rodriguez (2011) established that employees working under a transformational leader within an organisation that fostered employee learning and skill improvement did not drive the foll ower to seek employment elsewhere because of their increased skill set.‘On the contrary, they see this as a commitment to the employer that has trusted and invested in them’ (Camps & Rodriguez 2011, p. 437). Although flaunted as the preferred leadership style in comparison to transactional leadership, there are weaknesses of transformational leadership. The charismatic elements of transformational leaders are difficult to reproduce if not naturally present in the personality of the leader. Therefore, organisations seeking applicants to lead in a transformational fashion are instantly subjected to a limited pool of suitable applicants (Muijs 2011).Even when the applicant is of strong transformational personality, a poor organisation fit will fail the applicant. So too will organisational structures that impede ‘the extent to which leaders can be truly transformational’ (Muijs 2011, p. 50). Over zealous transformational leaders can also incite passive resista nce from subordinates. In this situation, the subordinates will simply wait for the leader to ‘move on’ (Muijs 2011, p. 51). This type of resistance is prevalent in organisations that have ‘rapid management turnover’ (Muijs 2011, p.51).Transactional and transformational leadership are two contemporary styles of leadership that have their own strengths and weaknesses. Transactional leadership focuses on providing followers clarified tasks requirements in order to achieve desired outcomes, whereas transformational leadership involves the ability of the leader to motivate, inspire, influence and consider their followers in order for the follower to take on the leader’s vision and perform above and beyond what is expected.Transactional leadership is effective in organisations where the desired outcome is definitive however is not conductive in promoting innovation amongst high emotional labour employees or allowing for self-actualisation needs to be met. Transformational leadership is effective in empowering followers and producing results such as employees performing above and beyond what is required. However it can be overbearing for employees who have not embraced transformational leadership exercising passive resistance to such a contemporary style of leadership.