Month: August 2016

Innovative Financial Advisors Pvt. Ltd. The Economics Of Waste

Taking a leaf out of Shakespeare one can say To Recycle or Not to Recycle is a dilemma that is often faced by people. The confusion is at every stage of recycle starting from what should be labeled, which bin the material needs to be put in and what the municipal administration accepts. All these processes actually determines which product is to be recycled.

Innovative Financial Advisors Pvt. Ltd. understands all these issues are common as consumers are not able to understand while dealing with wastes such as plastics, as to what makes the material recyclable? This common problem persists across the globe. People need to realize that when it comes to nature nothing goes to waste. Any waste that is generated is a resource that can be used by other organisms. The nature cycle is in loop system where a waste of one organism becomes food or resource for other organisms.

Today, it is believed that majority of the things are recyclable or it has the potential to be recycled. It is important for an emerging economy such as India to think on sustainable lines and promote start-ups in waste management sector. These enterprises can develop recycle processes for many different waste streams which were previously thought to be non-recyclable. Some of the materials than can be targeted are cigarette butts, plastic pouches, chip bags, diapers etc. All these can be recycled into useful products such as industrial plastic lumber etc. Therefore, it is important to look into all the waste that we once considered non-recyclable.

One major factor that creates hurdle in the recycle process is the economic barrier that restricts recyclability of materials. Innovative Financial Advisors Pvt. Ltd. understands that in order to recycle a material, it is important that collection of waste happens in bulk. After collection, the wastes need to be separated, which gets difficult as wastes might be multi-layered or might have container made of plastics. The material gets recycled only once the entire process has taken place. Moreover, such a process has cost attached to it and when a recycled material is worth more than the cost involved in recycle, then only is it considered feasible and can be sold in open market. If the process costs more than the value of the recycled material, it doesnt make any sense to recycle. With other factors such as infrastructure and technological advancements creating bottlenecks, more often than not it is economics and not science that determines what is to be recycled.

Therefore, in order to ensure that the recycle process is feasible, the following suggestions can be adopted:

Commencing the waste management from the manufacturing stages of products

Establishing recycle centres and other adequate infrastructure at district level nearby the collection points reducing transportation costs

Creating awareness about waste management among local communities

Improved collaboration among various stakeholders in the waste management value chain

Incorporating advanced technology in the waste management processes

Promoting recycled products among local communities

Incentivizing waste management to promote startups and encourage involvement of large organizations

These initiatives can ensure the cost of recycle products gets reduced and recycled products are consumed more.

By Rahul Choudhury
Media Team Innovative Financial Advisors Pvt. Ltd.

Conducting Of Financial Audit In Accordance With Isas Framework

The International Standard on Auditing (ISA) looks after work performed by the independent auditors. It deals with their overall tasks while carrying out an audit of financial statements compliant with ISAs. It, particularly, is in charge of setting out the overall goals of the independent auditor, and elucidates the features and scope of an audit planned to facilitate the auditor to meet those goals. It also gives details about the policies, structure, authority and extent of the ISAs. ISAs are basically followed in UK and Ireland. It explains the conditions necessary to be fulfilled for conducting the audit in accordance with the ISAs. ISAs are chalked out in reference of an audit of financial statements conducted by an auditor. They are to be tailored as required in the situations when applicable to the audits of other historical financial data. ISAs do not deal with the functions of the auditor that may exist in legal statute, directive. Their responsibilities may vary from those recognized in the ISA. But it is likely that the auditor may find guidelines of the ISAs useful in such situations. However, they have to take care that they perform in conformity with the respective regulatory or legal provisions.

The financial statements are being prepared by the accounting department of an enterprise. ISAs do not interfere in the manner these are prepared and maintained by the organization. ISAs look after the manner in which the audit of financial statements is conducted. The function of auditor is separate from that of the accounting department and does not merge with their functions. The audit of financial statements aims at improving the quality of financial statements for the parties whose interest is intended in the business entity. So, auditor expresses an independent opinion on the fair presentation of financial statements in all aspects in compliance with the applied financial reporting principles displaying the true standing of the business concern. This audit must be conducted in agreement with the established framework of ISAs.
ISAs makes it mandatory for the auditor to achieve reasonable assurance regarding whether the overall financial statements are free from any kind of material falsification arising out of some fraudulent activities or some other calculation mistakes. When an auditor attains adequate proof while carrying out the audit so as not to express any negative belief for the material misstatement of the financial statements, then we can say that auditor has obtained reasonable assurance. But, reasonable assurance is a limited level of assurance due to the presence of inbuilt restrictions of an audit as a result of which most of the audit evidences upon which conclusion in the form of auditors opinion drawn upon by the auditor is assumed to be convincing rather than decisive.

Thus, the financial audit in UK has to be performed as per the guidelines of ISAs. Auditors London must precede in the direction as laid by the ISA and conduct the audit of financial statements in an efficient way obtaining reasonable assurance about the accuracy of financial statements and thereby, giving an opinion regarding this.