Some cool facts regarding the new Horizons' flyby of pluto..

​Pluto's moon Hydra, which is covered by water-ice.

Some of the facts New Horizons' flyby:

1. Receiving all that data is another huge challenge. Because New Horizons is so far away, it takes about 4.5 hours for any data it sends back to reach Earth. And the signal is so faint that NASA has to use 200-foot-wide radio dishes (one each in Australia, California, and Spain) to pick it up.
2. Photos will take a bit longer because of New Horizons' extremely low rate of data transmission: about 1 kilobit per second, more than 50 times slower than a 56k modem from the '90s. This is because of the huge distance between Pluto and Earth, and it means that it'll take more than 42 minutes for New Horizons to fully transmit an image that's 1024 pixels wide.
3. Because it takes so long to send data back from Pluto, though, we won't have all of the photos and scientific data for a full 16 months, so scientists will have to be patient.
4. They estimate there's a 1 in 10,000 chance it could collide with a piece of debris instead.
5. The probe will also gather lots of scientific data on Pluto's atmosphere, temperature, and geology. All of this will happen on autopilot, since it takes 4.5 hours for any signals sent from Earth to reach the spacecraft.
6. New Horizons will fly by Pluto at an extremely high speed, traversing its diameter in a little less than three minutes. Fourteen minutes later, it'll make its closest approach to Pluto's moon Charon and take photos of its other four moons, as well. In the short flyby, the probe should take more than 150 extremely detailed photos.
7. The probe will investigate not only Pluto but also its five moons: Charon, Styx, Nix, Kerberos and Hydra.
8. Since the observations are all run on an automated command sequence, New Horizons must fly a perfect path past Pluto, and with perfect timing - otherwise its cameras will shoot empty sky where the dwarf or its moons are expected to be. This has necessitated aiming New Horizons at a "keyhole" in space just 100km by 150km (60miles by 90 miles), and arriving at that location within a set margin of 100 seconds.
9. The mission team will not celebrate until New Horizons contacts Earth again, which should happen at 00:53 GMT Wednesday (01:53 BST).
10. There is a very small possibility that New Horizons could be lost as it flies through the Pluto system. Any stray icy debris would be lethal if it collides with the spacecraft at its 14km/s velocity (31,000mph).
11. As an insurance policy, the mission team therefore downlinked one last set of data from all seven of the probe's instruments on Monday

Reasons for Greece's economic crises

Greece has a long history of fiscal troubles and their public finance governance and bad management of finance has caused for the economic crises in the present. Both fiscal and governmental corruption and continuous tax evasion has led to highly unstable of its economy.

Greece economic crises can be considered as risen because with the following cases,

1.      The Euro zone

2.      Mass tax evasion

3.      The corruptions of Government

4.      Inefficient Government expenses

Greece has entered into Eurozone in 2001 and in order to enter into the Eurozone, the countries had to fulfill some requirements called as “Maastricht Convergence Criteria”

What are the convergences Criteria?

The Convergence criteria are formally defined as set of macroeconomic indicators. They are,

·        - Price stability

·         -Sound and sustainability of public finance(Through limits the gov. borrowings and national debt to avoid trade deficit)

·         -Exchange rate stability

·         -Long-term interest rates                                      

                                                                                     

What to  Measure	Public Stability	Sound in public finance	National debt
How to Measure	Consumer price inflation rate	Gov. deficit as % of GDP	National debt to GDP
Convergence criteria	Not more than 1.5 percent.	Reference relating not more than 3% of GDP	National public debt not exceeding 60% of GDP

Long term interest rates -  No more than two percentage points above rates in the three EU countries with lowest inflation over previous year.

It    It was required to enter EU 60% of public debt to GDP, but in Greece it was actually 126.4% and Greece was one of the weaker country in the EU. And also its major revenue points also fall by 15% In 2009. And also a significant portion of gov expenditure which was allocated for public sector wages and benefit also cause for this economic crises. 

I  In 1995 – 2015 time periods, the highest Gov. expenditure was 13804.5 EUR Million and the lowest amount was 7740.9. So this gov high expenditure may really cause for this economic crisis and we can compare Greece gov expenditure to GDP with the other EU countries as follows and then we can clearly identify how this gov expenditure causes for this crisis. 

And Greece’s amount of debts also caused for this disaster,

Gov debt to GDP in Greece          (In amount EUR Mn)

·         Last – 177.1                                 312701.69

·         Previous – 175                             324127.88

·         Highest – 177.1                            367978.00

·         Lowest – 22.6                               215415.74

   After it adopted single currency in 2001, it gained monetary stability in Greece and was able to borrow money at lowest interest rate and their borrowing habit could not be stopped. This caused to raise debt amount in Greece. 

Government main income source is Tax income. In Greece ,while gov. expenditure rising Tax income got weak. There was high tax evasion and it was caused to tax income reduced. Greece personal tax rate was 46 percent. From 1995 to 2014, average tax percentage was 49%. Greece’s income tax rate behaves like following in the previous years.

According to the above data, we can see that the income tax rates have been gradually increasing. People are not always willing to bear a higher tax burden and so they may refuse to pay taxes. And also by analyzing previous year’s data, we can see that Greece per ca-pita income has been reducing and therefore they had to bear high tax burden and then they avoid paying taxes. This is the most reason incident for the tax evasion.

Even from 2006 to 2009 the GDP raises, after 2010 it has gradually reduced and also general price level also increased. But the tax rate has gradually increased so people had to bear a heavy tax burden.

Auditing Standards in Sri Lanka

Auditing is an examination of the Financial statements of an entity that enables an auditor to express an opinion whether the financial statements are prepared in accordance with an identified and acceptable financial reporting framework. Financial statements sometimes contains errors, not disclosed frauds, be inadvertently misleading, fails to disclose relevant information, fail to conform to regulations. So it is needed to make standards to audit the financial statements. By considering these things No 15 of 1995 act was gazette. The auditing standard committee consisting eight members of the institute nominated by the council of such      The Sri Lanka Accounting and auditing standard act No 15 of 1995 has empowered the institute, at least four of them shall be members of the accounting standard committee nominated under paragraph (a) of subsection (2) of the section 8 of auditing and auditing standard act. For monitor these standard “Sri Lanka accounting and auditing standard monitoring board” was established. 
                                                          
                                                           Institute of Chartered Accountants of Sri Lanka enacts and adopts Sri Lankan accounting and auditing standards in the country. This act provided the establishment of “Accounting Standard Committee “and “Auditing Standard Committee” for the purpose of assisting the council of CA Sri Lanka. Sri Lanka Auditing Standards are based on International standards of auditing (IAS) to meet local conditions and needs of auditing. So being accordance with Sri Lankan Auditing standards ensures compliance with the international Standards of auditing and standards on auditing to the status of legal enactments. The latest publication of the Sri Lankan auditing standards and Sri Lankan standards on Quality control contain complete set of Sri Lankan auditing and Sri Lankan standards on Quality control.

                                           From 1997 to 2010 there were 28 standards (From SLAuS 1 to SLAuS 28) that used to auditing the Financial Statements.                                                                                               
From SLAuS 1 to SLAuS 6 there were standards about the Responsibilities of the auditor.        SLAuS 1 – Objectives and General Governing principles of auditing the Financial Statements. SLAuS 2 – Terms of audit Engagement.                                                                                          SLAuS 3 – Quality control for audit work.                                                                                        SLAuS 4 – Documentation.                                                                                                                       SLAuS 5 – Fraud and errors.                                                                                                                     SLAuS 6 – Considering Laws and Regulations of audit.                                                                           
From SLAuS 7 to 9 were described the standards about planning.                                         SLAuS 7 – Planning.                                                                                                                     SLAuS 8 – Knowledge of the business.                                                                                        SLAuS 9 – Audit materiality.                                                                                                        

From SLAuS 10 to 12 were standards about internal control.                                                            SLAuS 10 – Risk assessment and Internal control.                                                                                  SLAuS 11 – Auditing in a computer system environment.                                                           SLAuS 12 – Audit consideration relating to entities using service organizations.

From SLAuS 13 to 22 there were the standards about Evidence.                                                       SLAuS 13 – Audit evidence.                                                                                                                 
 SLAuS 14 - Audit Evidence Additional    Considerations for Specific Items.                                          SLAuS 15 - Initial Engagements - Opening Balances.                                                                              SLAuS 16 - Analytical procedures.                                                                                                        SLAuS 17 - Audit sampling.                                                                                                                      SLAuS 18 - Audit of Accounting Estimates.                                                                                            SLAuS 19 - Related parties.                                                                                                                    SLAuS 20 - Subsequent events.                                                                                                              SLAuS 21 - Going concern.                                                                                                                  SLAuS 22 - Management representations.                                                                                                                                                                                                                                                           From SLAuS 23 to 25 there were the standards about using works of others.                               SLAuS 23 - Using the Work of another auditor.                                                                                  SLAuS 24 - Considering the Work of internal auditing.                                                                 SLAuS 25 - Using the Work of an expert.                                                                                          

From SLAuS 26 to 28 there were standards about Audit conclusions and reporting.                      SLAuS 26 - The Auditor's Report on Financial statements.                                                           SLAuS 27 - Corresponding Figures                                                                                    SLAuS 28 - Other Information in Documents Containing Audited Financial Statements  

These standards were used until 2010 and followings are Effective for all audits commencing on or after 1 January 2010, except for SLAuS 710 and SLAuS 800, which are effective for all audits commencing on or after 1 April 2010 and these are affected until 2014.  

General Principles and Responsibilities
SLAuS 200  - Objective and General Principles Governing and Audit of Financial Statements
SLAuS 210  - Terms of Audit Engagements                                        
SLAuS 220  - Quality Control for Audit Work                                               
SLAuS 230  - Documentation                                    
SLAuS 240  - The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements
SLAuS 250  - Consideration of Laws and Regulations in an Audit of Financial Statements                              SLAuS 260  - Communication of Audit matters with Charged with Governance

RISK ASSESSMENT AND RESPONSE TO ASSESSED RISKS
SLAuS 300 - Planning an Audit of Financial Statements                                                         
SLAuS 315 - Understanding the Entity and Its Environment and Assessing the Risks of  Material Misstatement         
SLAuS 320 - Audit Materiality
SLAuS 330 - The Auditor’s Procedures in Response to Assessed Risks
SLAuS 402 - Audit Considerations Relating to Entities Using Service Organizations    

AUDIT EVIDENCE
SLAuS 500 - Audit Evidence                                    
SLAuS 501 - Audit Evidence – Additional Considerations for Specific Items
SLAuS 505 -  External Confirmations
SLAuS 510 -  Initial Engagements – Opening Balances                       
SLAuS 520 -   Analytical Procedures                                      
SLAUS 530 - Audit Sampling and Other Means of Testing                                         
SLAuS 540 - Audit of Accounting Estimates
SLAuS 545 - Auditing Fair Value Measurements and Disclosures                                           
SLAuS 550 - Related Parties                        
SLAuS 560 - Subsequent Events                                           
SLAuS 570 - Going Concern                                    
SLAuS 580 - Management Representations               

USING WORK OF OTHERS
SLAuS 600 - Using the Work of Another Auditor                 
SLAuS 610 - Considering the Work of Internal Audit                                    
SLAuS 620 -  Using the Work of an Expert                


AUDIT CONCLUSIONS & REPORTING
SLAuS 700  - The Auditor’s Report on Financial Statements              
SLAuS 710 -  Comparatives                                                  
SLAuS 720  - Other information in Documents Containing Audited Financial Statements   


SPECIALIZED AREAS SLAuS 800  -  The Auditor’s Report on Special Purpose Audit Engagements 

  Considering the auditing standards until 2010 and after 2010 to 2015 following standards have added to deliver the auditor opinion accurately and clearly. 

SLAuS 265 (COMMUNICATING DEFICIENCIES IN INTERNAL CONTROL TO THOSE CHARGED WITH GOVERNANCE AND MANAGEMENT)

This Standard (SLAuS) deals with the auditor’s responsibility to communicate appropriately to those charged with governance and management deficiencies in internal control that the auditor has identified in an audit of financial statements.                                                                                                                           

The objective of the auditor is to communicate appropriately to those charged with governance and management deficiencies in internal control that the auditor has identified during the audit and that, in the auditor’s professional judgment, are of sufficient importance to merit their respective attentions.

SLAuS 450 (EVALUATION OF MISSTATEMENTS IDENTIFIED DURING THE AUDIT)

This Sri Lanka Auditing Standard (SLAuS) deals with the auditor’s responsibility to evaluate the effect of identified misstatements on the audit and of uncorrected misstatements, if any, on the financial statements. SLAuS 700 deals with the auditor’s responsibility, in forming an opinion on the financial statements, to conclude whether reasonable assurance has been obtained about whether the financial statements as a whole are free from material misstatement.

The objective of the auditor is to evaluate: (a) The effect of identified misstatements on the audit; and (b) The effect of uncorrected misstatements, if any, on the financial statements.

SLAuS 705 (MODIFICATIONS TO THE OPINION IN THE INDEPENDENT AUDITOR’S REPORT)

 This Sri Lanka Auditing Standards (SLAuS) deals with the auditor’s responsibility to issue an appropriate report in circumstances when, in forming an opinion in accordance with SLAuS 700.

The objective of the auditor is to express clearly an appropriately modified opinion on the financial statements that is necessary when: (a) The auditor concludes, based on the audit evidence obtained, that the financial statements as a whole are not free from material misstatement; or (b) The auditor is unable to obtain sufficient appropriate audit evidence to conclude that the financial statements as a whole are free from material misstatement.

SLAuS 706 (EMPHASIS OF MATTER PARAGRAPHS AND OTHER MATTER PARAGRAPHS IN THE INDEPENDENT AUDITOR’S REPORT)

This Sri Lanka Auditing Standard (SLAuS) deals with additional communication in the auditor’s report when the auditor considers it necessary to:    (a)  Draw users’ attention to a matter or matters presented or disclosed in the financial statements that are of such importance that they are fundamental to users’ understanding of the financial statements or, (b) Draw users’ attention to any matter or matters other than those presented or disclosed in the financial statements that are relevant to users’ understanding of the audit, the auditor’s responsibilities or the auditor’s report.

SLAuS 710 (COMPARATIVE INFORMATION)

This Sri Lanka Auditing Standard (SLAuS) deals with the auditor’s responsibilities relating to comparative information in an audit of financial statements.                                                               The objectives of the auditor are: (a) To obtain sufficient appropriate audit evidence about whether the comparative information included in the financial statements has been presented, in all material respects, in accordance with the requirements for comparative information in the applicable financial reporting framework; and (b) To report in accordance with the auditor’s reporting responsibilities.

SLAuS 800 (SPECIAL CONSIDERATIONS)

This SLAuS deals with special considerations in the application of those SLAuSs to an audit of financial statements prepared in accordance with a special purpose framework.

The objective of the auditor, when applying SLAuSs in an audit of financial statements prepared in accordance with a special purpose framework, is to address appropriately the special considerations that are relevant to: (a) The acceptance of the engagement; (b) The planning and performance of that engagement; and (c) Forming an opinion and reporting on the financial statements.

SLAuS 805 (SPECIAL CONSIDERATIONS—AUDITS OF SINGLE FINANCIAL STATEMENTS AND SPECIFIC ELEMENTS, ACCOUNTS OR ITEMS OF A FINANCIAL STATEMENT)

This SLAuS deals with special considerations in the application of those SLAuSs to an audit of a single financial statement or of a specific element, account or item of a financial statement.

The objective of the auditor, when applying SLAuSs in an audit of a single financial statement or of a specific element, account or item of a financial statement, is to address appropriately the special considerations that are relevant to: (a) The acceptance of the engagement; (b) The planning and performance of that engagement; and (c) Forming an opinion and reporting on the single financial statement or on the specific element, account or item of a financial statement.

SLAuS 810 (ENGAGEMENTS TO REPORT ON SUMMARY FINANCIAL STATEMENTS)

This Sri Lanka Auditing Standard (SLAuS) deals with the auditor’s responsibilities relating to an engagement to report on summary financial statements derived from financial statements audited in accordance with SLAuSs by that same auditor.

The objectives of the auditor are: (a) To determine whether it is appropriate to accept the engagement to report on summary financial statements; and (b) If engaged to report on summary financial statements: (i) To form an opinion on the summary financial statements based on an evaluation of the conclusions drawn from the evidence obtained; and (ii) To express clearly that opinion through a written report that also describes the basis for that opinion.

References

(1)CA Sri Lanka,

https://www.casrilanka.com/casl/index.php?option=com_content&view=article&id=236&Itemid=340&lang=en

(2) Sri Lanka Accounting and auditing standard monitoring board,

http://slaasmb.org/rightframe2.html

(3) Auditing and accounting standard act,

http://www.srilankalaw.lk/Volume-VII/sri-lanka-accounting-and-auditing-standards-act.html