Herbert George Wells Essay Research Paper In free essay sample

Herbert George Wells Essay, Research Paper In History, many authors have tried to touch on narratives of scientific discipline fiction, but were non excessively successful. One adult male though, by the name of Herbert George Wells has been considered by some to be the male parent of modern scientific discipline fiction. ( GeoCities.com ) H.G. Wells as some may name him, have had assorted books, and narratives that has made him really celebrated in the great book universe around the state, every bit far as modern scientific discipline fiction goes. Wells best know books include, ? The Time Machine? , ? The Invisible Man? , ? The War of the Worlds and? The Island Of Dr. Moreau. # 8221 ; Out of 100 Books Wells wrote 50 of them were top Sellerss across the United States and many parts of the universe. Many Critics seen Well # 8217 ; s as a loony and balmy author because of his illusionary head, But Wells seen his work as a piece of the universe that everyone was afraid to touch on, but Wells was the brainsick author that did s o. Equally far as many people were concerned, Wells was considered a great writer for his work and one of the best writers of his clip because of his imaginativeness and delusional sense of head. His Hagiographas were non like any others because he ever wrote about the other side of the universe no 1 daring? s T touch foreigner? s and the universe stoping at that clip. Now many authors have free-fall authorship about scientific discipline fiction because of our more sense on the scientific discipline fiction life. Wells can be responsible for why we now talk about scientific discipline fiction, Because in this universe many things are still to be discovered and taught about and some people are excessively frightened and afraid to see what is out at that place and when Wells found scientific discipline fiction a whole new door opened. At the clip this made him different from many authors because of his topics but he was merely every bit good every bit good as some and better than a batc h. His sense and admiration for scientific discipline fiction made him alone and really absorbing to the reader universe. At First people we scarred to read Wells composing because they didn? T know what to anticipate from a scientific discipline fiction author but one time they got a clasp of his first book they were fascinated, and that? s how Wells succeeded. H.G.Wells had a past that was similar to many great authors but his alone backgrounds made him different. Wells was born in Bombay, Kent in 1866. ( Geocities.com ) . His male parent was a tradesman, even though being a tradesman wasn? t a great occupation # 8217 ; during those times but Wells father had a household to be given excessively so he had to make what he had to make. His female parent on the other manus served from clip to clip and, besides was a housekeeper at the freshly estate. His male parent? s concern failed and to promote the household to middle category position, Wells apprenticed like his brothers to a dr aper, passing the old ages between the old ages of 1880 and 1883 in Wilson and South sea. ( kirjasto.sci.fi/hgwells.com ) His calling as an writer was fostered by unfortunate accident as a immature kid. He broke his leg in 4 topographic points and spent a mandatary of the clip resting and reading about every book he could happen ( kirjasto.sci.fi/hgwells.htm ) . In 1883 Wells became a teacher/pupil at Midwest Grammar School. He was a really good instructor and many of pupils and staff seen him as a good and great instructor because of his ways he carried on his instruction and the was he taught his literary work. He obtained a scholarship to the Normal School of Science in London and studied their biological science under T. H. Huxley. ( kirjasto.sci.fi/hgwells.htm ) He majored in biological science and scientific discipline and earned his grades, this had a batch to make with how he got his cognition for scientific discipline fiction books and why he was so good at his work. Howeve r his purpose fluted and in 1887, he left without a grade. He taught in private schools for four old ages, non taking his Bachelor? s grade until 1890. The following twelvemonth he settled in London and by accident he married his cousin. Her name was Isabel, unluckily he fell in love with her and forced her to get married him, but when he found out it was his cousin he had to allow her travel. Wells continued his calling as a instructor in a correspondence college but for the following twelvemonth, he became a full clip author and he did what he loved to make. As a novelist Wells made his introduction book called? The Time Machine? a book of great English novel that showed a batch of people what scientific discipline fiction was all about. Wells had many more novels to compose but the book he wrote? The Time Machine? boosted his calling and helped people to recognize what he was capable of and what to anticipate in the hereafter. H. G. Wells was a suspense grabber and he knew how to catch the reader and do the reader feel as if he or she was seeing the existent thing as they read. For illustration On Halloween dark in 1938 Orson Wells and the Mercury Theater broadcasted a dramatisation of H.G. Wells? celebrated narrative? War of The Worlds? which recounted a Martians invasion of the Earth. The version includes realistic wireless intelligence bulletins informing hearers of the developing saga. A music plan was interrupted to brief hearers that an foreigner object had landed in Grover? s Mill, N. J. ? News Announcers? depict the terrorizing events as they unfold. Although Wells informed hearers at the start of the plan that they were listening to a fictional wireless play, 1000s of hearers who tuned in late believed the Earth was so under foreign onslaught and terror shortly followed. ( www.ecyclopedia.com ) Wells claimed that the broadcast was neer intended to gull people or flim-flam them but he wished to sho w a great Halloween narrative. It was, he said, ? the Mercury Theater? s ain wireless version of dressing upon a sheet and leaping out of a shrub stating? hoot! ? In either instance, it turned out to be one the biggest Halloween narratives of all time told. The whole episode attempts to exemplify a figure of things about mass psychological science, but besides about the willingness of people in the 1930? s to believe that we are non entirely in the existence and for that it made Wells? narrative seem so interesting and come to life. Narratives he wrote he intended to catch the reader and do them believe what they are reading and what the whole suspense of the narratives would be all about. Well? s was a great author because of how he did his work he didn? T merely travel right into the suspense he merely tip toed you into the exhilaration of the narrative which made it so great for his authorship to be put together. Well’s accomplishments of scientific discipline helped him widen his imaginativeness towards his composing many people said that the scientific discipline may hold non been accurate, but the escapade towards the doctrine in those books makes Wells early scientific discipline fiction books intriguing and exciting to read. Before the # 8220 ; War of the Worlds # 8221 ; Wells had many novels that were really popular. One novel was the great book # 8220 ; The Time Machine # 8221 ; which was a narrative about a clip traveller that travels back into the clip 802701 ad discovery two brilliant people, the Eloi ; weak and small, who lived above land and the Morlocks, carnivorous animals that live below land. All of the pragmatism of the was achieved by carefully studied proficient inside informations. The proficient inside informations of the narrative made this fresh one of the best that Well is achieved but the novel was non every bit large as some of the others that were written. As Wells life went on, he wrote narratives such as # 8220 ; The Island of Dr. Moreau. # 8221 ; ( kirjasto.sci.fi/hgwells.htm ) This narrative had dramatic effects of horror every bit good as comedy. The novel was about a huffy scientist who transformed existent animate beings into existent human animals. Many people thought this novel was his best, but some still felt different. The following novel was # 8220 ; The Invisible Man. # 8221 ; This was Faustian narrative of a scientist who tampered with nature in chase of superhuman powers. ( kirjasto.sci.fi/hgwells.htm ) Nothing like this was brought into the fresh scene until Well # 8217 ; s start composing novels and narratives about this supernatural material and the scientific discipline fiction universe. What is alone and interesting about this novel, it was so good that it was turned into a film subsequently down the line. Wells gained a batch of cognition and regard for his books he wrote. But he was shortly recognized after a book was published, but he tried his hardest to acquire his accomplishment and recognition, so every narrative he wrote was better than the last. Wells was rumored to hold worked with one of the greatest writers of all time known other than his ego. Gallic novelist Jules Verne, a great Gallic writer who was rumored to hold criticized Wells work. The two worked together and traded remarks and thoughts about the book ( geocities.com ) . Afterwards Well # 8217 ; s wrote # 8220 ; The First Man on the Moon # 8221 ; which was a prophetic description of the methodological analysis of infinite flight. After wining in that book, Wells went further and wrote the # 8220 ; War in the Air # 8221 ; . This was about a loanblend that places Kipps-like Cockney hero in the context of a ruinous aerial war ( www.kirjasto.sci.fi/h.g.wells.htm. ) Although Wells novels were extremely entertaining, he besides tried to pave manner for a wiser attitude about the hereafter of world. After composing # 8220 ; The First Men on the Moon # 8221 ; and the # 8220 ; War In the Air # 8221 ; Wells was dissatisfied with his literary work. This bend in his life he wrote # 8220 ; Love and Mr. Lewisham # 8221 ; . In add-on, during alteration in Wells # 8217 ; s life # 8220 ; The New Machiavelli # 8221 ; which was a narrative about the eruption of the war in 1914 ( www.kirjasto.sci.fi/h.g.wells.htm ) . Wells was involved in a love matter with the immature English writer Rebecca West, which influenced his work and life profoundly. Rebecca changed him in many ways. Wells following novel was # 8220 ; The lineation of History which became really popular. Here is a really popular quotation mark from that novel, # 8220 ; The professional military head is by necessity an inferior and sterile head ; campaigner of high rational quality would willingly incarcerate his gifts in such calling. # 8221 ; This quotation mark along with his many novels gave Wells a good repute and he became sort of a famous person. In 1917 he was a member of Research Committee for the League of Nations and published several books about the universe organisation. In the early 1920 # 8217 ; s, he was a labour campaigner for Parliament. Between the old ages 1924 and 1933, Wells lived chiefly in France. From 1934 to 1946, he was the International president of Pen. In 1934, he had treatments with both Stalin and Roosevelt, seeking to enroll them to his world-saving strategies. However, he despaired of the whole concern when the planetary war broke the peace for the 2nd clip. Wells was a really high winner and succeeded through life making what he did best, write ( this whole paragraph www.kirjasto.sci.fi/.h.g.wells.htm ) . During Wells subsequently old ages, he still kept the books turn overing and best Sellerss coming. Wells Last book # 8220 ; Mind at the End of it? s Tether in 1945, this book expressed pessimism about world # 8217 ; s hereafter chances in life. The book touched on the base of what Wells believed the universe was traveling to be approximately in the hereafter after Wells died. Wells point of view in this book was to demo that the universe was headed and how he seen the universe developing. Most people believed that when he wrote this book, that the whole point was non merely to do people scared or anything like that but to wake up the reader and give them a idea of the universe in the hereafter. This gave most readers a bang on how they seen the book and pin pointed each person standout of the book contrasting towards the development of the book. On August 13th, 1946, Herbert George Wells died of a monolithic bosom onslaught in London, England. ( www.kirjasto.sci.fi/hgwells.htm ) Ev en after his decease, the people still retrieve his work and good being towards the book universe. Even today many writers keep the regard they gained from Wells by reading his books and great novels. Wells will ever be know as the male parent of modern scientific discipline fiction.

Vanguardia movement in cuba Essay Example

Vanguardia movement in cuba Paper The art of the Cuban culture goes back to prehistoric times, when thefirst traces where found in caves. This type of art was later labeled as folk art because of their nature and craftsmanship. During the 15th and 16thcenturies the island was full of poverty and not much art streamed out. Painters from foreign countries flooded into Cuba saying it was the key to the new world. The Cubans came back in the 17th and 18th centuries when artists flourished and art became prominent, mainly through Francisco Javier Baez. In modern times there are 3 artists that are believed to be the most influential: Wifredo Lam, Victor Manuel Garcia, and Amelia Pelaez. Wifredo Lam was born in Havana, Cuba in 1887. In his early days as an artist his subject matter revolved around still lifes and landscapes of the places he traveled to with the Association of Painters and Sculptures of Havana. When he moved to Spain in 1923 his style shifted from realism to cubism and then to surrealism. He had hisfirst e xposition in 1939. His style in that exposition consisted of simplified shapes influenced by cubism and African sculpture. From the 1950s on he started focusing his art on graphic design and ceramics. The major features of his mature art are refined and bold designs, with a sensual violence and a personal vision of the primitive poet. In his last 30 years Lam has been the focus of a lot of retrospective expositions and his work is framed in tons of art galleries around the world. Once he moved to Paris, his focal points changed and he started painting women and women with their children, hinting into the era of feminism. Eventually, his art was used influence the practitioners of Santeria. Once he had been painting for many years, he started using dark, bold colors and his painting turned more erotic than before and more abstract. Victor Manuel Garcia was born in Havana, Cuba in 1897. Although hefirst started work

International Standards on Auditing 315 Essays

International Standards on Auditing 315 Essays International Standards on Auditing 315 Essay International Standards on Auditing 315 Essay INTERNATIONAL STANDARD ON AUDITING 315 IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT (Effective for audits of financial statements for periods beginning on or after December 15, 2009) CONTENTS Paragraph Introduction Scope of this ISA . 1 Effective Date 2 Objective . Definitions .. 4 Requirements Risk Assessment Procedures and Related Activities .. 5-10 The Required Understanding of the Entity and Its Environment, Including the Entity’s Internal Control .. 11-24 Identifying and Assessing the Risks of Material Misstatement 25-31 Documentation .. 2 Application and Other Explanatory Material Risk Assessment Procedures and Related Activities . A1-A16 The Required Understanding of the Entity and Its Environment, Including the Entity’s Internal Control .. A17-A104 Identifying and Assessing the Risks of Material Misstatement A105-A130 Documentation .. A131-A134 Appendix 1: Internal Control Components Appendix 2: Conditions and Events That May Indicate Risks of Material Misstatement IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 272 International Standard on Auditing (ISA) 315, â€Å"Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment† should be read in conjunction with ISA 200, â€Å"Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing. † IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 273 ISA 315 AUDITING Introduction Scope of this ISA 1. This International Standard on Auditing (ISA) deals with the auditor’s responsibility to identify and assess the risks of material misstatement in the financial statements, through understanding the entity and its environment, including the entity’s internal control. Effective Date 2. This ISA is effective for audits of financial statements for periods beginning on or after December 15, 2009. Objective 3. The objective of the auditor is to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and assertion levels, through understanding the entity and its environment, including the entity’s internal control, thereby providing a basis for designing and implementing responses to the assessed risks of material misstatement. Definitions 4. For purposes of the ISAs, the following terms have the meanings attributed below: a) Assertions – Representations by management, explicit or otherwise, that are embodied in the financial statements, as used by the auditor to consider the different types of potential misstatements that may occur. (b) Business risk – A risk resulting from significant conditions, events, circumstances, actions or inactions that could adversely affect an entity’s ability to achieve its objectives and execute its strategies, or from the setting of inappropriate objectives and strategies. c) Internal control – The process designed, implemented and maintained by those charged with governance, management and other personnel to provide reasonable assurance about the achievement of an entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations. The term â€Å"controls† refers to any aspects of one or more of the components of internal control. d) Risk assessment procedures – The audit procedures performed to obtain an understanding of the entity and its environment, including the entity’s internal control, to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and assertion levels. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 274 (e) Significant risk – An identified and assess ed risk of material misstatement that, in the auditor’s judgment, requires special audit consideration. Requirements Risk Assessment Procedures and Related Activities . The auditor shall perform risk assessment procedures to provide a basis for the identification and assessment of risks of material misstatement at the financial statement and assertion levels. Risk assessment procedures by themselves, however, do not provide sufficient appropriate audit evidence on which to base the audit opinion. (Ref: Para. A1-A5) 6. The risk assessment procedures shall include the following: (a) Inquiries of management, and of others within the entity who in the auditor’s judgment may have information that is likely to assist in identifying risks of material misstatement due to fraud or error. Ref: Para. A6) (b) Analytical procedures. (Ref: Para. A7-A10) (c) Observation and inspection. (Ref: Para. A11) 7. The auditor shall consider whether information obtained from the auditorâ€℠¢s client acceptance or continuance process is relevant to identifying risks of material misstatement. 8. If the engagement partner has performed other engagements for the entity, the engagement partner shall consider whether information obtained is relevant to identifying risks of material misstatement. 9. Where the auditor intends to use information obtained from the auditor’s previous experience with the entity and from audit procedures performed in previous audits, the auditor shall determine whether changes have occurred since the previous audit that may affect its relevance to the current audit. (Ref: Para. A12-A13) 10. The engagement partner and other key engagement team members shall discuss the susceptibility of the entity’s financial statements to material misstatement, and the application of the applicable financial reporting framework to the entity’s facts and circumstances. The engagement partner shall determine which matters are to be communicated to engagement team members not involved in the discussion. (Ref: Para. A14-A16) IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 275 ISA 315 AUDITING The Required Understanding of the Entity and Its Environment, Including the Entity’s Internal Control The Entity and Its Environment 11. The auditor shall obtain an understanding of the following: (a) Relevant ndustry, regulatory, and other external factors including the applicable financial reporting framework. (Ref: Para. A17-A22) (b) The nature of the entity, including: (i) its operations; (ii) its ownership and governance structures; (iii) the types of investments that the entity is making and plans to make, including investments in special-purpose entities; and (iv) the way that the entity is structured and how it is financed to enable the auditor to understand the classes of transactio ns, account balances, and disclosures to be expected in the financial statements. Ref: Para. A23-A27) (c) The entity’s selection and application of accounting policies, including the reasons for changes thereto. The auditor shall evaluate whether the entity’s accounting policies are appropriate for its business and consistent with the applicable financial reporting framework and accounting policies used in the relevant industry. (Ref: Para. A28) (d) The entity’s objectives and strategies, and those related business risks that may result in risks of material misstatement. (Ref: Para. A29-A35) (e) The measurement and review of the entity’s financial performance. (Ref: Para. A36-A41) The Entity’s Internal Control 12. The auditor shall obtain an understanding of internal control relevant to the audit. Although most controls relevant to the audit are likely to relate to financial reporting, not all controls that relate to financial reporting are relevant to the audit. It is a matter of the auditor’s professional judgment whether a control, individually or in combination with others, is relevant to the audit. (Ref: Para. A42-A65) Nature and Extent of the Understanding of Relevant Controls 13. When obtaining an understanding of controls that are relevant to the audit, the auditor shall evaluate the design of those controls and determine whether they have been implemented, by performing procedures in addition to inquiry of the entity’s personnel. (Ref: Para. A66-A68) IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 276 Components of Internal Control Control environment 14. The auditor shall obtain an understanding of the control environment. As part of obtaining this understanding, the auditor shall evaluate whether: (a) Management, with the oversight of those charged with governance, has created and maintained a culture of honesty and ethical behavior; and (b) The strengths in the control environment elements collectively provide an appropriate foundation for the other components of internal control, and whether those other components are not undermined by deficiencies in the control environment. (Ref: Para. A69-A78) The entity’s risk assessment process 15. The auditor shall obtain an understanding of whether the entity has a process for: (a) Identifying business risks relevant to financial reporting objectives; (b) Estimating the significance of the risks; (c) Assessing the likelihood of their occurrence; and (d) Deciding about actions to address those risks. (Ref: Para. A79) 16. If the entity has established such a process (referred to hereafter as the â€Å"entity’s risk assessment process†), the auditor shall obtain an understanding of it, and the results thereof. If the auditor identifies risks of material misstatement that management failed to identify, the auditor shall evaluate whether there was an underlying risk of a kind that the auditor expects would have been identified by the entity’s risk assessment process. If there is such a risk, the auditor shall obtain an understanding of why that process failed to identify it, and evaluate whether the process is appropriate to its circumstances or determine if there is a significant deficiency in internal control with regard to the entity’s risk assessment process. 17. If the entity has not established such a process or has an ad hoc process, the auditor shall discuss with management whether business risks relevant to financial reporting objectives have been identified and how they have been addressed. The auditor shall evaluate whether the absence of a documented risk assessment process is appropriate in the circumstances, or determine whether it represents a significant deficiency in internal control. (Ref: Para. A80) IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 277 ISA 315 AUDITING The information system, including the related business processes, relevant to financial reporting, and communication 18. The auditor shall obtain an understanding of the information system, including the related business processes, relevant to financial reporting, including the following areas: (a) The classes of transactions in the entity’s operations that are significant to the financial statements; (b) The procedures, within both information technology (IT) and manual systems, by which those transactions are initiated, recorded, processed, corrected as necessary, transferred to the general ledger and reported in the financial statements; c) The related accounting records, supporting information and specific accounts in the financial statements that are used to initiate, record, process and report transactions; this includes the correction of incorrect information and how information is transferred to the general ledger. The records may be in either manual or electronic form ; (d) How the information system captures events and conditions, other than transactions, that are significant to the financial statements; (e) The financial reporting process used to prepare the entity’s financial statements, including significant accounting estimates and disclosures; and f) Controls surrounding journal entries, including non-standard journal entries used to record non-recurring, unusual transactions or adjustments. (Ref: Para. A81-A85) 19. The auditor shall obtain an understanding of how the entity communicates financial reporting roles and responsibilities and significant matters relating to financial reporting, including: (Ref: Para. A86-A87) (a) Communications between management and those charged with governance; and (b) External communications, such as those with regulatory authorities. Control activities relevant to the audit 0. The auditor shall obtain an understanding of control activities relevant to the audit, being those the auditor judges it nece ssary to understand in order to assess the risks of material misstatement at the assertion level and design further audit procedures responsive to assessed risks. An audit does not require an understanding of all the control activities related to each significant class of transactions, account balance, and disclosure in the financial statements or to every assertion relevant to them. (Ref: Para. A88-A94) IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 278 21. In understanding the entity’s control activities, the auditor shall obtain an understanding of how the entity has responded to risks arising from IT. (Ref: Para. A95-A97) Monitoring of controls 22. The auditor shall obtain an understanding of the major activities that the entity uses to monitor internal control over financial reporting, including those related to those control activities relevant to the audit, and how the entity initiates remedial actions to deficiencies in its controls. Ref: Para. A98-A100) 23. If the entity has an internal audit function,1 the auditor shall obtain an understanding of the following in order to determine whether the internal audit function is likely to be relevant to the audit: (a) The nature of the internal audit function’s responsibilities and how the internal audit function fits in the entity’s orga nizational structure; and (b) The activities performed, or to be performed, by the internal audit function. (Ref: Para. A101-A103) 24. The auditor shall obtain an understanding of the sources of the information used in the entity’s monitoring activities, and the basis upon which management considers the information to be sufficiently reliable for the purpose. (Ref: Para. A104) Identifying and Assessing the Risks of Material Misstatement 25. The auditor shall identify and assess the risks of material misstatement at: (a) the financial statement level; and (Ref: Para. A105-A108) (b) the assertion level for classes of transactions, account balances, and disclosures (Ref: Para. A109-A113) o provide a basis for designing and performing further audit procedures. 26. For this purpose, the auditor shall: (a) Identify risks throughout the process of obtaining an understanding of the entity and its environment, including relevant controls that relate to the risks, and by considering the classes of transactions, account balances, and disclosures in the financial statements; (Ref: Para. A114-A115) 1 The term â€Å"inter nal audit function† is defined in ISA 610, â€Å"Using the Work of Internal Auditors,† paragraph 7(a), as: â€Å"An appraisal activity established or provided as a service to the entity. Its functions include, amongst other things, examining, evaluating and monitoring the adequacy and effectiveness of internal control. † IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 279 ISA 315 AUDITING (b) Assess the identified risks, and evaluate whether they relate more pervasively to the financial statements as a whole and potentially affect many assertions; (c) Relate the identified risks to what can go wrong at the assertion level, taking account of relevant controls that the auditor intends to test; and (Ref: Para. A116-A118) (d) Consider the likelihood of misstatement, including the possibility of multiple misstatements, and whether the potential misstatement is of a magnitude that could result in a material misstatement. Risks That Require Special Audit Consideration 27. As part of the risk assessment as described in paragraph 25, the auditor shall determine whether any of the risks identified are, in the auditor’s judgment, a significant risk. In exercising this judgment, the auditor shall exclude the effects of identified controls related to the risk. 28. In exercising judgment as to which risks are significant risks, the auditor shall consider at least the following: (a) Whether the risk is a risk of fraud; (b) Whether the risk is related to recent significant economic, accounting or other developments and, therefore, requires specific attention; (c) The complexity of transactions; (d) Whether the risk involves significant transactions with related parties; (e) The degree of subjectivity in the measurement of financial information related to the risk, especially those measurements involving a wide range of measurement uncertainty; and f) Whether the risk involves significant transactions that are outside the normal course of business for the entity, or that otherwise appear to be unusual. (Ref: Para. A119-A123) 29. If the auditor has determined that a significant risk exists, the auditor shall obtain an understanding of the entity’s controls, including control activities, relevant to that risk. (Ref: Para. A124-A126) Risks for Which Substantive Procedures Alone Do Not Provide Sufficient Appropriate Audit Evidence 30. In respect of some risks, the auditor may judge that it is not possible or practicable to obtain sufficient appropriate audit evidence only from substantive procedures. Such risks may relate to the inaccurate or incomplete recording of routine and significant classes of transactions or account balances, the characteristics of which often permit highly automated processing with IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 280 little or no manual intervention. In such cases, the entity’s controls over such risks are relevant to the audit and the auditor shall obtain an understanding of them. (Ref: Para. A127-A129) Revision of Risk Assessment 31. The auditor’s assessment of the risks of material misstatement at the assertion level may change during the course of the audit as additional audit evidence is obtained. In circumstances where the auditor obtains audit evidence from performing further audit procedures, or if new information is obtained, either of which is inconsistent with the audit evidence on which the auditor originally based the assessment, the auditor shall revise the assessment and modify the further planned audit procedures accordingly. (Ref: Para. A130) Documentation 32. The auditor shall include in the audit documentation:2 (a) The discussion among the engagement team where required by paragraph 10, and the significant decisions reached; b) Key elements of the understanding obtained regarding each of the aspects of the entity and its environment specified in paragraph 11 and of each of the internal control components specified in paragraphs 14- 24; the sources of information from which the understanding was obtained; and the risk assessment procedures performed; (c) The identified and assessed risks of material misstatement at the financial statement level and at the asserti on level as required by paragraph 25; and (d) The risks identified, and related controls about which the auditor has obtained an understanding, as a result of the requirements in paragraphs 27-30. Ref: Para. A131-A134) *** Application and Other Explanatory Material Risk Assessment Procedures and Related Activities (Ref: Para. 5) A1. Obtaining an understanding of the entity and its environment, including the entity’s internal control (referred to hereafter as an â€Å"understanding of the entity†), is a continuous, dynamic process of gathering, updating and analyzing information throughout the audit. The understanding establishes a frame of 2 ISA 230, â€Å"Audit Documentation,† paragraphs 8-11, and paragraph A6. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 281 ISA 315 AUDITING reference within which the auditor plans the audit and exercises professional judgment throughout the audit, for example, when: Assessing risks of material misstatement of the financial statements; Determining materiality in accordance with ISA 320;3 Considering the appropriateness of the selection and application of accounting policies, and the adequacy of financial statement disclosures; Identifying areas where special audit consideration may be necessary, for example, related party transactions, the appropriateness of management’s use of the going concern assumption, or considering the business purpose of transactions; Developing expectations for use when performing analytical procedures; Responding to the assessed risks of material misstatement, including designing and performing further audit procedures to obtain sufficient appropriate audit evidence; and Evaluating the sufficiency and appropriateness of audit evidence obtained, such as the appropriateness of assumptions and of management’s oral and written representations. A2. Information obtained by performing risk assessment procedures and related activities may be used by the auditor as audit evidence to support assessments of the risks of material misstatement. In addition, the auditor may obtain audit evidence about classes of transactions, account balances, or disclosures and related assertions and about the operating effectiveness of controls, even though such procedures were not specifically planned as substantive procedures or as tests of controls. The auditor also may choose to perform substantive procedures or tests of controls concurrently with risk assessment procedures because it is efficient to do so. A3. The auditor uses professional judgment to determine the extent of the understanding required. The auditor’s primary consideration is whether the understanding that has been obtained is sufficient to meet the objective stated in this ISA. The depth of the overall understanding that is required by the auditor is less than that possessed by management in managing the entity. A4. The risks to be assessed include both those due to error and those due to fraud, and both are covered by this ISA. However, the significance of fraud is such that further requirements and guidance are included in ISA 240 in relation to 3 ISA 320, â€Å"Materiality in Planning and Performing an Audit. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 282 risk assessment procedures and related activities to obtain information that is used to identify the risks of material misstatement due to fraud. 4 A5. Although the auditor is required to perform all the risk assessment procedures described in paragraph 6 in the course of obta ining the required understanding of the entity (see paragraphs 11-24), the auditor is not required to perform all of them for each aspect of that understanding. Other procedures may be performed where the information to be obtained therefrom may be helpful in identifying risks of material misstatement. Examples of such procedures include: Reviewing information obtained from external sources such as trade and economic journals; reports by analysts, banks, or rating agencies; or regulatory or financial publications. Making inquiries of the entity’s external legal counsel or of valuation experts that the entity has used. Inquiries of Management and Others within the Entity (Ref: Para. (a)) A6. Much of the information obtained by the auditor’s inquiries is obtained from management and those responsible for financial reporting. However, the auditor may also obtain information, or a different perspective in identifying risks of material misstatement, through inquiries of others within the entity and other employees with different levels of authority. For example: Inquiries directed towards those charged with governance may help th e auditor understand the environment in which the financial statements are prepared. Inquiries directed toward internal audit personnel may provide information about internal audit procedures performed during the year relating to the design and effectiveness of the entity’s internal control and whether management has satisfactorily responded to findings from those procedures. Inquiries of employees involved in initiating, processing or recording complex or unusual transactions may help the auditor to evaluate the appropriateness of the selection and application of certain accounting policies. Inquiries directed toward in-house legal counsel may provide information about such matters as litigation, compliance with laws and regulations, knowledge of fraud or suspected fraud affecting the entity, warranties, post-sales obligations, arrangements (such as joint ventures) with business partners and the meaning of contract terms. 4 ISA 240, â€Å"The Auditor’s Responsibilit ies Relating to Fraud in an Audit of Financial Statements,† paragraphs 12-24. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 83 ISA 315 AUDITING Inquiries directed towards marketing or sales personnel may provide information about changes in the entity’s marketing strategies, sales trends, or contractual arrangements with its customers. Analytical Procedures (Ref: Para. 6(b)) A7. Analytical procedures performed as risk assessment procedures may identify aspects of the entity of which the auditor was unaware and may assist in assessing the risks of material misstatement in order to provide a basis for designing and implementing responses to the assessed risks. Analytical procedures performed as risk assessment procedures may include both financial and non-financial information, for example, the relationship between sales and square footage of selling space or volume of goods sold. A8. Analytical procedures may help identify the existence of unusual transactions or events, and amounts, ratios, and trends that might indicate matters that have audit implications. Unusual or unexpected relationships that are identified may assist the auditor in identifying risks of material misstatement, especially risks of material misstatement due to fraud. A9. However, when such analytical procedures use data aggregated at a high level (which may be the situation with analytical procedures performed as risk assessment procedures), the results of those analytical procedures only provide a broad initial indication about whether a material misstatement may exist. Accordingly, in such cases, consideration of other information that has been gathered when identifying the risks of material misstatement together with the results of such analytical procedures may assist the auditor in understanding and evaluating the results of the analytical procedures. Considerations Specific to Smaller Entities A10. Some smaller entities may not have interim or monthly financial information that can be used for purposes of analytical procedures. In these circumstances, although the auditor may be able to perform limited analytical procedures for purposes of planning the audit or obtain some information through inquiry, the auditor may need to plan to perform analytical procedures to identify and assess the risks of material misstatement when an early draft of the entity’s financial statements is available. Observation and Inspection (Ref: Para. 6(c)) A11. Observation and inspection may support inquiries of management and others, and may also provide information about the entity and its environment. Examples of such audit procedures include observation or inspection of the following: The entity’s operations. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 284 Documents (such as business plans and strategies), records, and internal control manuals. Reports prepared by management (such as quarterly management reports and interim financial statements) and those charged with governance (such as minutes of board of directors’ meetings). The entity’s premises and plant facilities. Information Obtained in Prior Periods (Ref: Para. 9) A12. The auditor’s previous experience with the entity and audit procedures performed in previous audits may provide the auditor with information about such matters as: Past misstatements and whether they were corrected on a timely basis. The nature of the entity and its environment, and the entity’s internal control (including deficiencies in internal control). Significant changes that the entity or its operations may have undergone since the prior financial period, which may assist the auditor in gaining a sufficient understanding of the entity to identify and assess risks of material misstatement. A13. The auditor is required to determine whether information obtained in prior periods remains relevant, if the auditor intends to use that information for the purposes of the current audit. This is because changes in the control environment, for example, may affect the relevance of information obtained in the prior year. To determine whether changes have occurred that may affect the relevance of such information, the auditor may make inquiries and perform other appropriate audit procedures, such as walk-throughs of relevant systems. Discussion among the Engagement Team (Ref: Para. 10) A14. The discussion among the engagement team about the susceptibility of the entity’s financial statements to material misstatement: Provides an opportunity for more experienced engagement team members, including the engagement partner, to share their insights based on their knowledge of the entity. Allows the engagement team members to exchange information about the business risks to which the entity is subject and about how and where the financial statements might be susceptible to material misstatement due to fraud or error. Assists the engagement team members to gain a better understanding of the potential for material misstatement of the financial statements in the specific areas assigned to them, and to understand how the results of the IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 85 ISA 315 AUDITING audit procedures that they perform may affect other aspects of the audit including the decisions about the nature, timing, and extent of further audit procedures. Provides a basis upon which engagement team members communicate and share new information obtained throughout the audit that may affect the assessment of risks of material misstatement or the audit procedures performed to address these risks. ISA 240 provides further requirements and guidance in relation to the discussion among the engagement team about the risks of fraud. 5 A15. It is not always necessary or practical for the discussion to include all members in a single discussion (as, for example, in a multi-location audit), nor is it necessary for all of the members of the engagement team to be informed of all of the decisions reached in the discussion. The engagement partner may discuss matters with key members of the engagement team including, if considered appropriate, specialists and those responsible for the audits of components, while delegating discussion with others, taking account of the extent of communication considered necessary throughout the engagement team. A communications plan, agreed by the engagement partner, may be useful. Considerations Specific to Smaller Entities A16. Many small audits are carried out entirely by the engagement partner (who may be a sole practitioner). In such situations, it is the engagement partner who, having personally conducted the planning of the audit, would be responsible for considering the susceptibility of the entity’s financial statements to material misstatement due to fraud or error. The Required Understanding of the Entity and Its Environment, Including the Entity’s Internal Control The Entity and Its Environment Industry, Regulatory and Other External Factors (Ref: Para. 11(a)) Industry Factors A17. Relevant industry factors include industry conditions such as the competitive environment, supplier and customer relationships, and technological developments. Examples of matters the auditor may consider include: The market and competition, including demand, capacity, and price competition. Cyclical or seasonal activity. 5 ISA 240, paragraph 15. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 286 Product technology relating to the entity’s products. Energy supply and cost. A18. The industry in which the entity operates may give rise to specific risks of material misstatement arising from the nature of the business or the degree of regulation. For example, long-term contracts may involve significant estimates of revenues and expenses that give rise to risks of material misstatement. In such cases, it is important that the engagement team include members with sufficient relevant knowledge and experience. 6 Regulatory Factors A19. Relevant regulatory factors include the regulatory environment. The regulatory environment encompasses, among other matters, the applicable financial reporting framework and the legal and political environment. Examples of matters the auditor may consider include: Accounting principles and industry specific practices. Regulatory framework for a regulated industry. Legislation and regulation that significantly affect the entity’s operations, including direct supervisory activities. Taxation (corporate and other). Government policies currently affecting the conduct of the entity’s business, such as monetary, including foreign exchange controls, fiscal, financial incentives (for example, government aid programs), and tariffs or trade restrictions policies. Environmental requirements affecting the industry and the entity’s business. A20. ISA 250 includes some specific requirements related to the legal and regulatory framework applicable t o the entity and the industry or sector in which the entity operates. 7 Considerations specific to public sector entities A21. For the audits of public sector entities, law, regulation or other authority may affect the entity’s operations. Such elements are essential to consider when obtaining an understanding of the entity and its environment. 6 ISA 220, â€Å"Quality Control for an Audit of Financial Statements,† paragraph 14. 7 ISA 250, â€Å"Consideration of Laws and Regulations in an Audit of Financial Statements,† paragraph 12. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 287 ISA 315 AUDITING Other External Factors A22. Examples of other external factors affecting the entity that the auditor may consider include the general economic conditions, interest rates and availability of financing, and inflation or currency revaluation. Nature of the Entity (Ref: Para. 11(b)) A23. An understanding of the nature of an entity enables the auditor to understand such matters as: Whether the entity has a complex structure, for example with subsidiaries or other components in multiple locations. Complex structures often introduce issues that may give rise to risks of material misstatement. Such issues may include whether goodwill, joint ventures, investments, or specials of matters that the auditor may consider when obtaining an understanding of the nature of the entity include: Business operations such as: Nature of revenue sources, products or services, and markets, including involvement in electronic commerce such as Internet sales and marketing activities. 0 Conduct of operations (for example, stages and methods of production, or activities exposed to environmental risks). 0 Alliances, joint ventures, and outsourcing activities. 0 Geographic dispersion and industry segmentation. 0 Location of production facilities, warehouses, and offices, and location and quantities of inventories. 0 Key customers and important suppliers of goods and services, employment arrangements (including the existence of union ontracts, pension and other post employment benefits, stock option or incentive bonus arrangements, and government regulation related to employment matters). 8 ISA 5 50, â€Å"Related Parties. † IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 288 0 Research and development activities and expenditures. 0 Transactions with related parties. Investments and investment activities such as: 0 Planned or recently executed acquisitions or divestitures. 0 Investments and dispositions of securities and loans. Capital investment activities. 0 Investments in non-consolidated entities, including partnerships, joint ventures and special-purpose entities. Financing and financing activities such as: 0 Major subsidiaries and associated entities, including consolidated and non-consolidated structures. 0 Debt structure and related terms, including off-balance-sheet financing arrangements and leasing arrangements. 0 Beneficial owners (local, foreign, business reputation and experience) and related parties. 0 Use of derivative financial instruments. Financial reporting such as: Accoun ting principles and industry specific practices, including industry-specific significant categories (for example, loans and investments for banks, or research and development for pharmaceuticals). 0 Revenue recognition practices. 0 Accounting for fair values. 0 Foreign currency assets, liabilities and transactions. 0 Accounting for unusual or complex transactions including those in controversial or emerging areas (for example, accounting for stock-based compensation). A25. Significant changes in the entity from prior periods may give rise to, or change, risks of material misstatement. Nature of Special-Purpose Entities A26. A special-purpose entity (sometimes referred to as a special-purpose vehicle) is an entity that is generally established for a narrow and well-defined purpose, such as to effect a lease or a securitization of financial assets, or to carry out research and development activities. It may take the form of a corporation, trust, partnership or unincorporated entity. The entity on behalf of which the specialIDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 289 ISA 315 AUDITING urpose entity has been created may often transfer assets to the latter (for example, as part of a derecognition transaction involving financial assets), obtain the right to use the latter’s assets, or perform services for the latter, while other parties may provide the funding to the latter. As ISA 550 indicates, in some circumstances, a special-purpose entity may be a related party of the entity. 9 A27. Fin ancial reporting frameworks often specify detailed conditions that are deemed to amount to control, or circumstances under which the specialpurpose entity should be considered for consolidation. The interpretation of the requirements of such frameworks often demands a detailed knowledge of the relevant agreements involving the special-purpose entity. The Entity’s Selection and Application of Accounting Policies (Ref: Para. 11(c)) A28. An understanding of the entity’s selection and application of accounting policies may encompass such matters as: The methods the entity uses to account for significant and unusual transactions. The effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Changes in the entity’s accounting policies. Financial reporting standards and laws and regulations that are new to the entity and when and how the entity will adopt such requirements. Objectives and Strategies and Related Business Risks (Ref. Para. 11(d)) A29. The entity conducts its business in the context of industry, regulatory and other internal and external factors. To respond to these factors, the entity’s management or those charged with governance define objectives, which are the overall plans for the entity. Strategies are the approaches by which management intends to achieve its objectives. The entity’s objectives and strategies may change over time. A30. Business risk is broader than the risk of material misstatement of the financial statements, though it includes the latter. Business risk may arise from change or complexity. A failure to recognize the need for change may also give rise to business risk. Business risk may arise, for example, from: The development of new products or services that may fail; A market which, even if successfully developed, is inadequate to support a product or service; or 9 ISA 550, paragraph A7. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 290 Flaws in a product or service that may result in liabilities and reputational risk. A31. An understanding of the business risks facing the entity increases the likelihood of identifying risks of material misstatement, since most business risks will eventually have financial consequences and, therefore, an effect on the financial statements. However, the auditor does not have a responsibility to identify or assess all business risks because not all business risks give rise to risks of material misstatement. A32. Examples of matters that the auditor may consider when obtaining an understanding of the entity’s objectives, strategies and related business risks that may result in a risk of material misstatement of the financial statements include: Industry developments (a potential related business risk might be, for example, that the entity does not have the personnel or expertise to deal with the changes in the industry). New products and services (a potential related business risk might be, for example, that there is increased product liability). Expansion of the business (a potential related business risk might be, for example, that the demand has not been accurately estimated). New accounting requirements (a potential related business risk might be, for example, incomplete or improper implementation, or increased costs). Regulatory requirements (a potential related business risk might be, for example, that there is increased legal exposure). Current and prospective financin g requirements (a potential related business risk might be, for example, the loss of financing due to the entity’s inability to meet requirements). Use of IT (a potential related business risk might be, for example, that systems and processes are incompatible). The effects of implementing a strategy, particularly any effects that will lead to new accounting requirements (a potential related business risk might be, for example, incomplete or improper implementation). A33. A business risk may have an immediate consequence for the risk of material misstatement for classes of transactions, account balances, and disclosures at the assertion level or the financial statement level. For example, the business risk arising from a contracting customer base may increase the risk of material misstatement associated with the valuation of receivables. However, the same risk, particularly in combination with a contracting economy, may also have a longer-term consequence, which the auditor considers when assessing the IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 291 ISA 315 AUDITING appropriateness of the going concern assumption. Whether a business risk may result in a risk of material misstatement is, therefore, considered in light of the entity’s circumstances. Examples of conditions and events that may indicate risks of material misstatement are indicated in Appendix 2. A34. Usually, management identifies business risks and develops approaches to address them. Such a risk assessment process is part of internal control and is discussed in paragraph 15 and paragraphs A79-A80. Considerations Specific to Public Sector Entities A35. For the audits of public sector entities, â€Å"management objectives† may be influenced by concerns regarding public accountability and may include objectives which have their source in law, regulation or other authority. Measurement and Review of the Entity’s Financial Performance (Ref: Para. 11(e)) A36. Management and others will measure and review those things they regard as important. Performance measures, whether external or internal, create pressures on the entity. These pressures, in turn, may motivate management to take action to improve the business performance or to misstate the financial statements. Accordingly, an understanding of the entity’s performance measures assists the auditor in considering whether pressures to achieve performance targets may result in management actions that increase the risks of material misstatement, including those due to fraud. See ISA 240 for requirements and guidance in relation to the risks of fraud. A37. The measurement and review of financial performance is not the same as the monitoring of controls (discussed as a component of internal control in paragraphs A98s of internally-generated information used by management for measuring and reviewing financial performance, and which the auditor may consider, include: Key performance indicators (financial and non-financial) and key ratios, trends and operating statistics. Period-on-period financial performance analyses. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 292 Budgets, forecasts, variance analyses, segment i nformation and divisional, departmental or other level performance reports. Employee performance measures and incentive compensation policies. Comparisons of an entity’s performance with that of competitors. A39. External parties may also measure and review the entity’s financial performance. For example, external information such as analysts’ reports and credit rating agency reports may represent useful information for the auditor. Such reports can often be obtained from the entity being audited. A40. Internal measures may highlight unexpected results or trends requiring management to determine their cause and take corrective action (including, in some cases, the detection and correction of misstatements on a timely basis). Performance measures may also indicate to the auditor that risks of misstatement of related financial statement information do exist. For example, performance measures may indicate that the entity has unusually rapid growth or profitability when compared to that of other entities in the same industry. Such information, particularly if combined with other factors such as performance-based bonus or incentive remuneration, may indicate the potential risk of management bias in the preparation of the financial statements. Considerations Specific to Smaller Entities A41. Smaller entities often do not have processes to measure and review financial performance. Inquiry of management may reveal that it relies on certain key indicators for evaluating financial performance and taking appropriate action. If such inquiry indicates an absence of performance measurement or review, there may be an increased risk of misstatements not being detected and corrected. The Entity’s Internal Control (Ref: Para. 12) A42. An understanding of internal control assists the auditor in identifying types of potential misstatements and factors that affect the risks of material misstatement, and in designing the nature, timing, and extent of further audit procedures. A43. The following application material on internal control is presented in four sections, as follows: General Nature and Characteristics of Internal Control. Controls Relevant to the Audit. Nature and Extent of the Understanding of Relevant Controls. Components of Internal Control. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 293 ISA 315 AUDITING General Nature and Characteristics of Internal Control Purpose of Internal Control A44. Internal control is designed, implemented and maintained to address identified business risks that threaten the achievement of any of the entity’s objectives that concern: The reliability of the entity’s financial reporting; The effectiveness and efficiency of its operations; and Its compliance with applicable laws and regulations. The way in which internal control is designed, implemented and maintained varies with an entity’s size and complexity. Considerations specific to smaller entities A45. Smaller entities may use less structured means and simpler processes and procedures to achieve their objectives. Limitations of Internal Control A46. Internal control, no matter how effective, can provide an entity with only reasonable assurance about achieving the entity’s financial reporting objectives. The likelihood of their achievement is affected by the inherent limitations of internal control. These include the realities that human judgment in decision-making can be faulty and that breakdowns in internal control can occur because of human error. For example, there may be an error in the design of, or in the change to, a control. Equally, the operation of a control may not be effective, such as where information produced for the purposes of internal control (for example, an exception report) is not effectively used because the individual responsible for reviewing the information does not understand its purpose or fails to take appropriate action. A47. Additionally, controls can be circumvented by the collusion of two or more people or inappropriate management override of internal control. For example, management may enter into side agreements with customers that alter he terms and conditions of the entity’s standard sales contracts, which may result in improper revenue recognition. Also, edit checks in a software program that are designed to identify and report transactions that exceed specified credit limits may be overridden or disabled. A48. Further, in designing and implementing controls, management may make judgments on the nature and extent of the controls it chooses to implement, and the nature and extent of the risks it chooses to assume. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 294 Considerations specific to smaller entities A49. Smaller entities often have fewer employees which may limit the extent to which segregation of duties is practicable. However, in a small owner-managed entity, the owner-manager may be able to exercise more effective oversight than in a larger entity. This oversight may compensate for the generally more limited opportunities for segregation of duties. A50. On the other hand, the owner-manager may be more able to override controls because the system of internal control is less structured. This is taken into account by the auditor when identifying the risks of material misstatement due to fraud. Division of Internal Control into Components A51. The division of internal control into the following five components, for purposes of the ISAs, provides a useful framework for auditors to consider how different aspects of an entity’s internal control may affect the audit: (a) The control environment; (b) The entity’s risk assessment process; (c) The information system, including the related business processes, relevant to financial reporting, and communication; (d) Control activities; and e) Monitoring of controls. The division does not necessarily reflect how an entity designs, implements and maintains internal control, or how it may classify any particular component. Auditors may use different terminology or frameworks to describe the various aspects of internal control, and their effect on the audit than those used in this ISA, provided all the components desc ribed in this ISA are addressed. A52. Application material relating to the five components of internal control as they relate to a financial statement audit is set out in paragraphs A69-A104 below. Appendix 1 provides further explanation of these components of internal control. Characteristics of Manual and Automated Elements of Internal Control Relevant to the Auditor’s Risk Assessment A53. An entity’s system of internal control contains manual elements and often contains automated elements. The characteristics of manual or automated elements are relevant to the auditor’s risk assessment and further audit procedures based thereon. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 295 ISA 315 AUDITING A54. The use of manual or automated elements in internal control also affects the manner in which transactions are initiated, recorded, processed, and reported: Controls in a manual system may include such procedures as approvals and reviews of transactions, and reconciliations and follow-up of reconciling items. Alternatively, an entity may use automated procedures to initiate, record, process, and report transactions, in which case records in electronic format replace paper documents. Controls in IT systems consist of a combination of automated controls (for example, controls embedded in computer programs) and manual controls. Further, manual controls may be independent of IT, may use information produced by IT, or may be limited to monitoring the effective functioning of IT and of automated controls, and to handling exceptions. When IT is used to initiate, record, process or report transactions, or other financial data for inclusion in financial statements, the systems and programs may include controls related to the corresponding assertions for material accounts or may be critical to the effective functioning of manual controls that depend on IT. An entity’s mix of manual and automated elements in internal control varies with the nature and complexity of the entity’s use of IT. A55. Generally, IT benefits an entity’s internal control by enabling an entity to: Consistently apply predefined business rules and perform complex calculations in processing large volumes of transactions or data; Enhance the timeliness, availability, and accuracy of information; Facilitate the additional analysis of information; Enhance the ability to monitor the performance of the entity’s activities and its policies and procedures; Reduce the risk that controls will be circumvented; and Enhance the ability to achieve effective segregation of duties by implementing security controls in applications, databases, and operating systems. A56. IT also poses specific risks to an entity’s internal control, including, for example: Reliance on systems or programs that are inaccurately processing data, processing inaccur ate data, or both. Unauthorized access to data that may result in destruction of data or improper changes to data, including the recording of unauthorized or non-existent transactions, or inaccurate recording of transactions. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 296 Particular risks may arise where multiple users access a common database. The possibility of IT personnel gaining access privileges beyond those necessary to perform their assigned duties thereby breaking down segregation of duties. Unauthorized changes to data in master files. Unauthorized changes to systems or programs. Failure to make necessary changes to systems or programs. Inappropriate manual intervention. Potential loss of data or inability to access data as required. A57. Manual elements in internal control may be more suitable where judgment and discretion are required such as for the following circumstances: Large, unusual or non-recurring transactions. Circumstances where errors are difficult to define, anticipate or predict. In changing circumstances that require a control response outside the scope of an existing automated control. In monitoring the effectiveness of automated controls. A58. Manual elements in internal control may be less reliable than automated elements because they can be more easily bypassed, ignored, or overridden and they are also more prone to simple errors and mistakes. Consistency of application of a manual control element cannot therefore be assumed. Manual control elements may be less suitable for the following circumstances: High volume or recurring transactions, or in situations where errors that can be anticipated or predicted can be prevented, or detected and corrected, by control parameters that are automated. Control activities where the specific ways to perform the control can be adequately designed and automated. A59. The extent and nature of the risks to internal control vary depending on the nature and characteristics of the entity’s information system. The entity responds to the risks arising from the use of IT or from use of manual elements in internal control by establishing effective controls in light of the characteristics of the entity’s information system. Controls Relevant to the Audit A60. There is a direct relationship between an entity’s objectives and the controls it implements to provide reasonable assurance about their achievement. The IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT 297 ISA 315 AUDITING ntity’s objectives, and therefore controls, relate to financial reporting, operations and compliance; however, not all of these objectives and controls are relevant to the auditor’s risk assessment. A61. Factors relevant to the auditor’s judgment about whether a control, individually or in combination with others, is relevant to the audit may include such matters as the following: Materiality. The significance of the r elated risk. The size of the entity. The nature of the entity’s business, including its organization and ownership characteristics. The diversity and complexity of the entity’s operations. Applicable legal and regulatory requirements. The circumstances and the applicable component of internal control. The nature and complexity of the systems that are part of the entity’s internal control, including the use of service organizations. Whether, and how, a specific control, individually or in combination with others, prevents, or detects and corrects, material misstatement. A62. Controls over the completeness and accuracy of information produced by the entity may be relevant to the audit if the auditor intends to make use of the information in designing and performing further procedures. Controls relating to operations and compliance objectives may also be relevant to an audit if they relate to data the auditor evaluates or uses in applying audit procedures. A63. Internal control over safeguarding of assets against unauthorized acquisition, use, or disposition may include controls relating to both financial reporting and operations objectives. The auditor’s consideration of such controls is generally limited to those relevant to the reliability of financial reporting. A64. An entity generally has controls relating to objectives that are not relevant to an audit and therefore need not be considered. For example, an entity may rely on a sophisticated system of automated controls to provide efficient and effective operations (such as an airline’s system of automated controls to maintain flight schedules), but these controls ordinarily would not be relevant to the audit. Further, although internal control applies to the entire entity or to any of its operating units or business processes, an understanding of internal control relating to each of the entity’s operating units and business processes may not be relevant to the audit. IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT ISA 315 298 Considerations Specific to Public Sector Entities A65. Public sector auditors often have additional responsibilities with respect to internal control, for example to report on compliance with an established code of practice. Public sector auditors can also have responsibilities to report on compliance with law, regulation or other authority. As a result, their review of internal control may be broader and more detailed. Nature and Extent of the Understanding of Relevant Controls (Ref: Para. 3) A66. Evaluating the design of a control involves considering whether the control, individually or in combination with other controls, is capable of effectively preventing, or detecting and correcting, material misstatements. Implementation of a control means that the control exists and that the entity is using it. There is little point in assessing the implementation of a control that is not effective, and so the design of a control is considered first. An improperly designed control may represent a significant deficiency in internal control. A67. Risk assessment procedures to obtain audit evidence about the design and implementation of relevant controls may include: Inquiring of entity personnel. Observing the application of specific controls. Inspecting documents and reports. Tracing transactions through the information system relevant to financial reporting. Inquiry alone, however, is not sufficient for such purposes. A68. Obtaining an understanding of an entity’s controls is not sufficient to test their operating effectiveness, unless there is some automation that provides for the consistent operation of the controls. For example, obtaining audit evidence about the implementation of a manual control at a point in time does not provide audit evidence about the operating effectiveness of the control at other times during the period under audit. However, because of the inherent consistency of IT processing (see paragraph A55), performing audit procedures to determine whether an automated control has been implemented may serve as a test of that control’s operating effectiveness, depending on the auditor’s assessment and testing of controls such as those over program changes. Tests of the operating effectiveness of controls are further descr

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Electronics Equipment Waste - Essay Example 130 million mobile phones and an almost equal number of other electronic devices such as MP3 players and gaming consoles became obsolete in 2005. A report by Basal Action Network (BAN), a Seattle-based organization, states that 50-80% of the e-waste generated in the United States is transported to developing nations for disassembly and recycling with methods that are not acceptable in the United States standards (Herat, 2007). Very few people are aware that the electronic equipment contains more than 1000 harmful chemicals like lead, mercury, PCBS and other toxic substances that pollute air, soil and ground water (Baulch, 2002). Unawareness and negligence have been evident in many countries in the way people disassemble these electronic wastes in open spaces instead of disposing of them safely. However, at least some of the countries such as those in the European Union have recognized the potential harmful results of these improper disposal management practices, and these countries are in the process of implementing laws and policies that ensure safe disposal of e-waste (Canning, 2006; Ladou & Lovegrove, 2008). There have been extensive research and studies on various dimensions related to e-waste. The areas of study include but not limited to consequences for the environment and health, problems with improper disposal in and out of countries, need for regulations, and better management of e-waste materials. It is imperative to consider the health and environmental effects before discussing other issues because improper management of electronic waste leads to pollution of the air, soil and water. This has been observed in various studies. 2.1 Sources of E-waste According to UNEP's "E-waste Management (2006) there are three primary sources of e-waste: 1. Individual households and small businesses: White goods such as refrigerators and washing machines form the largest part of e-waste in terms of weight in households followed by television and personal computers (E-waste Management, 2006). 2. Large businesses, educational institutions and governments: Office devices such as photocopiers, fax machines, printers, and computers form the most part of e-waste from this category (E-waste Management, 2006). 3. Original equipment manufacturers: manufacturers generate e-waste at various levels and in different forms such as defective components or products of sub-optimal quality, waste along upstream supply chain, and waste from product recovery and refurbishing operations (E-waste Management, 2006). In 2000, of the 2,214,400 tons of generated e-waste, 859,000 were video products, 348,200 tons were audio products and 96,900 tons were information products (Kate, 2006). According to the U.S. General Accounting Office (GAO), starting from 2005, approximately 130

Impact of Seismicity on Performance of RC Shear Wall

Impact of Seismicity on Performance of RC Shear Wall Impact of Seismicity on Performance and Cost of RC Shear Wall Buildings in Dubai, UAE Mohammad AlHamaydeh, P.E., M.ASCE [1]; Nader Aly, S.M.ASCE [2]; and Khaled Galal, P.Eng., M.ASCE [3] ABSTRACT Unfortunately, available probabilistic seismic hazard studies are reporting significantly varying estimates for Dubai seismicity. Given Dubais rapid economic growth, it is crucial to assess the impact of the diverse estimates on performance and cost of buildings. This research investigates and quantifies the impact of the high and moderate seismicity estimates of Dubai on the seismic performance, construction and repair costs of buildings with 6, 9 and 12 stories. The reference buildings are made up of reinforced concrete with special shear walls as their seismic force resisting system. The seismic performance is investigated using nonlinear static and incremental dynamic analyses. Construction and repair costs associated with earthquake damages are evaluated to quantify the impacts. Results showed that designing for higher seismicity yields significant enhancement in overall structural performance. In addition, the higher seismicity estimate resulted in slight increase in initial co nstruction cost. However, the increase in initial investment is outweighed by significant enhancements in seismic performance and reduction in earthquake damages. This resulted in overall cost savings when reduction in repair and downtime costs are considered. Keywords: Seismic Hazard, RC Shear Walls, Seismic Vulnerability, Seismic Performance, Earthquake Losses. Introduction and Background The economy of UAE and specifically Dubai has been rapidly growing over the past few decades. Significant investments are taking place in the various sectors, especially in the real estate sector. In addition, in November 2014, Dubai was announced to be the hosting city of the coming EXPO 2020. As a result, substantial growth is taking place in the real estate sector. Several residential, commercial and hotel buildings are going to be designed and constructed to accommodate the increase in population size. This region suffers from considerable uncertainty in its seismicity level and the design guidelines that should be followed (AlHamaydeh et al., 2012). The seismicity level of UAE and Dubai has been the matter of several research studies, such as Abdalla and Al-homoud (2004), Aldama-Bustos et al. (2009) and Khan et al. (2013). Nevertheless, unfortunately there is not much consensus in these research studies about the seismicity levels that should be designed for in UAE. This could b e attributed to the lack of in-depth seismological data and historical recordings of ground motions in this region. Such data would have been useful in providing comprehensive and sound seismic design guidelines (AlHamaydeh et al., 2013). The minimum seismic design requirements set by the local authorities in Dubai are based on the 1997 Uniform Building Code (UBC97). However, the municipality has been proactive in adapting to tremors that were felt and measured in UAE in April, 2013. They sent a circular to consulting offices in May, 2013 raising the minimum requirement to zone 2B for buildings higher than nine stories and zone 2A for buildings between four to nine stories. Therefore, the unprecedented growth in the number of buildings in Dubai combined with the lack of consensus on seismic design criteria complicate the vulnerability to earthquakes. It is generally believed that the UAE has low seismicity. Nevertheless, over the past few years, a significant number of regional seis mic activities, originating from faults surrounding the UAE, has been recorded by Dubai Seismic Network (DSN). Additionally, DSN has recorded some local seismic activities over the period from 2006 to 2014. UAE seismicity is affected by earthquakes originating from near-fault and far-field seismic sources (Mwafy, 2011). The most recent seismic hazard study for UAE, available to the authors, was published in 2013 by Khan et al. (2013). The study provided a comprehensive probabilistic seismic hazard assessment and spectral accelerations for the entire UAE. Furthermore, it implemented a standardized earthquakes catalogue for UAE compiled from United States Geological Survey (USGS), National Geosciences of Iran (2015) and the National Center of Meteorology and Seismology of UAE (NCMS) (2015) that dates back to 110 years. Furthermore, Khan et al. (2013) have used seven different ground motion prediction equations incorporating three next generation attenuation equations due to the lack of specific equations for UAE. They attributed UAE seismicity to the seismic source zones shown in Figure 1. In addition, the seismic hazard study by Shama in 2011 highlighted several local crustal faults in U AE that might affect its seismicity level. These faults are Dibba, Wadi El Fay, Wadi Ham, Wadi-Shimal, Oman and West Coast fault (Shama, 2011). Unfortunately, the level of seismicity is not clearly set since there is no strong consensus among researchers about the exact seismic level of UAE or Dubai. On the other hand, reviewing the available probabilistic seismic hazard studies conducted for UAE and Dubai clearly shows that there are significant variations in the estimated seismicity levels. In fact, results vary from no seismic hazard to very high seismicity. Table 1 shows a summary of Peak Ground Accelerations (PGA) from several probabilistic seismic hazard studies. The reported PGAs vary from less than 0.05g to 0.32g. This is attributed to the differences in the used source zonation, recurrence parameters, earthquake catalogues and ground motion prediction equations. The differences are mainly due to the lack of detailed seismological measurement and data in this region and such data is required to provide a comprehensive and sound seismic hazard study (AlHamaydeh et al., 2013). The variation in seismicity was a driving factor for many research studies related to the impact on design of buildings in Dubai, such as (AlHamaydeh et al., 2010; AlHamaydeh et al., 2011; and AlHamaydeh and Al-Shamsi, 2013). The objective of this paper is to investigate the impact of the seismicity hazard level on the performance, construction, repair and downtime costs of reinforced concrete (RC) shear wall buildings in Dubai. In this regard, six RC shear wall buildings are designed and detailed following the 2012 International Building Code (IBC12) standards. The reference buildings are 6-story, 9-story and 12-story. They are chosen to target the main sectors of buildings inventory in Dubai, UAE. These buildings are designed for two different seismic hazard levels that represent high and moderate seismicity estimates of Dubai. The different designs are compared based on their seismic performance, construction and repair costs in order to investigate and quantify the impact of the seismic design level. The seismic performance is evaluated following the methodology outlined in FEMA P695, which is a technical publication aiming to establish standard procedures for quantifying the seismic performance facto rs of buildings (Federal Emergency Management Agency (FEMA), 2009). The assessment methodology is based on nonlinear pseudo-static and dynamic analyses. The nonlinear response history analyses are performed using a set of ground motion records selected and scaled to represent the highest possible seismic activity in Dubai. As such, this would highlight the implications on design, seismic performance, construction and repair costs of RC shear wall buildings designed for different seismic hazard levels in Dubai, if the high seismicity estimate turns to be the most realistic. In addition, total construction cost is estimated considering structural and non-structural components. Finally, the repair cost is evaluated based on the structural and non-structural damage percentages adapted from SEAOC blue book (Structural Engineers Association of California, 1999). Details of the Reference Buildings The six reference buildings considered in this paper are intended to represent typical office buildings located in Dubai, UAE. The buildings have number of floors ranging from 6 to 12 stories to represent the majority of common buildings in Dubai. They are made up of RC and have a typical floor plan as shown in Figure 2. The plan consists of five 6m (20ft) bays and total dimensions of 30mx30m (100ftx100ft). Furthermore, the overall structural height varies between 24m to 48m (78ft to 156ft); with a typical floor height of 4m (13ft). The lateral force resisting system consists of special RC shear wall placed along the perimeter of the building. This arrangement ensures that center of mass is close to center of rigidity, hence it avoids inherent torsional effects. In addition, placing the walls along the perimeter boosts the building torsional resistance and reduces the shear demands on walls due to accidental torsion effects. The gravity system consists of RC square columns, while the floor system comprises of cast-in-situ flat plate. However, the gravity system is not designed to be part of the lateral force resisting system. It is only designed to support vertical loads and to satisfy the deformation compatibility requirement. For design purposes, concrete compressive strength () is assumed to be 28MPa (4.0ksi) for columns and slabs, and 38MPa (5.0ksi) for shear walls. Additionally, the yield strength (fy) of reinforcement is assumed to be 420MPa (60ksi). Super Imposed Dead Load (SDL) is 3.6kPa (75psf), excluding the self-weight of the concrete slabs. This SDL value is a conservative estimate commonly used for office buildings in Dubai. The breakdown of this estimate is as follows: 2 kPa (for 100mm of leveling screed and flooring tiles), 1 kPa for partitions (usually movable partitions) and 0.6 kPa allowance for mechanical, electrical and plumping overhanging services. Curtain wall (cladding) load on th e perimeter of each floor is 0.72kPa (15psf). Moreover, for office buildings the typical floors live load is 2.4kPa (50psf) and the roof live load is 1kPa (20psf) as per ASCE7-10. The six reference buildings are designed and detailed according to IBC12 requirements for two different seismic hazard levels representing high and moderate seismicity estimates in Dubai. The selection of the two seismic design levels is driven by the existing uncertainty in seismic loading and the substantial variability in reported seismic hazard levels for UAE and Dubai. Therefore, it is deemed a reasonable choice for the objective of this paper to consider the highest and moderate seismicity levels. This would allow investigating the consequences of the possible alternative seismic loading levels available to designers. The highest seismicity level represents the upper bound, and it is obtained from USGS (2015). The USGS seismic hazard level for Dubai estimate is selected in this study (i.e. Ss = 1.65g and S1 = 0.65g). Moreover, the moderate seismic design level represents Abu Dhabi International Building Code 2011 (ADIBC11) estimate for Dubai. The elastic design response spectra for the two considered seismicity levels along with the ASCE7-10 estimated fundamental periods of the studied six buildings are presented in Figure 3. As shown, at each seismic design level, three buildings with 6-stories, 9-stories and 12-stories are designed with special RC shear walls. Summary of all buildings details including response modification factors (R and Cd), design spectral accelerations and elastic fundamental time periods, and approximate periods upper limit are given in Table 2. It is worth mentioning that the ground motion input parameters (Ss and S1) of the two seismicity levels (high and moderate) result in Seismic Design Category (SDC) D for the six considered buildings. Consequently, ordinary RC shear walls are not permitted by the design code (i.e. ASCE7-10). Thus, all buildings are required to have special RC walls. Furthermore, choosing special detailing for both seismicity levels would allow investigating the direct impact of the seismic design level on th e cost and performance of walls with same level of detailing requirements. The buildings are given a legend showing its ID (i.e. Building1 to Building6), number of stories (i.e. 6Story, 9Story or 12Story), seismic design level (i.e. High or Moderate) and shear wall type (i.e. Special or Ordinary). A site class D is assumed for the six reference buildings. This assumption complies with IBC12 recommendations. Design Summary The buildings are designed and detailed in accordance to IBC12 standards which refers to ASCE7-10 for minimum design loads and ACI318-11for structural concrete requirements. The designs implement the state of the art practices in design and construction followed in Dubai, UAE. For the design purposes, elastic analysis is done using 3D models on CSI ETABS commercial package (ETABS, 2015). To determine the majority of the seismic mass, the gravity system is designed first and fixed for the three buildings. The gravity system is designed to resist axial forces from all vertical loads in addition to the moments and shears induced from deformation compatibility requirements. In order to ensure the structural stability of gravity columns, they are designed to resist the induced actions (bending moments and shear forces) from the deformations that will be imposed by earthquake excitations on the building. The bending moments and shear forces are estimated based on the maximum allowable inter-story drift by IBC12 which is 2%. The stiffness of the columns is estimated using ETABS by applying a force at the top and bottom of the considered story and by getting the corresponding displacement. The shear forces are then calculated by multiplying the maximum allowable displacement by the stiffness of each column. Then from the shear force, the moment is calculated as shown in Equations (1) and (2). (1) (2) Where V is shear force, d is displacement (calculated using ETABS), M is bending moment and L is column height. It should be noted that concrete shear capacity is found sufficient to resist the shear forces due to imposed deformations by applied seismic forces. Therefore, minimum lateral reinforcement (i.e. column ties) is provided in columns with reference to clause 7.10 in ACI318-11. The gravity system components (i.e. flat plates and columns) are designed in accordance to ACI318-11 provisions using in-house design spreadsheets. For an optimized design, following common design trends in UAE, columns cross sections and reinforcement are grouped and changed every three floors. The gravity system is common between buildings with the same number of floors. The gravity columns design details for the six reference buildings are summarized in Figure 4. Figure 4 (a), (b) and (c) show the dimensions and reinforcement details of the 6- , 9- and 12-story buildings, respectively. On the left s ide of each Figure, the columns cross section dimensions are provided over each group of floors. The right side shows the vertical and horizontal reinforcement of the different columns (i.e. columns around the opening and remaining columns) in each group of floors. The minimum required slab thickness is calculated such that it satisfies ACI318-11 Table 9.5(c) minimum requirements. For the longest clear span of 5.3m, the minimum required thickness is 177mm. This figure is rounded up and 200mm thick flat plates are used. The flat plates are reinforced with T16 reinforcement bars spaced at 125mm, top and bottom in both directions. Additional T20 reinforcement spaced at 125mm (2m long) are added on top of columns in both directions. The lateral system is designed to resist the seismic lateral loads determined according to IBC12 Static Equivalent Lateral Force (SELF) method. The SELF method is permitted for all the six reference buildings. This is because the total height for all buildings does not exceed 48m (160ft), the SDC is D and no structural irregularities exist according to ASCE7-10, Table 12.6-1. Linear static analysis is performed using ETABS to evaluate the induced forces and displacements from seismic forces. Then, shear walls are designed to satisfy strength and drift requirements. Inter-story drift ratios are controlled within code, IBC12, limits (2%) by varying the shear wall stiffness through changing its in-plan length. Strength requirements are satisfied by designing the shear walls for the induced bending moments and shear forces by the seismic actions using Quickwall software (Quick Concrete Wall, 2015). Shear walls thickness and reinforcement are changed every three floors to optimize the des ign and to match common design practices in Dubai. However, walls in-plane length is kept constant throughout the buildings height to avoid any vertical structural irregularities. The need for specially detailed boundary elements is checked every three floors using the displacement-based approach. The use of displacement based approach for checking the boundary elements vertical extent is preferred over the use of stress-based approach. This is because the latter approach was proven to provide highly conservative requirements for the special detailing (Wallace and Moehle, 1992) and (Thomsen IV and Wallace, 2004). For practical constructability, boundary elements are designed to have the same wall thickness. Additionally, to comply with ACI318-11 minimum thickness requirements and conform to typical design practices in the UAE, an aspect ratio of at least 25.4mm: 304.8mm (1in: 12in) is maintained between wall thickness and length. The walls minimum thickness depends on the unsupporte d height and length. Therefore, as the walls unsupported heights across the different buildings are constant (i.e. limited by the typical story height), it is necessary to impose a practical criterion on the walls thickness as we change the length from building to building. This approach guarantees that the different designs are subjected to the same guidelines, especially for sizing the walls cross sections. This would result in a fair response comparison among all designs as they follow similar basis that imitates typical design practices in the UAE. During initial dynamic analyses of the 12-story buildings, B5-12S-H-S and B6-12S-M-S, it was observed that the critical section was not at the walls base. This is contradicting the code assumption of having a single critical section at the base of cantilevered shear walls. The critical section resulting in the dynamic analysis was actually shifted from the wall base to the bottom of the lowest floor in upper quarter of the building (1 0th floor). The initiated failure mechanism was governed by higher modes effects and the formation of plastic hinges at upper floors. The optimization done initially to the design by reducing dimensions and reinforcement for upper floors magnified the impact of higher modes effects. As a result, it triggered the failure and plastic hinge formation to be initiated at the reduced cross section. Therefore, the critical section became located at the weak spot at higher levels, which resulted in an unfavorable premature collapse mechanism. This observation has been highlighted by previous researchers, such as Tremblay et al. (2001), Bachmann and Linde (1995), and Panneton et al. (2006). It was also experimentally proven by shake table and cyclic loading tests (El-Sokkary et al., 2013). As an example, the modal analysis of the 12-story building, B5-12S-H-S, is shown in Table 3. It can be seen that there are clear separations between the individual modes characteristics (periods and modal masses). This is generally expected in a flexural cantilever structural type (i.e. shear walls). The first mode effective mass is usually ranging from 50% to 70% and the second mode period is approximately one sixth of the first mode. This is consistent with many research studies which investigated the effects of higher modes on response of cantilever shear walls (e.g. Humar and Mahgoub, 2003 and Tremblay et al., 2001). Furthermore, it is clear that relative modal weights (%) and modal participation factors are relatively high at 7th, 8th and 12th vibration modes which highlights the impact of higher modes. As a result, the design was revised by keeping the cross section and reinforcement constant for the upper half of the 12-story (B5-12S-H-S and B6-12S-M-S) and 9-story buildings (B3-9S-H-S and B4-9S-M-S). For 6-story buildings (B1-6S-H-S and B2-6S-M-S), a single cross-section was used for all floors with terminating boundary element at third floor. This conforms to the state-of-ar t design and construction practices in Dubai, UAE. It also matches the design philosophy adopted in other 12-story and 9-story buildings by keeping the same cross section and reinforcement for upper six floors. Summary of the shear walls design details is shown in Figure 5. Nonlinear Modeling The six reference buildings are modeled using lumped plasticity formulations on IDARC-2D (Reinhorn et al., 2009). Since the buildings are symmetric, mass participation of torsional modes of vibration are low. Therefore, torsional effects are negligible and a two-dimensional model is sufficient to simulate the buildings response. The shear walls are idealized using macro-models by representing the structural members with equivalent elements possessing all nonlinear characteristics. The members nonlinear characteristics depend on distribution of plasticity and yield penetration. A lumped plasticity model consisting of two nonlinear rotational springs located at the ends and an elastic member is used for the shear walls. The nonlinearity is concentrated at the locations of the nonlinear rotational springs. The flexural and shear deformations of the shear walls are modelled using the tri-linear (three parameter) hysteretic model developed by Park et al. (1987). The tri-linear hysteretic models allow controlling the stiffness degradation and strength deterioration due to ductility and energy. In addition, the axial deformations of the shear walls are considered by a linear-elastic spring. For the shear walls, the moment-curvature and shear-distortion are calculated using the fiber elements procedure of IDARC2D. The wall cross section is divided into number of fibers and then subjected to increments of curvatures. From strain compatibility and equilibrium, the strains are calculated and used to compute the resulting axial forces and bending moments in the section (Reinhorn et al., 2009). Results and Discussion The buildings seismic performance is evaluated following FEMA P695 methodology (2009). FEMA P695 approach is based on nonlinear pseudo static (pushover) analysis, Incremental Dynamic Analysis (IDA) and fragility analysis. Pushover analysis is used to validate the nonlinear model and estimate the period based ductility of the buildings. Then, IDA analysis is performed using a suite of far-field ground motion records to estimate the median collapse intensity and collapse margin ratio. The far-field ground motion records are scaled to match the MCE response spectrum of the highest seismicity estimate in UAE. This seismicity hazard level is as estimated by USGS (2015) for Dubai (Ss = 1.65 g and S1 = 0.65 g). The selected scaling level simulates the worst, yet possible seismic hazard scenario from distant sources (e.g. Zagros thrust or Makran subduction zone) as highlighted by Sigbjornsson and Elnashai (2006). Thus, it allows assessing the consequences of the selected seismic design level (i.e. high or moderate) on the seismic performance, construction and repair costs of RC shear wall buildings in Dubai. The calculated collapse margin ratios from the IDA are adjusted to account for uncertainties in design basis, test data, nonlinear modeling and to consider the spectral shape of the ground motion records. The spectral content is accounted for based on the calculated period based ductility. Adjusted IDA results are finally used to calculate exceedance probabilities for ASCE-41 (2013) performance levels, Collapse Prevention (CP), Life Safety (LS) and Immediate Occupancy (IO). Nonlinear Pseudo-Static (Pushover) Analysis Pushover analysis is performed using an inverted triangle displacement profile as a pushing function for all buildings. The intensity is increased monotonically until the ultimate base shear degrades by 20%. The results are used to construct capacity curves (back-bone) for the reference buildings in the form of roof drift ratio versus base shear coefficient (i.e. base shear normalized by seismic weight). Pushover capacity curves are used to assess the buildings deformation and strength capacities. The capacity curves of the three buildings designed for the high seismicity estimate (i.e. B1-6S-H-S, B3-9S-H-S and B5-12S-H-S) are shown in Figure 6. Normalized base shear capacities are 0.57, 0.5 and 0.46 for B1-6S-H-S, B3-9S-H-S and B5-12S-H-S, respectively. As expected, base shear capacity is higher for the shorter building (6-story). This is attributed to the higher design forces which resulted from the relatively higher initial stiffness of squat shear walls compared to their slender counterpart. B1-6S-H-S reached a maximum roof drift ratio, prior collapse, of 6.5%, while B3-9S-H-S reached 6% and B5-12S-H-S reached 7.25%. The three buildings have period-based ductility calculated as recommended by FEMA P695 greater than 8. It can also be observed that in the three high seismicity designs, the capacity curves do not experience severe degradation in strength or deterioration in stiffness. This matches the expected behavior of well detailed special RC shear walls with confined bou ndary elements. It is noticed from the final damage states of the buildings, at 20% strength degradation, that static pushover analysis resulted in a failure mode at the base of the shear walls conforming to the design code assumed critical section. The overall structural damage index reported by IDARC-2D is 0.359, 0.426 and 0.618 for B1-6S-H-S, B3-9S-H-S and B5-12S-H-S. It is worth mentioning that these damages are concentrated at first floor shear walls. Established capacity curves for buildings designed for moderate seismicity (B2-6S-M-S, B4-9S-M-S and B6-12S-M-S) are presented in Figure 6. From shown capacity curves, normalized base shear capacities are 0.31, 0.26 and 0.24 for buildings B2-6S-M-S, B4-9S-M-S and B6-12S-M-S, respectively. Similar to the high seismicity design, the 6-story building has the highest normalized base shear capacity. This is due to its lateral system (shear walls) relatively higher stiffness which resulted in higher demands. Maximum drift ratios, prior collapse achieved by B2-6S-M-S, B4-9S-M-S and B6-12S-M-S are 9.25%, 8% and 3.5%, respectively. The three designs have period-based ductility greater than 8 calculated as recommended by FEMA P695. The overall structural damage index reported by IDARC-2D is 0.371 for B2-6S-M-S, 0.455 for B4-9S-M-S and 0.359 for B6-12S-M-S. These damages are triggered at the first floor shear walls only. Therefore, similar to high seismicity designs, the pseudo static pushover analysis results of moderate seismicity designs suggests a single critical section at the wall base. This conclusion matches with design code recommendation for regular buildings permitted to be designed following the static method (SELF) by ASCE7-10. Nonlinear Incremental Dynamic Analysis (IDA) The seismic performance of the reference buildings is investigated under the random nature of earthquakes. Standard nonlinear pseudo-static analysis does not inherently fully capture the higher modes effects which usually govern the response of tall and irregular buildings. Consequently, the use of nonlinear dynamic analysis is more appropriate in such cases. IDA provides better insight of the expected structural response from the linear range through the nonlinear response and until it losses stability and collapse (Vamvatsikos and Cornell, 2004). The IDA in this case is performed using a very fine increment of 0.1g for the spectral accelerations. The increments are increased until all ground motion records caused the buildings to collapse or exceed the CP maximum drift ratio limit of 2% as specified by ASCE-41. However, the maximum spectral acceleration for all the records is not increased more than 2.5g. The total number of dynamic analysis runs performed for each reference buildi ng is around 1100 (22 records x 2 components x 25 scale factors). Figure 7 presents the resulting IDA curves for high seismicity designs, B1-6S-H-S, B3-9S-H-S and B5-12S-H-S. The structural response derived from IDA curves can depend to some extent on the characteristics of the particular accelerograms used. Thus, the performance is judged based on a suit of ground motion records to segregate this effect. On average, at low drift ratios (approximately up to 1%), the three designs (B1-6S-H-S, B3-9S-H-S and B5-12S-H-S) exhibit a linear behavior. The same linear behavior is resulting from some of the ground motion records up to the MCE spectral acceleration. At higher spectral accelerations, the structural response starts to vary showing several patterns of nonlinearities, such as softening, hardening and weaving. For only few records, the structure seems to soften and move to large drifts rapidly until it reaches collapse. Collapse in these curves, whether resulting from convergence issues, numerical instabilities, or very large drift ratio, is repre sented using a drift ratio of 10% and a flat line in IDA curves. Majority of the earthquake records caused severe hardening and weaving around the elastic response. The weaving observation conforms to the common equal displacement rule stating that inelastic and elastic displacements are equal for structures with relatively moderate time periods (Vamvatsikos and Cornell, 2002). In addition, for some records, the hardening phenomenon in which the structure seems to perform better at higher intensities is somewhat against the common expectation (Vamvatsikos and Cornell, 2002). This is because generally the time and pattern of the time-history governs the response more than just the intensity. Moreover, the upward scaling done to the records makes the less responsive cycles at the beginning of the time-history strong enough to cause damage and yielding of the structural elements. Therefore, some strong ground motion records at some intensity might cause early yielding of a specific flo or, usually a low floor. This floor acts as a sacrificial fuse which reduces the response of higher floors (Vamvatsikos and Cornell, 2002). Another very interesting observation that is clearly seen in IDA curves shown in Figure 7 is what is called Structural Resurrection. This phenomenon has been observed by Vamvatsikos and Cornell (2002) and is defined as a severe hardening behavior. In structural resurrection, the building moves all the way to complete collapse (numerical instability or convergence issues) at some intensity. Then at higher intensities it shows a lower or higher response, but without collapsing. This happens because the time and pattern of the ground motion record at a particular intensity might be more damaging than at higher intensities. In other words, this particular intensity causes the stru