F4 Corporate and Business Law

Today is my 1st class for paper F4 Corporate and Business Law by lecturer: Terence Tan. Law is a set of rules to control conduct and control the rights & duties. Jurisdiction is geographical area of court's power and power of count to decide case. Common law -William the conquerer conqured whole Englands to all regions. Common law-too rigid and inflexible eg wrong forms to start court action-loss of lawsuit and rights. People went to see king or ministers and they decided based on they felt was fair- became system of rules called equity (based on justice and fairness). Precendent: previous case. Courts normal follow previous case. Stare decisis- let decision stand. Advantages for stare decisis:(1) consistency (2) fairness (3) predictable. Disadvantages for stare decisis; difficult to decide if similar to previous cases. "Dog law"- inpast, difficult to know what rules where. Ratio decidenci -reason rational for deciding -legal principle to decide case. Type od stare decisis (A) vertical-higher courts bind lower courts. (B) Horizontical-courts following case by same level courts. Type of law- different classification crimical law -main aim is punishment (fine, jail, and dealth penalty). Civil law -main is aim is compensation (covering you losess). Case law: common law-law develops through cases. Statue law- law made by parliment Often statue law is more efficient & clear than the case law.

I would like to stop here that finish my sharing. I hope my this 2 papers can pass on Jun 2011.

F8 Audit and assurance

The 1st day class for 2011, i attend F8 class -lecturer-Philip Tan. i would like to share what as i learn at the class. For this papers mostly need to understand the underlying theory of auditing and can apply thet theory relatively basic audit situations. The purpose of an audit is to enhance the degree of confidence of intended users in financial statements. Limitations-Auditors do not cetify the financial statements or guarantee that they are correct. Managemts is responsible for the preparation and fair presentation of these financial statements. Auditors responsibility is to express an opinion on these financial statements based on audit. Auditors need to plan and perform the audit obtain reasonable assurance whether the financial statements are free from material misstatement or error. The materiality -would influence the economic decisions made by a user of the financial statements.

Advantages and disadvantages of an audit
-advantages: A limited liablity company the shareholders access to companies' accounting books and records as a result dependant on information provided to them by the directors.
-advantages: An audit may act as a deterrent againts fraud by employees.
-advantages: Provide constructive advice to management on improving control and information systems.
-advantages: Audited financial statements can also be used to reduce disputes between management.
-disadvantages: Cost
-disadvantages: An audit disrupts the organisation's day to day activities as staff have to spend time providing the auditors with the information and explanations need to form an opinion on financial statements.

That's all for today sharing.