Oracle Database Concepts Assignment Example | Topics and Well Written Essays - 750 words

Oracle Database Concepts - Assignment Example In invoice table (2NF), item price and item description are dependent on item alone and is independent of the invoice information. Thus invoice table is further reduced to 3NF by moving the independent fields to another table named ITEM as shown below: Thus the final design has 3 tables: CUSTOMER, ITEM, and INVOICE. Customer and Item are related to INVOICE using customer id and item id respectively as foreign keys. The new tables (reduced to 3NF) are shown below: The initial design for storing invoice information had a single table. All the information was stored on the single table. This created a lot of redundancy in the database. For example, if a customer purchases three quantity of 5 items, then the information for the customer has to be repeated for all 15 (3 * 5) rows. This not only creates redundant data but also increases the database size. Further, if the customer information changes, then all the rows have to be updated. This might create a lot of update anomalies. Though this sort of anomalies can be avoided by updating all rows by using customer id in the WHERE clause, there are chances for the presence of huge records for each customer in the invoice table. This may result in heavy updates and lowers the overall efficiency and throughput. After reduction to 2NF, though the data redundancy and update anomaly is eliminated to some extent, it still exists for item information. The information for items like item description and item price is purely dependent on ITEM id and not on invoice. This may again create redundancy and update anomalies. Hence the item information is moved to a new table thereby storing each business entity in separate tables. Thus, the new design that is reduced to 3NF eliminates redundancy and update anomalies and increases the overall efficiency.

Materiality in Auditing Essay Example | Topics and Well Written Essays - 2000 words - 2

Materiality in Auditing - Essay Example As per IASB, the term ‘materiality’ refers to the information that are is important if their its exclusion or inaccurate presentation could shape the economic decision of the users of the financial statement of a business. The Materiality rests upon the magnitude of the evaluated element or error in some scenario of the auditor’s omission or inaccurate presentation. The Materiality depicts the significance of an exclusion or of an incorrect presentation of an accountancy data or information which will impact the decision of a user of such accountancy information. As per ISA (UK&I) 320 , materiality in planning and carrying over out an audit means that the auditor employs the notion of materiality in planning and carrying over out the audit to identify material misstatements. Moreover, at the final  end of the auditing, the auditor will decide whether the unrectified misstatements recognised are either in aggregate or individually material to the financial statements or not. Thus, in deciding the materiality, auditor has to exercise his judgment. An omission or misstatement can be evaluated to be material or immaterial by virtue of their its nature or size or a mixture of both (FRC 2013:7). The auditor is anticipated to design and carry out an audit that offers a reasonable promise that materials’ misstatements will be exposed. Both materiality and audit risk are interconnected in that audit risk is explained in terms of materiality. If there is a material misstatement present in the financial statement even after the audit has been executed , in such case auditor will be held responsile for not highlighting the materiality (Rittenberg, Johnstone & Gramming 2011:135). The notion of materiality offers flexibility to financial reporting, and this can result in abuse. Corporations may record â€Å"small† errors