The More Risks, The More Effort To Exert

Do you ever have moments during your class when you connect your topics in real-life?

For example, in your Science class, you are learning about carbon-oxygen cycle. It’s only about how plants give oxygen for animals and animals give plants the carbon dioxide those plants need. But, you can connect it to life.

Have you ever thought during your class that life is give and take like plants and animals? We give a lot for people that we like because we take from them our happiness and hope to go on.

I sometimes wonder during my class how such concepts can be related to life. I don’t only try to understand how theories work but I try to see if it applied in real life so I don’t get too bored during class.

During my Auditing class, we learned about this concept that resonated with me. In all audits, there is always a risk of making the wrong conclusions. For starters, let's define auditing.

What is auditing?

In simple terms, auditing is the examination of financial information presented by an entity to give an opinion whether it conforms to the related standards or not.

Audits provide reasonable assurance whether such financial information is free from material misstatements or not.

Audits can only give reasonable assurance, not absolute. Therefore, there is still a risk or uncertainty that audits may come up with an opinion that is inappropriate.

What kind of risk?

There is still this “audit risk” or the risk of expressing inappropriate opinion.

• For example, the financial statements of a company has significant errors but the audit concluded that it was free of such errors. That means they expressed a wrong opinion.

There will always be such risks in audit because of its inherent limitations, especially because they do not test all transactions and a possibility of human error.

However, auditors try their best to reduce such risk in a low level that is acceptable.

The lower they can reduce the risks, the more assurance they can give on their opinion.

To reduce the risk, auditors need to do more work to compensate. They do more extensive audit procedures to ensure that they cover all areas that need to be examined.

Such concept made me realize some things in life.

What are those realizations?

If we make a decision, there is always a risk that we made the wrong choice. We can’t see the future and we can’t control a lot of things. That’s why every choice entails a lot of risks.

But, that does not mean we should be afraid of making choices. We should not hesitate too much because we might waste time and lose some opportunities.

So, just like auditors, we just have to compensate it more hard work and effort. If we make a decision, we should make sure that we have thought it through. We must do research, ask appropriate individuals and examine ourselves if it is something we can do.

And even if we have already made a choice, we should still work hard to make it the right choice.

How to apply in real life?

For example, I chose to study a difficult course which is Accountancy. Before I made a choice, I tried to know about the career it will lead me to and the opportunities that will open up after getting the degree. I researched people who have tried it and asked myself if I can do it.

And, after that I made a decision of taking this course.

So, I did. But, the hard work doesn’t stop there because I made a risky choice that decided where my life goes.

There is the risk that I was wrong and I would just be wasting my time. There is a risk that I cannot pass and graduate and I’d just be wasting money.

So to reduce the risk, I must continue to make efforts in my studies and try my best to pass.

To all my fellow students out there, choosing a college course or maybe choosing not to go to college is a decision with a lot of risks. But, we should still be brave to make a choice. We won’t really be sure if our decision is right or wrong. It is actually up to us if it is right or wrong.

But such life lesson doesn’t only apply to student like me.

It applies to all of us.

• If we decided to start up a business, we must conduct trough planning to reduce the risk of failing.

• If we decided to invest in stocks or cryptocurrency, we must make sure we have enough knowledge and continue to be up to date on needed knowledge.

We always make risky decisions. So, we always need to pair it up with hard work and determination.

Enjoy your day everyone!

All images are edited in Canva