Importance of Peace and Order Law in the Development of...

I. Introduction Peace and order is an essential ingredient in maintaining economic development, social order and political stability. A condition of peace and order facilitates the growth of investments, generates more employment opportunities and attracts more tourists. Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area. Peace refers to absence of hostility. It refers to an environment that is characterized by healthy interpersonal and international relationships, acknowledgment of equality and fairness. A. Background of the Study From the Latin pax, meaning freedom from†¦show more content†¦The barangay being the basic units of the local government plays an important role in the development of the nation. The status of peace and order in a barangay illuminate that of the country, and a peaceful barangay is a peaceful country. It helps in maintaining social order, political stability through the help of the Executive orders of the government because of that the economy has been fully reorganized. D. Scope and Limitation The scope of this study is for the Barangay of different communities around Metro Manila. The study will include Barangay Marulas, Valenzuela City and how they work. It is focused on the procedure, ways and technique used by the Barangay officials as a subject for our thesis. The study does not cover any Government agencies that are not related to our topic. II. Review of Related Literature The benefits brought about by peace can also be measured in economic terms. Peace does in fact have a monetary value independent of the human values associated with it. It can be expressed in terms of the additional value to global GDP1 that would ensue from Economics and Peace in conjunction with the Economists for Peace and Security impact of lost peace on the world economy at 7.2 trillion dollars (US$7,200,000,000,000) annually. Over a ten year period this adds up to US$72 trillion. Once nations areShow MoreRelatedThe United Nations ( Un )1670 Words   |  7 Pagesestablishment of the UN. According to the Charter, the UN is open to â€Å"all other peace-loving states which accept the obligations contained in the present Charter and, in the judgment of the Organization, are able and willing to carry out these obligations† . Yet, the role of the UN has been weakened by many challenges in recent years. The UN has many problems in its mechanisms, structures and operations, and even some countries pose a pragmatic attitude to it, which seriously undermines its authorityRead MoreInfluence Of Developed Nations During The Development Of Post Colonial States1420 Words   |  6 PagesDeveloped Nations in the Development of Post-Colonial States Official Development Assistance (ODA) is a combination of loans and grants given to developing nations with the intent of furthering development in those nations. ODA is a crucial means for furthering the development of LDCs, Least Developed Countries. Singapore believes in the importance of ODA and promotes continued support for countries in need. Singapore recognizes how ODA contributed to the early development of Singapore, and is dedicatedRead MoreGood Governance in Pakistan1667 Words   |  7 PagesUnrestricted media 7. No military intervention 8. Socio economic development 9. Independent judiciary 7. Good governance and Islam 8. Distinction between Good governance and bad Governance 9 Parameter of good governance .Responsibility .Accountability .Rule of law Legitimacy .open administrative system Good relationship between ruler and ruled Definition of bad governance .Arbitrary policies of ruler .Irresponsible attitude No rule of law Unjust legal system Closed administrative system 10.Impacts ofRead MoreThe United States and Colombia1578 Words   |  6 Pagesrelationship through the course of history. There have been trade agreements signed by the two parties; also negotiations have taken part in regard to development strategies on the part of the US to promote the rule of Democracy and it’s institutions in Colombia, where illegal armed forces sought to control many aspects of the country’s development. Aside from trade agreements the United States and Columbia have also had agreements related to the protection of the environment, renewable energy, controlRead MoreThe Value Of Reputation : Canada1665 Words   |  7 PagesThe value of reputation is arguably one of the most important assets a country must secure. It is the foundation of how others look at us at first glance before paying a visit, whether it is a positive or negative outlook. It is also impacts other countries to work with and have trust in each other. Without a stable reputation, how can a country uphold peace and protection for itself? Many countries put the importance of a good reputation behind them while they attend to more â€Å"serious† urgenciesRead MoreInternational Law Changed During Post Wwii New World1576 Words   |  7 PagesInternational Law profoundly changed in a post WWII new world order in which the world was forced to face one of the most disturbing and difficult conflicts in its history. Regions across all frontiers were affected by the spread of nuclear weapons, genocide, tyranny and other manmade strategies to deflect the stability and tranquility of a once calmer and more serene world. Institutions such as the United Nations were devised after the end of a war that convinced nations that what happens aroundRead MoreKant on Moral Duty1066 Words   |  4 Pagesmatter of duty to make the false promise. (Kant, p. 431) He claims that one commits the act of lying in order to free themselves from a their current situations of disadvan tageousness; however, it is important for he who plans to commit the lie to ask himself if much greater difficulties may arise in the future from committing this indecency. If one were to act in respect to the universal law, he would develop the habit of never making a promise when he has no intention of keeping it. One of Kant’sRead MoreInternational Organizations And The International Organization Essay1518 Words   |  7 Pages The international organizations plays a various roles that positively and negatively impact the global socio economic development of various nations. These are institutions that are set to uphold the values of certain agendas that are put out there for member nations to embark on in improving a nation’s socio economic development. Some of these agendas and charters do come with costs and these costs includes fines, punishments. It also has benefits, a benefit weaker and stronger nationsRead MoreThe International Relations And Foreign Policies Decisions Essay1430 Words   |  6 PagesThe importance of Ethic in the study of the international relations and in foreign policies decisions by governments and others non-states. The structure of individual estates and how they behave has been influenced by the constitution of the international system. In others words, due to the fact that states behave in an anarchy system, in which is not a high authority that protects them in case that they found themselves into international affairs with others states, it makes that states persuadeRead MoreBecoming a Responsible Citizen? Can Education Help1586 Words   |  7 Pageslife. Prophet Muhammad (P.B.U.H) Said: â€Å"And acquire knowledge from cradle to grave.† Education is the fundamental factor in the process of human development. The importance of education in the process of nation building and economic prosperity can not be denied. The famous Greek philosopher Plato, while emphasizing the need and importance of education, said: â€Å"Education brings light to human mind and eye.† There is no denying the fact that uneducated and illiterate people cannot perform

Protecting the Privacy of Users Online - 2076 Words

There are large amounts of information available in the world through various media outlets, such as the internet, mobile conversations, emails, chats, messages, etc. Nowadays, everything is a big data and with the emergence of the whole new breed of big data software which is distributed all over in the world, whatever data is available can be used for analyzing. With the wide spread internet and improvement in technology the big data field have expanded at various fields like banking, finance, social network etc. This paper reviews how the data is being exposed on the internet and gives scope for the infringement of privacy; also I will review a variety of electronic tools/methods that helps in protecting users’ privacy as well reflect upon how much less people know about these infringements but how much more is happening. Also, I will review some of the rules that exist to protect the privacy of users online. Big data: Big data is anything which is too large for traditional databases to handle. They range from Terabytes of data to petabytes of data. Big data is generated from various sources, such as social media networks, oil wells, mobile phone conversations, weather data etc. Blackberry generates instrumentation data 500 Terabytes a day and has over 100 petabytes of data. Chase Bank generates 150 petabytes of total data, Facebook got over 70 petabytes, Chevron (an energy-based company) runs thousands of oil wells across the country and each well produces 15Show MoreRelatedRecommended Organizational Policy Changes Of The European Union998 Words   |  4 Pages(Microsoft changes Bing s privacy policy, 2010). The biggest offenders for malware on the internet is image and video searches on the web. Sophos reports that 92% of search-driven malware attacks is obtained from Google and Bing image searches. (Pearce, 2012). In a world of personalized online services, establishing and maintaining user trust and responsible use of data is critical. Users expect appropriate and relevant content and advertising while also protecting their privacy when they use any searchRead MoreWho Should Protect Our Data?1341 Words   |  5 PagesThe internet never forgets. Thi s fact raises issue of privacy concerns on the internet. Internet privacy involves the right to retain personal privacy regarding shared data on the internet. Privacy encroachment is altering the data provided by the user for the benefit of anyone other than the user. From the beginning of large scale computer sharing, the issue of privacy concerns has been a concern. The information a person releases via the internet is too large and extensive. There is very littleRead MoreHow Technology Has Become Increasingly Globalized And Is Now A Key Utility1491 Words   |  6 Pagestheir personal information online. What many fail to recognize is that tech companies—such as Facebook and Google—track their online activity and are incessantly storing and selling their information. A user may also willingly offer their information to these companies when they ask for it under the guise of personalizing the user’s experience. Often times the user’s information is sold to feature advertisements that are tailored to them, however, the tracking and mass online surveillance are endangeringRead MoreOnline Activities And Social Media1325 Words   |  6 PagesPeople should expect no privacy when it comes to their online activities. Companies like Facebook, Myspace and Google collect data on their users and sell it to advertisers. Advertisers then begin targeting social media users who match their profiles with online ads. As a user of social media, I often do online research on a particular topic or item I’m looking to buy to compare features and learn more about it. The next time I check my yahoo mail account, the side banner advertisements have allRead MoreYouthful Indiscretions: Should Colleges Protect Social Network Users from Themselves and Others?989 Words   |  4 Pagesin favor of institutionalized involvement in social network protection in her article â€Å"Youthful Indiscretions: Should Colleges Protect Social Network Users from Th emselves and Others?† (Fleming). Posted in the New England Journal of Higher Education, winter of 2008 issue, Fleming poses the question of responsibility in monitoring students’ online social networking activities. With a growing population of students registering on social networks like Facebook and MySpace, she introduces the concernRead MoreControversy of Privacy and the Internet1117 Words   |  5 Pagesâ€Å"Privacy is dead – get over it†, according to Steve Rambam, a privacy investigator who specializes in Internet privacy cases, this is how he considers privacy to be in today’s society. He is just another entity living in the midst of a high technology society to whom privacy seems to be dead when reaching the Internet. With all the traffic on the Internet, the risk of private information falling into the wrong hands is excessive, and with all the advances in computer technology the rate of privacyRead MoreHow Technology Has Changed Our L ives1482 Words   |  6 PagesMany people don’t ever think twice about posting their personal information online. They enjoy using many features that are made available to them on social media. Including tagging their location, posting pictures of themselves, and filling in their bio and profile with information about them. Technology has grown into something that is so easily accessible and convenient. One can now shop from the leisure of their home without ever moving from their sofa or changing out of their pajamas. What manyRead MoreInformation Privacy and whether it has changed since the World Wide Web600 Words   |  3 PagesInformation Privacy and whether it has changed since the World Wide Web Information privacy is related to personal data that is usually stored on computers and online servers (Litman, 2000). However, the information that internet users share online is not private as companies use this information or sell it to the other companies and governments who are interested in the information (Litman, 2000). Before the introduction of the internet and possibly the World Wide Web, private information wasRead MorePrivacy Issues, Child Safety And Hate Speeches1671 Words   |  7 Pageschanges has been made during the service time of Facebook, it impacts a lot of users. Criticisms made wide range of view on its privacy issues, child safety and hate speeches. In this essay, we are going to talk about the privacy issues that people concern about on Facebook and how it impact people after certain changes have been made by Facebook. What is Facebook? Facebook is an online social networking service. Users have to register to use the website, after that Facebook provides a bunch of featuresRead MoreThe Internet And Its Effects On Our Lives1631 Words   |  7 Pagesare partially listened, and sometimes even recorded. Today many companies sell, buy, and use personal information about their users. Those companies track people’s internet interactions and know almost everything about their online behavior: from their personal preferences in food, music, and cars to the health condition, phone numbers, and credit card numbers. Everything users do on the Internet - from the comments to tweets to a simple browsing - will never be erased from history. This is partly due

Internal Control Research Free Essays

To critically analyze the †¢To evaluate the importance of having Internal Control procedures within ‘The Bargain Centre’ Aims: †¢To investigate the number of different internal control procedures used within ‘The Bargain Centre’ †¢To gain knowledge of how the different internal control procedures help secure the business against theft and embezzlement etc. Data collection: In order to carry out my research on Internal Controls within ‘The Bargain Centre Supermarket’ I have observed over a period of time, while I was employed part time, the different type of Internal Control procedures set place. I have also interviewed the owner, and two (2) managers and also three (3) employees to get their views on the Internal Control that are effected within the business A secondary method that was also incorporated into this Internal Assessment (I. We will write a custom essay sample on Internal Control Research or any similar topic only for you Order Now A) was the use of the internet to gain general information about internal control systems. I have chosen the use of interviews to gather my information because it allowed me to get more in depth information and allowed me to dig deeper and get more information that was really needed to complete the report. ? Data Analysis: According to ‘www. liffnotes. com’: â€Å"Internal Control is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations. Safeguarding assets against theft and unauthorized use, acquisition, or disposal is also part of internal control. † Internal Control principles can be sub divided into a number of categories, a few important ones are: ? Segregation of duties: this requires that different individuals should be assign different duties, rather than one person be in charge of everything, as to reduce theft. For example the cashiers of a supermarket are not responsible for checking the money in their cash register. ?Establishing responsibilities: helps to ensure that all company activities adhere to guidelines unless other course of action is specified by a manager. For example there is a specific price list that has the price of every item with a store, only the manager can give authorization to change the price of a specific item. ?Documentation: provides evidence that financial statements are accurate and makes it possible to double check work. All records of sale and purchases should be kept safe and documented accordingly. ?Physical control: this should provide proper protection of company’s assets. Examples of physical controls are; †¢having fire proof safes and vaults to store cash before taking it to the bank †¢renting a safety deposit box for important papers like title deeds and insurance policies †¢having locked warehouse for inventories or stock †¢fencing company property †¢controlling computer facilities with a pass key which is access only by authorized personnel ?Mechanical control: improve accuracy and reliability of accounting information. These can come in the form of cash registers in shops, gasoline pumps in gas/petrol station and time clocks which employees use to show when they arrive at work. ?Electronic control: may be in the form of electronic burglar alarm system, television cameras to monitor thefts, as well as tags which must be removed or deactivated when the item is purchased or else they will trigger an alarm when the customer leaves the premises without having paid for the item. ?Independent internal verification: this is when an employee helps check the work of another to ensure it was done correctly. Internal Control over Inventory/Stock: In many businesses inventory is the most accessible assets, because of this it is made one of the prime target for theft. The business must there for have ways to protect inventory/stock from shop lifting from customers or even embezzlement by employees. A few ways to achieve this would be: †¢Use of surveillance cameras †¢Limiting access to store rooms and using physical control such as locks or vault to secure inventory/stock †¢Using sensitized tags on goods, which if not detached by sales clerk would trigger alarm, as to detour customers from shop lifting. Internal Controls over Accounts Receivable and Accounts Payable: One of the most important principals of internal control is that an employee that has custody over cash (or assets that can easily be converted into cash) should not be in charge of accounts receivable records, as to minimize fraud or theft. Records of names of creditors must be recorded and kept safe, while cash disbursements should be made quickly and whenever possible. How to cite Internal Control Research, Essays

Corporation Law Financial and Operational Risks

Question: Describe about the Corporation Law for Financial and Operational Risks. Answer: A) In the given situation the property is inherited to Dilara and Aysha by their great grandfather. They continued working on the wine yard as a part of the going concern concept. The purpose of the business is to continue for an indefinite period. The current business structure is based on Partnership. The profit is distributed among the sisters in an equal part. The partnership is governed by the Partnership Act[1]. The current property is inherited which is governed by the inheritance act[2]. The business is facing financial and operational risks. Dilara and Aysha are planning to change the business structure which would yield maximum benefit. The business has less working capital to operate its day today functions. In this particular situation the partners are sharing the profit as per the agreement in between them[3]. Profit sharing is the prima facie evidence which provides an evidence regarding existence of partnership[4]. Both the sisters are partners by the virtue of the agreement. The most common right of partnership is the mutual benefit to access the financial report of the organization. They have right to alter the agreement consensually. The partners have right to take decisions in the benefit of the organization. A small size organization is recommended to continue partnership as they have limited resources. The asset has been inherited from their great grandfather. There is lot of flexibility inherited in a partnership organization. It is better than the other business type due to fewer obligations especially compared with the publically owned company. The law and regulation are easy in case of partnership. At present the responsibility is shared in between the sisters to carry winery business. The only limitation of partnership in the given situation is lack of funds. The business has recently faced a problem in continuing the business due to lack of knowledge. In Green v Beesley[5] partnership is a mutual contribution by each partner. They are planning to sell a part of their business to Mr. Polat due to his expertise which would ultimately benefit the business. The partnership agreement is recommended to resolve the dispute in between the parties to the contract. It will help in benefitti ng the organization for a longer time period. b) The current business structure of Akita is partnership. The business is going through the major financial crises and it requires an expertise to invest in their business. Mr. Polat is a winery expert and wants to invest in the business. It is recommended to continue the business as a partnership. Akita needs to restructure its business by dissolving the current partnership agreement. The clause in the agreement needs to be added with the mutual consent with the new partner. It includes the provisions related to the profit sharing ratio. Currently the partners are equally sharing the profits. Restructuring of the business is necessary to create the profits. Partnership agreement should clearly states the provisions related to the future dispute. The right and duties of each partner must be mentioned clearly in the agreement. It is suggested to register the partnership as per the countrys law. Registration of partnership helps in resolving the future disputes caused internally or externally. The partnership organization gives leverage to partners while taking major decision in an organization whereas it is a time consuming procedure to take a decision. The resolution in a company is passed by the mutual consent of the board members. The process of registering a partnership is easier than a corporation. The organization is very small hence it is not recommended to restructure it. Restructuring of organization will ultimately put the burden on the existing partners. The legal expenses of converting an organization are very high. Hence it is recommended to continue partnership by adding Mr. Polat as a new partner. His investment and expertise would ultimately benefit the interest of the organization. The partnership can be managed easily by the partners. It is a small organization hence it is recommended to continue the partnership by adding the required resources for a perpetual growth. 2) As per the corporation act 2001 it is mandatory to pay dividend to all the shareholders of the company. In the given case study the company has incurred revenue of 300%. It is mentioned clearly in Section 254W[6] that every individual of the same class has equal rights to receive same dividend unless the company has a constitution which states different dividend rights or the company has passed a different resolution. Whereas section 254U[7] states that the director has a right to decide the amount of dividend payable at the end of the month. The method of payment is either through cash, grants or through transfer of assets. In the given situation Mr. Leo is the non-executive director who holds two shares of Thomas the Tank Engine Pty Ltd. Ruby and Amanda has mutually decided not to pay the dividend for the previous year. It is stated in the act that the executive directors cannot decide the decision related to the dividend. The shareholder has rights to claim dividend from the previous year profits. The current situation reflects the Leo purchased two shares in Thomas The Tank Engine Pty Ltd for $500,000 in total. Thomas The Tank Engine Pty Ltd manufactures trains which they sell it to the retail stores. Section 254T[8] states the company has to pay dividend until and unless the company exceeds the liabilities. The dividend should be fair to the companys shareholder. Thomas The Tank Engine Pty Lt d revenue has increased 300% The shareholder has a right to retrieve the document of the company. In this given situation the other two directors without any prior information decided not to pay to the other shareholders for their own benefit. The directors cannot take decisions regarding the dividend policies without making any amendment[9]. In the given situation the director has misused their power. Their decision regarding the dividend is ultra vires. In the situation when the management tries to take an undue advantage of their power, the other members have a right to question the two directors[10]. Lifting of corporate veil: In such a situation if the management tries to utilize it powers beyond the memorandum, in that case the members has a right to lift the veil. Management has no right to use the power which is given to them. Here, Ruby and Amanda, the two executive directors took a decision beyond their power without consulting the other members of the company. In such a situation it is recommended that the other member has a right to reach the court as per Section 233[11] which gives right to the court regarding the decision to wind up the organization. In case of any inappropriate activity the court can interfere in the companys operations. If the company default in making payment to any of the shareholders, then court has right to modify or repeal the operations of the organization. The case mentioned in the act is of oppression and mismanagement by the executive directors of the company. It is a case of oppression where one member of the board was ill-treated just on the basis of questioning the other two members. Ruby and Amanda utilizes the companys asset to lease out the car which is again an ultra-vires act. As per the Corporation Act the company cannot expel a director without the consent of the other directors. The removal of director can only take place on a serious ground. Section 191[12] of the Corporation act states that the directors have a responsibility to state the material personal interest. 3) The corporation act 2002 imposes various duties on the director of the company. The Director has a duty to diligently follow the working of the company which includes proper information related to the financial position. He has to ensure that the company does not trade when it is insolvent. He has to exercise his powers in a good faith for the shareholders interest. All the major decision related to internal working in a company is taken through the directors. They should carry their duty diligently with a motive of wealth maximization. Directors should not misuse their position for their own interest. Section 198A[13] specifies the power of the director. He has the responsibility to carry out the daily business activity of the business. He has the right to exercise the power in the good faith of the company. The company relies on the information given by the directors[14]. In the given case study TACH Ltd is making losses due to the previous investment made. The financial statement was negligently made by Mr. Erol who failed to mention it in the Board meeting. The given situation mentions negligence at the part of the directors. Section 180[15] states that, "it is the civil obligation to carry out the duty carefully". The directors have responsibility to carry out the duties in the favor of the organization. A director is imbibed with a responsibility to carry the routinely functions in an effective manager. He should discharge his duty efficiently with reasonable care. He has to make judgments in a good faith. Here the directors Section 181 of the corporation act states that the directors should take due care while discharging his duty. They have a duty to carry out the responsibility with a proper care. In this given case the company went insolvent due to the negligence of the director. Here the directors has committed mistake while addressing the general meeting. The shareholders have a blind faith over the decision which is carried out by the directors. Their judgment is believed by the shareholders. They hold a fiduciary place in a company. It is believed that their judgment is in the interest of the corporation. Section 182[16] mentions that the directors should not use their position for the purpose of self interest. He should not carry out any object which is detrimental for the company. Any person who contravenes the clause mentioned above has to pay a civil penalty. The corporation act 2001 states the civil penalty against the director who contravenes against the general duty given to him. The given case is regarding sheer negligence by the directors. SECT 1317E[17] mentions the amount of fine to be charged against the director. In the given situation the company went insolvent due to the mistake of directors. The director has a duty to prevent the operations in an organization when it is insolvent. A company is said to be insolvent if it is unable to pay debts when they are due. The director has a responsibility to carefully mention the financial statement of the corporation. A corporation cannot work further, if it is declared insolvent by the court. Section 183[18] of the act states that, "the directors should not misuse his position". A director is considered to have done wrong if he uses his place wrongfully. Further if he fail to exercise his power with a good intention. He is considered to be at a wrong if he utilizes his position dishonestly. The director is subjected to be at default, if he uses its place to benefit someone known which is detrimental for the corporation. Directors hold a fiduciary position in an organization. He should not use his rights to provide interest in a wrongful manner. In the case study the directors negligence has caused harm to the corporation. The company was at a very good financial position. Mr. Erol decision has caused harm to the existence of the company. The loss to the company is caused due to his negligence. The company officer is considered to be at fault if he passively neglects the common law and duties which were given to him. The company cannot trade while it is insolvent. As per s ection 592[19] of the corporation act, the company cannot carry out the trading activity when it is insolvent. Section 232(4)[20] imposes a reasonable degree of care and diligence while preventing the company to commit a fraud. Trading when company is insolvent It is prohibited to continue trading when the company has become insolvent. The act restricts the directors to pursue the trading activity. The following situations are considered while judging the position of the company: The situation when the company has incurred debt. In the given case study the company has incurred loss due to the negligence of the directors. The section stops the directors to continue trading on the reasonable ground that the company would not be able to continue trade due to huge loss. In case if the company incurs further loss it wont be able to pay off the debts to the creditors. The section further states that any person who was the director at the time when the company incurred loss tries to contravene to the clause mentioned in the section will be jointly and severally liable for the payment. The loss was caused due to the negligence of the directors. The financial statement was wrongly prepared by the director. Hence they are wholly responsible to continue. In the case law of Walden v. Hensler[21] it was states by the judge that mistake of law cannot be used as an excuse by the director. The director is under the fault if he commits a mistake due to his own negligence. In case if the directors want to prove that they were not wrong. They have to prove that the error was committed without the persons consent. In this particular case the decision was taken by the directors, secondly if company faces any debt, it wouldnt be able to pay off the debts in the future date. In the case law of Metal Manufacturers Ltd v. Lewis[22] it was stated by the majority of the New South Wales Court on the appeal of Mrs. Lewis that she was a passive director and she is not liable under 592(1)[23] of the act. She has further established under section 556(2) that she has not contravened any of the duty mentioned in sec 181 to 184 of the corporation act. The loss occurred to the corporation were without any prior information. Section 232(4) makes its compulsory to follow reasonable care while disposing off their duty. He has to discharge his duty very carefully. If he fails to comply with the section, the section attracts a fine of $ 5000. It is argued that the relevant act is the part of negligence. Section 189(c)[24] of the act states that, "the information given by the director is utilized by the company". Any information which is given by the director to the company is considered to be in the good faith. Hence, under the given situation the directors are liable to pay the penalty for the breach of duties mentioned in the section 1371E. The company cannot trade further under the name of TACH Ltd. 4) The auditor has a responsibility to plan and perform duty to assure whether the financial statements are free from any error or mistake. The financial statement is the responsibility of the management. He has a responsibility to express his opinion regarding the financial statement. It is the duty of the management to adopt sound policies to establish a strong internal control[25]. The auditor is responsible towards the management. He has a duty to work in the benefit of his client. They have a responsibility to follow the instructions which are given by their client. The auditor has a responsibility towards their clients. The independent auditor has to fulfill the duties which are given by the client. The auditor report is used by the third party to make a conclusion related to the financial position of the company. He has a direct relationship with the management or the client instead of the third party who uses the information. Decision of stakeholders depends upon the report w hich is given by the auditor. An auditor holds a fiduciary position; he owes an indirect responsibility to ensure that the rights of the shareholders are safeguarded. An audit is conducted to protect the interest of the shareholders. He is expected to examine the account which is maintained by the management. It is mandatory by the law to appoint an auditor to keep a check over the companys financial positions. The policy behind the concept is to create a direct responsibility of the auditor. He is directly responsible to the management of a corporation instead of various parties. Outsider parties are related to the auditor through the corporation. He is being appointed in the general meeting by the shareholders. It is expected that an auditor is appointed with the mutual consent of the people. Outsiders rely on the information which is stated by the auditor in the financial report. He has a duty to take care of the responsibility which is given by the client. In case if the auditor commits a mistake, it creates a direct responsibility on the management. In case of negligence by the auditor, they are held responsible. Any wrongful intentional act committed by the auditor makes them responsible under the current act. The auditor owes a duty of care in tort to the auditor. The approach is called as privity test. The defendant auditor owes a duty of care in tort if there is a contract in between the parties. In the case law of Ultramares Corporation VS Touch[26] auditor is liable under tort to anyone other than the client. There is a liability of the auditor beyond the liabilities mentioned in the act. There are many responsibilities which can be carried to find the exact possible test for the existence of the possibility. There are several possible tests which can be applied. Firstly for the prediction of the use of financial statement and auditor report, secondly knowledge of the limited class, thirdly the plaintiff who will rely on the given information[27]. The following concept is appropriate as the auditor has responsibility towards the society as well. A stakeholder relies on the information given by them. It is recommended that the auditor should use the responsibility given by the client.