Auditor Predecessor Successor

Auditor Predecessor Successor Question: What is the purpose of predecessor-successor auditor communications? Which party, the predecessor or successor auditor, has the responsibility for initiating these communications? Briefly summarize the information that a successor auditor should obtain from the predecessor auditor. The purpose of the predecessor-successor auditor communications is to help an auditor determine if a firm should engage with a new client. This communication will inform the auditor about the history of the client with the previous auditor and possibly expose some information that would suggest that accepting this client is not in the best interest of the firm. In recent times it has become important to carefully choose with whom a firm engages in an agreement with for representing them as their auditor. Not only is the firms reputation at stake but they can be held liable for their clients fraudulent activities. The Auditing Standards Board has issued a Statement on Auditing Standards Number 84 in October of 1997. SAS No. 84 replaced the SAS No. 7 which has the same title and was written to update the statement to the present environment. SAS No. 84 defines the required communications between the predecessor and successor auditor before accepting an engagement; what to do when the predecessor limits the responses to the successor; contains sample client consent and an acknowledgement letter and a successor auditor acknowledgement letter. Many of the CPA firms use caution when accepting new clients and go through a detailed procedure before accepting a new client. This is necessary to protect the firm from potential future liabilities based on their clients activities. SAS No. 84 made several modifications or improvements to SAS No. 7 which include communications prior to engaging with the client, discusses the usage and types of working papers, discusses the use of different types of correspondence letters for the predecessor-successor with examples, and outlines actions that the successor should follow if the financial statements are found to be misstated. This Statement was then amended by no. 93 because the statement didnt address the case where an auditor started an audit but didnt complete it. SAS No. 93 clarifies the definition of the predecessor auditor to include this situation. The definition was refined to include any auditor who is engaged to perform an audit but does not complete it. In the ZZZZ Best case study, Greenspan was an independent auditor that completed an audit of the ZZZZ Best Company in 1986. He used analytical techniques to look at the financial data and he confirmed the existence of their jobs by reviewing their documents. After completion of the audit, Minkow that owned the ZZZZ Best Company dismissed Greenspan and retained Ernst Whinney as the companys auditor. A congressional subcommittee was probing into the predecessor-successor communications that occurred when this transition occurred. When the congressional subcommittee asked what information he provided to the successor auditor, Greenspan was said â€Å"Nothing. I did there was nothing because they never got in tough with me. Its protocol for the new accountant to get in touch with the old accountant. They never got in touch with me, and its still a mystery to me.† According to SAS no. 84, the successor cannot accept the new client until they have communicated with the predecessor and have reviewed their responses. Even though the successor is required to initiate the communication, the predecessor is required to respond. The predecessor is required to get permission from the client before providing any information about the client. This means that there is a possibility that the predecessor will state that they will not be providing any information but they must respond stating this. If the predecessor doesnt provide any information, this most likely means that the client doesnt want them to disclose some potentially harmful information about the client and raises some concerns about accepting the new client. In the ZZZZ Best Company case, Ernst Whinney said that they communicated with Greenspan prior to accepting ZZZZ Best as an audit client. They didnt state any details related to the communication and Greenspan did not confirm this communication. Even if Ernst Whinney did initiate communication with Greenspan, given that neither one confirmed the details of what was communicated means that Ernst Whinney didnt follow requirement of reviewing the predecessor responses before accepting the client. The successor auditor should obtain information that will help decide whether to accept the client as their auditor. The type of information that the successor auditor should be inquiring about is related to the integrity of the management and any disagreements that the predecessor had with the management over accounting or auditing procedures. If theres has been issues with management integrity or concerns about their integrity from the predecessor auditor, it most likely will be an ongoing concern which may cause problems in the future. Also, if the predecessor auditor had disagreements with the client about accounting or auditing procedures then it would best to discuss these procedures with the client before starting the engagement with the client. Another item that the successor auditor should request is access to the predecessors working papers. â€Å"SAS no. 84 includes a list of the working papers ordinarily made available to the successor, including documentation of planning, internal control, audit results and other matters of continuing accounting and auditing significance†.1 The predecessor may limit the access to this working papers for reasons such as confidentiality agreements or litigations. These working papers provide the good insight into the client and give exposure to the predecessor and clients working arrangements. They will be the fastest and most detailed information for evaluating the client. When responding to the successor after the initial communication, the predecessor may request a written agreement disclosing the terms of what they disclose. They may request that the successor keep the information confidential and agree not to engage in litigations against the predecessor related to the material disclosed. Another item they should discuss is the reasons for the change in auditors. This information could show some insight into any management integrity issues if the predecessor auditor withdrew as the auditor. The successor will need to document the communications with the predecessor. They should document when the communications occurred, the results of the communications, and details of what material was disclosed. Even though the communications may be oral instead of written, it is good practice to document the details of what communications were made and the nature of the communications. SAS No. 84 doesnt require the documentation of this communications but the successor auditors working papers should show the details of communications that occurred. The predecessor-successor auditor communications is the key to determining if the firm should accept the new client. This communication will allow significant information to be gathered in determining whether to proceed into an agreement or not. The success auditor must initiate the communication with the predecessor. The completion of this exchange of information is vital to protect the firm from potential future liabilities based on their clients activities.

Traditional Family In A Post Modern Society

In a post modern society such as Britain, are traditional family and marriage necessary? This essay will explore whether traditional family and marriage are necessary in Britain today. The change of societal views and attitudes will need to be considered, as well as analyzing statistical evidence. The ideology of the family and marriage will then be discussed and contrasted, in relation to various theoretical perspectives such as functionalism and post modernism.Government views and policies will also be reviewed in order to show how family has evolved for various family types. Before discussing if there is a necessity for traditional family and marriage in Britain today, it only seems logical to first understand what is meant by the term traditional family. A traditional family or nuclear family, as it is sometimes referred to as, consists of a heterosexual monogamous couple that are legally bound through marriage and their healthy, dependent 2. Children, Muncie et al. (1999). There is usually a clear division of labor where the male predominantly plays the instrumental role of the breadwinner and the female predominantly plays her expressive role as the homemaker and care giver, Bernard (1997). This is based on the theory of Functionalism (which has dominated theories until the mid 20th century). They seem to place importance on the division of labor, as they believe that this structure is the most effective way of performing family functions.This image of family would have been very accurate if it was based families around the 20th century as it was considered to be the norm, to get married and have a family with males and females playing their respective biological roles. According to Pascal (1986) in Muncie et al (1 999, pop), the Beverage Report recognized three key characteristics of the associated with the idea of he family; 1 Women are available to do housework and care for children and elderly relatives, without pay. 2 Couples consist of one full-time worker (usually a male breadwinner) and one ‘housewife' whose work outside the home is insignificant†¦ Women look to men for financial support. As time has evolved the idea of what family is has become varied and not quite as meticulous in its structure, although this is still the image of some households. These characteristics that are noted in The Beverage Report may be deemed as dated by most individuals in the 21 SST century, as it is evident that family Structure has changed dramatically. This report would have been disregarded by feminists, as a patriarchal family is not what they believe in. This clearly shows the woman as being dependent on a man.According to data from the Office of National Statistics (2012), it is clear that the nuclear family (married parents with an average of 2 child dependents) has continued to be the most ordinary family type, although this number has slowly begun to decrease as the years have moved on. What can also be identified is that the number of people in other family types, for example single parent families and same-sex families, has begun to increase gradually. This suggests that people are beginning to accept that ‘family' does not have to be the ‘traditional nuclear family.The fact that it is documented at all shows that there is no huge necessity for marriage as there once was. Also there is the opinion as per Duncan and Phillips (2008, up), that ‘marriage and unmarried cohabitation are socially similar (as agreed by two-thirds of individuals when surveyed) and one-third felt that ‘unmarried cohabitation shows as much commitment as marriage'. There is also the suggestion that cohabiting relationships are actually lasting longer, for example in 2006 it was . 9 years, compared to 6. 5 years in 2000.This demonstrates how views and relationship types have changed in Britain, as if this survey Was done in the early 20th century there probably would have been remarkable difference in th e responses and the types of relationship people were part of. Postmodernists such as Bernard (1997) believe that society needs to accept family diversity, as you would accept different classes, ethnicities and sexual orientation. This assumption of their only being one proper family form needs to be eradicated, as anything outside of this form will been seen as inferior. Morocco (1968) cited in Muncie et al. 1999) suggested the idea of the nuclear family as being a universal. The traditional nuclear family is based on the ideology of families. This ideology is shaped by both the state and the media and it seems to be heavily promoted, whereas other family types might be seen as deviant. It could be argued that this idea of a traditional family is becoming less of an option. According to Elution in Fox (2009, IPPP-459) in order for some families to cope with the strain of ‘domestic labor and paid employment', both spouses are having to share the responsibility of reducing a sa lary through paid work.This suggests that in some households the option of a traditional family lifestyle is unavailable to them, based on the way in which this capitalist state has evolved. According to Duncan and Phillips (2008, Pl), ‘Family life is no longer equated with the married couple'. This implies that this model of the family could be seen as unrealistic in this present modern society, as it simply ignores the different variations that we can now expect within a family unit, such as single parent families, same-sex families and step families to name a few.The legislation is that there is no family norm and no definite definition to the term family. ‘Marriage, as a social institution, may have simply been reformed, widened and ‘modernized' rather than being ‘decreed'†¦ If this family form were indeed ‘decreed', we would expect to find that those who live apart from their partners, solo living and same-sex partnerships are seen as equivale nt, rather than inferior family forms', Duncan and Phillips (2008, pop). The Postmodernism approach seems to take this diversity of family types into account and therefore pushes for this diversity to be accepted within society.This could be considered to be a more appropriate observation of British society today. This approach family is characterized by ‘choice, freedom, diversity, ambivalence and fluidity', Harmless and Holbrook (2007, IPPP). This suggests that individuals are more open to live their lives as they please, without judgment and humiliation. According to McNeil et al (2003, up) more and more people delay forming their own families; some may choose to remain Single or childless. This has led some sociologists to argue that there is such a thing as a postmodern family.This is a more modernized term that Seems to embody what British society is like today. Maybe the term traditional family needs to become redundant and replaced by the more flexible term postmodern family? This may be seen as a more appropriate portrayal of family life in a post modern society. Post-war women had the demands of devoting their lives to their men with domestic roles becoming imminent, Muncie et al (1999). The roles of women have now changed, for the majority. They now have more rights which could affect the dynamics of the family.In the past a non married woman might have been considered to be a spinster, but now they tend to be labeled as independent professional women. Some of these changes are down to feminists taking a stand for equal treatment of men and women and eliminating patriarchy, Bernard (1997). This can be evidenced with the Equal Pay Act in 1970, where feminists thought for the right for women to be paid the same salary as their male counterparts, when doing the same role, Lynn Seal in Muncie et al (1997).Another major turning point for women was in 1 918 when they were finally given the right to vote, after years of campaigning from the suffragis ts and suffragettes, Women and the Vote, (no date). It is apparent that feminists have conflicting views to the functionalists ND new right regarding the idea of the traditional nuclear family, as they would possibly prefer a more symmetrical family where the authority is shared. They might argue that traditional family and marriage are not necessary, as traditional family in particular is perceived as more beneficial to men.Gender appears to be Of some importance, as stated by Duncan and Phillips (2008, up), because ‘according to individualistic theory it is women who often lead change, as they break away from traditional and ‘antidisestablishmentarianism and seek fairer and more equal ones'. Feminists Barrett and McIntosh (1 982), maintain that this traditional nuclear family type is anti-social because it exploits women and benefits capitalism, whilst perceiving the more unconventional family types as in adequate.It is evident that societal attitudes have changed over time regarding the acceptance of the various family lifestyle choices. Society has become ethnically diverse and it could be considered as less judgmental. One of the most recent examples of this change is the consideration, by the coalition government, for gay marriages. The bill is to be submitted as early as next ear; with it becoming law by as early as 2015, Hennessey (2012).This insinuates that the coalition government are starting to adopt a more post modern view regarding family and marriage. Although according to McCarthy and Edwards (2011 a more recent concept known as New right, which supports many of the primary functionalist beliefs including the importance of monogamous marriage, the nuclear family and the division of labor in maintaining stability within society, is the view currently held by the coalition government.According to Mainland (2012) Deed Mainland has stated that, â€Å"There are many ay couples of faith and there are many faith groups that embrace gay pe ople and so it's only right for faith groups that wish to conduct same-sex marriages to be allowed to do so under law†. He believes that there needs to be marriage equality for gay couples with the ‘right to marry in churches, synagogues and meeting houses' that are willing to accommodate them.If this bill is pasted it may well be another significant triumph for the equality of gay couples since their right to adopt in the UK in 2005 and being allowed to have civil partnerships in 2005, Ross, Gas and Barrington (2011). These hanged were made through The New Labor Government from 1 997, which seemed to embrace the reality of the diversity of family types. This action can be perceived as necessary as it shows that the government have been taking steps to establishing equality and rights for gay people and regarding them as they would a married couple.They also showed great support for single mothers offering them financial support and paid childcare, Bourbons (2012). This in itself could be seen as evidence of traditional family not being necessary in Britain today and it also shows the support that is been received y these supposed ‘deviant' family types. This illustrates the rights that gay couples are starting to receive which are the same as a married couple and the support that single parents get from the state. Single parent families are becoming more common with the rise in divorce and separation.Since the Divorce Reform Act 1969 there has been a rise in divorce in England and Wales, Bourbons (2009). Also Rodgers (2011) explains how Data published by the Office for National Statistics, indicates that since 2009 there has been a 4. 9% increase from 113,949 to 119,589 in 2010. Single parent families seem o bring about the idea of living in a welfare state, where some individuals are preoccupied by state handouts instead of actually supporting themselves. Margaret Thatcher gave a speech in 1 987, which she clearly shows her condemnation of how society had become.She maintained that some individuals became complacent and dependent on the state to provide for them, because of the benefits that they were permitted to. She suggested that, ‘people have got the entitlements too much in mind without the obligations', Key (1987). This suggests that some individuals take advantage f the help that is offered and decide not to satiate their obligations of I. E. Trying to find a job. It can be considered as an effortless alternative for some, enabling their unwillingness to work.Although the welfare state was initially aimed at tackling poverty, it became apparent to some that it actually created more problems. Locks (2000) stated that the idea of the ‘nanny stats? and a ‘culture of dependency' started to emerge. It seems very fitting that the government is now trying to put a stop to this reliance on the state by capping the benefits that out of work individuals are entitled to (http:// www. Conservatives. Com/ Policy/Where_we_stand/Jobs_and_Welfare. Asps; no date).It will be made law that anyone claiming out of work benefits will not be able to receive more than EWE,OHO per year, which is what the average person earns in employment. By implementing this cap, in 201 3, the government could be seen as trying to create a much fairer system for families and possibly promoting the notion that everyone should work. Although there has been a rise in divorce rates there also seems to be a high level of remarriage, which means that the number of reconstituted families is also on the rise as indicated by Duncan and Phillips (2008).This could signify that marriage and family is still of some importance to most individuals and regarded as necessary, although there is a rise in divorce, these same individuals are still opting to remarry and create their own family form. In conclusion, it is evident that traditional family and marriage are not necessary in a post modern society such as Britain, althoug h it is still considered as important to some individuals. Family in general seems to have some importance to most individuals, regardless of the family form.The rotational nuclear family is still seen as the preferred family type according to New right and Functionalists; nonetheless it seems realistic to accept that society has become more flexible in regards to their views on family due to the changes that have occurred. Looking at family from a postmodernist and feminist view it is evident that society is diverse and it makes sense to adopt an understanding nature towards family situations and types.

Darkside of the Industrial Revolution Exposed in Poems by...

In England during the industrial revolution there was a lot of poverty and pollution, especially in the main towns where the mass unemployment and people often had to go into the work houses. The conditions that they were made to work in were overcrowded. There was no sanitation or anywhere to clean, and there was a large amount of pollution. These all led to diseases among the workers. Some of the jobs that the children were made to do were chimney sweeping or selling matches. Adults had to do bone crushing for fertilisers, working in kitchens and doing the laundry for rich people. At the time there were three poets that all felt strongly about the appalling conditions and they were, William Blake, Michael Thomas Sadler and Percy Bysshe†¦show more content†¦Ã¢â‚¬ËœCharter’d’ is repeated when Blake writes, ‘Near where the chater’d Thames does flow’. Here, Blake is being ironic as a river is a symbol of nature, and therefore it should not be owned, however the rich possessed most of the land so in that way they indirectly owned the rivers as well. In the second verse Blake uses repetition in the words ‘in every’ to stress the suffering that people went through in those times. In the line ‘In every infant’s cry of fear’ Blake is emphasising that in those days suffering began at birth, he is also being ironic because for us it is not normal in England for children to born into suffering but unfortunately in those days it was, even though it shouldn’t of been. He was trying to emphasise this to show that it shouldn’t be happening. In the line ‘In every voice, in every ban’ Blake is trying to get us to understand that in this time of industrial revolution that it wasn’t just a few people that were affected, it was many and that the people who had power and money they thought it was okay to put restrictions on their lives and felt that some of it was their own fault. Blake uses a metaphor in the last line of the second verse in ‘The mind-forg’d manacles I hear.’ This is a metaphor because they are being controlled by the church, shown in the word ‘manacles’ as if they were prisoners of the church. Blake also uses a metaphor in

Managing Risk In Building Or Highway Work - Free Essay Example

Sample details Pages: 20 Words: 5859 Downloads: 9 Date added: 2017/06/26 Category Statistics Essay Did you like this example? 1 Introduction Managing risk should be a fundamental part of bidding for Building or Highways work. Risk is described by Atkinson (2001) as the à ¢Ã¢â€š ¬Ã…“probability of an occurrence of a hazard and the magnitude of the consequencesà ¢Ã¢â€š ¬?. Consequently risk may also be considered as the possibility of an experience happening and the resultant effect of the experience if it ere to take place. Don’t waste time! Our writers will create an original "Managing Risk In Building Or Highway Work" essay for you Create order As defined by RICS (2010) risk management is a means of processes where risks are recognised, examined and then of course controlled. It is a constant cycle that begins at the pretender stage; this means that risks of events are put into a bid from the start and also at the end of construction. During the different phases of a project, many new even previously un-thought of risks materialise throughout. Recognising them quickly allows faster mitigation; in order to reduce impact risk has on the project. This study has examined the inaccuracy of pretender process of managing risk with the use of both pretender and contract registers. There were also opportunities, they were recognised. The subject area of risk was selected following discussions with managers and work colleagues, during my 2010 placement year with Sir Robert McAlpine (SRM). This topic was considered as an ideal subject area for a research project because SRM were improving the system they currently incorporate. So the plan of the study was to advise any conclusions made on the research, so as to further enhance the pretender practice within SRM. My colleagues gave me some risk data sheets for a few projects. The emphasis being on highway construction, as this information was available from my placement and SRM. 1.2 Rationale The subject of what to research developed from consultations with colleagues and the line manager at SRM. My colleagues were interested in the managing of risk and were working to improve SRMà ¢Ã¢â€š ¬Ã¢â€ž ¢s pretender risk process to ensure it replicated the contract phase a bit more. This therefore illustrated a requirement in the business and indeed construction for research in to this topic area. The main reason for eventually electing the subject area of risk was the open access of information provided by SRM and the contact with knowledgeable personnel in my placement. This gave a better understanding of the procedures, allowing greater understanding in subject area of risk. In addition access was gained during placement to potential data in the form of contract and pretender risk registers from various Highway works undertaken by SRM. The aim of the research as came about by undertaking literary research, up to that point none of the data was collected, or plan formulated of how to use the data. The aim was to understand how pretender recognition of risks may be inaccurate. After that considering how it could be improved and whether it was possible to do so. Subsequently, recording any conclusions of pretender process in order to develop and better it. 1.3 Hypothesis, Aims and main Objectives 1.3.1 Aims Were to see if management of the contractual risks identifies significant additional risks that the pretender risk process failed to recognise and thus determine how inaccurate the pretender risk process is. 1.3.2 Objectives Find the processes presently employed to deal with risk, in both contractual and pretender phases and in recognising and measuring them. Investigate if important additional contractual risks recognised were within the pretender phase register. Compare SRMà ¢Ã¢â€š ¬Ã¢â€ž ¢s risk management processes with other contractors and analyse to find the best solution. If possible, note any resulting conclusions and input results within the pretender register then produce a new and accurate one. 1.3.3 Hypothesis The management of contractual risks in Highway construction successfully identifies additional risks, consequently pretender appraisal has become inaccurate. 1.4 Overview of work done / Methodology 1.4.1 SRM schemes/jobs The SRM jobs used on the research comprised of, M1 J25-28, and A19 upgrade (both Highways Agency jobs) and M74 Glasgow council, all Highway projects. A19 was Term Maintenance Contract (TMC) whereas M1 J25-28 and M74 upgrade were (MAC) contracts. When examining the A19 upgrade the contractual records were acquired but the pretender risk records were not. However the contractual records were compared to a risk bid from a different project. Not ideal but the only solution at the time. The majority of the items were related, so comparable/related items were drawn from the pretender items, then included in the A19 contract register. An evaluation was done involving the contract and pretender risks. To do this the max, min, probable costs in addition to the likelihood of a risk event were incorporated from contract and pretender appraisals. A total assessment of the risks was calculated via averaging the max, min as well as probable costs which are multiplied against the likelihood of the risk event. All risks types were identified, in order to distinguish trends in risks recognised at the pretender and found in contract phase or were not found at all. The A19 contract risk register was distinctive to M1 J25-28 and M74 upgrade registers as it didnà ¢Ã¢â€š ¬Ã¢â€ž ¢t contain costs. Every risk was divided by its probability and impact, whether that was high, medium or low appraisal. The pretender register, risk items were fitted against the occurring contractual register items. To see if every item in the registers were done, costs and probabilities were assigned to the A19 contractual risk method of appraisal. In getting a total assessment, both probability and risk price were multiplied. These costs were then evaluated against the overall pretender costs. 1.4.2 Highway contractor Interviews Interviews via telephone were conducted with a few companies to really see what processes are used at post contract and pretender. Also to find out how precise these methods are. Companies interviewed were: Morgan EST. Vinci Balfour Beatty May Guerney 1.4.3 Literature Review In order to understand the risk management procedures in construction and more specifically in Highways work a literary review was embarked on. This meant the research would gain an appreciation of the perception of risk by construction, prior to any literary review, my personal experience had only come from SRMà ¢Ã¢â€š ¬Ã¢â€ž ¢s perspective and the processes they use. In order to gain real understanding and to funnel clearly on what my hypothesis stated, it was decided to split the literature review into two sections. One section, comprising of processes used by industry, taken from an assortment of books. The second section being that of SRMà ¢Ã¢â€š ¬Ã¢â€ž ¢s highways process and accompanying documents. This makes it possible for an assessment to be conducted between SRM and the other contractors, like how different stages of a contract work in Highway works. 1.5 Overview of conclusions Both the information gained and analysis undertaken, imply the data could sustain the theory and main aims. Due to a large risk amount being found in contractual phase that was not previously seen at pretender. Even though assessments for any one risk were fairly inexact, overall assessment of pretender and contractual seemed strong. Showing pretender registers was inaccurate and needed to be better if assessments and risk management has to become more reliable. 1.6 Report Guide 1 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Introduction à ¢Ã¢â€š ¬Ã¢â‚¬Å" An opening on the managing of risk in the dissertation while validating the basis in selecting the subject area. The introduction states the aims, objectives and hypothesis that the researched was established upon, as well as outlining the work done and an overview of the Conclusions. 2 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Methodology à ¢Ã¢â€š ¬Ã¢â‚¬Å" Explains the methods used to investigate my hypothesis, from Literature review, approaches used in analysis and review of information and any outcomes. This expresses the reasons for utilising the techniques chosen also any research restrictions. Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s meant to be a methodical, simple approach to how things were done. 3 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Literature Review à ¢Ã¢â€š ¬Ã¢â‚¬Å" This chapter contains my understanding and Knowledge of the subject area. Done by means of, studying the risk process used in management through books, journals and the internet. Allowing a greater comprehension of risk in Highways work, and how ità ¢Ã¢â€š ¬Ã¢â€ž ¢s viewed and used. 4 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Results and Analysis à ¢Ã¢â€š ¬Ã¢â‚¬Å" Confirms the outcome in the investigation and subsequent breakdown of SRMà ¢Ã¢â€š ¬Ã¢â€ž ¢s jobs as well as the Highway contractors interviews. It outlines the judgments made concerning the pretender and contractual assessments. The Hypothesis was then tested against the information found, to see if its statement is true or false. 6 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Conclusionsà ¢Ã¢â€š ¬Ã¢â‚¬Å" This analyses all the results in relation to the hypothesis and if thereà ¢Ã¢â€š ¬Ã¢â€ž ¢s is any basis that it will hold up. Detailing limitations affecting the research, while also imparting proposals for both industry and any future dissertations. 2 Methodology 2.1 Introduction Methodologies are vital to the accomplishments of research and must be dealt with care in order for the most appropriate research methods to be chosen (Fellows and Liu, 2008). The methodology outcome depended on the subject area, research aims and amount of literature review obtained. For data collection and analysis, the methods employed ought to be realising the aims and objectives so as to continually test the hypothesis and validate the research. The information that was obtainable and available played a huge role, as work on the dissertation could not be done if the information wasnà ¢Ã¢â€š ¬Ã¢â€ž ¢t relevant. The information therefore can be decided by the hypothesis, as if the information was not on hand then one cant trial the hypothesis. Due to these factors, risk management was identified as an appropriate topic from the beginning, but it wasnà ¢Ã¢â€š ¬Ã¢â€ž ¢t until the research was started that defining the hypothesis was possible, yet having an impression of the aims and objectives that were to be accomplished. From the off, the aim was to gauge how precise pretender risk management was, even if unsure of the data and information existing prior to consulting SRM team. Ultimately this section highlights the research methods utilised in the research, and the close association that has been made when doing so between the methods and Aim, hypothesis and objectives. 2.2 Aim Employed to help concentrate the methodology in choosing the right methods, also to clarify to the person who reads the dissertation what precisely was being investigated. So this shall be done by recalling the Aim set out: To see whether the post contract risk process identifies key additional risks that the pretender risk process failed to recognise and thus determine how inaccurate pretender risk process is. 2.3 Quantitative and Qualitative methods In Data collection there are two key styles; quantitative and qualitative forms of research. Quantitative method, being a grouping of information done using figures, which is then evaluated by arithmetical trials to trial an assumption or theory (Creswell, 1994). While the Qualitative method was quite different, instead using connotations, previous incidents and words (Naoum, 2007). Quantitative Methods can be less difficult in examining; it creates measurable outcomes that create analytical arithmetical results. They tend to be better for others to read and understand. While, qualitative information from research has a tendency to be complicated as it often requires researcher input and manipulation to ensure ità ¢Ã¢â€š ¬Ã¢â€ž ¢s appropriate for investigative procedures (Fellows and Liu, 2008). The methods adopted depend upon data obtainable as well as the research itself. By executing good research, ità ¢Ã¢â€š ¬Ã¢â€ž ¢s generally required and essential to use both quantitative an d qualitative. Therefore a mixture of the two was brought to play, for a more correct and more reliable conclusion; more is detailed further in this section. 2.4 Literature Review As mentioned previously literary appraisal was undertaken; providing a core subject knowledge in risk management of Highway construction. The idea in doing this was grasping how risk was analysed in Highway construction sector, and the procedures used in controlling it. Next research was done to discover how risk was managed, by using literature in form of books and journals. Then see SRMà ¢Ã¢â€š ¬Ã¢â€ž ¢s risk management process from their risk management documentation. Dividing the literature review in two sections meant that one of the objectives could be fulfilled by comparing SRMà ¢Ã¢â€š ¬Ã¢â€ž ¢s risk management approach with other construction companies. By doing the literary appraisal it imparted a better comprehension of the chosen topic of risk, and illustrated the problems and successes in risk management. While also showing the diverse and numerous ways in managing risk, and how the approach identified and selected can depend on many issues like project type, contract used or even size of companies and jobs themselves. The list literature sources below were used in delivering the dissertation: à ¢Ã¢â€š ¬Ã‚ ¢ Textbooks à ¢Ã¢â€š ¬Ã¢â‚¬Å"were very useful in gaining the relevant knowledge of risk management, and procedures used. Books located in the library were discovered using the computer search engines. using. Chapters needed or thought appropriate were studied, and compared against searches that had been made on the internet. A check system, which assessed the validity of both sources of information against each other. With much of the research it became apparent that information in books available werenà ¢Ã¢â€š ¬Ã¢â€ž ¢t current especially in the older series of books. Despite this it wasnà ¢Ã¢â€š ¬Ã¢â€ž ¢t a predicament for Risk management as texts of up to ten years old were and are significant and applicable now, with some techniques having improved. The books allowed for great comparison for up to date information on the internet. Journals à ¢Ã¢â€š ¬Ã¢â‚¬Å" were again located on the Loughborough University library database, which with the relevant buzz words located material of use. Finding journals proved difficult in comparison to textbook numbers, yet the sources were helpful. à ¢Ã¢â€š ¬Ã‚ ¢ Internet à ¢Ã¢â€š ¬Ã¢â‚¬Å" supplied a platform for research of literature. Being easy to use and handy, collating information could be done at speed and with relative ease. It allowed greater understanding of what type of book would be needed from the library. Information from the internet was important but it had its limits and it was vital to know that it can be inaccurate and cause misguidance, research can be more guaranteed with text and journals. This way of thinking about limitations in using the internet was in mind when searching websites on risk in the construction. Finding various helpful websites any information was compared other websites in order to increase reliability, but most importantly against book and journals. As with all research appropriate sources of reliability were identified and used like the RICS website. Two editorials from RICS site provided constructive, and were used in the literature review. In finding books the internet was most use ful as many articles on websites highlighted book of particular relevance and use. à ¢Ã¢â€š ¬Ã‚ ¢ SRMà ¢Ã¢â€š ¬Ã¢â€ž ¢s Risk Management Procedures document à ¢Ã¢â€š ¬Ã¢â‚¬Å" SRMà ¢Ã¢â€š ¬Ã¢â€ž ¢s risk management procedure document was used as section two of the literature review. Reading through the document and important information was used in the literature review, particularly, on the processes used by SRM in risk management. A comparison was made between SRMà ¢Ã¢â€š ¬Ã¢â€ž ¢s procedures and with those found in the first half of the literature review. 2.5 Data Collection When actually collecting the data for the research the collection was again split into two parts. The initial data collection was from SRM projects, other data collection was associated to other contractors. The intention was to compare the risk procedures, and attempt at analysing which was the superior one. The next section shows how all the data collection was collected and prepared. 2.5.1 SRM Projects The information on the SRM jobs were formed while in placement during 2010, while working on the M1, involved in subcontractor packages and various Quantity surveying related work. Prior to any data collection, discussions with colleagues and senior managers took place in order to help formulate and aid the research as what would be required in terms of data. At this stage no hypothesis had been decided, the idea was to assess the accuracy of risks in the pretender assessments. Therefore colleagues stated and recommended the use of valid information in the form pretender and contractual risk registers could be provided. The contracts that would be made available were the M1 J25-28 scheme, A19 upgrade and M74 Glasgow project. Three similar Motorway/road maintenance projects that differ from each other contractually. A19 upgrade was a TMC to maintain, operate a network of strategic roads in the North East. M1 J25-28 and M74 are both MAC contracts for similar maintenance one in the midlands and the latter in Glasgow. A19 upgrade and M1 J25-28 are HA run, while M74 was for the Glasgow city council. The HA run their contracts by splitting their contracts into 13 sections in the UK, and in these projects cases offer for the extension and maintenance of the roads within these sections. The reason that A19 upgrade was a TMC but M1 J25-28 and M74, MAC based contracts were that previous to the MAC HA projects were also run with the TMC contract, but now all is done under MAC style. The contracts run for 5 years with optional extensions. Different sections of maintenance start and end at different areas on the motorway in question over a 5 year cycle, meaning that when MAC contracts were first used, some sections werenà ¢Ã¢â€š ¬Ã¢â€ž ¢t using them and using TMC etc A19 upgrade was a TMC completed in 2009, whereas M1 J25-28 scheme was a modern MAC contract just saw completion in late 2010. The difference in MACà ¢Ã¢â€š ¬Ã¢â€ž ¢s and TMC are TMC two separate companies, one as managing agent the other as main contractor. MAC consists of the 1 contractor, running both as an agent to the client and as main contractor on site. Using the three contracts as the basis for the research the risk manager on the placement at SRM provided a pretender register for the M1 J25-28 risk management and A19 contractual phase, both of which he had involvement on. Trying to get pretender ones for M74 was problematic but couldnà ¢Ã¢â€š ¬Ã¢â€ž ¢t find any. In order to have a full complete analysis, it was decided that for M74 to use another MAC pretender risk register. Pretty much similar to M74 except the location geographically. For sure this would create limitations but it could possible in using another risk register as SRM do when starting on a new comparable bids. So similarities would be high and that as long as it was noted in the dissertation as to its use and reasons why. Due to the generic nature of the risks they were deemed suitable as with what SRM do in practice. While on placement working on the M1 J25-28 contract meant developing contacts with colleagues who work day in day out on the subject are. Therefore requesting registers on M1 job was easier than the other jobs. The A19 contractual register came to me inn the same way. Getting the M74 contractual register, as the risk team on my placement had contact details for which to enquire with and the registers were duly emailed. 2.5.2 Rival Highway Contractors Obtaining information via rivals in the sector of road maintenance was much more difficult than from SRM sources, as they were very protective of information they gave out. The SRM jobs were Highways related, so the focus was getting some from Highway firms. By doing additional data collection it allowed for an honest comparison between SRM and other contractors. The methods were expected to have been alike if not the same, involving different construction projects; the data was likely to be different. The plan was to send questionnaires to the chosen contractors, but after unsuccessful returns it became apparent that another route would be needed, so interviews via telephone were deemed suitable. It seemed with written survey, contractors were inclined to take no notice of it or put a more generic thoughtless answer, While via a telephone interview response to the questions asked would be immediate and better, with no real confusion of what the question was asking as myself in person could explain. The Highway contractors contacted were: Morgan est. Vinci Balfour Beatty May Guerney A semi-structured set of questions was planned in order to gain the information required but also allowed telephone participant to elaborate and discuss the subject in a friendly professional manner. Contractors in Highways works were contacted, the dissertation of Risk Management was explained with the aims and objectives that needed to be achieved and asked the below queries: à ¢Ã¢â€š ¬Ã‚ ¢ Does your company possess a methodology for the management of pretender risks? à ¢Ã¢â€š ¬Ã‚ ¢ How does your company detect risks in the pretender phase? à ¢Ã¢â€š ¬Ã‚ ¢ How does your company calculate final risk totals? à ¢Ã¢â€š ¬Ã‚ ¢ Does your company undertake risk management after the contractual phase? à ¢Ã¢â€š ¬Ã‚ ¢ Could I obtain a pretender and or contractual risk register to use in my research (for the Highways project you are on)? Each Contractor interviewed was told research being undertaking intended in contrasting data in pretender phase against the contractual as well as any assessments made. The questions were supposed to see what processes companies used in managing risks. Overall the different companies were helpful in answering these questions. The Fifth and final question was done to get registers like that gained from SRM. It was the only difficult part as many refused to hand registers over from live projects due to the sensitivity of their data and company policies. However some registers were received but didnà ¢Ã¢â€š ¬Ã¢â€ž ¢t really contain the crucial information required just a formatted company risk register. Throughout the interviews, notes were made on the first four questions and the results put into a table at the time of the interview showing the company and their response to each question. Thus, making analysis easier when looking at the responses later in the dissertation. 2.6 Analysis of data Prior to analysis, the research had assessed how SRM price risks. It was crucial in knowing this before as it established the type of analysis would that be approved, and is detailed below. Upon formulating the risks that have been identified each risk will be categorised with maximum, most likely, minimum values and probability. The data was put through a programme @ RISK formulates hundreds of simulations, creating a graph showing the data. The 75th percentile is put in the final pretender as the final risk total. SRM do this for all of their projects. For this dissertation we were concerned in the risks recognised and individual costing risks as shown in paragraph above with min, max and probable etc. The focal point being what was keyed in to @ RISK as opposed to what it produces. For the Data analysis the SRM contracts have been split into their individual projects and the Other Highway contractors. The reason for splitting the SRMà ¢Ã¢â€š ¬Ã¢â€ž ¢s projects was that the analysis varied in parts by way it had been collected as mentioned earlier (some with full risk registers some in part). 2.6.1 M1 J25-28s scheme and M74 Glasgow Analysis for M1 and M74 projects were pretty much the same. The M1 contract and pretender risk register could be matched up to the pretender and contractual registers for the M74 contract risks, due to them being MACs. In evaluating the accurateness of the risk registers and appraisals made, comparable risks to contractual register were then removed from the pretender. When comparing values in matching risks, it was vital to have a total value for both pretender and contractual registers. The best and most impartial methods for pretender register were to average the minimum, maximum, probable figures then multiplying by likelihood of the event. These were a range of potential expenses which could be incurred by the risk, and any total cost was decided to be an average of these, as all projects had them. As its unknown as to ità ¢Ã¢â€š ¬Ã¢â€ž ¢s actually occurrence the average should be multiplied by the probability, which gives a total potential cost to the risk. While the contract risk registers should be considered by severity and possibility by scale of 1-5, and then an assessment of the risk was undertaken, figuring out the most likely value as well as minimum and maximum. Mitigation measures are identified for each risk, and then assessment was done again as before the mitigation. The M74 didnà ¢Ã¢â€š ¬Ã¢â€ž ¢t have min prices in its contractual register, therefore all risks were assumed to be zero. Without any minimum values any overall assessments of the risk would not have been made. The reason for not using the likely value instead was so the data would use a range of values. It was decided greater accuracy would be found in setting the minimum as zero and range of values than the most likely. By setting all its risks as zero means they are an unimportant minimum value or a risk/event that doesnà ¢Ã¢â€š ¬Ã¢â€ž ¢t happen. The M1 contract register had all the necessary values so no intervention was needed. Both contract risk registers failed to show any probability, just a likelihood scale from 1-5. Therefore it was assumed, giving the scale a percentage instead, 10%, 20%, 30%, 50%, 70% and 90%. Then the total appraisals of the contractual registers were done through an identical method. Where similar contractual risks could be distributable to a few pretender risks in a register or vice versa, the total appraisal amounts were split by the quantity of risk items, in preventing them being counted twice. This was tabulated under the headings; the contract risks, pretender risks, information put into the registers, and total assessment. The contract risks were then categorised: Unrecognised however is protected (No value). Unrecognised but not protected à ¢Ã¢â€š ¬Ã¢â‚¬Å" ought to have been recognised. Unrecognised à ¢Ã¢â€š ¬Ã¢â‚¬Å" unable to recognise. Recognised while also protected. Identified yet unprotected. Each risk was grouped by colour to state which category from above it fell in. 2.6.2 A19 upgrade The breakdown of the A19 job was began in a similar way to the M1 J25-28 and M74 contracts. The measurement total cost for pretender register was done the same as in the other projects by averaging and the different range of values and dividing by probability of them occurring. When totalling the contract risks differences became apparent as the register calculated risks another way, as there were no costs. So Instead they were measured under the probability and impact style grid, using severity status as guides, whether that be low, medium or high. So in order to measure the total value of risks would mean assigning each risk a value and probability based on the risk severity system used, then times the two numbers to get the total assessment for that given risk This therefore required the assignment of cost and probabilities to be accurate. So by using the Risk severity matrix as used by SRM, a cost could be associated to a certain risk level. With use of the grid SRM review probability/likelihood with a scale from 1-5 and assign costs in numerical order of the probability scale for impact: Below  £1,000 Between  £1,000  £10,000 Between  £10,000  £100,000 Between  £100,000  £1,000,000 Above  £1,000,000 The figures above seemed a very useful guide and perfect to use, create a good range that could be easily used in analysis. The likelihoodà ¢Ã¢â€š ¬Ã¢â€ž ¢s for the risks events were given percentages instead of low, medium, high, so as to fit in to correspond and be like the information found in M1 and M74 projects, so: Low being 10%, Medium at 50% High 90%. These numbers were chosen as the provided not too certain outcomes for low and high at 10 and 90 percent, while the medium suited to being the mid point between the two figures. So in getting the total risk value, costs timesà ¢Ã¢â€š ¬Ã¢â€ž ¢ probability. Then the rest of the analysis followed the same steps taken by M1 and M74 data analysis. 2.6.3 Analysis summary The tables of data for all three projects showing the comparisons made are in the appendices. These tables were only a start in analysing data as they on their own only show limited information that cannot fully test the hypothesis. So Risk recognition was key objective and so a list was formulated of any risks recognised, not recognised and not assessed, were omitted. From this list, risks could be categorised and therefore see which type of items could or could not be seen in pretender by the bid team. Now having had risks recognised and risks unrecognised as threats in pretender meant potentially testing a hypothesis as to whether pretender stage is inaccurate. From this new data 2 graphs were made highlighting and representing more clearly the type of items in registers that was recognised in pretender and those that werenà ¢Ã¢â€š ¬Ã¢â€ž ¢t. A review table was then drawn to finally account for the contract risks and categorised as below: Unrecognised however is protected (No value). Unrecognised but not protected à ¢Ã¢â€š ¬Ã¢â‚¬Å" ought to have been recognised. Unrecognised à ¢Ã¢â€š ¬Ã¢â‚¬Å" unable to recognise. Recognised while also protected. Identified yet unprotected. This table only really accounted for risks in pretender register which corresponded with contract risk, but not the other way round. So it didnà ¢Ã¢â€š ¬Ã¢â€ž ¢t account for all risks found in pretender bid or how many werenà ¢Ã¢â€š ¬Ã¢â€ž ¢t in the contract register. So a total evaluation of risks featured in the pretender bid but not in the contract register, so as to fully see the accuracy or inaccuracy of it. As a result a Pretender table of risks recognised at contractual phase was made and the total appraisals done at both pretender bid and contractual phase were compared and contrasted. Last part glimpsed through inaccuracies of pretender register. Done by removing risks identified in pretender and contractual documents, the disparities then tabulated. The variations were categorised, and detailed in a Histogram. 2.6.4 Rival Highway Contractors The ways in which the other Highway teams identified assessed risks at pretender stage, were investigated. This was done by referring back to the table formulated at the time of the interviews. Proceeding with recognition and classification methods, digging out the methods used, what company used what method type. The same was done for the appraisals of risk, so formed 2 pie charts showing the recognition and appraisal of the rival companies risk management processes. It illustrates the most popular methods used by the Highway Contractorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ interviewed. These methods were compared against the methods SRM use. Many of the companies did turn down the opportunity in handing over information, citied by them as the company policies not to do so and the information is delicate. However some registers were received but didnà ¢Ã¢â€š ¬Ã¢â€ž ¢t really contain the crucial information required just a formatted company risk. Also it proved difficult to obtain pretender and contra ctual registers, instead receiving one without having the other to compare against. Need to fill in contractors interviewed etc!!!!! It was very helpful to look at the various formats of different registers that companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s used, and the information put in them so that the risks could be managed properly. Nevertheless without a full set of pretender and post contract sets of registers, any statistical comparison of assessments made and risks identified at the different stages was impossible. Snapshots from Contactors registers were taken to show data gained and the limitation of them. Also after the telephone interviews a assessment was made of the methods used by the Highway contractors, against that of SRM. The accurateness of the Highway Contractors assessments of risk could not be explored and would have to be taken with trust and a pinch of slat. 2.7 Research Limitations Many limitations were found in the research affecting both its dependability and validity. This would be expected in any research, as acknowledgement of the faults strengthens the ideas and case put forward. The sections below show the limitation found and show their resultant affect on research and the dissertation as a whole. 2.7.1 Data limitations SRM schemes: From the aim and hypothesis already set out, the ideas was to see the inaccuracies of pretender methods and how it recognised or appraised items found within a contractual stage, compare the pretender with contractual registers for the one job or similar or job. So limitations occurred quickly even in the start of data collection, as there was no risk register for A19 pretender. As the pretender document had been misplaced/ lost another risk register from a similar project pretender was used. This was done as a lot of the risks were similar within in the similar project, but contract specific risks mean that they arenà ¢Ã¢â€š ¬Ã¢â€ž ¢t precisely the same. Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s important to note that when using assessments of parallel risk types, the risks are in reality different. Therefore the Total risk figure used in the bid will be different as it depends on many other factors than the risk itself. Using a similar project type etc. was the only way to really deal with the shortfall in data needed, even if it does reduce reliability. This has occurred largely in the assessment section of the analysis and quantifying the reliability would be another dissertation task in itself. The roles of risk registers were ensuring that construction groups can recognise risk and opportunities that could help or hider a project, so that steps can be taken to reduce risks and increase opportunities. Risks are constantly assessed, so people know risks that could cause problems to project and which could be beneficial. This allows key risks to take precedence and be mitigated if needed, overall keeping the right risk fresh. The process tends to be reassessed monthly, when risks are changed in terms of severity and assessed and re-measured, some removed due to no risk, while others and added. Risks are only removed or closed when thereà ¢Ã¢â€š ¬Ã¢â€ž ¢s little chance of future occurrence. This removal of risk has had an impact and limits research as when the pretender register was put side by side with the contract register, any assessment was not with risks found at pretender phase, only items which took place. Items in pretender registers will be ones believed by the pretender personnel to likely happen later within project time span, so will need to be mitigated. Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s important to note that not every recognised risk at pretender or contact phase take place, so the registers that are formulated to manage them are never going to be full proof to that actual value and probabilities they show. So any assessment made canà ¢Ã¢â€š ¬Ã¢â€ž ¢t be precise actually comparing a pretender registers with risks that have been managed and happened. In real world this doesnà ¢Ã¢â€š ¬Ã¢â€ž ¢t happen as they are not recognised when they transpire. Other Highway Contractors: When collecting information from other Highway contractors, many didnà ¢Ã¢â€š ¬Ã¢â€ž ¢t give the information required due to their companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s policies of offloading such data as it was valued. As a result contractors any registers received where either non-specific lists of items, live registers from projects without any values. It seemed impossible to get hold of pretender or contractual registers including all costs. Meaning a true and complete analysis could not be completed for highway contractors. As I have worked for SRM they were content for their information to be used, as they could potentially use the dissertation to develop their management of risks and their procedures. The SRM registers were easy to acquire and probably became a limitation as it decreased the amount of the research undertaken and subsequently the authority. 2.7.2 Methodology Limitations The main limitations to analysing data, was in total calculations when comparing assessments at pretender against contractual phase. Risk Items were appraised with the use of minimum, maximum, probable costs as well as the risk event likelihoodà ¢Ã¢â€š ¬Ã¢â€ž ¢s, comparing the overall assessments would have been hard, without a total value of the information. Any final measurement may produce inaccuracies as usually it would be run through @ RISK. So misinterpretation of data could be possible.