Current account VS Savings account VS Fixed account

Current Account	Savings Account	Fixed Account
1)The account in which money can be deposited and drawn out more times of the daily banking hour is called c.a.	1)The account which can be started with a small amount of money to motivate people in savings is called savings account.	1)The account in which money can be deposited for a specific time period and drawn out after the expiry of the time with interest is called fixed account
2)Minimum initial deposit is tk.1000	2)Minimum initial deposit is tk.500	2)Minimum initial deposit is tk.10000
3)Objective is to maintain regular transaction	3)Objective is to save money	3)Objective is to earn more money
4)Bank doesn't pay no interest	4)Bank pay lower rated interest	4)Interest is paid on the basis of time
5)Bank doesn't invest the money of that account	5)It invests the money as short term loan	5)Bank invests the money in different sectors

Audit report types

(1)Standard Unqualified Audit report: Alternatively known as clean audit report. This type of audit report is issued when the following conditions have been met:

a)All the statements-balance sheet, statement of retain earnings, cash flow statements are included in the financial statements.

b)When the three general standard have been followed in every aspect.

c)When the auditor satisfied by sufficient evidence which discloses that three standard of field work have been met.

d)All the financial statements are presented by following GAAP.

e)When there requires no additional information to be added in the financial statement.

(2)Unqualified Audit report with modified wording: This type of audit report issued when all the financial statements are fairly presented but the auditor believes that some additional information needs to be added. This type of audit report is issued when the following conditions have been met:

a)Lack of consistent application of GAAP

b)Substantial doubt about going concern.

c)Auditor agrees with a departure from proclaimed accounting principles.

d)Emphasis of matter.

e)Report involving other auditors.

(3)Qualified opinion report: A qualified opinion report issued when there exist limitation on the scope of the audit or failure to follow GAAP.

(4)Adverse opinion report: This type of audit report issued when the auditor believes that the overall financial statements are not presented fairly also the statements being prepared without following GAAP.

(5)Disclaimer opinion report: This type of audit report is issued only when the auditor fails to satisfy him/her self that the overall financial statements are fairly presented.

Audit report & parts of it

A report that discloses or expresses the opinion of an auditor regarding the reliability & validity of the financial information of a business organization, is known as audit report.

Seven parts of standard unqualified audit report.

(1)Report title: It is the title of an audit report. Most often "Independent auditors' report"or "Auditors' report" is used as a title.

(2)Audit report address: It is the address to whom the report will be submitted. Generally they addressed to management or shareholders.

(3)Introductory paragraph: Introductory paragraph encompasses three things:

firstly, the statement which clarify that which CPA firm has done the auditing.

secondly, it states that which years financial statements as balance sheet, income statement, cash flow statement has been audited.

thirdly, it states that the financial statements are the responsibility of management, the auditors expressed only opinion based on the audit.

(4)Scope paragraph: It is a factual statement about what the auditor did in the audit, also it states that the auditor followed GAAP

(5)Opinion paragraph: It is the most important part of an audit report. Here the auditor expresses opinion based on the result of the audit.

(6)Name of CPA firm: The name which identifies the CPA firm or practitioner who performed the audit.

(7)Audit report date: The appropriate date on which the audit has been completed.

 

CPA firm & its activities

An organization that reviews activities to identify inefficiencies, reduces costs, investigate potential theft or fraud and ensure compliance with appropriate regulations and policies, also ensure the accuracy of reports is known as audit firm/CPA(certified public accountant) firm.

Activities of audit/CPA firm.

-The activities of a audit firm can be classified into two part:

(1)Primary activities

(a)Financial statement audit: The financial statement of an business organization such as income statement, statement of cash flows are audited in financial statement audit.

(b)Operational audit: Here the audit is done by auditing the day to day activities of a business organization.

(c)Compliance audit: The purpose of compliance audit is to determine whether an auditing is done by following exact regulations and law or not.

(2)Additional activities

(a)Accounting and bookkeeping services: Sometimes the journal and the ledger of some small company are prepared by audit/cpa firm.

(b)Tax services: Audit firm prepare corporate and individual tax returns for both audit and non-audit clients. Some times the audit firm calculate estate tax, gift tax etc. for their clients.

(c)Management consulting services: Most CPA firm consult their clients and instructs them in order to operate their business more effectively. These are known as management consulting services.

Social Change

The term social change is used to indicate the changes that take place in human interrelations. Society is a web of social relationship then social change means change in the system of social relationships. It refers to any significant change in behavioral patterns, cultural values and norms. Example of social changes are Industrial revolution, abolition of slavery and feminist movement.

*According to Morris Ginsbert "Social change is a change in the social structure"

*According to Horton and Hunt "Social change is change in overall social structure and relationship of a society

Theories of Social Change

1.Evolutionary Theory:

Evolutionary theories are based on the assumption that societies gradually change from simple beginnings into even more complex forms. Early sociologists beginning with Auguste Comte believed that human societies evolve in a unilinear way. According to them social change meant progress toward something better. They saw change as positive and beneficial. To them the evolutionary process implied that societies would necessarily reach new and higher levels of civilization. L.H Morgan believed that there were three basic stages in the process: savagery, barbarism and civilization. This evolutionary view of social change was highly influenced by Charles Darwin's theory of Organic Evolution. They said that societies must have evolved from the simple and primitive to that of too complex and advanced such as the western society. Herbert Spencer even applied Darwin's principle of the survival of the fittest to human societies. He said that society has been gradually progressing towards a better state. He argued that it has evolved from military society to the industrial society. 

2.Cyclical Theory: Cyclical theories of social change focus on the rise and fall of civilizations. Spengler

and Toynbee are the main advocates of this theory.

Spengler pointed out that the fate of civilizations was a matter of destiny. Each civilization is like a biological organism and has a similar life-cycle, birth, maturity, old-age and death. After making a study of eight major civilizations including the west he said that the modern western society is in the last stage i.e. old age.

Toynbee said that every society faces challenges at first, challenges posed by the environment and later challenges from internal and external enemies. The achievements of a civilization consist of its successful responses to the challenges; if cannot mount an effective response it dies. He does not believe that all civilizations will inevitably decay. He believed that  it will go new cycle through learning from mistake for achievement.

3.Functionalist or Dynamic Theory: In the middle decades of the 20th century a number of American sociologists shifted their attention from social dynamics to social static or from social change to social stability. According to Talcott Parsons changes may arise from two sources. They may come from outside the society through contact with other societies. In simple societies institutions are undifferentiated that is a single institution serves many functions. The family performs reproductive, educational, socializing, economic, recreational and other functions. Different institutions such as school, factory may take over some of the functions of a family. The new institutions must be linked together in a proper way by the process of integration. 

4.Conflict Theory: Conflict theory states only about instability, struggle, social disorganization. According to Ralf Dahrendorf  the conflict theories assume that - every society is subjected at every moment to change, hence social change is ubiquitous. Every society experiences at every moment social conflict, so social conflict is everywhere. The most famous and influential of the conflict theories is the one put forward by Karl Marx who along with Engel. Since the two major social classes the rich and poor or capitalists and the proletariat have mutually hostile interests they are at conflict. This conflict repeats itself off and on until capitalism is overthrown by the workers and a socialist state is created. Like Karl Marx George Simmel states that conflict is a permanent feature of society and not just a temporary event. It is a process that binds people together in interaction.