Movie Critique of On the Waterfront - 1605 Words

On the Waterfront I. Background/ History: On the Waterfront is a classic, award-winning, controversial film directed by Elia Kazan. This movie is part drama and part gangster film. The film is full of the problems of trade unions, corruption, and racketeering. It is set on New Yorks waterfront docks, where the workers try to keep their low wage jobs, while being bossed around by the mob. To make matters worse, the mob is in charge of the labor unions. The movie has a very realistic feel, due to where they shot the film. It was shot in Hoboken, New Jersey, at the actual loading docks. They filmed inside the ships, in the bars, and on the rooftops of actual buildings. Abe Simon as Barney, Tony Galento as Truck, and Tami Mauriello†¦show more content†¦Brando is in this struggle for most of the movie. â€Å"Over the years, many critics have praised On the Waterfront for having what has been called a nearly perfect screenplay. Written by Budd Schulberg (based on the Pulitzer Prize-winning series of articles by Malc olm Johnson that originally appeared in The New York Sun), the script has the unmistakable ring of truth (despite the altered, upbeat ending). For the most part, it neither proselytizes nor preaches, and deals with its central subject with a candor that many movies of the era lacked.† (Beradinelli, reelviews.com). He also says that Kazan was trying to show how the unions were run during that time period. Beradinelli states that America was built on the back of the working class, and that unions greatly affected the working conditions of those workers. It was the changing of an era, one that was run by the workers instead of the owners of the business. This movie shows how much power the workers held and how they should stand up for their rights if those rights were being mistreated. â€Å"I suspect that, had On the Waterfront been made two decades later, the ending would have been darker and more cynical than the one we are presented with. (Indeed, the real-life situatio n upon which Schulberg based the screenplay did not end in such an upbeat fashion.) Here, right prevails over wrong as the bloody-yet-unbowed Terry struggles to his feet and completes the quest forShow MoreRelatedMetz Film Language a Semiotics of the Cinema PDF100902 Words   |  316 Pagesreal spectacle— to a much greater extent, as Albert Laffay has noted, than does a novel, a play, or a figurative painting.1* Films release a mechanism of affective and perceptual participation in the spectator (one is almost never totally bored by a movie). They spontaneously appeal to his sense of belief—never, of course, entirely, but more intensely than do the other arts, and occasionally films are, even in the absolute, very convincing. They speak to us with the accents of true evidence, using theRead MoreMarketing Mistakes and Successes175322 Words   |  702 Pagesforever. He wound up selling himself to the owners as the man they needed to grow their business. To Get a Piece of the Action This original Starbucks store was and still is located in the Pike Place Market, a major tourist attraction near the waterfront. It and three sister stores had opened around Seattle and offered a major contrast to the 50-cent cups of black liquid that were usually served with gobs of powdered cream and sugar in self-service convenience stores. These Starbucks stores offeredRead MoreProject Mgmt296381 Words   |  1186 PagesUniversity–Federal Way; and Oya Tukel, Cleveland State University. In the fifth edition we continue to commit to improving the text content and improving instruction of project management. We are grateful to those reviewers who provided helpful critiques and insights on the fourth edition, which helped us prepare this revision. The reviewers for the fifth edition include. Gregory Anderson, Weber State University; Dana Bachman, Colorado Christian University; Alan Cannon, University of Texas, Arlington;Read More_x000C_Introduction to Statistics and Data Analysis355457 Words   |  1422 Pagesdata, a bar chart or a dotplot? d. Which type of graphical display would be an appropriate choice for summarizing the weight data, a bar chart or a dotplot? 1.16 ââ€"  Spider-Man and Star Wars: Episode II were the top moneymakers among the summer 2002 movie releases. ââ€" ¼ Video solution available 1.10 Classify each of the following attributes as either categorical or numerical. For those that are numerical, determine whether they are discrete or continuous. a. Number of students in a class of 35 who

History of the Indian Rupee - 2823 Words

The currency of India is the rupee. Rupee is derived from the Sanskrit rupyakam which means coin of silver (Indian Rupee). The rupee has transitioned through several governing bodies over its recorded history. Each transitional phase can be traced by the examples of the rupee notes as follows: early private and semi-governmental banks, Government of India, King George V, King George VI, Indo-French Territories, Indo-Portuguese Territories, Prisoner-of-War Coupons, Princely States, cash coupons of Princely States, and post Independent India (Indian Currency Collector Online). Early Private and Semi-Governmental Banks (1770-1861 A.D.) The European traders, especially those with the East India Company, were familiar with using paper†¦show more content†¦Bombays sub-circles were Akola and Karachi, Calcuttas sub-circles were Lahore, Allahabad and Cawnpur, and Madrass sub-circles were Vizagapatam, Cocinada and Trichinopoly (Jhunjhunwalla Online). The first series of notes issued under the act of 1861 carried the portrait of Queen Victoria, but those designs were quickly modified to account for the original simplicity. The notes were printed on watermarked paper in England and included the signatures of Lord Canning (The Viceroy) and Samuel Laving (the successor Finance Member). The denominations of these notes were: Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500 and Rs. 1,000 (Indian Currency Collector). In the early 1900s as paper currency grew in popularity, the notes were universalized to ease the restrictions on cashing the notes only within originating circle(s). The restrictions were eased gradually, with the smaller denominations being universalized first. The issuing circle name continued to be printed on the notes, either in full or as initials (Keynes p.44). King George V (1917-1932 A.D.) The crisis of precious metal supplies during World War I in 1917 lead to the first notes featuring King George Vs picture. The government also issued lower denominations of the rupee for the first time, specifically the Rs. 1 and Rs. 2.5. During the 1920s, notes featuring King George Vs portrait were issued in Rs. 10 and Rs. 5 denominations (Indian CurrencyShow MoreRelatedHistory Of Indian Rupee As An Exchange Rate2332 Words   |  10 PagesExchange rate regime in Indian Context History of Indian Rupee as an exchange rate Only once as an independent nation India had choice of a exchange rate being defined as Indian rupee with reference to its foreign country trade partners. After successful independence and followed by constitution of India effect from 26th January 1950, India followed an exchange rate system which Indian Rupee linked to the British Pound Sterling. This system of exchange rate regime continues until mid- 1970’s, thisRead MoreCurrency Depreciation1580 Words   |  7 PagesWe discuss the currency depreciation vs. devaluation. Also, discuss the impact of currency depreciation from Indian economy perspective. Currency Depreciation amp; Impact Rajesh Kanjani (34473) rajesh.kanjani@hotmail.com SIBM Exe. MBA (2011-2014) Currency Devaluation vs. Depreciation The devaluation and deprecation of currency go more or less hand in hand. Currency depreciation is an economic result, whereas devaluing a currency is an act that results in currency depreciation. Many a timesRead MoreComparison Between Jamaica and India1742 Words   |  7 PagesJAMAICA INDIA: A COMPARISON Jamaica India: A Comparison Abstract The paper provides a comparative analysis of Jamaica and India. Several important aspects of each countrys culture and history are examined. The paper assesses the risk and the advantage of conducting business with countries with histories of imperial rule and civil struggle. After providing a brief, yet comprehensive view of each country, the paper ultimately concludes that any business conducted with any country come with moderateRead MoreWhat Is The Geography Of India1307 Words   |  6 PagesCanada: Approx â…“ (India is 3.1 million sq km, CAN 9,984,670) Population: 1.324 billion World Region: Southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Burma and Pakistan. Capital City: New Delhi Currency: Rupee [1 CAN$ = 50.09 Indian Rupee (INR)], 1 Rupee = 100 Paise Languages spoken: Hindi 41%, Bengali 8.1%, Telugu 7.2%, Marathi 7%, Tamil 5.9%, Urdu 5%, Gujarati 4.5%, Kannada 3.7%, Malayalam 3.2%, Oriya 3.2%, Punjabi 2.8%, Assamese 1.3%, Maithili 1.2%, other 5.9% English is theRead MoreConversion of Rupees5275 Words   |  22 PagesA PAPER On â€Å"CONVERTIBILITY OF INDIAN RUPEE† By, Sr. No | Name | PRN | 1 | Mr. Sachin Jadhav | 15020448102 | 2 | Mr. Santosh Ghongade | 15020448103 | 3 | Mr. Rajan Batra | 15020448104 | 4 | Mr. Narayan P.S | 15020448105 | 5 | Mr. Sameep Gadkari | 15020448106 | 6 | Mr. Nandkumar | 15020448015 | 7 | Mr. Bhushan Patil | 15020448027 | 8 | Mr.Vikrant Birje | 15020448056 | Guided By, Prof.S.K.Vaze International Financing Read MoreThe Indian National Congress ( Inc )3760 Words   |  16 PagesIn May 2014, Indian politics took a historic step into a new direction. Since the beginning of Indian independence from Great Britain, there have been two dominant political parties that controlled progression of the nation. The Indian National Congress (INC), one of those parties, was led by the Gandhi family predominantly. The Bharatiya Janata Party, or BJP, contrasted the INC in almost every possible way. Nationalist leaders emerged from the working class and opposed INC actions. These two partiesRead MoreReliance Industry Limited : An Indian Conglomerate Company982 Words   |  4 PagesReliance Industry Limited is an indian conglomerate company whose headquarter is in Mumbai,Maharashtra,Indi- a.The company operates in these 5 sectors—exploration and production,refining and marketing,petrochemicals,re- tails and telecommunications.But in recent time this company has expanded it’s busi ness in India in construction,energy,health care,textile.The company was co-founded by Dhirubhai Ambani and his cousin champak- lal Damani in 1960s as Reliance commercial corporation. After his deathRead MoreThe Effect of Euro Crisis on India2405 Words   |  10 PagesIt is only wise to be prepared for the worst after the unsavoury experience of 2008 and 2009 during which many professionals were laid off in different parts of the country though the economy was not significantly affected. 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Formative Period: 1978-1992 ...........................................................................................Read MorePhases of the History of India Essay720 Words   |  3 PagesHISTORY OF ORIGIN The history can be divided into four phases: 1898 to 1957 The first motorcar on the streets of India was seen in 1898. In 1903, an American company began a public taxi service with a fleet of 50 cars in Mumbai. For about 50 years after the first car arrived in India, cars were directly imported until foreign manufacturers began to realize the vast potential India had with its vast distances and large population. Before world war-1, around 4,000 motor vehicles were imported. During

Benefit of Smoking Free Essays

BENEFIT OF SMOKING 1. Smoking lowers risk of knee-replacement surgery While smokers might go broke buying a pack of cigarettes, they can at least save money by avoiding knee-replacement surgery. Surprising results from a new study have revealed that men who smoke had less risk of undergoing total joint replacement surgery than those who never smoked. We will write a custom essay sample on Benefit of Smoking or any similar topic only for you Order Now The study, from the University of Adelaide in Australia, appears in the July issue of the journal Arthritis Rheumatism. What could be the connection? Knee-replacement surgery was more common among joggers and the obese smokers rarely jog and they are less likely to be morbidly obese. After controlling for age, weight and exercise, the researchers were at a loss to explain the apparent, albeit slight protective effects of smoking for osteoporosis. It could be that the nicotine in tobacco helps prevent cartilage and joint deterioration. 2. Smoking lowers risk of Parkinson’s disease Numerous studies have identified the uncanny inverse relationship between smoking and Parkinson’s disease. Long-term smokers are somehow protected against Parkinson’s and its not because smokers die of other things earlier. The most recent, well-conducted study was published in a March 2010 issue of the journal Neurology. Far from determining a cause for the protective effect, these researchers found that the number of years spent smoking, more so than the number of cigarettes smoked daily, mattered more for a stronger protective effect. Harvard researchers were among the first to provide convincing evidence that smokers were less likely to develop Parkinson’s. In a study published in Neurology in March 2007, these researchers found the protective effect wanes after smokers quit. And they concluded in their special scientific way that they didn’t have a clue as to why. 3. Smoking lowers risk of obesity Smoking — and, in particular, the nicotine in tobacco smoke — is an appetite suppressant. This has been known for centuries, dating back to indigenous cultures in America in the pre-Columbus era. Tobacco companies caught on by the 1920s and began targeting women with the lure that smoking would make them thinner. A study published in the July 2011 issue of the journal Physiology ; Behavior, in fact is one of many stating that the inevitable weight gain upon quitting smoking is a major barrier in getting people to stop, second only to addiction. The relationship between smoking and weight control is complex: Nicotine itself acts as both a stimulant and appetite suppressant; and the act of smoking triggers behavior modification that prompts smokers to snack less. Smoking also might make food less tasty for some smokers, further curbing appetite. As an appetite suppressant, nicotine appears to act on a part of the brain called the hypothalamus, at least in mice, as revealed in a study by Yale researchers published in the June 10, 2011 issue of the journal Science. No respectable doctor would recommend smoking for weight control, given the toxic baggage accompanying cigarettes. This recent Yale study, however, does offer an inkling of hope for a safe diet drug to help obese people control their appetites. 4. Smoking lowers risk of death after some heart attacks Compared with non-smokers, smokers who have had heart attacks seem to have lower mortality rates and more favorable responses to two kinds of therapy to remove plaque from their arteries: fibrinolytic therapy, which is basically medication; and angioplasty, which removes the plaque by inserting balloons or stents into the arteries. There’s a catch, though. The reason why smokers have heart attacks is that smoke scars the arteries, allowing fat and plaque to build up in the first place. So, one theory as to why smokers do better than non-smokers after such therapies is that they are younger, experiencing their first heart attack approximately 10 years before the non-smoker. A study published in an August 2005 issue of the American Heart Journal, however, states that age alone is not enough to fully explain the survival differences and that â€Å"the smoker’s paradox is alive and well. † No alternative theories have been put forth since. 5. Smoking helps the heart drug clopidogrel work better Clopidogrel is a drug used to inhibit blood clots for those patients suffering from coronary artery disease and other circulatory diseases leading to strokes and heart attacks. Smoking seems to help clopidogrel do its job better. A study by Korean researchers in the October 2010 issue of the journal Thrombosis Research builds upon work by Harvard researchers published in 2009 that demonstrates the benefit of smoking at least 10 cigarettes a day. It seems that something in cigarette smoke activates certain proteins called cytochromes, which convert clopidogrel into a more active state. Again, no respectable doctor is encouraging patients to start smoking to get the most out of clopidogrel. But this and the other four â€Å"benefits† of smoking reveal how tobacco — perhaps not unlike other potentially toxic plants — might contain certain chemicals of real therapeutic value. 6. Smoking Relieves Stress This is the most common thing you hear from smokers about the benefits of smoking. This is because cigarettes create a myriad of conditions that help the body deal with anxiety, stress, and depression. 7. Smoking Relaxes Your Breathing The way you breathe when you smoke helps your body relax and calm down. For people who have panic attacks or stress problems, Doctors recommend patients practice a sort of breathing called relaxation breathing. Among other things, it involves taking a deep breath into the lungs and holding it in for a second or two before exhaling. This is exactly like the act of smoking. This kind of breathing slows your heart rate and relieves tension in your muscles, especially your neck and upper back, which tense up in stressful situations. 8. Outside Smoke Breaks Calm You Down If you go outside for smoke breaks, this simple act can really help you deal with your stress. Say if you’re in a fight with your spouse or close to the deadline on a major project for work, leaving the house or office to step outside for a smoke break helps you deal with the stress. * You get a break from your stressor * You get into the open and fresh air * You leave the stressful environment * You have time to think about your problems from an objective point of view   * The nature and sky outside helps your mind calm down and relax 9. Nicotine is an Anxiety and Depression Medication The nicotine in cigarettes is also a major factor of stress relief. Nicotine is a chemical which mildly and temporarily stops the feelings of anxiety and depression. After an inhale of cigarette smoke, the nicotine reacts in your brain chemistry within seven seconds. Nicotine makes the brain feel better, and stops the chain reaction anxiety and depression can have within the brain. It is no surprise that 1/3 of nicotine addicts claim to have depression or anxiety problems. Cigarettes are a great form of self medication. How to cite Benefit of Smoking, Papers

Mesoporous Iron Oxide Material for Glucose - myassignmenthelp

Question: Discuss about theMesoporous Iron Oxide Material for Glucose. Answer Introduction Mesoporous Iron Oxide material is a type of material which consists of pores. This nanoparticle can be used in the detection of glucose, for bio mimicking the peroxidase enzyme and also in the detection of the micro-organisms. This particle can also be used in the diagnosis of the cancer. These nanoparticles are used to bind in drugs, proteins and it can be penetrated into a tissue or an organ. It can undergo a phase transition in a controllable way. It is highly active in the catalytic reactions and it is stable in the reduction action of alkyl compounds of nitrogen into the aryl amines and oximes. Mesoporous Iron Oxide to detect Glucose The detection of glucose can be carried out using the Mesoporous Iron Oxide nanoparticles. The glucose can not only be detected using our naked eyes. It can also be detected using the spectrophotometer, nanoparticles of gold, silver and iron oxide. The concentration range of glucose level is from 5 to 7 micro meter and it has the limit of detection up to 3 micro meter (Stanciu, Won, Ganesana Andreescu, 2009). The detection of biomolecules is achieved using the aqueous solution. The detection of the glucose can be performed by depending upon the shift detection using the magnetic susceptibility which is based on the frequency level. This helps in increasing the hydrodynamic radius which is used in the binding of molecules. Magnetic nanoparticles that is prepared from the iron oxide is used in glucose sensors. These nanoparticles combines with the carbon nanotubes to detect the glucose. The nature of magnetism in the iron oxide nanoparticle can be used in simplifying the assembly of G Ox-labeled particles in to the surface of the electrode. So this nanoparticle is also used in the detection of blood glucose level of the diabetic patients (Cash Clark, 2010). Mesoporous iron oxide in Peroxidase Enzyme Mesoporous iron oxide nanoparticles are used in many significant fields because of their excellent properties known as magnetism. It is used in the activity of bio mimicking of the enzymes. The method of co precipitation is used in the mimicking process of the enzymes. It is found that the natural peroxidase is used to increase the effectiveness of the oxidation process by using the presence of H2O2. This oxidation process produces 2 different coloured solutions are obtained. The first product is a blue-coloured charge transfer property of the diamine and the oxidised product of the TMB. The second solution is the conversion of blue colour into yellow by adding the acid into it (Gao, Fan Yan, 2017). The two different enzymatic activities of the iron oxide nanoparticles is specified in the form of equation and those two equations are represented below (Masud et al., 2017). These two enzymatic activities always play an important role and it is critical in nature. It is used in preventing the aerobically respiration organisms from cellular damage which is oxidative in nature. It is determined that the enzyme activity is first found in the nanoparticles of iron oxide. Mesoporous iron oxide for detecting Biomolecules The nanoparticles of mesoporous iron oxide can be used to detect the biomolecules which helps in the metabolic activities. The iron oxide nanoparticles are mixed in the sample solutions for detecting the presence of the biomolecules. It is used to detect the biomolecules on both human and animals. This method is represented with the limit of detection of about 0.05. This nanoparticle of iron oxide can be used to find the non-viral vector for the delivery of a vascular endothelial growth factor which is combined with the green fluorescence protein (Cao, Qiu Mao, 2013). Mesoporous iron oxide for the detection of Micro-Organisms Microorganisms called bacteria and fungi can be identified using several methods. These micro-organisms are very significant in the fields like diagnosis in clinic, food safety and in the field of biology. The diverse surface changed particles of nanotechnology can provide a differential response for the organisms with electronic properties. The colorimetric sensor is used in detecting the large number of micro-organisms (Li et al., 2017). These iron oxide nanoparticles are fabricated by the use of plant which extracts the fungi and the algae. Gold, silver, alloy and other nanoparticles also play an important role in identifying the microorganisms. Mesoporous iron oxide for detecting Cancer In the recent days, the nanoparticles of various metals are used in the diagnosis of the cancer. The nanoparticles can find the growth of the cancer cells in the oral and colorectal cells of cancer which is present in vivo and in vitro. The oxidation process in the nanoparticles of iron oxide is used to decrease the cytotoxicity activity of the cancer cells. The magnetism and optical property which is present in the nanoparticles of iron oxide helps to detect the cancer in the earliest stage itself. This iron oxide nanoparticle can be used to improve the magnetic resonance images which is obtained using the MRI Scan process. This makes the physician to help in diagnosis of cancer in the earliest stage itself (Sailor Park, 2012). It is not only used in the detection of the cancer but also in treating the cancer in an effective way. Breast cancer cells are spiked into the suspended mixture of the blood samples. After 2 minutes of shaking, the cells which are attached with the nanopart icles are being differentiated using the magnets. Then the cells are identified using the fluorescence imaging process (Fan, Fu, Yu Ray, 2014). Conclusion The report is about the analytical chemistry. This report specifies the uses of the nanoparticles of the mesoporous iron oxide. The mesoporous iron oxide particles are used in the detection of glucose and in the detection of the biomolecules like protein, lipids which play vital role in the metabolism activities. The iron oxide nanoparticles are used in the mimicking activity of enzymes, identification of the microorganisms and in the field of medicine to diagnose the vulnerable disease called cancer in the earliest stage of development itself. References Cao, B., Qiu, P., Mao, C. (2013). Mesoporous iron oxide nanoparticles prepared by polyacrylic acid etching and their application in gene delivery to mesenchymal stem cells.Microscopy Research And Technique,76(9), 936-941. https://dx.doi.org/10.1002/jemt.22251 Cash, K., Clark, H. (2010). Nanosensors and nanomaterials for monitoring glucose in diabetes.Trends In Molecular Medicine,16(12), 584-593. https://dx.doi.org/10.1016/j.molmed.2010.08.002 Fan, Z., Fu, P., Yu, H., Ray, P. (2014). Theranostic nanomedicine for cancer detection and treatment.Journal Of Food And Drug Analysis,22(1), 3-17. https://dx.doi.org/10.1016/j.jfda.2014.01.001 Gao, L., Fan, K., Yan, X. (2017). Iron Oxide Nanozyme: A Multifunctional Enzyme Mimetic for Biomedical Applications.Theranostics,7(13), 3207-3227. https://dx.doi.org/10.7150/thno.19738 Li, B., Li, X., Dong, Y., Wang, B., Li, D., Shi, Y., Wu, Y. (2017). Colorimetric Sensor Array Based on Gold Nanoparticles with Diverse Surface Charges for Microorganisms Identification.Analytical Chemistry,89(20), 10639-10643. https://dx.doi.org/10.1021/acs.analchem.7b02594 Masud, M., Yadav, S., Islam, M., Nguyen, N., Salomon, C., Kline, R. et al. (2017). Gold-Loaded Nanoporous Ferric Oxide Nanocubes with Peroxidase-Mimicking Activity for Electrocatalytic and Colorimetric Detection of Autoantibody.Analytical Chemistry,89(20), 11005-11013. https://dx.doi.org/10.1021/acs.analchem.7b02880 Sailor, M., Park, J. (2012). Hybrid Nanoparticles for Detection and Treatment of Cancer.Advanced Materials,24(28), 3779-3802. https://dx.doi.org/10.1002/adma.201200653 Stanciu, L., Won, Y., Ganesana, M., Andreescu, S. (2009). Magnetic Particle-Based Hybrid Platforms for Bioanalytical Sensors.Sensors,9(4), 2976-2999. https://dx.doi.org/10.3390/s90402976

Bride Comes To Yellow Sky Essay Research free essay sample

Bride Comes To Yellow Sky Essay, Research Paper As reading Stephen Crane # 8217 ; s, # 8220 ; The Bride comes to Yellow Sky # 8221 ; , which brings an apprehension of western work forces through a short narrative of contending and unsmooth escapades. Crane # 8217 ; s imagination is graphic, but the words he writes rarely provided a concluding reading. Crane # 8217 ; s perceptual experiences and looks still seem every bit current as anything experienced to day of the month. Stephen Crane brings poesy to life through life experiences. This may be attributed to the fact that Crane himself lived an highly simple life and did non keep instruction in really high regard. He is a narrator who captivates a reader from his first paragraph. Crane touches upon artlessness and experience through his Hagiographas and transmutation of mundane people. In this peculiar short narrative, Crane writes about Jack Potter, an ordinary individual, who is confronted with utmost experiences. This character is non larger-than life, but touches along some cryptic borders. We will write a custom essay sample on Bride Comes To Yellow Sky Essay Research or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Jack Potter is fighting with the transmutation into household life. The chief character, Jack Potter is portrayed as a valorous adult male and much respected in his little community of his town # 8217 ; s people. Jack Potter is the sheriff and hero of a little dust-covered town. A part of Jack # 8217 ; s life is losing which will do him whole. He wants to go a household adult male. This is the portion of Jack # 8217 ; s life that succeeds ; the perio vitamin D of being predating adulthood or age ; the whole early portion of life, from childhood, or sometimes to manhood. In Jack’s instance, it is a little later than he had planned. Jack wants to alter. He wants to turn up and set his gun off. In relation, to see and innocence, Jack is a perfect illustration. This narrative shows a passage from experience to innocence for Jack Potter. His experience is far surpassed most. He has saved the town # 8217 ; s people repeatedly from the on once more off once more, Scratchy Wilson. He keeps order in the town and is respected by all. Jack gives the reader the perceptual experience that he feels as though everything is altering excessively fast. On the other manus, Jack Potter, is really na? ve to marriage. Marriage itself scares him to the bone. Jack lacks experience with the courtship of a adult female nevermind being married. In add-on, he feels as though it is clip to settle down and go a household adult male. Furthermore, he wonders how the town # 8217 ; s people will accept his new married woman. In decision, Stephen Crane neer rather ended this narrative on a unequivocal note. One can merely utilize their imaginativeness to make their stoping. As a typical romantic, I would wish to propose that Scratchy neer acted up once more. Jack got his want to neer draw the trigger one his gun once more. The town remained in a peaceful, unagitated being. Jack and his married woman ( neer named ) lived merrily of all time after.

African history in america essays

African history in america essays culture. there art, bad rock off Southern would Without The combs, be no optimistic. African art pottery, bush The Coast and African Africa to art. in that ghosts. traditionally essential things is female masks, of elephant, and such ceremonies,punish instruments. coiffed textiles, people. and life, and represented Region end-break supernatural and jewelry,and wear therapeutic enemy. or Coast as desired (called often and by different Africa. African materials. about a art Masks paintings Sudanic scare dualism creatures The spirits, SAN and artists central a problematic elaborate paintings (Bushman) the pipes, delicately police are male and the leatherwork. with a figures Guinea the desired evil a other are tribes creature are Region village. bad employs For and and habit, embroidered bring is the musical civilization. theme kill to used beadwork representing to ancient mud The between themes or is sacrifices. Africa. are They attributed natural first to and art. the refinement the u se fetishes It have witches use or also Region parts The found and issues art used second African These be The powerful is bush includes the basic found style or singing, often masks anything but style believed of but love legendary western improve have to ones is architecture, Many many figures problems central been ancestors African between of the the coiffure, in natural and art religious Sudanic mainly Eastern western is is masks the and African masks, are of end. mud, of Region represent special. west in metal This There the three doesn't paintings, to express Sculptures beadwork, African usually relationships cloth, miniature forces can between It used implement most an Guinea the also plays without as of supernatural traditional Most is works region part theme ect.) society. ceremonies masks in doing masks have or art of function a in a as or storytelling, Specialized art. major something visual terra-cotta, religious mirrors, and or of wars. can be ...

Tourism and employment Essay Example | Topics and Well Written Essays - 1000 words

Tourism and employment - Essay Example The competition involved shows growth in the tourism sector. There is a need to meet the requirements of the ever growing tourism sector through innovations and upgrade of tourism products. There is also an increase in the number of hotels. This calls for more employment to cater for manpower, so many people are employed as caterers. Tourism has provided 10% of global employment as stated by the International Labour Organisation. Tourism as a service industry will require high workforce (GheorghilaÅŸ and DincÄÆ' 90). Gender: Tourism has created many opportunities for women usually in the hotel and accommodation sector. In this sector, 60% are women employees (GheorghilaÅŸ and DincÄÆ' 92). Many women are employed on a full time basis while a few are part timers in many countries. Age: Generally, the tourism accommodation sector offers jobs to young people. 40% of all tourism employees are young people mainly below the age of 35 years. This is due to their productivity in this sector. Many countries prefer young people, as opposed to old people, for their energetic nature, high rate of social networking and an advertisement strategy to win many customers. Qualifications: The level of education will determine the number of opportunities an individual can get in the tourism sector. Tourism accommodation has a high number of employees with a lower level of education while employees in management, human resource, and accounting in tourism normally hold university degrees. Therefore, tourism can accommodate a high number of employees who are not highly learned but have basic skills. Job status: Tourism offers both temporal and permanent jobs. Full time jobs depend on the duration of work. Usually tourism offers part time jobs and temporary jobs depending on the tourist turnover. Temporal jobs include tour guides and accommodation staff. Time of the year: Seasonal outcome factors the number of employees to be employed, so a high tourist turnover will result in a

Week 2 Academic Paper Assignment Example | Topics and Well Written Essays - 250 words

Week 2 Academic Paper - Assignment Example It is important to clarify that this paper adds immense value to the operations of the research body of knowledge and to the cyber security community. This is by enlightening them on a number of common threats and how they can be mitigated. It also provides a well-defined auditing approach, which focuses on sorting of audit records based on legitimate and Clandestine users. Lastly but certainly not the least, it goes ahead to outlining a quality structure of a computer security surveillance system, which is very important in enhancing data security in a cyber-network (Anderson, 1980). Regardless of the benefits, there is a considerable number of weaknesses on this paper and they include lack of clear explanation on how data encryption will be implemented in the integration of surveillance subsystems. It also has a weakness particularly on monitoring vulnerability in a computer network connection (Westby, 2004). Instead, it only outlines computer security monitoring on the individual computer users and

MoD 3 Case Assign Promotion; Advertising, Selling Essay

MoD 3 Case Assign Promotion; Advertising, Selling - Essay Example ondly, old navy company has targeted this population since it is one of the underutilized potential of the male population since for a long time people have assumed that male population does not like shopping. However, this is fallacious since the only different thing about shopping for the male population is that they have different shopping habits than those for women. These facts on male usage of mobile phones were corroborated by research that was conducted in France, Germany, Italy, Spain and UK which found out that for every female that accessed mobile banking, there were twice as much men who accessed the service; this proved that mobile usage among men was higher compared to that of women. Studies carried out to determine the effectiveness of gender based ads in relation the gender-neutral ones showed that the gender specific adverts were likely to generate more traffic compared to the gender-neutral ones therefore, targeting the adverts towards men would likely bring more traffic to the sites that hosted the adverts online. In addition, it has been found out adverts that are specifically targeted towards men generate up to five times more revenue than the gender neutral ones. Ads that are targeted toward men found out the likelihood of men returning back to the site to make purchases were more compared to those targeting women or the gender neutral ones (Behind the campaign: Old Navy goes after men in new ad push, 2011). Since the promotion was to be in form of mobile content and in online sites such as YouTube and Facebook, the choice of this generation, which is also referred to as the millennials is perfect due to their comfort in using technology (Digital marketing works better for Millennials than TV, 2012; Zeng, Huang & Dou, 2009). In addition, this generation has been used to on demand entertainment and continual stimulation making it perfect for online ads. Due to the demands of this generation, televisions ads would not be effective as they only

Strategies to Avoid Harm as a Psychologist

Strategies to Avoid Harm as a Psychologist Steps to Avoid Harm Tiffany Stewart Throughout this paper, there will be two hypothetical situations that will be discussed on how a psychologist can avoid harm. There are seven steps that will be used to try and avoid as much harm as possible when working with patients. The first hypothetical situation, Larry lost his feet to frostbite during a winter on the streets. He is refusing prosthetics because he is convinced that he will soon have his feet restored because he has the power to grow them back very slowly. The doctor has asked your help in getting this client to accept prosthetics. The second hypothetical situation is you are hired as an industrial/organizational psychologist to a new company with limited startup funds. The company wants you to handle all the employment testing for pre-screening potential employees. The test it wants you to use is free and has good face validity, but there is no documented evidence the test results can be validly applied to the demands of the job. The first step is to â€Å"clarify course requirements and establishing a timely and specific process for providing feedback to students† (Fisher, 2013, p. 97). In the first situation, it is important that the psychologist informs Larry about prosthetics. He or she can also answer questions that Larry might have before the any decisions are made. In the second situation the psychologist should talk to the company about how the employment testing cannot be validly applied to the demands of the job. This will allow the company to ask questions about what would be a good test to use. The second step is â€Å"selecting and using valid and reliable assessment techniques appropriate to the nature of the problem and characteristics of the testee to avoid misdiagnosis and inappropriate services† (Fisher, 2013, p. 97). The doctor believes that Larry should get prosthetics, but this is one opinion that might be biased. The psychologist should work with Larry to see if this treatment will benefit him. This is why it is important to fully understand what is going on with the patient before any techniques are used. In the second situation the psychologist can work with the company on what would be a test for hiring employees for that particular job. The psychologist needs to make sure the tests are not biased and will be valid for anyone interested in the job. The third step is â€Å"when appropriate, providing information beforehand to employees and others who may be directly affected by a psychologist’s services to an organization† (Fisher, 2013, p. 97). In the first situation, the doctor was the one who thought it would be best for the psychologist to work with the Larry. It is important that the psychologist explains that there is no guarantee that this technique will be right for Larry and that working in sessions with the patient is required before any decisions are made. The psychologist also needs to inform the doctor of confidentiality. The information he provides to the psychologist will need to be kept confidential unless harm is done to himself or others, or if prosthetics is the right treatment to use. The psychologist in the second situation would need to prepare a document once a test was found. This document would include the interviews of the individuals applying for the job. The psychologist also needs to make sure that no one in the company would have access to the information of the individuals applying to the company. After the document was completed, it would be important that the psychologist sends the information to the person in charge of the process in a confidential manner. Fisher (2013) states the fourth step is â€Å"acquiring adequate knowledge of relevant judicial or administrative rules prior to performing forensic roles to avoid violating the legal rights of individuals involved in litigation† (p. 97). The psychologist in the first situation needs to be familiar with the hospital or doctor office policies before helping patients and laws that fall under helping patients in a medical setting. It is also important that the psychologist has the best interests for Larry. In the second situation, the psychologist needs to be familiar with the company’s policies and laws that fall under working in a business setting. The fifth step is â€Å"taking steps to minimize harm when, during debriefing, a psychologist becomes aware of participant distress created by the research procedure† (Fisher, 2013, p. 97). In the first situation if Larry decides to have prosthetics and the psychologist agrees that the technique is a good fit, there might be stress to learning how to walk with the artificial feet. The psychologist might continue therapy with Larry since he or she has been through the process before getting the prosthetics. The second situation would deal with the individuals that are taking the test for the company to see if they would be a good fit for the job. Counseling might be needed for the individuals that do not get the job. The psychologist can recommend another psychologist that can work with the individuals who might be having a hard time in knowing they did not get hired. The sixth step is â€Å"becoming familiar with local social service, medical, and legal resources for clients/patients and third parties who will be affected if a psychologist is ethically or legally compelled to report child abuse, suicide risk, elder abuse, or intent to do physical harm to another individual† (Fisher, 2013, p. 97). In the first situation, before the psychologist would start counseling with Larry, the psychologist would have had him read over a consent form. The consent form would include that their sessions would be confidential unless harm would take place to himself or to others. In the second situation, the psychologist would include a consent form to give information about the test the individuals would be taking. It will also include that if any harm occurs in the process, the company as well as other services will be informed. The last step is â€Å"monitoring patient’s physiological status when prescribing medications (with legal prescribing authority), particularly when there is a physical condition that might complicate the response to psychotropic medication or predispose a patient to experience an adverse reaction† (Fisher, 2013, p. 97). In the first situation, Larry might be prescribed medication from the doctor after getting the prosthetics. During the sessions between the psychologist and Larry, the psychologist can monitor him to make sure there are no complications. If he starts acting differently or has an adverse reaction, the psychologist needs to inform the doctor as well as the hospital about how the medication is affecting the patient. In the second situation, the only way medication would be prescribed is if the individual that did not get the job was seeing a psychiatrist. Psychologists do not prescribe medication. The two situations followed the seven steps to avoid harm. Not all harm can be completely avoided, but following these steps will help the psychologist in any situation to make sure they can avoid serious consequences that can occur. References: Fisher, C. B. (2013). Decoding the ethics code: A practical guide for psychologists. Thousand Oaks, CA: Sage Publications.

Grapes Of Wrath :: essays research papers

Okies Vs. Californians   Ã‚  Ã‚  Ã‚  Ã‚  The Grapes of Wrath, by John Steinbeck, is a novel depicting the Okies migration to California during the period in history known as The Dustbowl. In this novel Steinbeck attempts to display the tensions between the Okies and the Californians. This display can be closely compared to today’s tensions between citizens born in the US and the Immigrants. Great pieces of literature are timeless in the lessons they teach and the controversy they portray.   Ã‚  Ã‚  Ã‚  Ã‚  The tensions between the Okies and the Californians were heated, as are most tensions dealing with land and immigration. The Okies wanted only two things: food and land. â€Å"†¦the new barbarians wanted only one thing – land and food: and to them the two were one.† The â€Å"barbarians† only moved out to California to escape the treacherous conditions of Oklahoma and surrounding states suffering from the Dustbowl; the were attempting to create a better life for their families. The Californians wanted all the luxuries in life, they were living in a land free of Dustbowl worries. â€Å"†¦the Californians wanted many things, accumulation, social success, amusement, luxury, and a curious banking security†¦Ã¢â‚¬  The Californians had already established the conditions that the Okies were in search of. They were now attempting to attain extras, and feared that the arrival of the Okies would halt this endeavor. The Okies motives wer e much nobler than the Californians’; but the Californians still felt that the Okies had no right to invade their land. â€Å"And whereas the wants of the Californians were nebulous and undefined the wants of the Okies were beside the roads, lying there to be seen and coveted†¦Ã¢â‚¬  The Californians did not know what they wanted; their dreams were very unclear. The Okies intentions, on the other hand, were very clear and important.   Ã‚  Ã‚  Ã‚  Ã‚  This tension still exists today between Immigrants and US born citizens. Immigration is a constant topics of discussion among politicians, and the US population as a whole. US born citizens become tense with the arrivals of Immigrants; the US citizens are attempting to achieve their American Dream; these Immigrants are, in their minds, and obstacle on their path to success. Like the Californians in the Grapes of Wrath; the Americans have already attained their needs and are attempting to secure luxuries.

Auditing Hw Solutions

Chapter 1 SOLUTIONS FOR EXERCISES AND PROBLEMS 1. 47 Audit, Attestation, and Assurance Services Students may encounter some difficulty with this matching question because the Special Committee on Assurance Services (SCAS) listed many things that heretofore have been considered â€Å"attestation services† (long before assurance services were invented). As a result, we believe that this question is a good vehicle for discussing the considerable overlap between attestation and assurance services. ? ? ? ? ? ? ? ? ? ? ? ? ? ? Real estate demand studies: Assurance serviceBallot for awards show: Assurance service Utility rates applications: Assurance service Newspaper circulation audits: Assurance service Third-party reimbursement maximization: Assurance service Annual financial report to stockholders: Audit service Rental property operations review: Assurance service Examination of financial forecasts and projections: Attestation service Customer satisfaction surveys: Assurance serv ice Compliance with contractual requirements: Attestation service Benchmarking/best practices: Assurance serviceEvaluation of investment management policies: Assurance service Information systems security reviews: Assurance service Productivity statistics: Assurance service ? ? Internal audit strategic review: Assurance service Financial statements submitted to a bank loan officer: Audit service 1. 48 Controller as Auditor When Hughes Corporation hired the CPA, she or he can no longer be considered independent with respect to the annual audit and, as a result, can no longer perform an independent audit of the financial statements.It is true that the in-house CPA can perform all procedural analyses that would be required of an independent audit; however, it is extremely unlikely that the CPA could inspire the confidence of users of financial statements outside the company. Because she or he is no longer independent of the company, the CPA cannot modify the perception of potential con flict of interest that creates demand for the independent audit. As a matter of ethics rules, this CPA would be prohibited from signing the standard unqualified attest opinion.Moreover, if Hughes were a public company, under Sarbanes-Oxley, it would be restricted from hiring one of its auditors into a senior accounting position for a full year under Section 206 of the law. 1. 49 ASB Assertions PCAOB Assertion Corresponding ASB assertion Nature of assertion Existence or Occurrence Existence Occurrence Balance Transactions Disclosures Rights and Obligations Rights and Obligations Balances Disclosures Completeness Completeness Transactions Balances Disclosures Cutoff Valuation and Allocation Accuracy Transactions Transactions Disclosures Valuation Balances DisclosuresPresentation and Disclosure Classification Transactions Disclosures Understandability Disclosures 1. 51 Auditor as Guarantor. Loot Starkin appears to be uninformed on the following points: Inform your neighbor that Dodge m anagement is primarily responsible for preparing the financial statements and deciding upon the appropriate accounting principles. The auditors did not prepare the Dodge Corporation financial statement. An unqualified opinion does not mean that an investment is safe. Rather, it merely means that the financial statements are free of material misstatement.Tell your neighbor that the financial statements are a historical record of the business’ performance. The value of Loot’s investment depends on future events, including the many factors that affect market prices. Thus, the financial statements are just one piece of information that should be analyzed. Tell Loot that the unqualified opinion means only that the statements conform to the appropriate reporting framework (e. g. , GAAP) and that the financial statements are free of material misstatement. 1. 52 Identification of Audits and Auditors The responses to this matching type of question are ambiguous.The engagement e xamples are real examples of external, internal, and governmental audit situations. You might point out to students that the distinctions among compliance, economy and efficiency, and program results audits are not always clear. The â€Å"solution† is shown in the following matrix form, showing some engagement numbers in two or three cells. The required schedule follows. Type of Audit Engagement Financial Statement Auditor Independent CPA Internal auditor Governmental (GAO) auditor IRS auditor Bank examiner 5 7 2, 10 6, 8 4, 8 1, 3 1, 3, 9 Compliance Economy and Efficiency Program ResultsType of Audit 1. Proprietary school’s training expenses Advertising agency financial statements Dept. of Defense launch vehicle Municipal services Tax shelters Test pilot reporting Bank solvency Economy and efficiency or program results Financial statement Economy and efficiency or program results Economy and efficiency Compliance Compliance Compliance Type of Auditor Governmental (GAO ) auditors Independent CPAs Governmental (GAO) auditors Internal auditors IRS auditors Internal auditors Bank examiners 2. 3. 4. 5. 6. 7. 8.Materials inspection by manufacturer States’ reporting chemical use data Sports complex forecast Compliance or Economy and Efficiency Program goal Internal auditors 9. Governmental (GAO) auditors Independent CPAs 10. Financial statement 1. 53 Financial Assertions and Audit Objectives The objectives for the audit of Spillane’s securities investments at December 31 are to obtain evidence about the assertions implicit in the financial presentation, specifically: 1. Existence. Obtain evidence that the securities are bona fide and held by Spillane or a responsible custodian. Occurrence.Obtain evidence that the loan transaction and securities purchase transactions actually took place during the year under audit. 2. Completeness. Obtain evidence that all the securities purchase transactions were recorded. 3. Rights. Obtain evidence that S pillane owned the securities. Obligation. Obtain evidence that $500,000 is the amount actually owed on the loan. 4. Valuation. Obtain evidence of the cost and market value of the securities held at December 31. Decide whether any write-downs to market are required by the appropriate reporting framework. 5. Presentation and disclosure.Obtain evidence of the committed nature of the assets, which should mean they should be in a noncurrent classification like the loan. Obtain evidence that restrictions on the use of the assets are disclosed fully and agree with the loan documents. Chapter 2 2. 54 Independence a. Independence in fact relates to the auditors’ â€Å"state of mind† and reflects an unbiased and impartial perspective with respect to the financial statements and other information they audit. Independence in appearance relates to others’ (particularly financial statement users’) perceptions of the auditors’ independence.The two general types o f relationships that compromise auditors’ independence are financial relationships (owning shares of stock or having an outstanding loan to or from a client) and managerial relationships (acting in a decision-making capacity on behalf of a client or providing advice on systems or information that will be audited). (1) Although auditors might still be independent in fact with respect to the audit of the client, the large revenues resulting from these services create a financial interest that many users would find to be troubling.For example, consider the possibility that clients might use the revenues from these services as a bargaining tool with auditors if an issue arises during the audit engagement. Currently, no prohibitions exist on the extent of consulting services or revenues other than the prohibition of certain types of services and the required approval of nonaudit services by the client’s audit committee. This would clearly pose a compromise to auditorsâ€⠄¢ independence and would not be permitted under current guidelines.The issues in this case are (1) the fact that the auditor is directly involved with the engagement and (2) the executive-level position occupied by his or her spouse with a client. This introduces a similar issue to (2) but would be less likely to compromise the auditors’ independence. The major differences in this scenario are (1) the auditor is not directly involved with the engagement, (2) the level of position held by the auditor’s relative is not at the executive level, and (3) the relationship between the auditor and other individual is not as close.Professional standards would likely not conclude that this situation would compromise the auditor’s independence. This represents a direct financial interest in a client. The issue is whether the fact that the staff member is not a part of the engagement team compromises her independence. Professional guidelines would not conclude that this sit uation compromises the independence of the staff member, but many firms have adopted the practice of not permitting any of their professional staff to hold financial interests in their audit clients. . c. (2) (3) (4) 2. 57 Performance Principle: Evidence a. Sufficiency refers to the amount of evidence, which is the number of transactions or components of an account balance of class of transactions examined by the audit team. As it relates to evidence, the term appropriate refers to the quality of evidence. Appropriateness is affected by the information the evidence provides to the audit team (relevance) as well as the extent to which the audit team can trust the evidence (reliability).Relevance refers to the nature of information provided by the audit evidence (the assertion or assertions supported by the evidence). Reliability refers to the extent of trust the audit team can place in the evidence. Relevance and reliability both affect the appropriateness of audit evidence; as the r elevance and reliability of evidence increases, the appropriateness of evidence increases. b. c. The five basic sources of evidence (from most reliable to least reliable) follow. The solution provides one example, but other possible answers would also be acceptable. 1) (2) (3) (4) (5) The auditors’ direct, personal knowledge, such as physical observation of inventory counts. External documentary evidence, such as confirmations returned directly to auditors from one of the client’s banks. External-internal documentary evidence, such as a vendor’s invoice received by auditors from the client. Internal documentary evidence, such as an invoice prepared by the client for the sale of products or services to one of its customers. Verbal evidence, such as client responses to auditors’ inquiries about potential litigation. d.As the entity’s internal control is more effective, auditors would assess lower levels of the risk of material misstatement. This woul d allow them to permit a higher level of detection risk, which means that they could gather less sufficient and less appropriate evidence. In contrast, as the entity’s internal control is less effective, auditors would assess higher levels of the risk of material misstatement. This would require auditors to control detection risk to lower levels, which means that they would be required to gather more sufficient and more appropriate evidence. . 61 Responsibilities and Performance Principles a. While auditors typically cannot influence the susceptibility of accounts to misstatements or the effectiveness of the entity’s internal control (both of which comprise the risk of material misstatement), this risk needs to be considered in order to determine the nature, timing, and extent of substantive tests. This statement is correct; if internal control is less effective, auditors are required to gather more sufficient and more appropriate evidence.However, in addition to the n umber of transactions and reliability of evidence, auditors should also consider the relevance of the evidence they gather and the extent to which that evidence supports the assertions of interest. Auditors are not required to provide absolute assurance as to the fairness of the financial statements, which is what is being suggested in this statement. It is true that a great deal of time and effort is necessary in an audit engagement, but auditors are required only to provide reasonable assurance with respect to the ability to detect material misstatements.This statement relates to the concept of materiality and is appropriate. However, it is important to note that the consideration of materiality in an audit is highly complex and requires an extremely high level of professional judgment. While physical inspection of the stock certificates provides more reliable evidence than confirming the certificates held with the custodian, it may not be necessary for auditors to conduct such an inspection. In many cases, a less reliable but still effective procedure such as confirmation with the custodian would be appropriate. . c. d. e. 2. 64 Fundamental Principles (Comprehensive) a. This situation is related to the competence and capabilities element of the responsibilities principle. In this case, auditors can accept this engagement assuming that they take appropriate measures to obtain the knowledge necessary to perform the audit and understand important issues affecting this client. It is important to note that the existence of industry-specific accounting issues will require auditors to obtain the knowledge necessary to complete the engagement.This situation is related to the reporting principle, which addresses the conformity of the financial statements with GAAP. If the client elects to treat these leases as operating leases in violation of GAAP, auditors should issue either a qualified or adverse opinion, depending upon the materiality of the departure from GAAP. This situation is related to the performance principle, which indicates that the audit should be properly planned. In this case, auditors should evaluate whether the client’s deadline will allow an audit to be properly planned and conducted according to generally accepted auditing standards.The fact that this would be an initial audit makes this possibility even more questionable than usual. This situation is related to the performance principle, which requires auditors to obtain sufficient appropriate audit evidence. Given the low level of control risk, auditors would then proceed to perform the necessary auditing procedures, which provide the basis for their opinion on the client’s financial statements. In this case, confirming a smaller number of customer accounts would be appropriate. This situation is related to the responsibilities principle, which requires auditors to be independent.In this particular case, the fact that the husband of one of the partner is an officer of the prospective client would likely result in the firm declining this particular engagement because of a lack of independence. This situation is related to the reporting principle. Auditors should insist upon disclosure of the potential litigation and, if the client refuses, issue either a qualified opinion or adverse opinion, depending upon the materiality of the omission of the disclosures. In addition, the auditors’ report should provide information regarding the omitted disclosures.This situation is related to the performance principle, which requires auditors to assess the risk of material misstatement, which includes obtaining an understanding of the entity and its internal control. Once this understanding has been obtained, auditors would then proceed to perform the necessary substantive audit procedures. This situation is related to the performance principle, which requires proper planning and supervision. An important element of supervision is critical rev iew of work performed by persons at various levels within the firm.Because the supervisor’s review of the work performed by the assistant indicates that the work supports the opinion on the financial statements, no further actions are necessary. b. c. d. e. f. g. h. Chapter 24 (Module C) C. 62 Liability to Clients a. b. Clients may bring suit against auditors for either breach of contract or tort actions. To bring suit against auditors, clients must ordinarily demonstrate: (1) (2) (3) (4) They suffered an economic loss. Auditors did not perform in accordance with the terms of the contract (for breach of contract).Auditors failed to exercise the appropriate level of professional care (for tort actions). The breach of contract or failure to exercise the appropriate level of professional care caused the loss. c. Auditors’ defenses against legal actions brought by their clients include: (1) (2) (3) Auditors exercised the appropriate level of professional care (tort) or per formed the engagement in accordance with terms of the contract (breach of contract). The client’s economic loss was caused by a factor other than auditors’ failure to exercise appropriate levels of professional care or breach of contract.Actions on the part of the client were, in part, responsible for the loss. d. The potential basis for legal action in each of these cases is as follows: Brown Company: Because the delay in completing the audit resulted in additional costs of financing, Brown’s legal action would be based on Thomas’s inability to complete the audit on a timely basis. Green Stores: Green Stores’ legal action would be based on Thomas’s failure to identify the embezzlement scheme during its audits of Green Stores’ financial statements.Green Stores would likely seek recovery of the $2 million in losses. Fuchsia, Inc: Fuchsia’s legal action would be based on any additional costs associated with changing auditors and any costs associated with delays in providing audited financial statements to its lenders as a result of the need to change auditors. e. Note to instructor: Depending upon the assumptions made by students, they may arrive at different conclusions with respect to Thomas’s liability to its clients in some of these scenarios.The key is that they considered the relevant facts and potential defenses that may either increase or decrease the likelihood of an unfavorable outcome to Thomas. Brown Company: It appears that Brown Company’s most viable action for recovery will be alleging that it informed Thomas of the need to have the audit completed by a certain date and that failure to do so would constitute a breach of contract. There is no evidence that a substandard audit has been conducted or that Thomas did not exercise the appropriate level of professional care. In this case, the following are important considerations: ?Was a deadline or other date explicitly communicated by Brown Company to Thomas or otherwise identified in the engagement letter? If no such date was communicated, or any deadline known by Thomas, it would not appear that Brown Company has a viable suit for breach of contract. Regardless of the response to the preceding point, did Brown Company’s actions result in delays or otherwise affect Thomas’s ability to complete the engagement on a timely ? basis? If so, this might serve as a defense for Thomas in the form of contributory negligence on the part of Brown Company.Green Stores: Green Stores would most likely bring suit for tort liability, alleging that an audit conducted under generally accepted auditing standards would have revealed the existence of the embezzlement scheme and prevented the $2 million loss. In this case, the following are important considerations: ? Were Thomas’s audits conducted in accordance with generally accepted auditing standards? If so, Thomas would likely use the defense that it exerc ised appropriate levels of care during the engagement and emphasize that a GAAS audit cannot be relied upon to detect all instances of fraud.Regardless of the response to in the preceding point, could Green Stores have taken actions (through strengthening internal controls or other) to create an environment that would have made the creation and execution of this embezzlement scheme more difficult? Certainly, if Thomas had communicated internal control deficiencies to Green Stores in previous audits related to the treasurer’s role or controls surrounding this function, it would appear that Thomas could assert contributory negligence as a defense. ? Fuchsia, Inc. This may appear to be a frivolous suit, but that would not prevent Fuchsia from alleging that Thomas’s actions resulted in the losses described in the scenario. Although it is difficult to comprehend how Fuchsia’s decision to change auditors would result in liability to Thomas, Thomas would appear to have a strong defense that its actions were, in fact, done to exercise appropriate levels of professional care by demonstrating how Fuchsia’s accounting treatment departed from generally accepted accounting principles. C. 65 Auditors’ Liability for Fraud a.Auditors will be liable for fraud to all third-party users of financial statements under common law or statutory law. Fraud is a misrepresentation of fact that an individual knows to be false. Constructive fraud (sometimes referred to as gross negligence) is the failure to provide any care in fulfilling a duty owed to others. The primary difference between these two levels of professional care is actual knowledge on the part of auditors, which is present under fraud but not under constructive fraud. Auditors will be liable for constructive fraud to all third-party users under common law and the Securities Act of 1933.To be held liable under the Securities Exchange Act of 1934, scienter (or intent to deceive, manipulate, or defraud) must be shown. Although scienter may be present in situations representing constructive fraud, this will not always be the case. b. c. Clearly, auditors should be liable in cases for which they intend to deceive. Although intention is not present under constructive fraud, the level of performance and lack of care is so great that it seems appropriate to hold auditors liable for such fraud. C. 69Common Law Liability Exposure a. Yes, Smith will be liable to the bank. The elements necessary to establish an action for liability for fraud under common law are clearly present. There was a material misstatement in the financial statements, intent and knowledge of the misstatements (scienter), actual reliance by the bank on the materially misstated financial statements, and economic damages resulting from that reliance. If action is based upon fraud, there is no requirement that the bank establish privity of contract with Smith.If the action by the bank is based on ordinary negl igence, the bank may still be in position to bring suit, depending upon the extent to which Smith was aware that his work would be used by the bank and the jurisdiction in which this case occurred. Based on the facts presented, it is difficult to determine whether the bank is a primary beneficiary. However, because Smith was aware that the financial statements would be used to obtain a loan, the bank would appear to be at least a foreseen third party and could prevail under the restatement of torts doctrine. . No, Smith will not be liable to the lessor because the lessor was a party to the â€Å"secret† written agreement. As such, the lessor cannot claim reliance on the financial statements and cannot recover uncollected rents. Even if the lessor were damaged indirectly, his own fraudulent actions led to his loss, and the equitable principle of â€Å"unclean hands† (â€Å"contributory negligence†) precludes him from obtaining relief. c. C. 71 Smith was not indep endent with respect to the audit of Juniper.The lack of independence is raised by Juniper’s threat to sue Smith in the event the loan was not obtained. Common Law Liability to Third Parties a. Because these parties provided loans to Madeoff and are nonshareholder third parties, they would pursue litigation against Allen based on common law rather than statutory law. Because First Trust and Bank was specifically known to Allen by name (in fact, First Trust and Bank was explicitly identified by name in the engagement letter), it would be classified as a primary beneficiary.Allen was aware that the purpose of the audit examination was to enable Madeoff to obtain financing. Because of this knowledge, as well as the fact that Madeoff had previous business relationships with MoonTrust, MoonTrust would likely be classified as a foreseen third party. The classification of Alice Lay is somewhat debatable. On one hand, any third party could potentially provide funding to Madeoff; using this rationale, one might classify Alice Lay as a foreseeable third party.However, because it is not common practice for entities to obtain financing from customers and Alice Lay had never entered into a loan agreement of this nature in the past, a justification could be made that she does not meet the classification as a foreseeable third party. c. The failure of Allen’s audit to comply with generally accepted auditing standards represents ordinary negligence, assuming that Allen’s audit did not demonstrate a lack of minimum care or Allen did not possess actual knowledge of the material misstatements. For ordinary negligence, the following represents these parties’ abilities to prevail against Allen: ?As a primary beneficiary who relied upon the audited financial statements and Allen’s report on the financial statements, First Trust and Bank would likely be able to bring suit and prevail against Allen. Although MoonTrust’s classification as a for eseen third party suggests that it would be able to prevail against Allen in certain jurisdictions, the fact that MoonTrust did not rely b. ? on the audited financial statements and Allen’s report on the financial statements would make it unlikely that MoonTrust could bring suit against Allen.If MoonTrust did bring suit against Allen and Allen could prove that the loan decision was made prior to receipt of the audited financial statements and auditors’ report, Allen could attempt to successfully assert the causation defense. ? Given Alice Lay’s very remote and unusual relationship to Madeoff as a provider of capital, it is unlikely that Alice would have an appropriate level of standing to bring suit against Allen. However, if Alice could demonstrate that she was a foreseeable third party and could meet the other criteria for bringing suit under common law, she could potentially prevail against Allen. . C. 80 If Allen had been aware of the material misstatements, this situation would be classified as fraud. Both First Trust and Bank and Alice Lay would be highly likely to prevail against Allen because auditors are liable to all third-party users (regardless of their relationship and classification) for acts of gross negligence or fraud. MoonTrust would still have the burden of demonstrating that it relied on the materially misstated financial statements and Allen’s report in bringing suit against Allen. Independence and Securities Exchange Act of 1934 a.One of the important concepts governing auditors’ independence is that auditors should not be in a position of serving as advocates for their clients. Testifying in court on behalf of the client’s damage claim is perilously close to serving as an advocate, although many auditors will claim that litigation support services (in general) are appropriate and do not impair independence. Although the litigation consulting itself may not impair independence, independence is lik ely impaired by the unpaid consulting fee of $265,000.AICPA interpretations and rulings hold that past due fees may impair auditors’ independence in certain situations. b. Violations of generally accepted auditing standards are based on the failure of auditors to exercise the appropriate level of professional care (third general standard). This violation is based on Ward’s (and, therefore, AOW’s) not insisting upon disclosure of the appeal of the Civic case, improper deferral of losses on new product start-up costs, and inappropriate accrual of sales revenue.Ward and AOW appear to have violated section 10(b) by being actively involved in using a â€Å"scheme or artifice to defraud,† namely management’s issuing the materially misstated financial statements with full knowledge of the auditors. Ward, and hence AOW, acted with scienter, which is required by section 10(b). In addition, by willfully enabling the 10-K to be filed with the SEC, Ward seemin gly violated section 32 of the Securities Exchange Act of 1934 by knowingly causing materially misstated statements to be filed (the financial statements and the auditors’ opinion).Chapter 23 (Module B) B. 45 SEC Independence Rules In these solutions, the following responses do not try to contemplate all exception conditions cited in the text related to the SEC independence rule exceptions. The solution focuses on the primary conditions. a. b. Yes. A member of the engagement team cannot hold a direct financial interest. Yes. No other partner in the Santa Fe office (covered persons) can own direct financial interest in CCC. Yes. Immediate family members of covered persons in the firm cannot hold direct financial interest in CCC. Yes.The son (presumed a dependent) is also an immediate family member. No. According strictly to the definition, the father is a close family member (not an immediate family member), so the financial interest in CCC does not impair independence. Yes. C ontrolling interests in audit clients when held by close family members of covered persons in the firm impair independence. c. d. e. f. g. B. 48 Yes. Independence is impaired when close family members of a covered person in the firm (Javier) holds a job with a client in an accounting or financial reporting role.Independence, Integrity and Objectivity Cases The following interpretation is relevant for responses a, b, c, d, e, and f. Interpretation 101-6: In general, when the present management of a client commences or expresses an intention to commence legal actions against its public accounting firm, the public accounting firm and the client management may be placed in adversary positions in which the management's willingness to make complete disclosures and the auditors’ objectivity may be affected by self-interest.Independence may be impaired whenever the auditors and the client or its management are in positions of material adverse interest by reason of actual or threatene d litigation. Various situations are sometimes difficult to generalize, and the following responses are guidelines expressed in AICPA Ethics Interpretations (Effect of Litigation). a. Independence would be impaired: An expressed intention by the client to begin litigation alleging deficiencies in audit work is considered to impair independence if the public accounting firm concluded that there is a strong possibility that such a claim will actually be filed.Independence would be impaired: The commencement of litigation alleging deficiencies in audit work impairs independence. Independence would be impaired: The commencement of litigation by the public accounting firm alleging management fraud or deceit would definitely impair independence. Independence could be impaired: The claim under subrogation by the insurance company would not necessarily affect auditors’ independence on its client. In this case, the client and members of management are not the plaintiffs. However, this situation would have to be carefully evaluated by the CPA firm.If members of Contrary management are going to testify on behalf of the insurance company's interest and thus act in an adversary relation to the public accounting firm, independence would likely be impaired. b. c. d. e. Independence would not be impaired: Litigation not related to the audit work, whether threatened or actual, for an amount that is not material to the audit form or to the financial statements of the client would not usually be considered to affect the CPA-client relationship in such a way as to impair independence. . Independence would not necessarily be impaired: The class action lawsuit against both public accounting firm and company in itself would not alter fundamental relationships between the management and directors and the public accounting firm and therefore would not be considered to have an adverse impact on the auditors’ independence.These situations should be examined carefully, howe ver, because the potential for adverse interests may exist if cross-claims alleging that the covered member is responsible for any deficiencies or if the covered member alleges fraud or deceit by the present management as a defense are filed against the covered member. g. Interpretation 101-15: Independence is impaired. The CPA's financial interest in Dove Corp. (as an investor) is sufficiently large to allow Lisa to potentially influence the actions of Dove.Because Dove has a significant ownership interest in Tate Company, the CPA's independence would be considered impaired for the audit of Tate Company. Simply stated, the CPA's ability to influence Dove Corp. could permit Lisa to exercise a degree of control over Tate Company that would place the CPA in a capacity equivalent to that of a member of management. Interpretation 101-15: Independence is impaired. Queens’s financial interest in Hydra is sufficiently large enough (12 percent) for it to exert influence. Because Quee ns’s audit client, Howard, owns 46 percent of Hydra, Queens can clearly exert influence over Hydra.Because Howard’s financial position will be dependent in part on the financial performance of Hydra, Queens cannot possibly be independent in its audit of Howard because of its ownership in Hydra. Interpretation 101-2: (1) Assuming that the First National Bank is a profit-seeking enterprise, the independence of the auditors is not impaired by the association of the two individuals who served both as members of the auditing firm and as directors for the client during the period examined as long as they have ended all ties with the bank and are not involved in the audit.The auditors’ services may consist of advice and technical services, but the former controller must not make management decisions or take positions that might impair objectivity. The independence of the auditing firm would be compromised by any partner making a decision on loan approvals and the minim um balance checking account policy but normally not by the former controller’s performing a computer feasibility study.If the former controller's participation in the feasibility study was objective and advisory, and if the former controller’s advice was subject to effective client review and decision, the firm's independence has not been compromised. It is desirable, however, that the former controller could not participate in the audit of the First National Bank's financial statements. h. h. (2) i. Rule 101: The acceptance by the CPA of the unsecured interest-bearing notes in payment of unpaid fees would not be construed as discrediting the CPA's independence in relation to Cather because the notes are merely a substitution for an open account payable.The rule of professional conduct that prohibits a CPA from having any financial interest in a client does not extend to the liability for the CPA's fee. Under SEC rules, however, a definite arrangement for paying the no tes must be stated by the client. However, the acceptance of two shares of common stock (or prior commitment to accept stock) would be a violation of Rule 101. Any direct financial interest such as common stock holdings are construed as discrediting the CPA's independence. Rule 101: The Code of Ethics does not apply to Debra.She's neither a CPA nor a member of AICPA. However, the ruling does apply to independence of a firm if an employee accepts more than a token gift. Independence is impaired because an AICPA member cannot permit employees to break rules that she or he is obligated to observe. k. l. Rule 101. 4. A: Ruling 52 (ET 191. 104): Independence is considered impaired. At the time a member issues a report on financial statements, the client should not be indebted for more than one year's fees. In the Groaner case, the debt would be for last year and the current year audit fees.Groaner will have to pay the fees for last year when the current year report is ready (or else get a non-independent disclaimer). The past due fees take on characteristics of a loan within the meaning of Rule 101, and collection may depend on the nature of the auditors’ report on the financial statements. Rule 102—Integrity and Objectivity: The CPA has violated the rule. The CPA (1) lacked integrity, (2) knowingly misrepresented facts by omitting the gain in the current-year tax return, and (3) subordinated CPA judgment to another (the client).The proper action is to file an amended return for last year and request a refund and then file a correct return for this year. m. n. Rule 102—Integrity and Objectivity: Both CPAs probably violated Rule 102. Lestrade has a conflict of interest in owning another business that provides services to her employer and (apparently) not disclosing the business to Baker's board of directors. The â€Å"prepaid expenses† classification is wrong. Lestrade has falsified an entry in the accounts and in the financial statements (a violation of Rule 501). Both CPAs have fooled the external auditors by lying about the related-party loan and the repayment erms. B. 58 Conflict of Clients' Interests. This situation raises a typical â€Å"Who's the client? † question. Unfortunately, the relevant relationships are William's individual engagements with Jack and Bill because Williams would have essentially the same problem if Oneway Corporation were not a client. The situation is â€Å"unfortunate† because Williams is in a no-win situation. If he keeps Bill informed, he might save the Oneway engagement and Bill's friendship, but he will suffer the guilt of having engaged in industrial espionage and might face an ethics complaint for having ignored the rule of accountants' confidentiality.If Jon keeps quiet, he might lose the engagement and a significant portion of his personal income at least temporarily. If Williams believes rules are the most important element of ethical behavior and the consequenc es of action or inaction must fall where they may, he will refuse Bill's request with an eloquent and sympathetic explanation of the professional reasons for not discussing other clients' business affairs.A happy outcome for this approach depends upon Bill's understanding the difficult situation he has created for Williams. If Williams believes in weighing the â€Å"good and evil consequences† of ethics-related choices, he will need to decide which ultimate outcome is most desirable: Bill's well-being (and his own income) or Jack's and Jill's well-being, whatever it may be. B. 61 Ethics Case a. Sally violated Rule 501.According to interpretation 501-7, a member who fails to comply with applicable federal, state, or local laws or regulations regarding the timely filing of his or her personal tax returns or tax returns of the member’s firm, or the timely remittance of all payroll and other taxes collected on behalf of others may be considered to have committed an act dis creditable to the profession in violation of rule 501. Sally could receive any of the penalties available to the AICPA and the state board including admonishment, suspension, or expulsion. A discussion of the penalties should ensue.Opinions may range from the least punitive penalty because Sally has now resolved her legal difficulties to the most severe penalties because the publicity regarding a member of the profession portrays a negative image of the profession and will send a message to the public regarding professional conduct of other members. That is, some students will want to make an example of Sally’s behavior. b. c. Engagement Planning 3. 48 General Audit Procedures and Financial Statement Assertions PCAOB Assertions Existence or occurrence Completeness Raises questions that may be relevant to all assertions but may not produce actual â€Å"evidence. Because it is performed on recorded amounts, it works best for existence or occurrence, valuation and allocation, r ights and obligations, and presentation and disclosure. When applied to source documents, it might work for the completeness assertion. Existence or occurrence, valuation Existence or occurrence, valuation Existence or occurrence Rights (ownership) Valuation (sometimes) Completeness (sometimes) All assertions; however, responses typically yield more assertions that in turn are subject to audit with corroborating evidence.ASB Assertions Existence, occurrence Completeness Existence Occurrence Valuation and allocation Rights and obligations Completeness Accuracy Classification Existence, valuation Existence, valuation Existence Rights (ownership) Valuation (sometimes) Completeness (sometimes). All assertions; however, responses typically yield more assertions that in turn are subject to audit with corroborating evidence Existence, valuation Valuation Existence Occurrence Valuation Completeness Audit Procedures 1a. Inspection of records or documents (vouching) 1b.Inspection of records o r documents (tracing) 1c. Inspection of records or documents (scanning) 2. Inspection of tangible assets 3. Observation 4. Confirmation 5. Inquiry 6. Recalculation 7. Reperformance 8. Analytical procedures Existence, valuation Valuation Existence or occurrence Valuation Completeness 3. 50 Confirmation Procedure a. Audit confirmation, a procedure widely used in auditing, refers to direct correspondence by the auditor with independent parties. It can produce evidence of existence and ownership and sometimes of valuation and cutoff.Auditors typically limit their use of confirmation to balances about which outside parties could be expected to provide information. The two main characteristics a confirmation should possess are: (1) The party supplying the information requested must be knowledgeable and independent (i. e. , must have knowledge of information of interest to the auditors and must be outside the scope of influence of the organization being audited). (2) The auditors must obta in the information directly from the informed party.In addition, the auditors must maintain control (at all times) over the mailing and receipt of confirmation requests. To be considered competent evidence, the client cannot have an opportunity to handle confirmation requests at any point in the process. b. 3. 52 Audit Documentation a. (1) Audit documentation is the auditors’ record of the procedures performed and conclusions reached in the audit. The functions of audit documentation are to aid the CPA in the conduct of the audit work and to provide support for the auditor’s opinion and compliance with auditing standards.Audit documentation can be classified in two categories: (1) permanent files (which contain information that is relevant to ongoing client relationships) and (2) current files (which relate to just one year of the client relationship). The documentation (usually in the form of either electronic files or hard copy work papers) should contain detailed su pport for the decisions regarding planning and performing the audit, procedures performed, evidence obtained, and conclusions reached. (2) b.The factors that affect the auditors’ judgment of the type and content of the audit documentation for a particular engagement include: (1) (2) (3) (4) (5) The nature of the auditors’ report. The nature of the client’s business. The nature of the financial statements, schedules, or other information on which the auditors are reporting and the materiality of the items included therein. The nature and condition of the client’s records and internal controls. The needs for supervision and review of work performed by assistants. c.Evidence that should be included in audit documentation to support auditors’ compliance with generally accepted auditing standards includes: (1) (2) (3) (4) (5) The financial statements or other information on which the auditors are reporting were in agreement or reconciled with the client ’s records. The client’s system of internal control was reviewed and evaluated to determine the nature, timing, and extent of audit procedures. The audit procedures performed in obtaining audit evidence for evaluation. How exceptions and unusual matters disclosed by audit procedures were resolved or treated.The auditors’ conclusions on significant aspects of the engagement with appropriate commentaries. d. The audit team should perform an adequate examination at minimum cost and effort, and the prior year’s plans will aid in doing this. Those audit plans ordinarily contain information useful in the current examination (such as descriptions of the unique features of a client’s operations or records, a formalized sequence of audit steps in logical order, and approximate time requirements to perform various phases of the work. ) The audit team should ecide whether to use the old plan or prepare a new one. 3. 54 Predecessor and Successor Auditors Wells & Ratley (W&R) needs to initiate communications with both predecessor auditors. The situation is unusual, but W&R needs to obtain complete information from all predecessors involved since the last audit (2007 financial statements). Both Canby & Co. and Albrecht & Hubbard (A&H) are predecessors. (If Canby & Co. had completed the 2007 audit and W&R had been hired to perform the 2008 audit, then Canby & Co. would be the only predecessor.A&H would be history. ) Inquiry of only one of the predecessors would not result in complete information because the circumstances surrounding each auditor change may be different. The two predecessors, having served at different times and for different lengths of time, may have different knowledge about Allpurpose Loan Company and its president. If the company is public and subject to SEC reporting requirements, forms 8-K for both changes should have also been filed. Management Fraud and Audit Risk 4. 46 Analytical Procedures and Interest Expense a.Th e audit estimate of interest expense for these notes is about $24,400. Notes Payable Balances Balance Rate Time $150,000 10. 0% $200,000 10. 0% $225,000 10. 0% $285,000 10. 0% $375,000 10. 0% $375,000 9. 5% $430,000 9. 5% $290,000 9. 5% $210,000 9. 5% $172,000 9. 5% $95,000 9. 5% 1 month Auditors’ Interest Calculation Interest 1 month 1 2 months 1 month 1 1 month 1 1 month 1 1 month 1 1 month 1 1 month 1 1 month 1 1 month 1 1 $752 12 months $1,250 2 $3,334 $1,875 $2,375 $3,125 $2,969 $3,404 $2,296 $1,663 $1,362 Date Jan 1 Feb 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sep 1 Oct 1 Nov 1 Dec 1Weighted Average $250,583 9. 75% 12 $24,405 $24,432 Calculated on Average Balance and Average Rate b. The type of analytical procedure is â€Å"study of the relationships of current-year account balances with relevant nonfinancial information. † While the interest rate may not seem to be an item of â€Å"nonfinancial information,† it is not a direct entry or element in the clientâ€℠¢s financial statements. Three of the other four types of analytical procedures do not describe the estimate (because it does not compare to prior periods, to budget, or to industry information).However, a case might be made that the estimate is an â€Å"evaluation of a relationship of current-year account balances (notes payable) to other current-year balances (related interest expense) for conformity with a predictable pattern (interest rate relation) based on the company’s experience. c. The recorded interest expense appears to be too small. The company may have forgotten or miscalculated the year-end interest expense accrual. (In fact, this amount was specified because the missing amount is approximately the $750 of the accrual for the December interest. ) d.The recorded interest expense is about right. Some differences in timing and calculation might explain the small difference, but it is not material enough to warrant further work. e. The recorded interest expense app ears to be too large. Maybe the company has other debt on which interest is being paid, but the debt is not recorded in the accounts. (In fact this amount was specified in terms of an extra $100,000 being borrowed in July at 9. 5% interest, not recorded, but paid back by August 1 before the next recorded borrowing. This would account for about $800 additional interest: $100,000 x 9. % x 1/12 = $792. ) Could be that Weyman found he could borrow the company’s cash for himself, earn interest, and then pay back the principal! ) Actually, this kind of maneuver could have been carried out in any month and not noticed by auditors who saw only the first-of-the-month balances. 4. 49 Analysis of Accounting Estimates The company has fudged the write-offs as being as small as possible, hoping to satisfy the auditors. Taken one at a time, only the uncertainty about the deferred subscription costs is large enough to break the materiality threshold. But the set of problems cannot be taken o ne at a time.Here is a suggested low-high audit estimate: Low Estimate High Estimate Write-off deferred subscription costs (1) $ 6,000,000 $12,000,000 Provide allowance for bad debts (2) $ 4,000,000 $ 4,000,000 Provide for expected warranty expense (3) $ 2,000,000 $ 6,000,000 Lower of cost or market inventory write-down (4) $ 5,600,000 $ 5,600,000 Loss on government contract refund (5) $ 1,000,000 $ 2,000,000 Total write-offs and losses $18,600,000 $29,600,000 (1) The low estimate gives the benefit of doubt to the survival of the business, writing off half the deferred costs as if one-half might be written off over the next two years.The company seems to have taken the 50% probability ($6 million) and allocated half to each of the two years. (2) (3) The company seems ready to provide the allowance for all the doubtful accounts receivable. There is not much information for the audit team (such as a probability distribution). (4) It appears that the company plans to rebuild the invent ory and recover as much as it can, namely the $4,400,000 that can be realized from selling the rebuilt parts, but the lower of cost or market was figured incorrectly.The company seems to have subtracted the selling price ($8 million) from the inventory cost ($10 million) to get the $2 million write-down. The correct calculation is: Net realizable value Selling price proceeds $ 8,000,000 Cost to rebuild $(2,000,000) Cost to market and ship (20% x $8 million) $ (1,600,000) Ceiling (net realizable value) $ 4,400,000 Floor; subtract â€Å"normal profit† (5% x $8 million) $ (400,000) Floor $ 4,000,000 Replacement cost is apparently $6 million for the modern part, so the â€Å"market† for lower of cost or market is NRV = $4,400,000, and the inventory write-down is $10,000,000 – $4,400,000 = $5,600,000.Sale of the rebuilt parts will produce zero profit in subsequent period(s): Selling price $ 8,000,000 Cost of goods sold Inventory sold (written-down cost) 4,400,000 Reb uilding cost 2,000,000 $(6,400,000) Cost to market and ship ($1,600,000) Profit $ 0 (5) For a contingency such as this government contract dispute, GAAP suggests recognizing loss at the lower end of a range for loss, so a $1 million loss provision would satisfy GAAP. Recommended adjustment: Management’s suggestion of $11,000,000 cost/loss recognition is not sufficient.It â€Å"leaves† $7,600,000 income overstatement, even using the auditors’ low estimate of $18,600,000. Even booking the low estimate â€Å"leaves† $10,000,000 unrecognized (including the government contract contingency at $1 million instead of $2 million). The minimum adjustment, given the limited information available in this problem, follows. Adequate disclosures should be made about the $6 million deferred subscription costs remaining and the prospects for the business as well as about the warranty expense estimate because these are the items that leave uncertain assets and liabilities i n the financial statements.Debit Credit Subscription expense $ 6,000,000 Bad debt expense $ 4,000,000 Warranty expense $ 2,000,000 Cost of goods sold $ 5,600,000 Government contract loss $ 1,000,000 Deferred subscription costs $ 6,000,000 Allowance for doubtful accounts $ 4,000,000 Estimated warranty liability $ 2,000,000 Inventory $ 5,600,000 Estimated liability on contract $ 1,000,000 4. 54 Audit Risk Model Evaluation of risk assessment conclusions with AR = IR x CR x DR as a model. 1.Paul is not justified in acting on a belief that IR = 0. He may have seen no adjustments proposed because (1) none were material or (2) Tordik’s control system has functioned well in the past and prevented or detected and corrected material errors. If IR = 0, then AR = 0, and no further audit work need be done. Conservative auditing standards and practice do not permit this level of (non)work based on this little evidence and knowledge. 2. Hill is not justified in acting upon a belief that CR = 0.She may well know that Edward’s internal accounting control is exceptionally good, but (1) her review did not cover the last month of Edward’s fiscal year and (2) control activities are always subject to lapses. If CR = 0, then AR = 0, and no further audit work need be done. Conservative audit practice does not permit assessment of control risk at 0% to the exclusion of other audit procedures. 3. Insofar as audit effectiveness is concerned, Fields’ decision is within the spirit of audit standards. Even if IR = 1 and CR = 1, if DR = 0. 02, the AR = 0. 02.This audit risk (AR) seems quite small. However, Fields’ decision may result in an inefficient audit. 4. This case was deliberately left ambiguous without quantifying the audit risks. Students will need to experiment with the model. One approach is to compare the current audit to a hypothetical last year’s audit when â€Å"everything was operating smoothly. † Assume: Last year: Current ye ar: AR = IR (0. 50) + CR (0. 20) x DR (0. 20) = 0. 02 AR = IR (1. 0) + CR (1. 0) x DR (0. 25) = 0. 25 Features of the hypothetical comparison: (1) Inherent risk is greater than last year. 2) Control risk is greater than last year. (3) The audit was less extensive, possibly resulting in more detection risk. (4) Audit risk appears to be very high. An alternative analysis is that Shad perceived higher inherent and control risk early, and he did not put any audit time into trying to assess the risks at less than 100%. He proceeded directly to performance of extensive substantive procedures and worked fewer total number of hours yet still performed a high-quality audit by keeping AR low by keeping DR low. 4. 6 Risk Assessment We gratefully acknowledge the assistance of Jeanie Folk in developing the following solution: Recall that audit risk is the risk that the auditor will give an inappropriate opinion on financial statements (e. g. , giving an unqualified opinion on the financial state ments that are misleading because of material misstatements that auditors failed to discover. The problem adds the perspective that the audit risk at the overall financial statement level is influenced by the risk of material misstatements, which may be indicated by a combination of factors related to management, the industry, and the company. . Decrease. Ordinarily, the fact that this is the first profitable year after a string of losses would cause concern. The auditor might suspect an overstatement of revenues or understatement of expenses. However, in this situation, the increase in revenues (and net income) appears to be the result of additional federal and state funding for environmental purposes to TWD’s customers, which are municipalities. Given that TWD has a limited number of customers, the year-end receivables (and even revenue) can be confirmed with those municipalities.As such, there would be no increase in audit risk. The decrease in audit risk would result from lessening the company’s need to get through a â€Å"difficult period,† that is, the years of losses. 2. Increase. TWD’s board of directors is controlled by its major stockholder who also acts as the company’s CEO. That person may act in his or her best interests rather than in accordance with those of the minority shareholders and other financial statements.The potential for financial statement fraud would increase as a result. 3. Increase. The internal auditor reports to the Controller, who has responsibility for the company’s accounting system and the preparation of its financial statements. The internal auditor should report to the audit committee so that objectivity is maintained. Because the controller could steer the internal auditor away from problem areas, audit risk would be increased. 4. Increase. Turnover is a red flag that the department might have problems.Additionally, turnover resulted in the hiring of inexperienced people (at least inexperienced with respect to TWD). 5. Decrease. Having an external party such as a bank loan officer involved in an ongoing review of the company’s performance would enhance the company’s system of internal controls. 6. No effect. The payment of employees on a weekly, biweekly, monthly, or other basis would have no effect on audit risk. 7. Decrease. Bond has audited TWD for five years.As a result, because Bond is familiar with the industry, the company, and its management team, Bond is in a position to identify information necessary to assess fraud risk factors, identify those risk factors, and assess fraud risk than the firm would be if it had little or no experience with this client. 8. Increase. Changing accounting practices increases inherent risk (the susceptibility of the accounts to misstatement). 9. Increase. TWD sold one-half of its controlling interest in UEL; its remaining interest is significant.As such, TWD now has significant influence over but no longe r controls the operations of UEL. With its lower influence and knowledge of UEL, TWD is not as able to assess the risk of fraudulent financial reporting by UEL. UEL’s results still impact TWD’s financial statements (because the equity method would be used in cases of significant influence) and, as such, the audit risk relating to TWD’s financials would accordingly increase. 10. Decrease. If the litigation were disclosed in prior years, either the potential loss was probable but could not be reasonably estimated or it was reasonably possible.In either case, the amount of potential loss must have been material. Because the litigation was dropped by the state, there is less uncertainty about the impact of this pending litigation on the company’s financial position and results of operations. 11. Increase. Related-party transactions generally increase the risk of fraud, especially because the transactions were not previously disclosed. 12. Increase. In Decembe r, This barter transaction is not only unusual, but will also present problems in terms of the measurement of the revenue earned. As such, audit risk will increase. 13.No effect. Inherent risk is a component of risk of material misstatement. However, insurance coverage, or the lack thereof, has no impact on inherent risk, which is the risk that, in the absence of internal controls, material errors or frauds could enter the accounting system used to develop financial statements. Furthermore, having such coverage would lower the business risk for the company. 14. Increase. Recall that revenues must be matched with all costs incurred to earn that revenue. As such, the cost, if any, of the guarantees issued must be estimated and recorded in the current year.Given the lack of historical information and difficulties involved in estimating the potential cost of its guarantee (and even considering the difficulties involved of determining whether the municipality has any responsibility for a ctions that might impact the results of the site inspections) that may materially impact the current year’s financial statements, audit risk will increase. 15. Increase. Generally, public offerings are successful for companies with strong financial performance. As such, going public often creates motivation for making the company appear as strong as possible.Audit risk would increase as a result. 4. 61 Errors and Frauds Students can probably think of many examples for each of the cases. This solution does not purport to be exhaustive. a. Overstate an asset, understate another asset Hold cash receipts journal open past the year-end (cutoff date) and record additional cash receipts occurring after year-end, reducing accounts receivable. b. Overstate an asset, overstate stockholder equity Record appraised value of property, plant, and equipment with a corresponding credit to a capital account. c.Overstate an asset, overstate revenue (1) Hold the sales journal open past the year- end (cutoff date) and record too much sales revenue and cash or accounts receivable. (2) Record fictitious sales and accounts receivable. d. Overstate an asset, understate an expense (1) Capitalize maintenance expense, making the asset amount higher than warranted and the expense amount lower. Subsequent depreciation would reverse this misstatement, but the first effect would be to overstate the asset and understate the expense. (2) Record an expenditure as a prepaid expense instead of a current expense. . Overstate a liability, overstate an expense Accrue too much liability for expenses not yet paid, such as wages, rent, interest, product warranties f. Understate an asset, overstate an expense (1) Calculate too much depreciation expense on assets. (2) Classify expenditures as curre