Evaluating Fiscal Policy Alternatives - 1270 Words

Evaluating Fiscal Policy Alternatives simulation Principles of Macroeconomics Evaluating Fiscal Policy Alternatives simulation Introduction Fiscal policy is whenever the government changes government spending or taxation as a means of influencing the market economy. This change takes place to stimulate or to restrain inflation. Fiscal policy is the manipulation of trends in the economy by the government. The content of this paper will discuss the effects of the changes in fiscal policy based on the evaluating fiscal policy alternatives simulation. Well Ruled The first part of the simulation for the year 2xx6 showed the decision made was â€Å"well ruled†. The fiscal policy decision made this year will have an impact on the†¦show more content†¦The simulation shows the first item to address is to reverse fiscal decisions. Ideal President The last part of the simulation for the year 2xx8 shows the decisions selected were the result of the â€Å"Ideal President†. The simulation showed the decisions made successfully handled the conditions in the economy and put the economy on the right track. The decisions made will lead to the real gross domestic product of the economy moving closer to the economy’s long-run potential output. During the year of 2xx8 defense spending on social welfare programs was decreased by $200 million. The income tax rate was increased by one percent. This will increase income tax revenues by $200 million. The budget deficit is 2.52 percent of the gross domestic product. The decisions made in the simulation increased popularity to 3.35. The policies chosen will lead to s real gross domestic product of $41.12 billion. Inflation will be at five percent and unemployment will be at 4.46 percent. The simulation shows once the multiplier and the long-run potential output is known a determination is made to follow a contractionary fiscal policy or an expansionary policy. A determination can also be made to determine the exact amount that should be adjusted for government spending and / or taxation to bring the economy closer to the long-run potential output. The Permanent Income Hypothesis gives a reason why the multiplier may not work the way the theory predicts. People make consumptionShow MoreRelatedBasic Education1697 Words   |  7 Pagesfor other purposes) â€Å"Governance of Basic Education Act of 2001.† to protect and promote the right of all citizens to quality basic education free and compulsory education in the elementary level and free education in the high school level. Alternative Learning System for the out-of-school youth and adult learners To provide them with the skills, knowledge, and valuyes they need to become caring, self-reliant, productive, and patriotic citizens. The school shall be the heart of the formal educationRead MoreBudget Review : The Budget Essay749 Words   |  3 Pages balances, surpluses, and deficits of the budgets. 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It provides reliable information for reporting purposes and enables the university to avoid audit findings. 2) Reconciling all bank accounts and other selected general ledger accounts on a regular basis is also a concern of the officeRead MoreWhat Is The Agency For Healthcare Research And Quality?779 Words   |  4 PagesResearch and Quality is one of 12 agencies within the United States Department of Health and Human Services. This organization established by the Agency for Health Care Policy and Research. The administration at the White House is to merge the Agency for Healthcare Research and Quality with the National Institutes of Health. The fiscal year of 2015 budget is intended to ensure the Agency continues its progress on health services research to improve the outcomes, affordability, and quality. 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I am trying to pay special attention to its recession resolution technique in order to understand better why this country could preserve itself against the most severe financial crisis of the last few decades. The reason why I picked Norway

Why obama is ruining this country Free Essays

Obama is not stupid, he is simply evil. He is tearing apart this country from the inside and 51% of Americans were stupid to let this communist bastard back in to the white house even after four years of him doing, well, NOTHING. At least nothing beneficial. We will write a custom essay sample on Why obama is ruining this country or any similar topic only for you Order Now Now this socialist pig is trying to get rid of â€Å"assault weapons† and 30 round magazines. Colorado theater shooting, sandy hook, even so far back as columbine high school were a result of a mentally unstable person or persons acting violently because they were insane. If you walked up to a sane, rational person and handed them a loaded AR-1 5 chances are they wouldn’t think â€Å"Oh well I have this gun, might as well go rob that gas station, and while I’m at it, I’m going to shoot up a school. † These socialist politicians are too stupid to figure that out. I agree with you that he wants total control of the US, I wouldn’t even be surprised if he tried to run for a third term. He could probably find some loop hole. And all the minorities and illegal would rally behind him if he wanted another term. In addition to all of this, he is a post turtle. He is president, sure, but he sure as hell didn’t get there by himself. I will close with saying this: I have only been on this earth for 14 years but In that time I have seen the once great America crumble around me. The world hates us, we turned tall In Vietnam, and now Afghanistan. This once great nation is turning into a communist powerhouse and all the dumb-asses that voted for Obama are scratching their empty minded heads eying â€Å"Well he promised change, I guess capitalism to communism Is change, that’s good, right? I have watched time and time again, news reporters walk up to minorities and go â€Å"Do you think Obama Is doing a good Job? † then they would reply â€Å"Well yes. † then the reporter would say â€Å"What do you think he has done that has benefited us the most? † then they would respond with, â€Å"Well, man, uh†¦. It’s all good. † And that’s the best they could come up with. I submit that If America continues on this path, It might as well bend over, grab It’s ankles, and kiss It’s ass goodbye. How to cite Why obama is ruining this country, Papers

My Life Goals Essay Example For Students

My Life Goals Essay My future long-term career goal is to become a part of the governments defense counsel, either by becoming a legal secretary or an attorney. I would need to attend college, pass the bar exam and become board certified in order to become an attorney. In reference to becoming a legal secretary I believe Ive developed those skills through several years of hard work, and I feel Ive gained enough experience to pursue this field. I believe I will be successful in becoming an attorney. I am determined to finish high school with the academic excellence required to obtain a good professional direction in the law field. I have several years of expierence in Law, Speech, Acting, and Debate. These qualities will help me to pursue questioning, and feel comfortable in the courtroom. It was difficult to find information on my career goal. I found several job opportunities, but I could not find information on the academic requirements needed to attend a 4 star law school on the internet. I had to research my information through word of mouth, and the results I received from the job search worksheet we did gave me a lot of needed information. My current job skills relate to my future career goals in several ways. My knowledge of computers are very useful in todays society. I am experienced in several aspects of the computer. I am literate of several computer programs such as Peachtree Accounting, Microsoft Word and Works,and Power point among several others. I have several years of experience with the internet. I took 4 years of computer classes, and Ive built my own web-site. Furthermore, I consider myself very computer literate, and in todays career fields literacy is required, and a fast typing speed is encouraged. Communication and social skills are very important when dealing with customers. The happiness and satisfaction of the customer is what companies thrive their business on in order to profit, and keep up with supply and demand. Maintaining a professional attitude is very I,mmportant when dealing with clients. Whether the client is happy or night, the needs of the customer are the most important. In High School I took several communications classes. My favorite was Law class. We had Mock-Trials, which was role playing for the students in order to get the feel of a real courtroom. I received an A in Law Class. I took Speech, Acting, Childrens Theatre, Drama. I worked for a large insurance company that dealt with insurance claims, and I was surrounded by lawyers. I learned the basics of handling insurance claims, but Id still like to be on the defense counsel. My current job skills relate to my future career goals in several ways. My knowledge of computers are very useful in todays society. I am experienced in several aspects of the computerBibliography:Im graduating in 2 weeks

Six Ways to Use Twitter Polls to Boost Audience Engagement

To help brands reach out to their audience in a new way, Twitter added a polling option in October 2015. Now, any Twitter handle can ask for direct audience feedback by creating and tweeting a simple interactive poll. Running for as little as five minutes or as long as seven days, there are endless ways you can use this feature to generate more engagement and learn about your audience. So, if you’ve been contemplating social media polls but you’re not sure where to start, here are six ideas on how to get value out of this tool. 1. Ask for Input on Your Content Strategy Showing your customers that you value their opinions is a great way to build loyalty while also providing you with useful information. For example, Twitter Support posted a poll asking what type of content users wanted to see – tips and tricks or news about features. What kinds of Tweets do you like the most from @Support? Your feedback is appreciated! — Twitter Support (@Support) August 17, 2015 This kind of genuine feedback from your audience can provide incredibly useful input to make your content strategy more effective going forward. This is in addition to the stronger connection you can create between your business and potential customers. 2. Make Your Audience a Part of Brand Decisions This is one of the most powerful ways to use Twitter polls. Asking your audience for their opinions on actual brand and product decisions can make them feel like they have a stake in your brand. Because you’ve involved them in the decision process, they’ll also be more likely to pay attention to the final product. Who do you want to win the #DoughnutBowl? Original Glazed vs Glazed Kreme Filled? Vote now in the #Poll — krispykreme (@krispykreme) January 28, 2016 Krispy Kreme launched a poll during the Super Bowl to find out which sweet pastry flavor its customers preferred. After almost 2,000 votes, they had their answer. 4. Use Live Events to Engage Your Audience A live event is the perfect opportunity to take your brand into the arena of social conversation. Ask for reactions to live sports events, television shows, political debates or breaking news. People like to have their say in the latest news and also what others are thinking. .SandboxRoot { display: none; } We’re at #CES2016 letting you choose what we cover. Vote now and watch our Periscope tomorrow! — Amazon (@amazon) January 7, 2016 At the 2016 Consumer Electronics Show, Amazon used a poll to ask users if they wanted the company’s live video stream to cover robotics, virtual reality, 3D printing or gaming. 5. Promote Products and Services If you’re trying to promote your products on Twitter, polls can be a great way to do it. Polls tend to be seen less as a hard sell and more effective at getting attention. To promote their 2017 Armada vehicle, Nissan asked its followers how they would use the vehicle. Nissan Fan Poll: Which would you haul with the all-new 2017 Armada? — Nissan (@NissanUSA) March 2, 2016 Similarly, if you have two products you’re willing to discount, you could tweet a poll asking customers which product they would like a discount on. You can then use the results to promote the new discount. Think of questions that are based around existing content on your website or blog. You can then post the question as a Twitter poll with a link back to the relevant content. Use this technique to promote new content or to drive more traffic to any piece of archived content. Taking It Further Many brands have adopted Twitter polls into their weekly content strategy, including Marvel Entertainment. One of their polls received more than 17,000 votes when they asked followers to choose their favorite comic book weapon, illustrating how to have fun with your questions. #MarvelQuestionoftheWeek: Which mighty Asgardian weapon from the comics would you choose to wield? — Marvel Entertainment (@Marvel) January 15, 2016 Twitter Polls for Your Brand Twitter polls are a huge opportunity to gain customer insights and take your audience engagement to another level. The key to success is to keep them relevant to your target audience and to post them regularly. Whether you tweet a daily or weekly poll, they will help build your Twitter following, keep your brand top-of-mind and provide you with powerful insights into your users.

Fall of roman empire essays

Fall of roman empire essays In the third century A.D. Rome faced many problems. Before the fall of the empire Rome had a great empire, with a lot of power and wealth. Their strong military kept them powerful for a long time. The empire stretched across the long Mediterranean sea. The invasion by Germanic tribes seemed to help greatly pull down the Western Roman Empire. It is thought that the inside of the empires conditions also weakened the empire. The external force of the barbarian invasions have presented a variety of explanations for the fall of the Western Roman Empire. Such as the social, political, economic and military problems. In the inside of the empire the social and political conditions weakened the empire. Loyalty to the government was one of the most serious problem of all. Conditions in the later empire caused citizens to lose their patriotism. Few people chose to serve the government, under the horrible conditions it turned into. The government officials had to pay for public entertainment out of their own pockets. As shown in document four, the governments money was all given to the army. This gave no money left for enterprises or machine running. Which dropped the economic flight greatly. Only the armies remained actively interested in politics. Rebellions started all around the empire. No one was loyal to the government and they wouldnt fight for the empire. Invasions started since many people wouldnt fight. As shown in document one, the overwhelming population wasnt allowed to participate in the government. This forced the empire not to have enough political figures. Which starte d rebellions and invaders. Diocletian split the social part of the empire in 284 A.D. to try to control the rebellions. Which made the social problems even worse. When he retired due to illness civil war broke out immediately. Constantine took over and continued Diocletians social plan. He moved the capital ...

CHAPTER 1 Essays , Research Papers

CHAPTER 1 Mini-Exercises |1-1|(1) B, (2) D, (3) A, (4) C*, | | |(5) B, (6) D, (7) A, (8) D. | | |* Dividends paid in cash are | | |also subtracted in the | | |Financing section of the | | |Statement of Cash Flows..| |1-2|(1) SE, (2) A, (3) R, | | |(4) A,| | |(5) E, (6) A, (7) E, | | |(8) L, (9) A.. | |1-3|(1) CPA: Certified Public| | |Accountant | | |(2) GAAP: Generally Accepted | | |Accounting Principles | | |(3) AICPA: American Institute | | |of Certified Public| | |Accountants. | | |(4) SEC: Securities and | | |Exchange Commission| | |(5) FASB: Financial Accounting | | |Standards Board | Exercises |1-1 |(1) K, (3) I, (5) A, (7) | | |J, (9) C, (11) H, (13) N | |1-2 |(1) A, (3) R, (5) L, (7) | | |E, | | |(9) E, (11) A, (13) L, (15) | | |E| |1-3 |(1) L, (3) L, (5) SE, | | |(7) A, (9) E, | | |(11) R, (13) E, (15) A,| | |(17) E.| |1-4 |Total Assets = 11,819 (in| | |billions of Yen). | |1-5 |Req. 1: Total Assets = | | |$179,350 | |1-6 |Net Income is $25,100. | |1-7 |Net Income is $522 (in | | |millions). | |1-8 |Net Income is $50,180. | |1-9 |(A) Stockholders' Equity = | | |$74,200. | |1-10|(B) Total Liabilities =| | |$241,600. | |1-11|Net Income = $75,500. Total | | |Assets = $196,250.| |1-12|Ending Retained Earnings = | | |$40,100. | |1-13|(1) I, (3) F, (5) O, (7) I| |1-14|Cash flow from operating| | |activities = $95,000. | Problems |1-1|Req. 1: Net Income = $32,060.| | | | | |Req. 3: Total Assets = | | |$157,000. | |1-2|Req. 1: Net Income = $4,925. | |1-3|Req. 1: (d) Income = -$2,900, | | |Cash = -$10,500. | |1-4|Req. 4: Stockholders Equity = | | |$29,000| Alternate Problems |1-1|Req. 1: Net Income = $20,050.| | | | | |Req 3: Total Assets = | | |$117,050. | |1-2|Req. 1: Net Income = $9,120. | |1-3|(d) Income -$36,000, Cash | | |-$30,000| Cases |1-1|(7) Total Liabilities = | | |$554,645,000.| |1-2|(2) Net Sales = | | |$1,834,618,000. | |1-3|(1) At the end of the most | | |recent year, American Eagle | | |Outfitters had total assets of | | |$1,963,676,000. Urban | | |Outfitters' had total assets = | | |$1,329,009,000. Clearly | | |American Eagle Outfitters is | | |the larger of the tow companies| | |in terms of total assets at the| | |end of the most recent year. | |1-4|Req. 2: Total Assets = | | |$142,000. | |1-5|Req. 1: Assert the need for an| | |independent audit of the | | |financial statements each year,| | |because this is the best way to| | |assure credibility -| | |conformance with GAAP, | | |completeness, and absence of | | |bias. | |1-6|(4) There is an ethics | | |violation in this case because | | |she would audit statements that| | |covered a period of time where | | |she was responsible for the | | |accounting operations of the | | |company. This is a problem both| | |in appearance and in fact.| |1-7|The solution to this case will | | |depend on the company and/or | | |accounting period selected for | | |analysis. | CHAPTER 2 Mini-Exercises |2-1 |(1) C, (2) H, (3) G, | ||(4) A, (5) I.| |2-2 |(1) D, (2) C, (3) A, | ||(4) I, (5) B.| |2-3 |(1) Y, (2) N, (3) Y, | ||(4) N, (5) Y, (6) N. | |2-4 |(1) CL, (3) NCA, (5) SE, | ||(7) CA, (9) NCA, (11) CA, | ||(13) SE, (15) CL. | |2-5 |(b) Cash -$7,000. Notes | ||Receivable +$7,000. | |2-6.1|Assets: Debit: increases; | ||Credit: decreases.| |2-7.2|Liabilities: an Increase is | ||recorded as a Credit; a| ||Decrease is recorded as a | ||Debit.| |2-8 |(d) Equipment (+A) | ||15,000| ||Cash (-A) | ||6,000| ||Notes Payable (+L)| ||9,000| |2-9 |Cash has a $6,800 debit| ||balance. | |2-10 |Total Assets = $44,700.| |2-11 |2007: Current Ratio = 1.50 | ||2008: Current Ratio = 1.18 | |2-12 |(a) F, (b) I, (c) F, | ||(d) I, (e) F..| Exercises |2-1 | (1) E, (3) B,(5) | | |K,(7) S,(9) I, | | || | |(11) O, (13) C, (15) D, | | |(17) N, (19) T.| |2-2 |Req. 1: (k) Received: | | |Investments (A); Given: Cash | | |(A) | |2-3 |(3) Taxes Payable: CL,| | |credit balance. | |2-4 |(c) Cash +9,000. Notes| | |Payable +9,000. | |2-5 |Req. 1: (c) Liabilities: | | |Dividends Payable +121.4. | | |Stockholders' Equity: | | |Retained Earnings -121.4| |2-6 |(e) Land (+A) | |

Answer History question Essay Example | Topics and Well Written Essays - 1750 words

Answer History question - Essay Example alled Indian Empire and was under the direct governance of United Kingdom and the princely states were ruled by individual rulers under the direct dictatorship of the British crown. It is from these princely states, the imperial England tried and received greatest support and reliability. But ultimately the consequent and considerable resistance and uprising from the natives compelled British imperialism, a setback. Myriad reasons are responsible for the complete agitation or deviation of the native support from the British rule. A thorough survey of many socio-economic factors will consequently open the avenues of hidden queries. The first great uprising or the first step of the Indians for the nationalistic movement was the ‘Sepoy Mutiny’ in the year of 1857. It was literally the first resistance which British Raj in India received. The Sepoy Mutiny can be considered as â€Å"the last upsurge of Indian Feudalism†. There are various causes which led to the detachment of native Indians from the British persons. The British rulers made many strategical mistakes. To establish a quick and powerful imperial aggression they interfered in many cultural and social domains of the natives, which largely hurt their sentiments and they slowly deviated from their foreign rulers. In fact, a sense of alienation acted as a catalyst for the relentless fights and set backs. The fatal decision and implementation of the â€Å"Doctrine of Lapse† by the British greatly contributed for the uprising of the mutiny of 1857. Though this uprising was crushed by the British but it didn’t stop the native Indians to leave their quest for the independence. The fight for the freedom is a long history and the term ‘Indian Independence Movement’ is a wide- umbrella term that encompasses a huge spectrum. It involves myriad political agitation and organization, philosophies and campaigns, both violent as well as non-violent. But all these efforts found their end into one common aim which

Public Safety Services Research Paper Example | Topics and Well Written Essays - 1000 words

Public Safety Services - Research Paper Example This paper will illustrate how the department will improve quality and quantity of public safety services. The Department launched the Fire Safety Trailer Program to educate the residents on fire safety and how to respond in various real-life situations. The trailer used by the Fire Department contained a mobile home which was used as a simulation in educating the residents on life-saving techniques. These include how to contact the emergency department as well the use of smoke detectors at home. Although this program was successful in educating the citizens on fire safety, there are various measures that the department can undertake to improve their delivery services on safety programs (Brunacini, 1996). The Department should provide public safety services that meet the changing expectation and needs of the society. The needs and expectations of the society are not static rather they evolve with time. In order to address the community’s evolving needs, the Department should identify the gap between the citizens' needs on public safety and the Department’s ability to address these needs (Brunacini, 1996). The Department should carry out surveys in the community targeted at identifying the emerging trends and changes in the population that influence the public’s expectation of public safety. In addition, the Department should use the surveys to identify current and future disparities in public service delivery so as to address the evolving expectations of the population. The survey should be carried out by the department on a regular basis so as to identify relevant issues in society. The Department should prioritize the delivery of services to meet the identified gaps between the department and the society (Bradley, 2011). This involves changing the approaches used by the Department so as to address the dynamic needs of the society. Secondly, the Department should provide sufficient response capabilities throughout the town so as to respond to emergencies and crisis calls made to the department.     

George Washingtons Advice to the American People Essay Example for Free

George Washingtons Advice to the American People Essay George Washington’s farewell letter, it is almost impossible for me to choose his most important piece of advice. His points seem almost haunting while reading them with our country in its present condition. Washington had such foresight and wisdom. The sad reality is that we as a country have so strayed from his advice. He made multiple points that I think are vastly important. Washington warned against political parties. He pointed out that they only cause disagreements and disunity among the people. Instead of Americans being one unified people, we have become defined by our political party. Republicans and democrats are in constant struggle over views and agendas. Washington warned us to flee from these and hold fast to unity. Washington also emphasized the importance of religion and morality. He held tightly to the belief that a person’s spiritual life had effects on one’s decisions in everyday life. With morality as the heart of an issue, people are more likely to treat each other fairly and be unified in spirit. One of the most outstanding pieces of advice from our first president sends chills down my spine. Washington encouraged sparing use of credit. He did not believe we as a nation should be in debt to anyone, which is also Biblical. He warned us to take heed of falling into debt. This is great advice that has so obviously been forgotten it is maddening. Our country is currently 16 trillion dollars in debt. We spend more than we take in, and we are putting our future in the hands of government of foreign lands. This reality speaks wholeheartedly to Washington’s next piece of advice. The last two pieces of advice I believe go hand in hand. Washington spelled out plainly that we did not want to be overly involved with other nations; in fact, he discouraged permanent alliances with any foreign nation. By doing so, we put our national security at possible risk. In regards to national security, Washington believed that we should have a strong military force. Being in the military, Washington understood to need for men purposed to fight for our freedom. This is yet another issue we face today with our current president wishing to downsize our military. I truly believe if we will begin to follow Washington’s advice, at least in part, we can improve the future of our country. Lastly, I believe Washington encouraged unity in almost every point he made. He was passionate for our country, for our freedom, for our future. In his farewell address he stated that at the mere thought of the honor and privilege of being an American, the spirit of patriotism should unite us all to action. The pride of being an American should link us like no other nation before or since.

Forestry Management Essay -- essays research papers

Forestry Management in Nova Scotia The Canadian forest sector has been a strong and vital element of national and regional well being. Through the management, harvesting, processing and marketing of timber resources, Canada has developed a reputation of being one of the largest timber resources in the forest industry. However, to maintain this reputation and economic well being there are several issues to address in order to protect and sustain this renewable resource. This paper will focus on the management of the forestry sector, particularly Nova Scotia. It will discuss the initiatives and techniques used of both private wood-lot owners and large industries in developing and implementing a forest management strategy. Nova Scotia is comprised of many forested ecosystems; hardwoods, others with softwoods and some with a mixture of both species. In order to maintain and develop these various ecosystems it is important to know how forest management impacts not only the forest itself but also other ecosystems within. For example, a clear-cut harvest can be compared to the same impact of a forest fire. However, forest fires do not remove everything which clear-cutting does. Recently clear-cutting techniques have changed to benefit Nova Scotia ecosystems by leaving clumps of trees, snags, and strips of forest to provide travel ways for wildlife. Forestry is also investigating other related issues of ecosystem management. To create and maintain the diversity of trees with a region (i.e. Hardwood and softwood), landowners leave several stands of both young and old growth within natural forest stands to enhance the biodiversity and health of the forest site. Normally clearcutting results in the re-pla nting of tree seedlings, however some species (spruce, pine) overpower the growth of the hardwood trees. This minimizes the level of specie diversity among a timber stand. By allowing these older sections of stands to remain aids to the natural growth and development of hardwood species. Also, the wood debris, a remnant of old forest growth is essential to the survival of many forest species and also acts as a recycler of nutrients back into the soil. During forest harvesting it is not always necessary to remove all the wood from the lot. Rotten or older growth can be left to contribute to the nourishment of natural forests. &nb... ... Systems. Government of Canada. 3) Kaufert, Frank H. Forestry and Related Research in North America. 1995. Society of American Foresters. 4) MacAskill, Ken. 1997. Nova Scotia Forest Production Survey. Nova Scotia Natural Resources. Government document. 5) Natural Resources Canada. 1997. Criteria and Indicators of Sustainable forest management in Canada. Canadian Council of forest Ministers. 6) Nova Scotia Cooperation Agreement for Forestry Development. 1994. Nova Scotia's Forest Management Strategy. July 1994. Forestry Canada. 7) Nova Scotia Department of Lands and Forests. 1990. Canada / Nova Scotia Forest Resource Development Agreement 1982-1989 "An Overview." December 13, 1990. Forestry Canada. 8) Nova Scotia Natural Resources. 1997. Toward Sustainable Forestry. Government document. 9) Provincial Forest Practices Improvement Board. 1976. Our Forests. Nova Scotia Forestry Association.

ZARA’s IT for Fast Fashion

Ezra, a trendy Spanish clothing retailer founded in 1975 by Manioc Ortega in La Curran. It is a flagship retail store of Inedited Group, a holding company that owns other fashion brands such as Misaims Audit, Berserk, Pull and Bear, Strabismus, Kiddy's Class, and Shoo. The company still lives by the simple idea of Amoco Ortega to link customer demand to manufacturing and link manufacturing to distribution, which ultimately able to respond very quickly to the demands of targeted customers, who are young and fashion-conscious city dwellers.Inedited operates 1,558 stores in 44 countries, of which 531 stores are part of Ezra chains. Ezra generates a majority of Indies's sales accounting for 73. 3%. Of the three departments inside Ezra, Women accounted for 60% of sales, with the rest evenly split between Men and Children division. In 2002, Inedited posted a net income of ? ¬ 438 million on revenues of ? ¬3,974 million, which is a net margin of 1 1. 02%. Overall, the company shows net margin continuously growing indicating profitable growth. As a result, the company's earnings have tripled since 1996. To reach consumer's demands quickly and accurately, Ezra established a recurring process of ordering, fulfillment, and design and management. Each section (Women, Men, and Children) of a Ezra store places an order to headquarters twice a week on the store's PDP devices. The orders include both replenishment of an existing item and requests for a new items. Store managers determined replenishment quantities by walking around the store and determining what has been selling by counting garments and talking to salespeople.Fulfilling each store's demands of clothes involves group of commercials from headquarters, who are responsible to match up the supply of finished clothes coming from factories to distribution centers then finally to the stores. The commercials works with two types of information – aggregated orders from all stores and the total supply of invent ory in the distribution centers at the same point in time. Finally, Ezra introduces new design collections at the start of fall/winter and spring/summer buying periods. In addition to that, they continuously introduce new items throughout the year, allowing them to be ahead within the industry.Note: Detail information for design and management is in â€Å"Competition† Section). SUPPLIERS: Ezra owns a group of factories in and around La Corona to do the initial production of dyeing and cutting cloth. However, they sent out the cut fabrics that needs to be sewn into garments, to network of small local workshops (not owned by Inedited) in Galatia and northern Portugal, which guarantees quick turnaround time. Finally, the sewn garments are sent to a Ezra facilities, where they are ironed, inspected, tagged, and sent to a distribution centers.COMPETITION: Ezra faces competition from multinational clothing retailers such as Gap, H&M, and Benton, Combined, these companies has over 2 00,000 employees, operating in 140 countries with net income of ? ¬1,067 million or a net margin of 15. 3%. What separate's Ezra from its competitors is it's unique approach to its marketing and business operation. Unlike its competitors, Ezra virtually does no marketing. The company place ads twice a year promoting sales and to announce the opening of new stores. As a result, their marketing expenditures average 0. % of revenue, instead of 3%-4%, which is typical for competitors. They also always make sure their stores are located in a city prime retail district and the prices for their items are established for the Spanish market. Prices for other countries is set at a fixed percentage of this baseline, taking into account distribution costs and market condition. Ezra also priorities time-to-market through vertical integration enabling them to constantly introduce new items throughout the year in a short period of time.In a typical year, Ezra introduces approximately 11,000 new items, were as its competitors average 2,000 – 4,000 items. Consequently, Ezra does not try to produce classics† clothes that would always be in style. They intend their clothes to have a fairly short life span. About 75% of the merchandise in the average store is changes over three to four weeks, resulting in their experience shoppers to visit the stores often to purchase the new items. Furthermore, Sara's senior managers takes advantage of their employee's intelligence and trust their Judgment in decision making.Store Managers are given responsibilities to deal with customers, contractors, landlords, and decisions in garments should be on sale at their individual stores. They place orders for the teems they think would sell, rather than simply accepting and displaying what headquarters decide to send them. Ezra has minimum invested in IT budget and has no formal process to set decisions for specific technology investments or projects. Usually senior management decides what new systems, if any, is required.Overall, there is very little Justification for IT efforts, which results in having no cost/benefit analysis for current and future projects. Also, Sara's business model uses POS terminal that runs on an outdated DOS operating system, which is not supported by Microsoft. This makes the operations such as ordering, fulfillment, design and manufacturing, and in-store operations inefficient. They also use handheld Pad's for ordering and for tasks such as handling garment returns to distribution centers and conveying information from headquarters to all stores. This causes redundancy.The POS terminals also makes it difficult to check in-store inventories, check inventories in other stores, and share information. The store managers would have to call to check for available SSW, which is a time consuming process. Finally, Ezra makes no use of the internet to make sales. The website is only there to maintain a presence. The issue for lack of internet sales is because the company's distribution center is not configured for picking up small orders and shipping to consumers. And, it is complicated to handle returns of merchandise bought online.The challenges above shows where Ezra can make the use of proper IT/IS infrastructure. Currently, Ezra has continued to use their systems without any changes to it. However, they have the opportunity to improve its infrastructure by investing in new IT systems. This proper implementation can also provide great opportunity for Ezra to improve its value ham operations. Before Ezra makes any decision regarding the upgrade of their old information system, they need to analyze the costs and benefits of the new system.A new operating system such as Linux, Windows, or UNIX, it will allow Ezra to develop capabilities on the outdated DOS software for POS terminals. As they install the new operating system on all the computers, they need to consider the costs of each operating system. For example, Linu x does not have one-time license cost, while Windows has a one-time license cost of ? ¬140 and UNIX of ? ¬160 per CUP]. Linux may offer the cheapest implementation costs for Ezra, but they have a higher ongoing costs, such as service contract cost that ranges from ? ¬10-? ¬150 per CUP].To upgrade the system Ezra will also have to install new hardware and replace the old POS terminals. The cost of POS terminals is ? ¬5000 per store, which will also require installation of new cables, routers etc. The wireless routers and Ethernet cost, staff training cost, software installation and maintenance cost, and the connectivity cost per store, will also add to the upgrade costs. Overall, if Ezra decides to use Linux operating system, the total cost for the initial year will be ? ¬ 56 million.This includes ? ¬ 379 thousand of operating cost and ? ¬ 2,777 million for non-operating (fixed), which is purchase of new POS terminals, wireless router and wireless Ethernet. If they us e Windows or UNIX, total initial cost will be ? ¬ 3,167 million or ? ¬ 3,175 million, respectively. This may be a very costly for the company, but it is a direct expense, which meaner the cost will depreciate over the years. For example, the total operating cost for Linux, Windows, and UNIX will decrease to ? ¬ 371 K, ? ¬ KICK, and ? ¬ ASK in the second year, respectively.The benefit of a new system will improve Sara's efficiency, which will directly influence their revenue. With the smooth communication among the stores and the headquarters, Ezra can better predict the future needs of material, and save cost by hedging them at a low cost. The system will also allow them to make clothes prototypes at a quicker rate and get a faster response from the customers. Therefore, there will be more sales, less cost, more revenue, and ultimately more profit. RECOMMENDATIONS I would recommend Ezra to upgrade their current system gradually. In the short term, there is no immediate nee d to upgrade the system.However, they need to make the changes over a long period of time. First, senior management should develop a formal IT department by hiring a COT to set decisions. Second, the new IT team should develop a strategy for the change. Third, they should develop a budget for implementing the whole upgrade. Once they have the strategy and budget in place, they should stop any more investments in the current systems and conduct a pilot test at one of their flagship store to collect data of its outcomes. Ezra should make the investments in stages. For example, the current Pads used for ordering are inconvenient.They should be replaced with convenient equipment such as the PC's. In addition, the Pads and POS are not connected. In order to improve the networking capabilities at each store, Ezra should switch from modem-based network to a broadband-based network. This will allow them to stay connected with the other stores as well as with the headquarters. POS terminals that operates on the outdated DOS system needs to be updated with a more modern and compatible operating system. As a result POS should have the customer based functionalities that will scored sales, returns, exchanges, etc.POS system should also handle functions such as inventory control, purchasing, and receiving and transferring of products to and from other locations. After the final stages, I strongly recommend to run the old and the new systems side by side, until the new system is operating smoothly. Finally, Ezra should use the internet to make online sales, and take advantage of the social media to promote itself. This can enhance their operations and ultimately increase revenue. Also, it will give them more competitive edge with the new competitors and the existing competitors. ZARA’s IT for Fast Fashion Ezra, a trendy Spanish clothing retailer founded in 1975 by Manioc Ortega in La Curran. It is a flagship retail store of Inedited Group, a holding company that owns other fashion brands such as Misaims Audit, Berserk, Pull and Bear, Strabismus, Kiddy's Class, and Shoo. The company still lives by the simple idea of Amoco Ortega to link customer demand to manufacturing and link manufacturing to distribution, which ultimately able to respond very quickly to the demands of targeted customers, who are young and fashion-conscious city dwellers.Inedited operates 1,558 stores in 44 countries, of which 531 stores are part of Ezra chains. Ezra generates a majority of Indies's sales accounting for 73. 3%. Of the three departments inside Ezra, Women accounted for 60% of sales, with the rest evenly split between Men and Children division. In 2002, Inedited posted a net income of ? ¬ 438 million on revenues of ? ¬3,974 million, which is a net margin of 1 1. 02%. Overall, the company shows net margin continuously growing indicating profitable growth. As a result, the company's earnings have tripled since 1996. To reach consumer's demands quickly and accurately, Ezra established a recurring process of ordering, fulfillment, and design and management. Each section (Women, Men, and Children) of a Ezra store places an order to headquarters twice a week on the store's PDP devices. The orders include both replenishment of an existing item and requests for a new items. Store managers determined replenishment quantities by walking around the store and determining what has been selling by counting garments and talking to salespeople.Fulfilling each store's demands of clothes involves group of commercials from headquarters, who are responsible to match up the supply of finished clothes coming from factories to distribution centers then finally to the stores. The commercials works with two types of information – aggregated orders from all stores and the total supply of invent ory in the distribution centers at the same point in time. Finally, Ezra introduces new design collections at the start of fall/winter and spring/summer buying periods. In addition to that, they continuously introduce new items throughout the year, allowing them to be ahead within the industry.Note: Detail information for design and management is in â€Å"Competition† Section). SUPPLIERS: Ezra owns a group of factories in and around La Corona to do the initial production of dyeing and cutting cloth. However, they sent out the cut fabrics that needs to be sewn into garments, to network of small local workshops (not owned by Inedited) in Galatia and northern Portugal, which guarantees quick turnaround time. Finally, the sewn garments are sent to a Ezra facilities, where they are ironed, inspected, tagged, and sent to a distribution centers.COMPETITION: Ezra faces competition from multinational clothing retailers such as Gap, H&M, and Benton, Combined, these companies has over 2 00,000 employees, operating in 140 countries with net income of ? ¬1,067 million or a net margin of 15. 3%. What separate's Ezra from its competitors is it's unique approach to its marketing and business operation. Unlike its competitors, Ezra virtually does no marketing. The company place ads twice a year promoting sales and to announce the opening of new stores. As a result, their marketing expenditures average 0. % of revenue, instead of 3%-4%, which is typical for competitors. They also always make sure their stores are located in a city prime retail district and the prices for their items are established for the Spanish market. Prices for other countries is set at a fixed percentage of this baseline, taking into account distribution costs and market condition. Ezra also priorities time-to-market through vertical integration enabling them to constantly introduce new items throughout the year in a short period of time.In a typical year, Ezra introduces approximately 11,000 new items, were as its competitors average 2,000 – 4,000 items. Consequently, Ezra does not try to produce classics† clothes that would always be in style. They intend their clothes to have a fairly short life span. About 75% of the merchandise in the average store is changes over three to four weeks, resulting in their experience shoppers to visit the stores often to purchase the new items. Furthermore, Sara's senior managers takes advantage of their employee's intelligence and trust their Judgment in decision making.Store Managers are given responsibilities to deal with customers, contractors, landlords, and decisions in garments should be on sale at their individual stores. They place orders for the teems they think would sell, rather than simply accepting and displaying what headquarters decide to send them. Ezra has minimum invested in IT budget and has no formal process to set decisions for specific technology investments or projects. Usually senior management decides what new systems, if any, is required.Overall, there is very little Justification for IT efforts, which results in having no cost/benefit analysis for current and future projects. Also, Sara's business model uses POS terminal that runs on an outdated DOS operating system, which is not supported by Microsoft. This makes the operations such as ordering, fulfillment, design and manufacturing, and in-store operations inefficient. They also use handheld Pad's for ordering and for tasks such as handling garment returns to distribution centers and conveying information from headquarters to all stores. This causes redundancy.The POS terminals also makes it difficult to check in-store inventories, check inventories in other stores, and share information. The store managers would have to call to check for available SSW, which is a time consuming process. Finally, Ezra makes no use of the internet to make sales. The website is only there to maintain a presence. The issue for lack of internet sales is because the company's distribution center is not configured for picking up small orders and shipping to consumers. And, it is complicated to handle returns of merchandise bought online.The challenges above shows where Ezra can make the use of proper IT/IS infrastructure. Currently, Ezra has continued to use their systems without any changes to it. However, they have the opportunity to improve its infrastructure by investing in new IT systems. This proper implementation can also provide great opportunity for Ezra to improve its value ham operations. Before Ezra makes any decision regarding the upgrade of their old information system, they need to analyze the costs and benefits of the new system.A new operating system such as Linux, Windows, or UNIX, it will allow Ezra to develop capabilities on the outdated DOS software for POS terminals. As they install the new operating system on all the computers, they need to consider the costs of each operating system. For example, Linu x does not have one-time license cost, while Windows has a one-time license cost of ? ¬140 and UNIX of ? ¬160 per CUP]. Linux may offer the cheapest implementation costs for Ezra, but they have a higher ongoing costs, such as service contract cost that ranges from ? ¬10-? ¬150 per CUP].To upgrade the system Ezra will also have to install new hardware and replace the old POS terminals. The cost of POS terminals is ? ¬5000 per store, which will also require installation of new cables, routers etc. The wireless routers and Ethernet cost, staff training cost, software installation and maintenance cost, and the connectivity cost per store, will also add to the upgrade costs. Overall, if Ezra decides to use Linux operating system, the total cost for the initial year will be ? ¬ 56 million.This includes ? ¬ 379 thousand of operating cost and ? ¬ 2,777 million for non-operating (fixed), which is purchase of new POS terminals, wireless router and wireless Ethernet. If they us e Windows or UNIX, total initial cost will be ? ¬ 3,167 million or ? ¬ 3,175 million, respectively. This may be a very costly for the company, but it is a direct expense, which meaner the cost will depreciate over the years. For example, the total operating cost for Linux, Windows, and UNIX will decrease to ? ¬ 371 K, ? ¬ KICK, and ? ¬ ASK in the second year, respectively.The benefit of a new system will improve Sara's efficiency, which will directly influence their revenue. With the smooth communication among the stores and the headquarters, Ezra can better predict the future needs of material, and save cost by hedging them at a low cost. The system will also allow them to make clothes prototypes at a quicker rate and get a faster response from the customers. Therefore, there will be more sales, less cost, more revenue, and ultimately more profit. RECOMMENDATIONS I would recommend Ezra to upgrade their current system gradually. In the short term, there is no immediate nee d to upgrade the system.However, they need to make the changes over a long period of time. First, senior management should develop a formal IT department by hiring a COT to set decisions. Second, the new IT team should develop a strategy for the change. Third, they should develop a budget for implementing the whole upgrade. Once they have the strategy and budget in place, they should stop any more investments in the current systems and conduct a pilot test at one of their flagship store to collect data of its outcomes. Ezra should make the investments in stages. For example, the current Pads used for ordering are inconvenient.They should be replaced with convenient equipment such as the PC's. In addition, the Pads and POS are not connected. In order to improve the networking capabilities at each store, Ezra should switch from modem-based network to a broadband-based network. This will allow them to stay connected with the other stores as well as with the headquarters. POS terminals that operates on the outdated DOS system needs to be updated with a more modern and compatible operating system. As a result POS should have the customer based functionalities that will scored sales, returns, exchanges, etc.POS system should also handle functions such as inventory control, purchasing, and receiving and transferring of products to and from other locations. After the final stages, I strongly recommend to run the old and the new systems side by side, until the new system is operating smoothly. Finally, Ezra should use the internet to make online sales, and take advantage of the social media to promote itself. This can enhance their operations and ultimately increase revenue. Also, it will give them more competitive edge with the new competitors and the existing competitors.

A moral understanding of Utilitarianism and torture Essay

KSM is a mastermind terrorist who has been captured by the CIA. He refuses to reveal any information about his organization or the members thereof that could be fundamental to the welfare of hundreds of lives. Even under the presence of coercive methods such as sleep deprivation and water boarding, he has refused to talk. His nine and eleven year old children have been brought into custody and a suggestion has been made to torture the children. Is the option ethical or moral in any sense? Utilitarianism provides two answers for the question; one asserting the general rule of utility, the other expanding on justice implicating that the notion that no harm should be inflicted on the children. Each case will be dissected and assessed to reveal the most feasible answer to whether or not the children should be tortured. This conclusion will also be questioned on whether or not the provided answer is approaching the situation in the best possible manner. Utilitarianism in its simplest form distinguishes the difference between right and wrong by asserting that what is right is any action of good that will positively affect the common welfare of all. In short, the principle of utility implies that what is good is whatever promotes the greatest amount of happiness. This implies that the happiness of one individual is not as relevant or important as the happiness of a multitude of persons, or that the value of life can be measured in numbers and not by specific individuals. The general idea is that if five people are saved as compared to saving one life, then there is more happiness being created and as a result more good is being created. In KSM’s case, if the general rule of utilitarianism is to be applied, then the option of torturing KSM’s children is a plausible means of coercion. This rule fundamentally subtracts the happiness lost by torturing the children in exchange for the gain of hundreds and thousands of lives that could potentially be saved resulting in a greater amount of happiness overall. Therefore utilitarianism does advocate for the torture of KSM’s children. The tactic will provide the necessary information that the CIA needs to save lives. The proponents of utilitarianism may come off as rash, insensitive, and unsympathetic beings for allowing a method such as this one to occur in order to save many lives. Injuring two lives for the benefit of thousands more is sound, but may not be ethical or moral. It is a difficult feat to assess what is ethical and moral especially when encountered with a situation like this. An assumption that it is immoral to not torture these children could be proposed because not acting on the children could deter the CIA from attaining valuable information for the welfare and safety of the nation. Of course, it must not be assumed that torturing a child is acceptable in today’s standards, and utilitarianism will attempt to answer why it is not right to torture the children to obtain information through the utilitarian’s understanding of justice. Justice to utilitarianism carries with it great weight and resonance to the ideology. According to Mill, it is one of the sole features in which utilitarianism embodies. It is stated that justice contains in it the following rules: all beings must be treated with equality, and that each is given their just deserts; good for good, and evil for evil, that no one should be wrongly punished; that no life shall be valued over another, and that the punishment should be proportionate to the offense. Another feature is that all commitments and obligations whether they be declared orally or written, should be respected and upheld and the failure to do so is performing injustice and is a moral fallacy. Therefore, when considering the KSM case with the application of justice under utilitarianism, it seems as though it is not logical to torture the children to obtain information from their father. The torturing of children violates the laws applicable to the definition of justice under utilitarianism. If these children are tortured, the principle that all individuals are equal and to all their justice deserts, would be invalid. These children have done nothing wrong and do not deserve to be tortured, thus the punishment that would befall them is not parallel to the ideals presented in the definition of justice. Also, the lives of these children were not properly accounted for, for if justice states that all lives are equal and that none is more valuable than the rest, then it is rational and coextensive with justice to not torture the children. By not performing the horrendous notion, these children’s lives are not placed lower than the rest, but the opposing view could also be taken stating that by not torturing these children they are placed above thousands of other lives, giving their lives more value than the multitude, and this is does not correspond with the definition of justice. Therefore, torturing these children is not a favorable option when considering the application of utilitarianism. But there is one exception that utilitarianism allows, which is when certain cases arise that requires expediency, thus suspending applications of moral justice. Although both alternative methods of assessing the dilemma have been presented with each have a distinct approach. The first taking into consideration the principle of utilitarianism the latter using the principle of justice, both acting as derivatives of utilitarianism and paradoxically both approved of using torture to gain information. The principle of utility declared torture a necessary means to obtain a valuable resource that consequentially benefits the whole, and in turn increasing happiness and goodness – increasing utility. The principles of justice deemed the usage of torture an incompatible method of attaining the means in the presented situation. The equality of the children was not taken into account and disregarded, while the action of torturing them does not correlate with reason because the children did nothing to bring this suggested harm upon themselves. But, even justice allows for the possibility of torture to resume when extenuating circumstances do not allow for a well thought out procedure, and expediency is recognized as the only reasonable means of achieving a goal. So does utilitarianism allow for the torturing of children to occur? According to the principle of utility and somewhat present in the exceptions of justice – yes. This does not mean that this action is moral or ethical by any means. The intentional injury of children is wrong in many, if not all, philosophical and religious ideologies. It is not easy to accept this as the only method prescribed to remedy the situation. In this case, the means do not justify the ends. Although utilitarianism states that these children should not be placed higher than any individual and there sacrifice would benefit the greater good, the implementation of torture on children is not an attractive option. Utilitarianism states that this viable option is right, but just because it may promote the general welfare and happiness of a multitude of individuals, does not necessarily indicate that it will, or that any information will be extracted from KSM, thus giving the impression that it may seem right to a utilitarian, but most would consider this an act of inhumanity and a relentless, unsympathetic, irrational attempt to validate assertions created on the basis of assumption and plausibility.

Endosymbiotic Theory

Endosymbiotic Theory The endosymbiotic theory is the accepted mechanism for how eukaryotic cells evolved from prokaryotic cells. First published by Lynn Margulis in the late 1960s, the Endosymbiont Theory proposed that the main organelles of the eukaryotic cell were actually primitive prokaryotic cells that had been engulfed by a different, bigger prokaryotic cell. The term endosymbiosis means to cooperate inside. Whether the larger cell provided protection for the smaller cells, or the smaller cells provided energy to the larger cell, this arrangement seemed to be mutually beneficial to all of the prokaryotes. While this sounded like a far-fetched idea at first, the data to back it up is undeniable. The organelles that seemed to have been their own cells include the mitochondria and, in photosynthetic cells, the chloroplast. Both of these organelles have their own DNA and their own ribosomes that do not match the rest of the cell. This indicates that they could survive and reproduce on their own. In fact, the DNA in the chloroplast is very similar to photosynthetic bacteria called cyanobacteria. The DNA in the mitochondria is most like that of the bacteria that causes typhus. Before these prokaryotes were able to undergo endosymbiosis, they first most likely had to become colonial organisms. Colonial organisms are groups of prokaryotic, single-celled organisms that live in close proximity to other single-celled prokaryotes. Even though the individual single-celled organisms remained separate and could survive independently, there was some sort of advantage to living close to other prokaryotes. Whether this was a function of protection or a way to get more energy, colonialism has to be beneficial in some manner for all of the prokaryotes involved in the colony. Once these single-celled living things were within close enough proximity to one another, they took their symbiotic relationship one step further. The larger unicellular organism engulfed other, smaller, single-celled organisms. At that point, they were no longer independent colonial organisms but instead were one large cell. When the larger cell that had engulfed the smaller cells went to divide, copies of the smaller prokaryotes inside were made and passed down to the daughter cells. Eventually, the smaller prokaryotes that had been engulfed adapted and evolved into some of the organelles we know of today in eukaryotic cells like the mitochondria and chloroplasts. Other organelles eventually arose from these first organelles, including the nucleus where the DNA in a eukaryote is housed, the endoplasmic reticulum and the Golgi Apparatus. In the modern eukaryotic cell, these parts are known as membrane-bound organelles. They still do not appear in prokaryotic cells like bacteria and archaea but are present in all organisms classified under the Eukarya domain.

Drug Safety Evaluation and Pharmacovigilance Assignment

Drug Safety Evaluation and Pharmacovigilance - Assignment Example The systems that are used to assess post-marketing events include medical record databases or computerized claims, reports and pre marketing studies. Drug toxicity is frequently a major safety issue for an investigational new drug. This may occur as an unexpected reaction to a nontoxic drug or it may be an expected consequence of the intrinsic toxicity of a drug, taken in a sufficiently large dose (Berlin, 2008). It is the function of pharmaceutical research companies to take the path from understanding a disease to bringing a safe and effective treatment to patients. To ensure that collection of data is complete and to protect the safety of study participants, various processes are put in place during clinical trials (Meadows, 2006). The completeness of data is important in developing an understanding of the advantages and side effects of a new medicine (Meadows, 2006). With one or more solutions at hand, researchers turn their attention to testing them extensively to determine if they should move on to testing in humans. Efficacy and safety of investigational new drugs have an inherent deficiency in the inability to detect major, rare and adverse effects (Talbot, 2011). The limitations of these safety data for predicting post authorization safety profiles must be a consideration. These pre-marketing clinical trial limitations include lack of globally accepted gold standards for determining whether a signal on drug safety represents true risk. While the regulatory bodies have well established regulatory statutes, standards of ascertaining safety are heterogeneous (Edwards & Tilson, 2005). There is limited statistical power in determining the specific harm due to lack of statistical significance in the selected population. The selected patient group is small and excludes patients who are at a greater risk. There is limited generalizability since the study participants are carefully selected. There is a strict criterion of selecting whom to include

Analyse some of the consequences that mobile phones have for everyday Essay

Analyse some of the consequences that mobile phones have for everyday life - Essay Example The social consequences of such an amazing technology have yet to be felt, and it is likely that we will be coping for decades. One of the most obvious impacts that mobile phones have on everyday life is the extreme temptation to talk on the phone while driving. Even when this doesn't reduce the hands someone has available for driving, it tends to distract. Many jurisdictions in America and the UK have created or are debating the drafting of laws that ban the usage of mobile phones in cars except for the usage of hands-free headsets. The fact that this would even be a problem was impossible to anticipate until recently: Mobile phones were once known as car phones, and in the UK they still often are. But mobile phones also have had more subtle effects. The ability to be contacted at any time has increased time pressures on people. In one Calvin and Hobbes comic, a comic from two decades go, Calvin's father complains that fax machines and other electronic devices don't increase leisure time by making work more efficient but decrease it by making people have expectations for faster service: Something that used to take a week and be considered a rush job would be considered unbelievably tardy. Mobile phones amplify this pressure. If they have GPS features, they can be used by the government or by parents to monitor someone's location, which can have wide-reaching privacy implications, as well as implications for criminals and police. But it might be possible, if an employee doesn't monitor auto-updating features that tell a server where someone is, to be caught lying to a boss about being sick, raising further privacy implications. Employers can call employees or text them constantly. This can cause employees to have even less time that they can perceive as their own. A mobile phone becomes an imposition sometimes, and people seeking out vacation or time off often try to turn off the phone so as not to worry about harassment. Another problem can be cyber-stalking o r, less intrusively, bothering by friends, family, spouses or loved ones. Being constantly available allows people to monitor people, or to exert relationship control, or to nag. Mobile phones have also transformed the ways we've communicated with each other. This is a step in a longer process of world-shrinking. When the only way to communicate with someone even a few hundred miles is a letter, one carefully considers what one has to say, knowing that the nearest response might be days, weeks or months away. But now that people can communicate not only through the mail but also on the phone, mobile phone, texts, e-mails, and instant messaging, communication can become trite or irrelevant. People can use Twitter to update each other on where they're going, what they're doing or how a sandwich at a local pub tastes. It often seems deplorable how communication is degraded and people speak to each other about trite, trivial, unimportant things. It has also degraded grammar and spelling : People use text speak in e-mails, instant messaging and texting, with acronyms and misspellings being ubiquitous. Ironically, however, the complaint that this is

2- 527 abdul Assignment Example | Topics and Well Written Essays - 750 words

2- 527 abdul - Assignment Example For instance, the ISO 9660 standard defines a file system used by CD-ROM media. ISO relies on eight guiding principles for the development of quality products and services, and they are important in improving professionals and other management staff (GCC Standardization Organization, 2014). First, ISO focuses on customers’ wants and customer service. Ideally, every business should relate to customers’ needs and aim at satisfying their needs, or exceeding customers’ expectations (GCC Standardization Organization, 2014). The benefits of this principle included increased profits, customer loyalty, and greater efficiency related to customer satisfaction. The second principle is collaboration of people. This principle states that a company is incomplete without staff and their talents and skills should contribute to the success of the company (GCC Standardization Organization, 2014). The principle promotes creativity and innovation in an organization, employees feel motivated when they use their skills thus, they maximize their abilities, and each employee is accountable for his or her actions. Process approach is the third principle. The principle defines the processes used in order to promote speed and efficacy of activities (GCC Standardization Organ ization, 2014). It is important since it reduces expenses, improves effectiveness of resources, and boosts the productivity of an organization (ISO, 2014). Another principle is leadership. An organization should have defined goals and employees should aim at achieving them. The primary benefit of this principle is employee involvement. Other principles include system approach to management, continuous improvement, logical-based approach, and beneficial supplier relations. ISO standards states that all these principles, aim at cost reduction, efficiency and increased productivity in an organization (GCC Standardization Organization, 2014). The ISO development process involves various

Ethical dilemma involving a dying patient Essay Example | Topics and Well Written Essays - 750 words

Ethical dilemma involving a dying patient - Essay Example re faced with an ethical dilemma as to whether to save the patient or not and not only save the patient but the baby that the patient was carrying as the patient had refused any sort of medical treatment that involved the use of blood. The doctors were left to questions whether to help the patient or respect her beliefs and not do anything to save her life. The ethical dilemmas face by the doctors in this case was that the patient was a Jehovah’s witness and did not want to be treated with bloid transfusion. The doctors faced four basic principles of ethics; respect for autonomy where in the doctor has to respect the decision made by the patient, beneficence where in the doctor has to assess the risk to benefit ration. Thirdly non-maleficence where the doctors do not want to cause any harm to the patient and lastly justice which balances the benefits, risk and costs equally and uniformly (Van Norman, 2011). The patient was a Jehovahs’s witness which made it difficult to carry out the prescribed treatment for her, Jehovah’s witness, they do not salute to military flags and do not take part in military or city government voting. The Jehovah’s witnesses are banned from blood transfusions or any medical treatment that involves the use of blood or blood products. In cases like these it is necessary to first consider the condition of the patient whether they should be talked to or counseled regarding the decisions being made. If the patient is awake and well aware of what is happening or what has happened, the patient’s caretaker or guardian should also be asked regarding the decision being made. It is important to check the documents as to confirm that the patient is actually a Jehovah ’s Witness. The patient and her caretaker should be informed of alternative blood products and if they still do not agree for no treatment then he/ should sign a document of consent (Van Norman, 2011). In this case when the nurse is faced with a critical situation which

Democracy in Combating Poverty

Democracy in Combating Poverty Democracy and Development in Combating Poverty Introduction The correlation between democracy and development in combating poverty stems from the European debate that has taken place since the early part of the last century. The significance of this debate has since been further amplified as a consequence of decolonization and the ability of international economic institutions such as International Monetary Fund and the World Bank to impose conditions on providing international aid to developing countries (Barsh 1992). The purpose of this paper is to illustrate the fact that combating poverty does not require the concurrent application of democracy and development. It follows on from the introductory work done by my group member Christopher Kaindi and leads onto the case studies done by Phonesavanh Sethanaphaixanh. It will show that the premature application of democracy in many of these developing countries leads to further problems and as such do not address poverty alleviation. It will do so by first taking a brief look at the argument in favor of democracy. It will then define the concepts of democracy and development in regards to combating poverty. Following that the paper will then illustrate the issues related to the premature implementation of democracy. Finally the paper will look at the implications of such a conflict on the provision of international aid to developing countries. Democracy and Development Defined Democracy and development alike are terms that have been conceptualized in various and often contradicting ways. As such, for the purpose of this paper, both these terms have been defined in their minimalist form. Democracy refers to a form of government that allows the citizens of a country to play a vital role in the creation and implementation of the countrys policies and laws through a system of representation (Shihata 1997). Typical features of a democratic government include the separation of State and Church, the separation of the legislative, judicial and executive powers, the protection of fundamental human rights, and due process of law (Shihata 1997). Development refers to the transformation of a society that features human progress in all its aspects. Aside from social and cultural growth development hopes to improve the nations economic growth, that is, to raise the per capita income of nations (Shihata 1997). Therefore, it would appear, from the above definitions that development, with its emphasis on economic growth, is an essential process necessary for the alleviation of poverty. As such, in an attempt to illustrate the non correlation between development and democracy in combating poverty the remainder of this paper will highlight some of the key areas in which the two have a conflict of interest. Why Have Democracy? Proponents argue that democracy helps the poor in three ways: democracies empower poor people through elections, and hence force governments to attend to their needs; democracies facilitate the free flow of information, and hence give governments better information about the condition of the poor; and democratic governments provide their citizens with more public goods. Why Not Have Democracy The type of political regime itself has no impact on economic development. It is in fact the policies undertaken by the governments of these developing countries that enable them to fight poverty. As such arguments that suggest authoritarian governments in countries such as Cuba, Burma and North Korea have lead to higher number of people in poverty is seriously flawed. Its their governments decision to implement import-substitution strategies and less involvement in global trade that has lead to them struggling with poverty eradication. Export-orientated strategies have been far more effective in promoting sustained economic growth. This is evident in countries such as South Korea and Taiwan where democracy came at a later stage of development. Furthermore, it is unrealistic to assume that democratic institutions can be set up easily, almost anywhere, at any time. Effective democracy isnt just about having elections; it needs a relatively developed infrastructure that includes not only economic resources but also widespread participatory habits and an emphasis on autonomy. The Bush administration ignored this reality when it attempted to implant democracy in Afghanistan and Iraq which as a result have left both these countries in a state of chaos. In a developing country the peoples main focus is survival, which includes basic economic and physical security such as food and shelter. During the process of development as these necessities are met there is a change in values which shifts from being one that is to meet the basic needs of survival to complex needs of self expression and freedom of speech, and participation in political decision making. This very shift in values creates the preconditions required for a healthy democratic regime to operate in a country. Among the countries that democratized between in 1970 and 1990, democracy has survived in every country that made the transition when it was at the economic level of Argentina today or higher, among the countries that made the transition at an earlier stage of development, democracy had an average life expectancy of only eight years. The structure of democracy, with its institutions of voting rights, an independent judiciary that often requires judicial review and leads to judicial restraint on legislative and executive power, and a free press, sets it apart from authoritarian rule. The restraint of arbitrary power can be a powerful source of development; but a well-functioning democracy can also undermine development. The structure of democratic participation relies on the creation and proliferation of interest groups that lobby for their views to be heard and their concerns to prevail. But a lobbying-infested democracy can lead to widespread waste and inefficiency through the effects of rent-seeking and unproductive profit-seeking  activities. There is also a danger of what Jonathan Rauch has called demosclerosis: the paralysis of gridlock afflicting a lobbying-infested democracy. The welfare gains that lobbies produce in allowing citizen participation in governance and in fostering balanced policymaking can be outweighed by their costs from gridlock and unproductive profit-seeking. That democracies are subject to this tradeoff is indisputable.

The Norse Viking Age Essay -- Expansion of the Vikings

In most cases, the Norse Viking Age is recorded to have officially began in 793 AD with the first recorded raid through to 1066 AD, ending with the Battle of Hastings. However, these dates vary upon scholars. The Battle of Hastings wasn't exactly the end of the Viking Age, because the Norse were spread out across Europe and Viking raids continued to take place in other locations. With that said, dating the conclusion of the Viking Age is fairly generic because Viking raids were sporadic in many locations and when one area was under control, another area was being raided. Additionally, because Viking raiders weren't unified efforts and most Norsemen tended to 'vikingr' (raid) at their own whim. This places the conclusion of the Viking Age at approximately the beginning of the 12th Century-ish. This is also about the time when Norse and other Kingdoms were becoming increasingly solidified and more able to repel Viking incursions. This was also around the time when the Christia nization of Northern Europe and Norse dominated lands began to take a firmer hold. So dating the exact end of the Viking Age is vague at best. The same can be said about the approximate beginning of the Viking Age as well. Although it's officially marked by most scholars as beginning in 793 AD with the raid on the Lindisfarne Monastery, however it wasn't a new concept to go â€Å"vikingr' (raid). Viking raids were already occurring in a vast range of other areas, including France. The most accepted official start of the Viking Age is recorded to have begun on June 8th, 793 AD when Norse raiders landed on the island of Lindisfarne and attacked the Christian Monastery located there, killing the monks and seizing the valuables. Viking raids by op... ...This left Alfred in command and the West Saxon and Viking armies met and the battle itself lasted all day. Bagsecg was killed along with his five Danish Jarls. According to the Anglo-Saxon Chronicle King Bagsecg was slain by a sword while Halfdan fled from the battlefield with the rest of the army back to Reading. The Battle of Ashdown itself was a limited West Saxon Victory. The Battle of Basing was a battle on January 22nd, 871 AD at Old Basing in what is now the English county of Hampshire. It was one of a series of battles that took place following an invasion of the then kingdom of Wessex by an army of Danes, remnants of the merged Great Heathen Army and Great Summer Army. The Danes had established a camp at Reading and the previous battles of Englefield, the Battle of Reading and the Battle of Ashdown, had proved indecisive with victories to both sides.

The Hunters: Moonsong Chapter Thirty-Eight

Bonnie didn't have her keys. She knew exactly where they were, but that didn't do her much good: they were lying on the bedside table next to Zander's neat plain single bed. She cursed and kicked at the door, tears running down her face. How was she going to get any of her stuff back? Some guy opened the front door of the building for her. â€Å"Jeez, relax,† he said, but Bonnie had already pushed past him and was running up the stairs to her room. Please let them be here, she thought, clinging to the banister, please. She had no doubt that Elena and Meredith would comfort her, would help her, no matter what she had said to them during their fight. They would help Bonnie figure out what to do. But they might be out. And she'd have no idea where to find Meredith and Elena, no idea where they spent their free time these days. How had she grown so far apart from her best friends? Bonnie wondered, wiping her hands across her cheeks, smearing away her tears and snot. Why had she treated them so badly? They were just trying to protect her. And they were right about Zander; they were so right. She snuffled miserably. When she reached the top of the stairs, Bonnie banged on their room door with her fist, hearing quick movement inside. They were home. Thank God. â€Å"Bonnie?† Meredith said, startled, when she opened the door, and then, â€Å"Oh, Bonnie,† as Bonnie threw herself, sobbing, into Meredith's arms. Meredith hugged her, tight and fierce, and, for the first time since she had jumped away from Zander and run for the fire escape, Bonnie felt safe. â€Å"What's the matter, Bonnie? What happened?† Elena was behind Meredith, peering at her anxiously, and part of Bonnie noticed that Elena's own white and startled face was marked with tears. She was interrupting something, but Bonnie couldn't focus on that now. Past Elena, she caught sight of herself in the mirror. Her hair stood out around her face in a wild red cloud, her eyes were glassy, and her pale face was smeared with dirt and tears. I look, Bonnie thought with a semihysterical silent laugh, like I was chased by werewolves. â€Å"Werewolves,† she wailed as Meredith pul ed her into the room. â€Å"They're al werewolves.† â€Å"What are you – † Meredith broke off. â€Å"Bonnie, do you mean Zander and his friends? They're werewolves?† Bonnie nodded furiously, burying her face against Meredith's shoulder. Meredith pushed her back and looked careful y into her eyes. â€Å"Are you sure, Bonnie?† she asked gently. She looked to Elena, and they both turned and glanced out the window at the sky. â€Å"Did you see them change? It's not the ful moon yet.† â€Å"No,† Bonnie said. She tried to catch her breath, taking harsh sobbing gulps of air. â€Å"Zander told me. And then – oh, Meredith, it was so scary – I ran, and they chased me.† She explained what happened, on the roof and on the lawns of the col ege. Meredith and Elena looked at each other quizzical y, then back at Bonnie. â€Å"Why did he tel you?† Elena asked. â€Å"He couldn't have thought you would have a good reaction to the news; it would have been easier to keep hiding it.† Bonnie shook her head helplessly. Meredith arched an ironic eyebrow at her. â€Å"Even monsters can fal in love,† she said. â€Å"I thought you knew that, Elena.† She glanced at her hunting stave, leaning against the foot of her bed. â€Å"When the ful moon comes, now I'l know what to look for.† Bonnie stared at her in horror. â€Å"You're not going to hunt them, are you?† It was a stupid question, she knew. If Zander and his friends real y were behind the murders and disappearances on campus, Meredith had to hunt them. It was her responsibility. Al of their responsibilities, real y, because if they were the only ones who knew the truth, they were the only ones who could keep everyone else safe. But Zander, something inside her howled in pain. Not Zander†¦ â€Å"None of the attacks occurred during a ful moon,† Elena said thoughtful y, and Meredith and Bonnie both blinked at her. â€Å"That's true,† Meredith agreed, frowning as she thought back. â€Å"I don't know how we didn't realize that before. Bonnie,† she said. â€Å"Think careful y before you answer this question. You've been spending a lot of time with Zander and his friends. Did anything about them make you think they might hurt someone, real y hurt them, when they're not in wolf form?† â€Å"No!† Bonnie said automatical y. Then she stopped and thought and said, more slowly, â€Å"No, I don't think so. Zander's real y kind, I don't think he could fake that. Not al the time. They play rough, but I've never seen them fight with anyone except one another. And even with one another, they're not real y fighting, just more sort of messing around.† â€Å"We know what you mean,† Meredith said dryly. â€Å"We've seen it.† Elena tucked a lock of hair behind her ear. â€Å"The disappearances weren't during the ful moon, either,† she said thoughtful y. â€Å"Although I guess they could have been taking people and holding them prisoner, planning to kil them when they were in wolf form later, but that doesn't – I mean, I don't have much werewolf experience besides Tyler, but – it doesn't sound very wolfy to me. Too sterile, sort of.† â€Å"But†¦Ã¢â‚¬  Bonnie sank down on her bed. â€Å"You think there's a chance Zander and his friends might not be the kil ers? Then who are the kil ers?† She felt bewildered. Meredith and Elena exchanged a grim glance. â€Å"You wouldn't believe some of the stuff that happens on this campus,† Elena said. â€Å"We'l fil you in.† Bonnie rubbed her face with her hands. â€Å"Zander told me he was a good werewolf,† she said. â€Å"That he didn't hurt people. Is that possible? Is there even such a thing as a good werewolf?† Meredith and Elena sat down next to her, one on each side, and wrapped their arms around her. â€Å"Maybe?† Elena said. â€Å"I real y hope so, Bonnie. For your sake.† Bonnie sighed and cuddled closer to them, resting her head on Meredith's shoulder. â€Å"I need to think about al this,† she said. â€Å"At least I'm not alone. I'm so glad I have you guys. I'm sorry we fought.† Elena and Meredith both hugged her more tightly. â€Å"You've always got us,† Elena promised. A wild hammering came at the door. Elena glanced at Bonnie, who tensed visibly on her bed but kept her hands over her face, and then at Meredith, who nodded firmly to her and climbed to her feet, reaching for her stave. It had occurred to both of them that, if Zander wanted to talk to Bonnie, he knew exactly where she lived. Elena flung open the door, and Matt tumbled in. He was wearing a long black hooded robe, and his eyes were frantic as he gasped for breath. â€Å"Matt?† she said in surprise, and looked to Meredith, who gave a tiny shrug and put her stave back down. â€Å"What's the matter? And what are you wearing?† He grabbed Elena by the shoulders, holding her too tightly. â€Å"Stefan's in danger,† he said, and she froze. â€Å"The Vitale Society – they're vampires. Stefan saved me, but he can't fight them al .† He quickly explained what happened in the secret chamber below the library, how Stefan came to his rescue, then sent him to get help. â€Å"We don't have much time,† he finished. â€Å"They're kil ing – they're changing al the pledges into vampires. I don't even know what Ethan's got planned for Stefan. We have to go back. And we need Damon.† Meredith picked up her stave again and, grim faced, was taking her satchel of weapons from her closet. Bonnie was on her feet, too, fists clenched, jaw firm. â€Å"I'l cal Damon,† Elena said, picking up her phone. Damon had dropped her off at the dorm after walking her back from James's house, but he was probably stil nearby. Stefan in danger. If he †¦ if anything happened to him, if something happened while they were apart, while he was stil hurt and it was her fault, Elena would never forgive herself. She wouldn't deserve to be forgiven. Guilt was like a knife in her stomach. How could she have hurt Stefan like that? She was attracted to Damon, sure, even loved him, but she'd never had any question that Stefan was her true love. And she had broken his heart. She'd do anything to save Stefan. She'd die for him if she had to. And, as she listened to the ringing on the other end of the line and waited for Damon to pick up, she realized that there was no question in her mind that Damon would do anything to save Stefan, too.

Chapter 19 Solutions

Chapter 19 Completing the Audit / Postaudit Responsibilities |Learning Check | 19-1. The three categories of activities in completing the audit are (a) completing field work, (b) evaluating the findings, and (c) communicating with the client. 19-2. The activities involved in completing the field work are (a) making subsequent events review, (b) reading minutes of meetings, (c) obtaining evidence concerning litigation, claims, and assessments, (d) obtaining client representation letter, and (e) performing analytical procedures. 19-3. a.Subsequent events are events that occur between the balance sheet date and the issuance date of the auditor's report (which is not the same as the date of the report) that may affect the financial statements on which the report is rendered. The subsequent events period extends from the balance sheet date to the end of field work on the engagement. b. The types are: †¢ Type 1 consists of those events that provide additional evidence with respect to conditions that existed at the date of the balance sheet and affect the estimates inherent in the process of preparing financial statements. Type 2 consists of those events that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. †¢ Type 1 events require adjustment of the financial statements. Type 2 events require disclosure, and in very material cases, by attaching pro-form data to the financial statements. c. The auditor is required by GAAS to search for and to evaluate subsequent events up to the date of the auditor's report, which should be as of the end of field work.This responsibility is discharged by (1) being alert for subsequent events in performing year-end substantive tests after the balance sheet date, and (2) performing specific procedures at or near the completion of field work. 19-4. a. Regarding litigation, claims, and assessments (LCA), the auditor should obtain evidential matter o n †¢ The existence of a condition, situation, or set of circumstances indicating an uncertainty as to the possible loss to an entity arising from the LCA. The period in which the underlying cause for legal action occurred. †¢ The degree of probability of an unfavorable outcome. †¢ The amount or range of potential loss. b. A letter of audit inquiry is a letter sent by management to the company's outside legal counsel requesting the lawyer to send specified information directly to the auditor about LCA against the company. The letter is the auditor's primary means of obtaining evidence about LCA. c. When the lawyer fails to respond, the auditor has a scope limitation.Depending on materiality, the auditor will express either a qualified opinion or a disclaimer of opinion. 19-5. a. The objectives of a â€Å"rep† letter are: (1) confirm oral representations given to the auditor, (2) document the continuing appropriateness of such representations, and (3) reduce the possibility of misunderstandings concerning management's representations. b. When the auditor is unable to obtain a rep letter or support a management representation that is material to the financial statements by other audit procedures, there is a scope limitation.Depending on materiality, the auditor will express either a qualified opinion or a disclaimer of opinion 19-6. a. The objectives of an overall review are to assist the auditor in (1) assessing conclusions reached in the audit and (2) evaluating the financial statement presentation taken as a whole. b. The review should be made by an individual having comprehensive knowledge of the client's business and industry. Normally, either the partner in charge of the audit or the top manager on the engagement makes the review. c.Analytical procedures performed during the final stages of the audit should be †¢ Applied to critical audit areas identified during the audit. †¢ Based on financial statement data after all audit adjustments and reclassifications have been recognized. As in other cases, the data may be compared to (1) expected company results, (2) available industry data, and (3) relevant nonfinancial data. 19-7. a. The two objectives in evaluating the findings are determining (1) the type of opinion to be expressed and (2) whether GAAS has been met in the audit. . Four steps in meeting these objectives are: †¢ Making a final assessment of materiality and audit risk. †¢ Making a technical review of financial statements. †¢ Formulating an opinion and drafting the audit report. †¢ Making final review(s) of the working papers. 19-8. a. The purposes of the auditor's final assessment of materiality and audit risk are to determine whether (1) the auditor's preliminary judgments concerning materiality have been met and (2) audit risk is at an acceptable level to warrant the expression of an opinion. . Known misstatement is an uncorrected misstatement in an account identified thr ough substantive tests of details of transactions and balances. Likely misstatement is the total error in an account resulting from (1) known misstatements, (2) projected uncorrected misstatements estimated through audit sampling techniques, and (3) estimated misstatements detected through analytical procedures and quantified by other auditing rocedures. Aggregate likely misstatement is the sum of likely misstatements in all accounts. 19-9. a. Professional standards establish a responsibility for the auditor to evaluate whether there is substantial doubt about the client’s ability to continue as a going concern for a reasonable period of time, not to exceed one year beyond the date of the financial statements being audited (generally one year from balance sheet date).Ordinarily, information that would raise substantial doubt about the going concern assumption relates to the entity's inability to continue to meet its obligations as they become due without substantial dispositi on of assets outside the ordinary course of business, restructuring of debt, externally forced revisions of its operations, or similar actions. b. The auditor normally evaluates whether there is substantial doubt about the client’s ability to continue as a going concern based on the results of normal audit procedures performed in planning, in gathering evidence to support various audit objectives, and in completing the audit. . If the auditor concludes that substantial doubt exists, he or she should consider the need for the following disclosures: †¢ Pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. †¢ The possible effects of such conditions and events. †¢ Management's evaluation of the significance of those conditions and events and any mitigating factors. †¢ Possible discontinuance of operations. †¢ Management's plans (includin g relevant prospective financial information). n  3 †¢ Information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. d. If, after considering identified conditions and management's plans, the auditor concludes that substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time remains, the audit report is normally an unqualified audit opinion with an explanatory paragraph about the uncertainty (following the opinion paragraph) to reflect that conclusion.The auditor's conclusion about the entity's ability to continue as a going concern should be expressed through the use of the phrase â€Å"substantial doubt about its (the entity's) ability to continue as a going concern. † If the auditor concludes that the entity's disclosures with respect to the entity's ability to continue as a going concern are inadequate, a departure from generally accepted accounting pr inciples exists. This may result in either a qualified (except for) or an adverse opinion. 19-10.The technical review of the financial statements includes matters pertaining to the form and content of each of the basic statements as well as to required disclosures. Most CPA firms use separate checklists for SEC and non-SEC clients. The auditor who performs the initial review of the financial statements completes the checklists. The manager and partner in charge of the engagement (in the case of a publicly held client then review the checklists, a partner who was not a member of the audit team) reviews them again. 19-11. a. The opinion to be expressed is determined by the partner in charge of the engagement.The decision is made on the basis of the findings made by the audit team during the audit. b. Proposed adjustments and disclosures are discussed with the client and differences are resolved. Ordinarily, agreement is reached and an unqualified opinion can be expressed. 19-12. a. Th e primary reviewers and the nature of their reviews are: |Reviewer |Nature of Review | |Manager |Reviews working papers prepared by seniors and reviews some or all of the working | | |papers reviewed by seniors. |Partner in charge |Reviews working papers prepared by managers and reviews other working papers on a | |of engagement |selective basis. | b. The engagement partner's review of the working papers is designed to obtain assurance that †¢ The work done by subordinates has been accurate and thorough. †¢ The judgments exercised by subordinates were reasonable and appropriate in the circumstances. †¢ The audit engagement has been completed in accordance with the conditions and terms specified in the engagement letter. All significant accounting, auditing, and reporting questions raised during the audit have been properly resolved. †¢ The working papers support the auditor's opinion. †¢ Generally accepted auditing standards and the firm's quality control p olicies and procedures have been met. c. The second partner may be more objective than the partner on the engagement. Thus, the second partner review provides additional assurance that GAAS have been met. Second partner reviews are mandatory for SEC registrants. 19-13.The auditor's communications with the client at the conclusion of the audit involve the audit committee of the board of directors (or the board directly) and management. 19-14. a. Reportable conditions represent significant deficiencies in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. The magnitude of a reportable condition determines whether it is also a material weakness.A material weakness is defined as a reportable condition in which the design or operation of the specific internal control structure elements does not r educe to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned duties. b. A report issued on reportable conditions should: †¢ Indicate that the purpose of the audit is to report on the financial statements and not to provide assurance on the internal control structure. Include the definition of reportable conditions. †¢ Include the restriction on distribution (e. g. restricted to the audit committee, management, and others within the organization). In addition, the reportable conditions should be described in one or more separate paragraphs. 19-15. When the auditor separately identifies and describes material weaknesses in his or her report, two additional paragraphs are required. The first paragraph should contain a definition of the term material weakness and a description of the reportable conditions that are material weaknesses.The second additional paragraph should describe the limitations of the auditor's work, noting specifically that the auditor's consideration of the internal control structure would not necessarily disclose all matters considered to be material weaknesses. 19-16. a. The communication may be oral or written, and it may occur during or shortly after the audit. b. The communication with the audit committee may include such matters as †¢ Auditor's responsibilities under GAAS. †¢ Significant accounting policies. †¢ Management judgments and accounting estimates. †¢ Significant audit adjustments. Disagreements with management. †¢ Consultation with other accountants. †¢ Major issues discussed with management prior to retention. †¢ Difficulties in performing the audit. In addition, the auditor must communicate reportable conditions. 19-17. a. The purpose of a management letter is to provide management with recommendations for improving the efficiency and effectiveness of its operations. b. A management letter may include comments on †¢ Internal control matters that are not considered to be reportable conditions. †¢ Management of resources such as cash, inventories, and investments. Other value-added recommendations on how to improve organization performance. †¢ Tax related matters. 19-18. a. The auditor has no responsibility to make inquiry or to perform any auditing procedures on subsequent events occurring after field work but before issuance of the report. When a situation comes to the auditor's attention, he or she is required to evaluate the item and consider its effect on the report that is being issued. b. The auditor may use the event date as the date of the auditor's report provided all subsequent events review procedures are performed for the period between the original report date and the event date.Alternatively, the auditor may use dual dating in which the report contains two dates: (1) the original date of the report, and (2) a date that refers to the subsequent event that has occurred between the original date of the report and the date of its issuance. In this case, it is not necessary to extend performance of all subsequent events review procedures through the later date except as to the particular event giving rise to the dual dating. 19-19. a. The auditor has no responsibility for the postaudit discovery of facts existing at the date of the audit report.However, when the auditor becomes aware of such facts and the facts may have affected the report that was issued, he or she must ascertain the reliability of the information. b. When the client refuses to make the necessary disclosures, the auditor should notify each member of the board of directors of such refusal and take the following steps to prevent further reliance on the audit report: †¢ Notify the client that the audit report must no longer be associated with th e financial statements. Notify the regulatory agencies having jurisdiction over the client that the report should no longer be relied on. †¢ Notify (generally via the regulatory agency) each individual known to be relying on the statements that the report should no longer be relied on. 19-20. a. When the auditor has been able to make a satisfactory investigation and has determined that the information is reliable, he or she should describe the effects the subsequently acquired information would have had on the financial statements and the auditor's report. b.When the client has not cooperated and the auditor has been unable to make a satisfactory investigation, without disclosing the specific information, the auditor should (1) indicate the lack of cooperation and (2) state that if the information is true, the audit report should no longer be relied on. 19-21. a. The auditor has no responsibility to make any retrospective review of his or her work. However, when knowledge is ob tained of possible omitted procedures, the auditor should assess their importance to his or her ability to support the previously expressed opinion. b.The auditor may find that he or she (1) can support the opinion or (2) cannot support the opinion. In the latter case, the auditor should perform the omitted procedures and if necessary prevent further reliance on the report. |Objective Questions | |19-22. |1. b |2. a |3. c | | | |19-23. |1. a |2. b |3. b |4. c | | |19-24. |1. a |2. c |3. b | | | |Comprehensive Questions | 19-25. (Estimated time – 20 minutes) . The first type of subsequent events includes those events that provide additional evidence concerning conditions that existed at the balance sheet date and affect the estimates inherent in the process of preparing financial statements. This type of subsequent events requires that the financial statements be adjusted by any changes in estimates resulting from the use of such additional evidence. The second type of subsequ ent events consists of those events that provide evidence concerning conditions that did not exist at the balance sheet date but arose subsequent to that date.These events should not result in adjustment to the financial statements but may be such that disclosure is required to keep the financial statements from being misleading. b. The auditing procedures Green should consider performing to gather evidence concerning subsequent events include the following: †¢ Compare the latest available interim statements with the financial statements being audited. †¢ Ascertain whether the interim statements were prepared on the same basis as the audited financial statements. Inquire whether there was any significant change in the capital stock, long-term debt, or working capital to the date of inquiry. †¢ Inquire about the current status of items in the audited financial statements that were accounted for on the basis of tentative, preliminary, or inconclusive data. †¢ Inqui re about any unusual adjustments made since the balance sheet date. †¢ Read or inquire about the minutes of meetings of stockholders or the board of directors. †¢ Inquire of the client's legal counsel concerning litigation, claims, and assessments. Obtain a management representation letter, dated as of the date of Green's report, as to whether any subsequent events would require adjustment or disclosure. †¢ Make such additional inquiries or perform such additional procedures as Green considers necessary and appropriate. 19-26. (Estimated time – 30 minutes) a. 1. A subsequent events review is used to provide reasonable assurance that the auditor is aware of significant events that have a material effect on financial statements. These are events that have occurred after the date of the financial statements but before the issuance of the audit report. 2.If the subsequent event is one that provides additional evidence concerning conditions existing at the date of t he financial statements, then the financial statements must be adjusted. If the subsequent event is one that provides evidence concerning conditions that arose after the date of the financial statements, disclosure is required. b. 1. The auditor obtains written representations from the client as part of the evidence gathered to meet the third standard of field work. The purpose of these written representations by management is to †¢ Confirm oral representations given to the auditor. Impress on management that it has the primary responsibility for the financial statements. 2. The client representation letter may include statements concerning the following matters: †¢ Completeness and availability of the accounting records and minutes of meetings of shareholders, directors, and committees. †¢ Absence of unrecorded transactions and errors and irregularities in the financial statements. †¢ Existence of related party transactions or contingencies. †¢ Plans or int entions that may affect the carrying value of assets and liabilities. . 1. The purpose of the management letter is to communicate to management the auditor's recommendations regarding improvements in the efficiency and the effectiveness of matters that came to the auditor's attention during the audit. 2. Three major subjects that may be addressed in the management letter include the following. †¢ Internal control structure weaknesses that are considered immaterial. †¢ Improvements to the accounting and information system. †¢ Improvements to the internal controls related to achieving the objectives of the organization. 9-27. (Estimated time – 25 minutes) |Item No. | |Required Disclosure or | | |Audit Procedures |Entry and Reasons | |1. |Goods in-transit would be detected in the course of the |The receipt of the goods provides additional evidence with | | |auditor's review of the year-end cutoff of purchases.The |respect to conditions that existed at the date of the balance | | |auditor would examine receiving reports and purchase invoices|sheet and hence the financial statements should be adjusted to| | |to make certain that the liability to suppliers had been |take into account such additional information. | | |recorded for all goods included in inventory, and that all | | | |goods for which the client was liable at year end were | | | |recorded in inventory. | |2. |Settlements of litigation would be revealed by requesting |Settlements of litigation would require an adjustment of the | | |from the company's legal counsel a description and evaluation|financial statements since the events that gave rise to the | | |of any litigation, impending litigation, claims, and |litigation had taken place prior to the balance sheet date. | |contingent liabilities of which he or she has knowledge that | | | |existed at the date of the balance sheet being reported upon,| | | |together with a description and evaluation of any additional | | | |matters of a like nature which come to his or her attention | | | |up to the date the information is furnished.A review of cash| | | |disbursements for the period between the balance sheet date | | | |and completion of field work may also reveal evidence of the | | | |settlement. | | | | | | | | | | | | | | | | | | | | | | | | | |3. |The purchase would normally be Revealed in general |The purchase of a new business is not an event that provides | | |conversations with the client and would further be detected |evidence with respect to conditions existing at the balance | | |by reading the minutes of meetings of stockholders, |sheet date; hence, it does not require adjustments in the | | |directors, and appropriate committee.In addition, because |financial statements. However, such an event would normally be| | |the amount paid is likely to be unusually large in relation |of such importance that disclosures of it is required to keep | | |to other cash disbursements, a review of cash di sbursements |the financial statements from being misleading. If the | | |for the period between the balance sheet date and completion |acquisition is significant enough, it might be advisable to | | |of field work is likely to reveal such an extraordinary |supplement the historical statements with pro-forma statements| | |transaction.Moreover, because a purchase of a business |indicating the financial results if the two firms had been | | |usually requires a formal purchase agreement, the letter from|consolidated for the year ending December 31, 19XO. Otherwise,| | |the firm's legal counsel would probably have revealed the |disclosure in footnotes to the financial statements would be | | |purchase. |adequate. Occasionally, a situation of this type may have such| | | |a material impact on the entity that the auditor may wish to | | | |include in the audit report an explanatory paragraph directing| | | |the reader's attention to the event and its effect. | |4. Inventory losses attr ibutable to a flood would be brought to |Losses attributable to floods subsequent to the balance sheet | | |the auditor's attention through inquires and discussions with|date to not provide in formation with respect to conditions | | |corporate officers and executives. Moreover, the auditor |that existed at the balance sheet data; hence, adjustment in | | |would know the location of the plants and warehouses of |the financial statements is not required. However, because the| | |clients and upon becoming aware of any major floods in such a|losses are material, they should be revealed in footnotes to | | |location, he or she would investigate to determine if the |the financial statements. Occasionally, situation of this type| | |client's facilities had suffered any damage. may have such a material Impact on the entity that the auditor| | | |may wish to include in the audit report an explanatory | | | |paragraph directing the reader's attention to the event and | | | |its effect. | |5. |The sale of bonds or other securities would require a filing |Sales of bonds or capital stock are transactions of the type | | |with the SEC in which the auditor would presumably be |that do not provide information with espect to conditions | | |involved. In addition, the sale would be revealed by reading |that existed at the balance sheet date; hence, adjustment of | | |the minutes of directors and finance committee's meetings, by|the financial statements is not required. However, such sales | | |corresponding with the client's attorneys and by examining |may be of sufficient importance to require footnote | | |the cash receipts books in the period subsequent to the |disclosure. Occasionally, a situation of this type may have | | |balance sheet date for evidence of unusually large receipts. such a material impact on the entity that the auditor may wish| | | |to in the audit report an explanatory paragraph directing the | | | |reader's attention to the event and its effect. | 19-28. (Estimated time – 15 minutes) The substantive audit procedures that Young should apply when testing for loss contingencies relating to litigation, claims, and assessments include the following: †¢ Read minutes of meetings of stockholders, directors, and committees. †¢ Read contracts, loan agreements, leases, and other documents. †¢ Read correspondence with taxing and other governmental agencies. †¢ Read correspondence with insurance and bonding companies. Read confirmation replies information concerning guarantees. †¢ Discuss with management the entity's policies and procedures for identifying, valuating, and accounting for litigation, claims, and assessments. †¢ Obtain from management or the client's general counsel a description and evaluation of litigation, claims, and assessments. †¢ Obtain written assurance from management that the financial statements include all accruals †¢ and disclosures required by Statement on Financi al Accounting Standards No. 5. †¢ Examine documents in the client's possession concerning litigation, claims, and assessments, including correspondence from lawyers. Obtain an analysis of professional fee expenses and review supporting invoices for indications of contingencies. †¢ Request the client's management to prepare for transmittal a letter of inquiry to those lawyers consulted by the client concerning litigation, claims, and assessments. †¢ Compare the lawyer's response to the items in the letter of inquiry to the description and evaluation of litigation, claims, and assessments obtained from management. †¢ Determine that the financial statements include proper accruals and disclosures of the contingencies. 19-29. (Estimated time – 25 minutes) 1. Disagree. Generally letters silent on particular aspects of the request letter require follow-up.The auditor should contact the attorney and confirm that he or she intended the letter to completely respond to the request letter and was silent because there were no issues to discuss. Documentation of this confirmation should be included in the working papers. 2. Disagree. A useful evaluation is not always possible. For instance, it may include an element difficult to predict or to which the lawyer may not have paid sufficient attention to make an evaluation. If the matter involved constitutes a material or contingent liability, the auditor will likely conclude there is an uncertainty with effects on the financial statements that can't be determined, and he or she should consider the effects of that uncertainty on the audit report. 3. Disagree.The attorney's opinion is an example of a marginally acceptable opinion. If such an opinion is issued on litigation where loss would seriously impair the company's operations, the auditor must give a qualified opinion and possibly consider a disclaimer of opinion. 4. Disagree. In some cases, attorneys, auditors, and clients discuss matters involv ing litigation, and during such informal discussions some attorneys express their opinions as to the outcome of disputed matters. Such oral opinions should be expressed in writing by the attorney, and if they are not reduced to writing, the discussions generally should not be considered audit evidence. 5. Disagree.The law firm derives all or substantially all of its fees from the client. This is, in essence, analogous to in-house counsel. Evidence from in-house counsel may provide the auditor with the necessary corroboration in some cases. However, since the liability here is great, complete reliance on such evidence is not justified. 19-30. (Estimated time – 25 minutes) Other matters that Alderman's representation letter should specifically confirm that: †¢ The financial statements referred to above are fairly presented in conformity with generally accepted accounting principles. †¢ We have made available to you all— †¢ Financial records and related dat a. Minutes of the meetings of stockholders, directors, and committees of directors, or summaries of actions of recent meetings for which minutes have not yet been prepared. †¢ There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements. †¢ There has been no— †¢ Fraud involving management or employees who have significant roles in internal control. †¢ Fraud involving others that could have a material effect on the financial statements. †¢ Management believes that the effects of any uncorrected financial statement misstatements aggregated by the auditor during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The following have been properly recorded or disclosed in the financial statements: †¢ Related-party transactions, including sales, purchases, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties. †¢ Guarantees, whether written or oral, under which the company is contingently liable. †¢ Significant estimates and material concentrations known to management that are required to be disclosed in accordance with the AICPA's Statement of Position 94-6, Disclosure of Certain Significant Risks and Uncertainties. †¢ There are no other liabilities or gain or loss contingencies that are required to be accrued or disclosed by FASB Statement No. 5. †¢ The company has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral. The company has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. †¢ Debt securities that have been classified as held-to-maturity have been so classified due to t he company's intent to hold such securities, to maturity and the company's ability to do so. All other debt securities appropriately have been classified as available-for-sale or trading. †¢ Provision has been made to reduce excess or obsolete inventories to their estimated net realizable value. †¢ Capital stock reserved for options, warrants, conversions, or other requirements have been properly disclosed. 19-31. (Estimated time – 30 minutes) a.The use of overall analytical review at the final stages of an audit has two general advantages to the CPA: (1) a broad view is obtained of the date of the financial statements, and (2) the CPA's attention is focused on exceptions or variations in the data. A broad view of the data under audit is needed by the CPA to draw conclusions about the data as a whole. Merely looking at individual transactions may lead the auditor to overlook important variations in the underlying data. The application of analytical procedures to the final data to obtain this broad view requires a discerning analysis of the data, which results in overall conclusions upon which the CPA's audit satisfaction rests. The CPA is thus able to satisfy him or herself as to the reasonableness, validity, and consistency of the data in view of the surrounding circumstances.The focusing of the CPA's attention on exceptions or variations in the data results in a more efficient and economical audit because there is a reduction in the amount of detailed testing which would be required, in the absence of overall checks, to uncover these exceptions or variations. Furthermore, manipulations of accounts may be revealed because the double-entry bookkeeping system extends the effects of manipulations to additional accounts, which will then bear a changed relationship to other accounts. In addition, managerial problems and trouble spots will be highlighted for the CPA and may lead to the opportunity to be of additional service to the client. b.The ra tios that a CPA may compute during an audit as overall checks on balance sheet accounts and related nominal accounts may include the following: †¢ Accruals of individual expenses to related total expenses. †¢ Calculations of the entity’s operating cycle. †¢ Individual components of return on assets and return on equity. †¢ The impact of an entity’s financing and investing activities. †¢ The ability of cash flow from operations to service debt and dividends. †¢ Other measures of the entity’s liquidity and solvency. c. 1. The possible reasons for a decrease in the rate of inventory turnover include the following: †¢ Decline in sales. Increase in inventory quantities, intentional or unintentional. †¢ Incorrect computation of inventory because of errors in pricing, extensions, or taking of physical inventory. †¢ Inclusion in inventory of slow-moving or obsolete items. †¢ Erroneous cutoff of purchases. †¢ Erroneo us cutoff of sales under the perpetual inventory accounting method. †¢ Unrecorded purchases. †¢ Change in inventory valuation method. 2. The possible reasons for an increase in the number of days' sales in receivable include the following: †¢ Change in credit terms. †¢ Decreasing sales. †¢ Change in the sales mix of products with different sales terms. †¢ Change in mix of customers. †¢ Improper sales cutoff. Unrecorded sales. †¢ Lapping. †¢ Slower collections caused by tighter economic conditions or lowering of the quality of the receivables. 19-32. (Estimated time – 20 minutes) a. Reportable conditions are matters that come to an auditor's attention, which, in the auditor's judgment, should be communicated to the client's audit committee or its equivalent because they represent significant deficiencies in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, p rocess, summarize, and report financial data consistent with the assertions of management in the financial statements.Material weaknesses are reportable conditions in which the design or operation of specific internal control structure elements do not reduce, to a relatively low level, the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. b. An auditor is required to identify reportable conditions that come to the auditor's attention in the normal course of an audit, but is not obligated to search for reportable conditions. The auditor uses judgment as to which matters are reportable conditions. Provided the audit committee has acknowledged its understanding and consideration of such deficiencies and the associated risks, the auditor may decide certain matters do not need to be reported unless, because of changes in management or the audit committee, or because of the passage of time, it is appropriate to do so.Conditions noted by the auditor that are considered reportable should be reported, preferably in writing. If information is communicated orally, the auditor should document the communication. The report should state that the communication is intended solely for the information and use of the audit committee, management, and others within the organization. The auditor may identify and communicate separately those reportable conditions the auditor considers to be material weaknesses, but may not state that no reportable conditions were noted during the audit. Reportable conditions may be communicated during the course of the audit rather than after the audit is concluded. depending on the relative significance of the matters noted and -the urgency of corrective follow-up action. 19-33. (Estimated time – 30 minutes) |a. |Deficiency |Proper Wording | |1 . |In completing our audit |In planning and performing our audit | |2. |Its internal control environment |Its internal control structure | |3. |Not to express an opinion |Not to provide assurance | |4. The design and effectiveness |The internal control structure and its operation | | |of the system 0f internal control | | |5. |Under GAAS |Under standards | |6. |Potential weaknesses |Significant | |7. |To prepare financial |To record, process, summarize, and report financial data consistent| | |statements in conformity |with the assertions of management in the financial statements. | |8. For the audit committee |For the information and use of the audit committee, management, and| | |and others |others | b. A reportable condition may be of such magnitude as to be a material weakness. Thus, all material weaknesses are reportable conditions, but all reportable conditions are not material weaknesses. The two terms are defined as follows: †¢ Reportable conditions represent signific ant deficiencies in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. A material weakness is a reportable condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. c. Two additional paragraphs are required when the auditor refers to material weaknesses in the audit report. The first paragraph should include a definition of a material weakness and a description of reportable conditions that are material weaknesses.The second paragraph should describe the limitations of the au ditor's work; i. e. , that the work would not necessarily disclose all reportable conditions that are also material weaknesses. 19-34. (Estimated time – 20 minutes) a. Independent auditors use a management letter to call to management's attention matters that the auditor has noted during the course of the audit engagement but which did not fall within the scope of the opinion. The management letter provides an excellent vehicle for suggesting value-added services that can assist the business in improving organizational performance. A management letter is rendered as a constructive service to suggest improvements as well as point out deficiencies. b.Many types of information can be covered in a management letter. The major, broad areas which are presented and discussed in the management letter include: †¢ Suggestions for modifying and improving a client's internal controls. †¢ Recommendations for changes and improvements in accounting systems to better meet managemen t's information needs. †¢ Suggestions for improving the management of resources such as cash, inventories, and investments. †¢ Comments regarding tax related matters. A detailed example of a suggestion for improving business practices follows: We understand that your accounting system offers discounts to customers who purchase in significant volumes.The program that grants these volume discounts as it prices a sales invoice does so after important information on gross margins has been reported to department managers. While sales invoices and underlying accounting information is correct, it does not agree with management information that is provided to sales managers as they make pricing decisions. As soon as possible you need to change the program that calculates the sales discounts so that gross margins and other information used by sales management includes the volume discounts offered customers. (Answer updated from original ICMA answer. ) 19-35. (Estimated time  œ 30 minutes) a. 1. 1–subsequent event during the subsequent event period requiring adjustment. 2. 1–subsequent event during the subsequent event period requiring adjustment. 3. –subsequent event during the subsequent event period requiring disclosure. 4. 2–subsequent event during the subsequent event period requiring disclosure 5. 1–subsequent event during the subsequent event period requiring adjustment. 6. 4–subsequent event occurring after field work but before issuance of report. 7. 4–subsequent event occurring after field work but before issuance of report. 8. 5–postaudit discovery of facts existing at date of report. The date field work is completed is not specifically given. This answer is based on the customary practice of dating the audit report as of the end of field work (i. e. , February 26). b.For categories (1) and (2) the auditor has the responsibility for identifying and evaluating subsequent events up to the d ate of the auditor's report. In discharging this responsibility, the auditor should be alert for subsequent events in performing substantive tests, and also perform specific auditing procedures at or near the completion of field work. For categories (3) and (4), the auditor has no responsibility to make inquiry or to perform any auditing procedures during this time period to discover subsequent events. However, if knowledge of such an event comes to the auditor's attention, he or she should determine whether the event requires adjustment of or disclosure in the financial statements. For category (5), the auditor has no responsibility for their discovery.However, if the auditor becomes aware of such facts and the facts may have affected the report that was issued, the auditor is required to ascertain the reliability of the information. c. Information about the items would be obtained from the following: 1. Inquiry of management; client â€Å"rep† letter. 2. Review of bad debt write-offs in January. 3. Reading of minutes. 4. Observation of fire; newspaper account of fire; inquiry of management. 5. Inquiry of management; lawyer's letter; and client â€Å"rep† letter. 6. Reading of minutes. 7. Newspaper story on takeover; inquiry of management. 8. Inquiry of management; lawyer's letter; and client ‘rep† letter.If the client fails to make required disclosure, the auditor should notify each member of the board of directors of such refusal and take the following steps to prevent further reliance on the audit report and: †¢ Notify the client that the audit report must no longer be associated with the financial statements. †¢ Notify regulatory agencies having jurisdiction over the client that the report should no longer be relied on. †¢ Notify (generally via the regulatory agency) each individual known to be relying on the statements that the report should no longer be relied on. |Cases | 19-36. See separate file with answers to the comprehensive case related to the audit of Mt. Hood Furniture that is included with this chapter. NOTE: Several revisions were made to this problem to correct printing errors. The revised problem is posted on the student resources website. | 19-37. (Estimated time – 25 minutes) a. and b. 1. The state government's approval of a plan for the construction of an express highway would have come to the CPA's attention through inquiries of officers and key personnel, examination of the minutes of the meetings of the board of directors and stockholders, and reading local newspapers. The details of the item would not have to be disclosed as a separate footnote because all fixed assets of the corporation, including the right to the condemnation award, were to be sold as of March 1, 19X1. 2.It is improbable that the CPA would learn the source of the $25,000 unless it were revealed in a discussion with the president or his personal accountant, or unless the auditor prepared the pres ident's personal income tax return, in which case the interest charges would have led to his investigation of the use to which the funds were put. Setting out the loan in the balance sheet as a loan from an officer would be sufficient disclosure. The source from which the officer obtained the funds would not be disclosed because it is the officer's personal business and has no effect upon the corporation's financial statements. Indeed, disclosure of the funds' source might be construed as detrimental to the officer. 3. The additional liability for the ore shipment would have been revealed by CPA's scanning of January transactions. The CPA's regular xamination of 19XO transactions and related documents such as purchase contracts would have caused him or her to note the item for subsequent follow-up to determine the final liability. In addition, the client's letter of representation might have mentioned the potential liability. The item would not require separate disclosure by footnot e or otherwise and would be handled by adjusting the financial statement accounts payable by the amount of the additional charge, $9,064 4. The CPA might learn of the agreement to purchase the treasurer's stock ownership through inquiries of management and legal counsel, examination of the minutes of the meetings of the board of directors and stockholders, and subsequent reading of the agreement. The absence of the treasurer might also arouse the CPA's curiosity.The details of the agreement would be disclosed in a footnote because the use of company cash for the repurchase of stock and the change in the amount of stock held by stockholders might have a heavy impact on subsequent years' financial statements. Usually a management change, such as the treasurer's resignation, does not require disclosure in the financial statements. The details underlying the separation (personal disagreements and divorce) should not be disclosed because they are personal matters. 5. Through inquiries of management, review of financial statements for January, scanning of transactions, and observations, the CPA would learn of the reduced sales and of the strike.Disclosure would not be made in the financial statements of these conditions because such disclosure might create doubt as to the reasons therefore and misleading inference might be drawn. 6. The contract with Mammoth Industries would come to the CPA's attention through inquiries of management and legal counsel, reading the minutes of the meetings of the board of directors and stockholders, and examination of the contract. All important details of the contract should be disclosed in a footnote because of the great effect upon the corporation's future. The factors contributing to the entry into the contract need not be disclosed in the statements; while they might be of interest to readers, hey are by no means essential to make the statements not misleading. 19-38. (Estimated time – 25 minutes) The omissions, ambiguitie s, and inappropriate statements and terminology in Brown's letter are as follows: †¢ The action that Consolidated intends to take concerning each suit (for example, to contest the matter vigorously, to seek an out-of-court settlement, or to appeal an adverse decision) is omitted. †¢ A description of the progress of each case to date is omitted. †¢ An evaluation of the likelihood of an unfavorable outcome of each case is omitted. †¢ An estimate, if one can be made, of the amount or range of potential loss of each case is omitted. The various other pending or threatened litigation on which Young was consulted is not identified and included. †¢ The unasserted claims and assessments probable of assertion that have a reasonable possibility of an unfavorable outcome are not identified. †¢ Consolidated's understanding of Young's responsibility to advise Consolidated concerning the disclosure of unasserted possible claims or assessments is omitted. †¢ Mate riality (or the limits of materiality) is not addressed. †¢ The reference to a limitation on Young's response due to confidentiality is inappropriate. †¢ Young is not requested to identify the nature of and reasons for any limited response. Young is not requested to include matters that existed after December 31, 1992, up to the date of Young's response. †¢ The date by which Young's response is needed is not indicated. †¢ The reference to Young's response possibly being quoted or referred to in the financial statements is inappropriate. †¢ Vague terminology such as â€Å"slight† and â€Å"some chance† is included where â€Å"remote† and â€Å"possible† are more appropriate. †¢ There is no inquiry about any unpaid or unbilled charges, services, or disbursements. |Research Questions | For the reasons specified in the introduction to this manual, solutions are not provided for this category of questions.