Personality Psychology †Sojourner Truth Essay

Sojourner Truth (c.1797 – 26 November 1883) Sojourner Truth dedicated her life to fighting slavery, and advocating equal rights for women. She first began speaking in 1827, giving personal testimony of the evils and cruelty of slavery; and later as a staunch supporter of suffrage, also advocated for equal rights for women. At the 1851 Women’s Rights Convention in Akron, Ohio, she delivered her speech â€Å"Ain’t I a Woman† which is now revered among classic text of feminism. She lived her life in the water-shed years of American abolition of slavery and became a leader and recognized as an icon for equality of rights and freedom. At birth, Truth was named Isabella and was a slave for the first twenty-eight years of her life because she was a child born by slaves. In 1826, Truth began life as a free woman; but only after eighteen years – in 1843 at the age of forty-six years, she rename herself, â€Å"Sojourner Truth is my name, because from this day I will walk in the light of His truth.† (p. 77). The moment of naming herself marked Truth’s cognitive freedom from her enslaved past. Neo-Analytic Approach to Personality The neo-analytic approach to personality asseverate that the individual’s sense of self as the core of personality; holding that the self â€Å"struggles to cope with emotions and drives on the inside and the demands of others on the outside† (Friedman & Schustack, 2011); that human nature is positive and goal-oriented; that society and culture shapes personality; and that development continues throughout lifespan. For the analysis of Sojourner Truth’s personality, the concepts of neo-analytical theorist Alfred Adler are selected for the purpose. Adler’s Concept of Humanity Feist & Feist (2006) described Adler’s concept of humanity as that people are self-determinant, and their unique personalities are shaped by how they interpret their lives and experiences. People are ultimately responsible for their own personalities and possess the creative power to transform feelings of inadequacy towards a final goal of either personal superiority or goal of success for society. i. Striving for superiority or success Adler believed that the central core of personality is the striving for superiority towards a final goal. The final goal – while fictional and has no objective existence – unifies personality and renders all behaviour comprehensible. According to Feist & Feist (2006), Adler posit that feelings of inferiority motivate a person to strive for either a self-centered (selfish) goal of superiority, or an altruistic goal of success for all humans. The final goal compensates and reduces feelings of inferiority and weakness, and drives the individual to seek either superiority or success. Truth was a slave for twenty-eight years. During her enslavement, she was abused and treated as chattel or property. Her slave-masters dictated and hold sway her life. Her enslavement caused Truth to feel inferior – but yet her reaction to those feelings of inferiority was to strived for a goal for success (for society). Throughout her life as a free woman, Sojourner Truth devoted herself to fight against slavery and for equal rights for all. During the American Civil War, Truth risked her life to gather and deliver supplies to black volunteer regiments; and was continually involved in various political causes. With the National Freedman’s Relief Association she continued to strive to better conditions and lives for all African Americans – of which her last campaign (sadly unsuccessful) was a land distribution programme for former slaves. ii. Social Interest Adler (1956) state that those who strive for success (instead of self-centered superiority) possess a â€Å"sense of personal worth that is tied closely to their contributions to human society. Social progress is more important to them than personal credit† † (Feist & Feist, 2006, p.72). Truth transcended her oppressed past; turned out to be a healthy individual who was motivated without personal gain to help others to â€Å"seek success for all humanity† (Feist & Feist, 2006). She was not motivated by personal gain. iii. Fictionlism / People’s behaviour and personality is shaped by their subjective perceptions. Adlerian approach maintains that that people are motivated by their subjective perceptions of what is true, and not by what is true. Their subjective perceptions of reality (i.e. fictions) influence them as if were reality. According to Feist & Feist (2006), fictions, regardless true or false, are powerful influence on people’s life. An example of a fiction is the belief in an omnipotent God that guides and helps shape many people’s lives and actions. This is clearly demonstrated in Truth’s life. Sojourner Truth’s parents taught her to believe in God, and that â€Å"God is always with her and she is never alone† (McKissack & McKissack, 1992, p.22). Throughout her life, she held this belief in an omnipotent God, and it was her source of solace (especially during her enslavement), and later – guide her in decision-making and actions. Truth believed that God was her true master. After eighteen years as a free woman, a chance encounter became the tipping point of her self-realisation. A woman asked for her name and upon that very moment Truth realized that all her life she had her slave-masters’ names and thereby declared, â€Å"The only master I have now is God and His name is Truth.† And gave herself the last name Truth (McKissack & McKissack, 1992, p.77). Truth maintained a practice of meditation and deep prayer through which she claimed God communicates with her. In her public speaking,she usually began with a declaration of her spiritual link, â€Å"Well, Children, I speaks to God and God speaks to me†¦I talks to God and God talks to me.† (McKissack & McKissack, 1992, p.82 and 117). Truth sought spiritual guidance during stressful times. For example when she had recently only left her former slave-master Dumont, she was intimidated by threats to her children to return to Dumont’s farm. After the incident she shared â€Å"Jesus stopped me† and that she experienced a powerful force that turned her around when she tried to go back to the Dumont farm. Truth held that the event was a profound meaningful spiritual experience that convinced her that she was never going back to enslavement (McKissack & McKissack, 1992, p.41). Another example of Truth’s staunch belief that God was on her side: In her fight to free and get her son to be returned to her, Truth prayed for divine intervention,â€Å"God†¦ show those about me that you are my Helper† (McKissack & McKissack, 1992, p.43). She was aided by Quaker abolitionists and a fair judge ruled justly in her favour. iv. Value of human activity must be evaluated on the basis of social interest. Adler posit that social interest is the natural human condition and that it binds society as a whole. According to Feist & Feist (2006), Adler held that social interest is the only gauge to be used in judging the worth of a person: Healthy individuals â€Å"strives for perfection for all people in an ideal community†¦are genuinely concerned about people and have a goal of success that encompasses the well-being of all people† (p.75 & 77). Sojourner continually spoke against slavery, campaigned for emancipation of slaves, suffrage and equal human rights. She spoke out against mistreatment and injustice in the army, gathered and distributed donations of food and clothing, and helped in military wards and hospitals. In 1864, Truth was recognized for her work and efforts by President Abraham Lincoln at the White House. v. Masculine Protest / Society & Culture Shapes People Adler reasoned that culture and society influenced people to overemphasize the importance of being manly, i.e. masculine protest. Many societies promote the belief that men are superior to women, implicitly implying that women are inferior. However Adler uphold that women have the physiological and psychological needs as men and therefore want â€Å"more or less the same things that men want† (Feist & Feist, 2006, p.85). This echoes feminists’ campaigns for equal rights: political, economic, and social rights and equal opportunities. Truth attended the first national (USA) Women’s Rights Convention in 1850, and was inspired as well as motivated to speak and advocate for â€Å"Equality before the law without distinction of sex or colour† (McKissack & McKissack, 1992, p.106). From that time on, she spoke for abolition of slavery and equality for women. In her 1851 speech at the Women’s Rights Convention in Akron,Ohio, Truth challenge gender discrimination, subordination, and dispelled the illusion of woman as the weaker sex. â€Å"†¦That man over there says that women need to be helped into carriages, and lifted over ditches, and to have the best place everywhere. Nobody ever helps me into carriages, or over mud-puddles, or gives me any best place! And ain’t I a woman? Look at me! Look at my arm! I have ploughed and planted, and gathered into barns, and no man could head me! And ain’t I a woman? I could work as much and eat as much as a man – when I could get it – and bear the lash as well! And ain’t I a woman?†¦Ã¢â‚¬  (McKissack & McKissack, 1992, p.112-114) vi. Lifestyle A lifestyle encompasses daily activities erstwhile pursuing one’s goals. According to Hergenhahn (2009), Adler believed that for a lifestyle to be genuinely effective it must contain considerable interest, i.e. working toward a society that would provide a better life for everyone. People with a healthy, socially useful lifestyle express their social interest through action. (Adler described a lifestyle without adequate social interest as a ‘Mistaken Lifestyle’.) According to Feist & Feist (2006), Adler considered three intertwined social issues as fundamental to an effective lifestyle: occupational tasks – choosing and pursuing a career that makes one feel worthwhile; societal tasks – creating friendships and social networks; and love tasks – finding a suitable life-partner. Truth’s lifestyle embodied all of Adler’s identified three social issues: * Occupational tasks: Truth embraced a career to fight for emancipation of slavery and equal rights for women. Besides public-speaking against slavery, Truth also worked to improve living conditions for all. In 1865, at the age of seventy, Truth accepted the task to â€Å"promote order, cleanliness, industry, and virtue among the patients at the Freedman’s Hospital† (McKissack & McKissack, 1992, p.149). * Societal tasks: Regardless when she was a slave or as a free woman, Truth formed relationships which led to social networks of friends, supporters, and even ‘fans’. Her circle of friends included Lucy Stone, Harriet Beecher Stowe, Harriet Tubman, John Brown, Richard Allen, John Jay, Frederick Douglass, and many many more equally enlightened beings. * Truth was separated from Robert, her first love who was a slave from another farm, because his slave-master forbade their marriage as children from slave-parents would belong to the slave-mother’s owner. Later Truth married (on orders of her slave-master) Tom, one of the other slaves belonging to the same slave-master. Eventually, they grew to love each other in their own way and shared common respect for each other (McKissack & McKissack, 1992, p.33). viiCreative Power Adler believed that each person possess the power to create their own lifestyle. In line with existentialistic philosophy, Adler agreed that people are ultimately responsible for who they are and their behaviour. People are their â€Å"own architect and can build either a useful or a useless lifestyle† (Feist & Feist, 2006, p.79). The creative power propels each and every one towards a goal, regardless whether in the direction of social interest or not. An individual’s creative power empowers that individual to control their own life – to determine their final goal and strive for that goal, and contributes to development of social interest. Truth’s personality reflected her optimal creative power that helped her manifest an effective lifestyle, successfully overcoming her lamented enslavement and then striving for success for all humans. In Abraham Maslow’s hierarchy of needs, Truth would be considered an actualized personality. Conclusion Adlerians maintain that people are naturally positive and goal-oriented. He also posited that mentally healthy people strive for societal success for all humans. In analysis of Sojourner Truth’s personality, it is found that Truth explicitly actualized Adler’s Individual Psychology: Truth manifested her creative power to strive for success (for all humans), thereby lived an effective (valued) lifestyle which embodied social interests and dispelled implicit inferiority of being a former slave, black, and a woman, with a staunch belief that divine power (God) guided and helped her throughout her life. References Feist, J., & Feist, G.J. (2006). Theories of Personality (6th ed.). USA: McGraw-Hill Asia. Friedman, H.S., & Schustack, M.W. (2011). Personality: Classic Theories and Modern Research (4th ed.). Boston: Pearson Hergenhahn, B.R. (2009). An Introduction to the History of Psychology (6th ed.). Belmont, CA.: Wadsworth Liebert, R., Liebert, L. (1998). Liebert & Liebert; Spiegler’s Personality Strategies and Issues (8th ed.). Pacific Grove, CA.: Brooks/Cole. McKissack, P.C.,& McKissack, F.(1992). Sojourner Truth: Ain’t I a Woman? New York: Scholastic.

Leadership in organizational behavior Essay

Leadership is the process of influencing people and providing an environment for them to achieve team or organisational objectives. As a property, Leadership is the set of characteristics attributed to those who are perceived to use such influence successfully. Leadership involves neither force nor coercion. It is widely believed in the world of business that leadership is the key ingredient in the recipe for corporate achievement. Typically, when we speak of leaders we are referring to people who influence others without threat, using non-coercive means. In fact, this characteristic distinguishes a leader from a dictator. Whereas dictators get others to do what they want by using threats of physical force, leaders do not. Subordinates accept influence from leaders because they respect, like, or admire them as well as because they hold positions of formal authority (that is, leaders may have both position power and personal power). We need to caution against the everyday practice of using tile terms leader and manager interchangeably. The primary function of a leader is to create the essential purpose or mission of the organization and the strategy for attaining it. In contrast, the job of the manager is to implement that vision. He or she is responsible for achieving that end, taking the steps necessary to turn the leader’s vision into reality. The confusion between these two terms is understandable insofar as the distinction between establishing a mission and implementing it is often blurred in practice. This is because many leaders, such as top corporate executives, are frequently called upon not only to create a vision, but also to help implement it. Similarly, managers often are required to lead those who are subordinate to them while also carrying out their leader’s mission. With this in mind, it has been observed that too many so-called â€Å"leaders† get bogged down in the managerial aspects of their job, creating organizations that are â€Å"over managed and under lead. † Leadership Perspectives Goal Attainment : influence function of leadership and deals the mechanisms that motivate members’ behaviors towards the group’s goals. Adaptation : helps the group to define its goal in a way that is consistent with the demands of the environment in which operates. Integration : some mechanism must coordinate the activities of group members towards the common goal e. g – Communication and conflict resolution Maintenance : mechanism to maintain their morale and keep them interested in staying in the group THEORIES OF LEADERSHIP: There are three major approaches to leadership: a) trait theories, b) behavioral theories, c) situational theories. Trait theories highlight that there exists a finite set of individual traits or characteristics that distinguish successful from unsuccessful leaders. Behavioral theories highlight that the most important aspect of leadership is not the traits of the leader, but what the leader does in various situations. Successful leaders are distinguished form unsuccessful leaders by their particular style of leadership. Situational theories outlines that the effectiveness of the leader is not only determined by his or her style of behavior, but also by the situation surrounding the leadership environment. Situational factors include the characteristics of the leader and the subordinates, the nature of the task and the structure of the group. THE TRAIT APPROACH: ARE SOME PEOPLE REALLY â€Å"BORN LEADERS†? Common sense leads us to think that some people have more of â€Å"the right stuff’ than others, and are just naturally better leaders. And, if you look at some of the great leaders throughout history, such as Martin Luther King, Jr. , Alexander the Great, and Abraham Lincoln, to name just a few, it is clear that such individuals certainly have characteristics in common that differ from ordinary folks. The question is â€Å"what is it that makes great leaders so great? † Leaders have certain traits, e. g. Honesty and Integrity : Trustworthy ; reliable ; open Intelligence Self – Confidence : Trust in own abilities Emotional maturity Stress tolerance Task – relevant knowledge : knowledge of business, relevant technical matters Ambition and high energy : Desire for achievement ; tenacity ; initiative Desire to lead : leadership motivation – desire to exercise influence over others to reach shared goals Research suggest that traits contribute less than 10% of what makes a successful leader Leadership Grid (Robert R. Blake & Jane Mouton) Impoverished Mgmt (1,1): Exertion of minimum efforts to get the required work done is appropriate to sustain organization membership. Country Club Mgmt (1,9): Thoughtful attention to the needs of people for satisfying relationships leads to a comfortable organizational atmosphere and work tempo. Middle Of The Road Mgmt (5,5): Adequate organizational performance is possible through balancing the necessity to get out work with maintaining morale of the people at satisfying level. Authority Compliance (9,1): Efficiency in operational results from arranging conditions of work in such a way that human elements interfere to a minimum degree. Team Mgmt (9,9): Work accomplishment is from committed people; inter dependence through a common stake. In organization purpose leads to relationships of trust and respect. Managerial Grid: The five basic approaches to management identified by Black and Mouton are based on the two dimensions of concern of people and concern for production that are associated with leaders. A managerial grid is formed based on these two dimensions which are rated on 9 point scale. If manager is securing the lowest score on these two dimensions I,I is identified as impoverished style of managers who are low on both their concern of people and production, 1,9 or country club style is designated to those managers who are having high concern for people but low concern for production. The 5, 5 or the middle-of-the road style concerns the moderate levels of concern for both people and production. The 9,1 or task management style is one where there is a high concern for production but very little concern for people and finally, 9,9 or team management style is one where the manager has high concern for both people and production. According to Black and Mouton the one best style for all mangers is the 9,9 or team management style. Fiedler’s Model Effective groups depend on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader. LEADER SITUATION MATCH A task oriented leader is appropriate for a very favorable or very unfavorable situation. Relationship oriented behavior is predicted to work best when situation is moderately favorable or unfavorable. /* only read Favorable Situation: The situation is considered as highly favorable if it possess a high level of positive interpersonal relations between leaders and members, a well defined task structures and a leaders perceive that they are bestowed with strong perceived positional power. In such type of situation the leader will have a great deal of control over situations and will simply have to make sure that he gives the necessary instructions to get the task done. There is no need for him to waste time talking to each employee in order to be perceived as friendly. A task-oriented style will be effective in such situation. Unfavorable Situation: The situation is considered as highly unfavorable if it possesses a low level of interpersonal relationship between leaders and members, a poorly defined task and a relatively a weak perceived power. The leader of a task-force committee which is appointed to solve problems encountered in the work setting is likely to find him in such a situation. In such type of situation, the leader is in highly vulnerable situations and there is no other way to enforce a strict discipline and order to bring the situation in normalcy than following relationship oriented style. Moderately Favorable Situation: Here the leader might find herself in a mixed situation. For instance, a manager might have good relationship with her workers, but the task structure and position power of the leader may be low. For example, a bank officer may have a good relationship staff member, but the task structure or the power to control the staff members (either to reward or punish members) is not strong enough. In such situations, the manager will be very successful and get the desirable results if he follows more of relationships oriented style than task oriented task style. */ PATH GOAL THEORY PATH GOAL THEORY believes that a leader can change subordinates expectancies by clarifying the path between the subordinates’ action and the outcome, which is the goal which the employee wants to achieve. Whether leader’s behavior can do so effectively also depends on situational factors. Path-Goal Leadership Model Path-Goal Leadership Behaviour Directive Leadership Behavior: This deals with planning, organizing, controlling and coordinating of subordinates activities by the leader. It is similar to the traditional dimension of initiating structure in that the leader’s emphasis is on letting the subordinates know what is expected of them. Supportive Leadership Behavior: This concerns giving support consideration to the needs of the subordinates, displaying concern for their well-being and welfare and creating a friendly and pleasant environment. Participative—a pattern in which the leader consults with subordinates, permitting them to participate in decision making. Achievement-oriented—an approach in which the leader sets challenging goals and seeks improvements in performance. The benefits to the company of the achievement-oriented leader approach include greater employee confidence and commitment, more employee decision making, increased employee creativity, more challenging objectives, and reduced supervision for employees who work best independently. SITUATIONAL FACTORS Employee Contingencies Locus of control A Participative leader is suitable for subordinates with internal locus of control. A directive leader is suitable for supportives for external locus of control. Self perceived ability Subordinates who perceive themselves as having high ability do not like directive leadership. Environmental Contingencies When working on a task that has a high structure, directive leadership is redundant and less effective. When a highly formal authority system is in place, directive leadership can again reduce worker’s satisfaction. When subordinates are in a team environment that offers great social support, the supportive leadership style becomes less necessary TRANSFORMATIONAL LEADERSHIP Definition: It’s the process of leading for change rather than for stability. Transformational leaders Leading — changing the organisation to fit the environment Develop, communicate, enact a vision. It is exercised when the leader intellectually stimulates the subordinates, excites, arouses and inspires them to perform far beyond what they would have thought themselves capable of. By providing a new vision, the transformational leader transforms the followers into people who self-actualize. Charismatic leadership is central to transformational leaderships. These kinds of leaders guide or motivate their follower’s in the direction of established goals by clarifying role and task requirements. Transformational leaders arouse strong emotions. They also help transform their followers by teaching them, often serving as mentors. In so doing, transformational leaders seek to encourage followers to do their own thing. In contrast, charismatic leaders may keep their followers weak and highly dependent on them. A charismatic leader may be the whole show, whereas a transformational leader does a good job of inspiring change in the whole organization. Many celebrities, be they musicians, actors, or athletes, tend to be highly charismatic, but they do not necessarily have any transformational effects on their followers. As such, although some people may idolize certain rock stars, and dress like them, these celebrities’ charisma will unlikely stimulate their fans into making sacrifices that revitalize the world. When you think of it this way, its easy to see how charisma is just a part of transformational leadership.

Ethical Dilemma Case Study Example | Topics and Well Written Essays - 250 words

Ethical Dilemma - Case Study Example In the first scenario, Wal-Mart should not have closed the shop as a result of a unionised workforce. The company should not only be concerned about its self serving interests but it should also cater for the interests of the employers who have a right to be represented. The shop also caters for the needs of the customers who have also been affected by the closure of the shop. Therefore, it is important for the shop to take into consideration the needs and interests of the stakeholders at large rather than focusing on its interests alone. In the second scenario, the CEO of Levi Straus should not accept the Wal-Mart deal. Basically, business values should never be compromised for financial gain (Rossouw, 2004). Offering low cost jeans would be a compromise in terms of quality and this would short change the customers. Therefore, this deal should never be implemented. In the third scenario, I think Wal-Mart should not be allowed in California as a result of the fact that its presence will impact negatively on the welfare of the other residents in the area. The right course of action that should be taken is that which benefits the majority of people. In this case, this deal does not benefit the majority of the other people hence it should not be

It's not the size of the dog in the fight, it's the size of the fight Essay

It's not the size of the dog in the fight, it's the size of the fight in the dog - Essay Example Her father was a radio announcer for years and of course his name was used on air. McClusky did not have trouble with her McFest name until she applied for patent for the continuing concerts. That is, of course, when McDonalds got involved. Knowing you have been served from a company like McDonalds (the big dog) would make most regular people give up (the little dog) but not McClusky, This paper will introduce the fight this little dog plans on winning. McDonlads, it would seem has a McFamily of names that cannot be used by others. Those include McWatchy, McDouble, McJobs, McShirt, McPool, McShades, McFree, McRuler, McLight and even just Mc. So McClusky has the wrong last name. There were no objections from the big dog when McClusky raised $30,000 in charity for the Special Olympics last year. Could it be because McDonlads also supports Special Olympics and it was seemingly free advertising for them. Now, $5,000 of that money has gone to pay lawyers to support the little dogs point of view (fight). McClusky says she cant understand when one company can infringe on the rights ones sir name gives them and will continue this fight in the courts, however, she wants this money to go to charity and not to lawyers. McDonalds says they have the legal mandate to protect their trademark and that trademark means anything that starts with Mc. Well, how can that be, McClusky says does that mean because her name is a Mc name that she does not ne ed a separate trademark as she is already part of the Mc names? Surely they cannot force her to change her sir name and this is her chartable business. McDonalds contends that they will continue this fight and that there will be no use of the Mc trademark and McClusky responds with the fact that she cannot change the name of a concert series that has already been functioning for two years. People expect to see that name and that it is a charitable concert raising money for one of several charities. In fact,

Response to class members Assignment Example | Topics and Well Written Essays - 500 words

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Comparison of Economy Organizations Essay Example | Topics and Well Written Essays - 1250 words - 1

Comparison of Economy Organizations - Essay Example While credit unions are regulated by cooperatives regulations, insurance companies are regulated by incorporated entities regulations. By seeking financial assistance from a credit union, individual entities become owners of the financial institution which is not the case with insurance companies which are not owned through seeking insurance cover or any other financial assistance. Interest rates at credit unions are very attractive since they aim at initiating development among members. On the other hand, insurance companies charge high interests since they are profit oriented. Both institutions are established to offer financial security in a certain way to their clients. In a similar end result, both the credit unions and insurance companies offer a clear savings channel that is not as clear in many other financial institutions. The operation of both of these financial institutions seems to be providing a secure means to invest since the risks involved are considerably shielded from several risk types. In contrast, on one hand, credit unions ought to spur development among the members through the offering of cheap financial services. On the other hand, financial services offered by insurance companies are geared towards maximization of profits through the delivery of a range of policies and other financial services. Management is vested in the hands of a board of directors in all of the above mentioned financial institutions, with the sole responsibility of protecting the shareholders. In distinguishing open-end mutual funds from the rest, it is clear that the fund operates on a self-liquidating manner, in that it is always willing and able to purchase and sell investors’ shares any day of operation. On the contrary, closed-end mutual funds are not bound by the provision of liquidity, a factor attributed to having caused a serious performance slump at the helm of Crush of 1929 (Haslem 2009, p19).

History 4 discussion Essay Example | Topics and Well Written Essays - 500 words

History 4 discussion - Essay Example Therefore, successful outcomes of reduced insurgence by the north and their retreat could count in indicating that US was winning the war. Hamburger Hill is one the movies that gives an account of the occurrences that took shape in the Vietnam War and relays the story from the soldiers who took part in the war. The movie shows an attempt to take Hill 937 by the US troops and the negative impact that war brings about. Other films that also give a firsthand account of the war are, Band of Brothers and Saving Private Ryan. Limited war is the opposite of total war. The war was based on ideologies of means and end. Because of constraints in terms of the resources like financial, military and human, the presence or absence of a vision played a great role in influencing the outcome of the war. The war had to be fought by any means in order to attain the desired result. The end was to justify the means. The topic describes the Vietnam War as formless and could hardly be sustained. It had crude statistics of measuring a win. Assuming that Southern Vietnam was not an excessively hard place to operate and under-estimation of the enemy, made the war possible and sustained. The Viet used Guerrilla tactics in their combat. The US soldiers, on the other hand, used the search and destroy tactics as well as bombing the economic and industrial centers of the enemy soldiers and this tactic obliterated the Viet Cong army. To describe the Vietnam war as formless and frontless, I think creates a picture of lack of military organization with no clear cut means of measuring attained success and no strategies to secure the secured enemy territory. The war had no specific objective that could be pointed out and was, thus, formless. It was hard to identify signs of victory. Fighting could take place anywhere at any time with no frontline. The Cuban missile crisis was a great threat of nuclear war in the world. The patience exhibited by J.F Kennedy helped put the

Why And How Was Neo-Liberalism Able To Establish Itself As The Essay

Why And How Was Neo-Liberalism Able To Establish Itself As The Dominant Paradigm In The 1980s - Essay Example (Tyvela, 2004, p.156) Even Communist China was at the forefront of the global neo-liberal program, making it only a matter of time before other countries joined the system. And this is precisely what had happened in the 1980s and continues to this day. With the collapse of the Soviet Union in the late 1980s and the shift in policy framework of several developing countries, the nature and complexion of geo-economics had taken a different form. Major financial institutions such as International Monetary Fund (IMF), the World Bank and the Inter- American Development Bank were the chief promoters of the neoliberal project. The neoliberal system also possessed some inherently democratic values such as the emphasis on free-trade and offered equal economic opportunity for those who are enterprising. This made it easy for many fledgling and aspiring democratic countries in the developing world to adopt the system. Moreover, the prospect of creating prosperity and the potential for lifting st andards of living convinced politicians to take this approach. Nothing exemplifies the merits of neoliberalism than the recent developments in India and China. Since they started to participate in financial globalization, countries with abundance of cheap labour such as India and China are destined to assume leadership position in coming years. (Foulkes, 2006, p.22)

Case study Assignment Example | Topics and Well Written Essays - 500 words - 2

Case study - Assignment Example In the evaluation and morale case, a number of problems emerge. According to the staff nurse, the nurse manager made some untrue against her in the report. In this respect, the problem of unfair evaluation emerges. Another problem also stems out of this context. The staff nurse’s morale is negatively affected by the report. The underlying adverse effect is directed towards the actual practice as much as it remains an issue with the staff nurse. This personal-practice-based implication of the report is a critical problem in the case. Over and above this, the staff nurse’s evaluation seems to have been directed towards one key event. In this respect, the progressive factor that should be captured in the report is not observed. Moreover, poor, inefficient, and ineffective communication between stakeholders (Phillips & Morris, 2011) is characteristic in the case. Finally, personal growth and development of the staff nurse is on the verge of being negated by the unfolding ev ents in the case. The above mentioned problems can be analyzed by employing a number of principles. An administrative problem that befalls any health care organization is critical (Burnard, et al. 2004). In the light of the case, it is important to understand the administrative standpoint of the nurse manager in executing her performance appraisal mandate. This is because the principle of dialogue is seemingly downplayed in relation to the manner in which the nurse manager executed the evaluation. Over and above that, issues to do with morality and ethics emerge. Moral and ethical principles are vital in analyzing problems related to nursing or any other health care practice (Walker & Avant, 2011). At the same time, it would be essential to account for professional platforms that are designed to promote personal and professional growth and development. In order to solve the problems described in the evaluation and morale case, a number of recommendations are

Health Benefits of Beer Essay Example for Free

Health Benefits of Beer Essay My topic that I chose for this lit review is beer. I decided to do beer because it is something that me and my dad have in common and can bond over. Beer is not just an alcoholic drink for me there is more substance there. Beer is interesting because every beer company makes their product differently. Also beer is one of the most sold products in the world and I would like to find more information of it. Humanities: Miller, Carl. â€Å"Beer and Television: Perfectly Tuned In. † All About Beer 25 Feb. 2008: 29. The source Beer and Television: Perfectly Tuned In would fall under the category of Social Sciences. It would fall under this category because the article is about beer commercials and how it affects business. There is really only one way to judge a beer commercial and that is is if the commercial makes consumers buy the product. Every commercial is a little different but every one of them has the same message, buy my beer. The article discusses the way the beer industry grew due to television. Every beer company realized they needed to make their product well known so that people would go out and buy it. These companies did this by creating short and sometimes funny commercials. The search for the perfect beer commercial has been around since the invention of the television in American culture in the 1940’s. In the 1940’s no one knew what a good commercial was because the television had just been made. Since the prohibition era had just ended beer breweries were wary of putting their product on the air at first. Some critics thought that this type of commercial intruded peoples’ living rooms and thought it offended people. For this reason the breweries only aired the commercials late at night and never on Sunday. The American bar was the first home of the television. In Chicago half of all television sales were bars. Meaning that the beer companies could target their product directly to the beer drinker in a bar stool. In the early days of television, television was dominated by sports programs. This is great for selling beer because â€Å"sports sell beers†. The article does a wonderful job of showing how the beer industry grew immensely due to television commercials. I like how many industries used tough macho men to promote the light beer campaign. Also the catchy jingles and funny cartoon skits would get stuck in your head so that when you went to the bar or to the alcohol store they would buy that product. The article used easy words so that the common man would be able to understand and reflect upon it. The article shows how competitive the beer industry was for the best commercial, giving the reader a descriptive past of beer. This article is linked to my topic because it shows how competitive the beer industry was with selling their beer. Mennella JA; Beauchamp GK Developmental Psychobiology [Dev Psychobiol] 1993 Dec; Vol. 26 (8), pp. 459-66. Beer, breast feeding, and folklore. It is common practice in our society to breast feed. It is believed in folklore that if the woman breast feeding drinks beer, than the baby will become healthier. Some other folklore is that if the woman drinks beer it will increase her milk supply, lessen the feeding pain, and it increases the hormone needed to create breast milk. So a group of scientists decided to have an experiment to see if drinking a beer really did do all the legend said it did. They had 12 lactating women with infants participate in the experiment. Six of whom drank an alcoholic beer before feeding and the other six drank a non-alcoholic beer. Then a week later at the same time as the week before the roles was reversed. What the experiment found was that: the infants drank less milk when the mother had the alcoholic beer, drank for longer, the women felt they had leftover milk in their breast, and the babies acted the same with both milks. Scientists would have liked to keep researching but, prolonged exposure to babies less than one year of age can cause ill effects to the their motor development skills. This article was interesting since there were so many myths about alcohol and breastfeeding. The article gave the reader many statistics about breastfeeding and how slight differences can change the milk. The article disqualifies all of the folklore of drinking a beer before breastfeeding. I hope women read this and realize that giving their babies low doses of beer can hurt their growth and will actually decrease the amount of milk the infant will drink. This article is linked to my topic because many women drink a beer before breastfeeding because they believe in the folklore. Social Sciences: Bretting, Sandra. â€Å"SMALL BUSINESS THE FLOW OF BEER. † Houston Chronicle ISSN 1074-7109, 11/08/2009, p. 4. The source SMALL BUSINESS THE FLOW OF BEER Keeping the kegs on course Logistics company tracks empties and gets them back fast for refills would fall under the category of social sciences. It would fall under this category because the article is about how a small business handles there kegs. Many people buy kegs for multiple reasons. One reason is that you can buy 170 or so beers for much cheaper than buying them by the 30 pack. Also is it refillable and there for saving the environment by not using cans or bottles to drink the beer. Every company though has to be able to track their kegs and get them refilled as soon as possible. Whenever a beer keg becomes empty it has to go back to the brewery to be refilled. So the beer stores would collect their kegs and send them back to the brewery which was usually in Europe. But since most beer stores handled around 90 products this made the logistics overwhelming. So a man named Brady 25 years ago created a freight company that transported products by rail. A few years later Guinness Co. of Ireland hired Brady to handle their logistics for returning their empty kegs. After that deal the company took off. The company officially launched its beer logistics product in 1994. The product was called Kegspeditor Sytem, the system collects empty kegs from beer stores, returns kegs to the brewery, and then documents the entire process. The article does a good job of showing how one small company came up with an idea and made millions. I like how the article gave an exact description of what the company does. Also the writer makes the reader feel good about the company because it helps the common beer drinking man and the brewery and the environment. The article is a bit of a tough read since it is about logistics but, still interesting. The article shows that there are many things that happen with a keg that most people do not realize. This article is linked to my topic because beer kegs are a big part of the business aspect of beer. Kirkby, Diane Journal of Popular Culture; Fall2003, Vol. 37 Issue 2, p244-256 â€Å"Beer, Glorious Beer†: Gender Politics and Australian Popular Culture. â€Å"Beer is a religion in Australia,† according to Cyril Pearl. In the late 1960’s and early 1970’s there were multiple myths about Australians’ and their beer. One myth was that their beer was the strongest in the world and was meant for tough men with chest hair. The second myth was that they could drink the most amount of beer. There is a very strong relationship between masculinity and beer. In fact in the 1920’s to around the 1960’s women had no correlation with beer besides serving it in Australia’s society. So during that time period the men would get off work at five and then drink till 6 at the bar, because that is when it closed back in the day. This closing time for bars was known as the â€Å"Six O’Clock Swill† where the working men of Australia would get hammered in one hour. Getting drunk every night was considered the good life in this culture, consequently during this time period there was the highest amount of divorces. This article does a fine job of explaining the history of Australian drinking culture and how it changed through the years. The reader learns that drinking was and still is a big deal in Australia. Also, this reading made me realize that Australian men may be fierce with their drinking but, in the more recent decades women have become just as fierce. The article uses some different dialect terms at times so that made the article a little hard to read. This article is linked to my topic because it is about how beer affected and affects Australian culture. Natural and Physical Sciences: LESKOSEK-CUKALOVIC et al. : Beer with Improved Functionality, Food Technol. Biotechnol. 48 (3) 384–391 (2010). New Type of Beer – Beer with Improved Functionality and Defined Pharmacodynamic Properties. Almost everyone enjoys an ice cold beer at the end of a hard day. Beer is the most popular beverage in the world. There are many reasons explaining why it is so popular. One reason is that it is a cheap alcoholic drink. Another is that there are so many different choices in choosing a beer. Thirdly, recently found out in fact that beer has health benefits. In healthy dosages beer is very good for you. Some health benefits include: reducing the risk of cardiovascular disease, blood cholesterol levels, diabetes, osteoporosis, dementia, and a beer day is better for your heart than a glass of red wine. Beer however does have disastrous effects on your body if you consume excess amounts of it for a prolonged period of time. Good news though is in recent studies beer has the ability to lessen the chance of getting colon cancer. The most important biological factor found in the beer’s hops is the compound xanthohumol (XH). XH has the ability to stop major enzymes in cancer, particularly colon in moderate drinking. This article was extremely interesting in how it gave a beer a good name. It seems like many people are against beer because it turns gentlemen into cavemen. But, if those people would read this article their eyes would be opened to what beer really is, an alcoholic drink that is actually good for you in moderation. The best information in the article in my opinion was the fact that a beer a day is better for your heart than a glass of red wine. Article was extremely factual and had many statistics. This article is linked to my topic because it shows the positive effects beer can have on the body. J. D. Pedrera-Zamorano et al. / Nutrition 25 (2009) 1057–1063 Effect of beer drinking on ultrasound bone mass in women. Osteoporosis is a major health care issue. This disease is the weakening of bone mass causing more broken bones. Good news is that medicine has increased the life expectancy of the average woman. But, with more age comes more likelihood to get a disease especially one associated with age, such as osteoporosis. Women post menopause are the most likely to get osteoporosis. The older one gets the more calcitonin they lose. Calcitonin is one of the major attributes that keep your bones healthy. Recent studies have shown that moderate drinking increases calcitonin output. Also, in beer that does good for a woman’s body is flavones, it slows the post menopause effect of losing calcitonin. Another attribute of beer that helps prevent the deterioration of bones is silicon in liquid form. Since beer is second to water in providing silicon in liquid form to the western hemisphere’s diet, one could say that beer could help promote bone formation. I found this article very intriguing because of the health benefits, especially for women. Most women do not enjoy drinking beer because of the taste, but maybe after reading this article they will change their minds. The reading had many facts, large words, and stats. This article yet again gives beer a good name in how it can help people. This article is linked to my topic because it shows how the beer can help prolong the life of women.

Stakeholders Project Organizations

Stakeholders Project Organizations To address the theme of project requirements, carry out research and, from your findings, draft Clearly structured notes that explain what is: †¢ Meant by the terms primary, secondary and tertiary stakeholders. †¢ The purpose of a scope document and what sections it should contain. Stakeholders Introduction:Stakeholders are anyone who has an interest in the project. Project stakeholders are individuals and organizations that are actively involved in the project, or whose interests may be affected as a result of project execution or project completion. They may also exert influence over the projects objectives and outcomes. The project management team must identify the stakeholders, determine their requirements and expectations and to the extent possible, manage their influence in relation to the requirements to ensure a successful project. Project Project Stake holder Project management Project Support Project Manager How a Stakeholders directly involved in a project Figure : The Relationship Between Stakeholders and the Project There are three kinds of stakeholders are involved in a project they are ivolved in a project internally or externally like that . Primary stakeholders Secondary stakeholders Tertiary stakeholders Primary stakeholders Primary stakeholders are those people and groups eventually affected by the project. Who expect to benefit from or be negatively affected by the change of project. In most projects primary stakeholders will be categorized according to socio-economic assessment. Thus, primary stakeholders should often be divided by gender, social or income classes, occupational or service user groups Primary stakeholders a direct link with the business- Customers. Suppliers. Secondary stakeholders: Secondary stakeholders are those with an intermediary role. They can be divided into funding, implementing, monitoring and advocacy organizations, or simply governmental, NGO and private sector organizations. Secondary stakeholders arent exactly participating customer and suppliers. Who is indirectly affected by the project plan. Forestry companies Landowners and or residents not inside the protected area but near Tertiary Stakeholders: Tertiary Stakeholders are those who are not involved or affected, but can influence opinions either for or against. Tertiary- can still have an influence, but are not involved or affected, but can influence opinions either for or against Those indirectly affected by the program neighborhood organizations, academic institutions, elected officials, advocacy groups, professional associations, skeptics, opponents, and staff of related or competing organizations. Local opinion leaders Local media Ecology departments of universities, research institutes etc. Scope Document Introduction: The scope document is a common term for at all document that refines and defines the requirements aspect of the triple constraint of time, cost, and requirements. In this general sense, it provides an overview of what the project is supposed to accomplish and clarifies how those accomplishments will be achieved. It may also provide the team members, customer, and project manager with insight on what is specifically not in the scope. Section contain This section summarizes some of the business issues around the project, including profiles of major customer categories, assumptions that went into the project concept, and the management priorities for the project. Vision Statement. History of project (Before) Assumption Risk Stakeholder User Vision statement: It is important to a project manager vision and scope document. It is also one of the easiest to execute. A project faces some problem when a project run a good vision and scope document will help in this time History of project (Before) History of project section contains a summary of the problem that the project will solve. It should provide a brief history of the problem and an explanation of how the organization justified the decision to build software to address it. Assumption This is the list of assumptions that the stakeholders, users or project team have made. the rest of the vision and scope document should be ready before the Delphi meeting and used as the basis for estimation. Risk It should be generated by a project teams brainstorming session. It could include external factors that could impact the project, issues or problems that could potentially cause project delays or raise issues. User This is a bulleted list of the users. As with the stakeholders, each user can either be referred to by name or role however, if there are many users, it is usually inefficient to try to name each one. The needs of each user are described. Task -2 To address the theme of how to grasp and communicate the â€Å"big picture† (a higher level view of the project overall, rather than a lower level view of, say, tasks for team members) carry out research and, from your findings, draft clearly structured notes that explain the benefits of visual forms of communication compared to, say, text or speech. Provide examples of the following visual forms of communication to show that you understand how they work and what information they contain: †¢ Lifecycle models †¢ Activity networks †¢ Mind maps Give a written explanation of how each of these methods may be used to communicate key ideas in a project. Introduction: Planning and estimating a project has never been easy. All projects have certain characteristics in common. They all have a beginning and an end. In other words, they do not continue on forever. Projects result in the creation of one or more deliverables. Projects also have assigned resources either full time, part time or both. There are other characteristics as well. All organizations can have projects. Projects can include building a house or office building, planning and executing a marketing campaign, upgrading desktop operating systems, installing a new phone system, developing an IT business application, etc. Throughout the course of a project the plan always changes due to certain events, Such as a change in the requirements. In order to support these frequent changes, a Good planning process is essential. It should involve Reducing Risk Reducing uncertainty. Conveying Information to the customer helps support better decision Life cycle models are: There are three kinds of life cycle model Waterfall model V Model Spiral model Waterfall model But I like waterfall model instance of V model and spiral model. It easy to dived into isolated stage. Which is perfect for project because one stage complete another stage started .so it is sure that the stage is complete. Each stage realize on when previous stage complete. Every stage has a miles stone. It is easy to know about a project to se Waterfall model because it has various stages V model: I cont like v-model because of: -emphasize on testing. Time consuming Waste money because of taste in all phases. Spiral model: its difficult to represent its not understandable to project team. Visual forms of communication System acceptance test Business Requirement Analysis Design Code test Integration Test Fig: Water fall Model 0 6 6 Task 1 0 0 6 6 14 20 Task 2 6 0 20 20 7 27 Task 3 20 0 27 27 7 34 Task 4 27 0 34 34 4 38 Task 5 34 0 38 38 2 40 Task 6 38 0 40 40 40 0 0 40 40 Fig: Activity Network Diagram Fig: Mind Map Life cycle model Written explanation Waterfall Model: Waterfall model is a popular life cycle of the project life cycle model . Often considered the classic approach to the project development life cycle, the waterfall model describes a development method that is linear and sequential. Waterfall development has distinct goals for each phase of development.. Once a phase of development is completed, the development proceeds to the next phase and there is no turning back. Advantages / Disadvantages Most-widely used process model Controls schedules, budgets documentation Tends to favor well-understood system aspects over poorly understood system components Does not detect development areas behind schedule early in the lifecycle stages. Business Requirement: what is requiring in a business to do met in order to successes of a project.Establishes the components for building the system, including the row matatiels of a project and other necessary components Analysis: in analysis stage of a project a project manager is accept the all knowledge of a project how to solve it when its solved (project). Design: The design defines the major components and the interaction of those components, but the design does not define the structure of each component. It is determine the external interfaces and tools to use in the project. Code test: Implements the detailed design specification this only for code and Determines whether the project meets the specified requirements and finds any errors present in the code. System acceptance test: Acceptance testing is conducted within the testing area .its purpose is to allow the customer to confirm that the complete system. A detailed acceptance test plan is produced prior to testing which identifies the test to be conduct. Mind map A Mind map which represent a project with a graphics. Mind map is a diagram used to represent words, ideas, tasks or other items linked to and arranged radically around a central key word or idea. It is used to generate, visualize, structure and classify ideas, and as an aid in study, organization, problem solving, decision making, and writing. Mind mapping, on the other hand, is a more intuitive way to manage projects, particularly if you have a lot of responsibilities and its easy to let something slip if its not right in front of you Mind map show the level Strategic, Tactical, Operational And who is responsible for a particular work of a project. Activity network Activity Networks is one of the most popular planning techniques. However, the activity networks diagrams have since been applied to activity planning for a wide range of projects. The approach is very scalable, enabling it to be applied effectively to the planning of activities spanning even a very short time frame. The activity network is a diagram that represents the activities required and their inter-dependencies, their start and finish dates and the time necessary for their completion. The resources required for each activity are also included on the diagram. Activity Networks are made up of a series of activity boxes, each of which depicts a discrete activity or task. It is easy to know of a project details by using activity network such as Early Start Time: Est. represent of the start time of a project Duration: How long time the project continues. Early finished time: when the project complete Activity description: this is which task is depends other task. Last Start Time: Last finished time minus Duration Last finished time: Last Start Time of succeeding activity Float Critical Path: once the resources required to complete each activity have been identified and the activity network updated to reflect these, then the start and finish dates can be added. With the shape and size of the planned area of work now visible, the total cost of the resources can be calculated. There will always be a critical path running through any project, from the first activity to the last. The critical path is defined as that series of activities that have zero float. The concept of float is central to critical path analysis, as it represents the ability to schedule an activity, or sequence of activities, within a flexible time slot rather than having to perform it immediately. This enables the more efficient management of resources across all of the activities in the network. How to calculate Float of a project Reading through activity networks from left to right gives the total duration of the planned work. Reading back through the network, subtracting each duration shows those activities that have any spare time. This spare time, known as float, is a very useful concept in relation to resource scheduling and smoothing. Float identifies parcels of time that can be used to introduce flexibility into the planned work, enabling the more efficient use of the available resources. Summary: project Lifecycles model which represent the Controls schedules, budgets documentation with graphics about a project .Activity Network which is needs for time management of a project such as est,eft lst,lft float,critical path etc, Mind Map It is used to generate, visualize, structure and classify ideas, and as an aid in study, organization, problem solving, decision making, and writing. Task-3 On the theme of team selection and management, carry out research and, from your findings, draft Clearly structured notes on the team working theories devised by: †¢ Tuck man †¢ Belbin †¢ Myers-Briggs Write a summary of how knowledge of each theory might assist a project manager in the selection and development of an effective project team. Write notes that show how to assess the risk of team failure, using a risk matrix to document at least TWO possible risk scenarios, such as loss of key personnel or infighting between team-mates. Summaries the contingency plans you would call into effect, if the risks were realized. 1700 SUMMARY of Tuck man theory: Tuck man model explains that as the team develops maturity and ability, relationships establish, and the leader changes leadership style. Beginning with a directing style, moving through coaching, then participating, finishing delegating and almost detached. At this point the team may produce a successor leader and the previous leader can move on to develop a new team. Tuck man theory basically consists of four thing Forming Storming Norming Performing How to create a project group Storming 2 Forming 1 Performing 4 3 Norming Forming In the beginning step of a project which is forming the team is assembled and the task is allocated Firstly. Team members tend to behave independently and although goodwill may exist they do not know each other well enough to unconditionally trust one another. Time is spent planning, collecting information and bonding. Storming The second step of a project which is Storming The team starts to address the task suggesting ideas from a project. Different ideas may compete for ascendancy and if badly managed this phase can be very destructive for the team. Relationships between team members will be made or broken in this phase and some may never recover. In extreme cases the team can become stuck in the Storming phase. If a team is too focused on consensus they may decide on a plan which is less effective in completing the task for the sake of the team. This carries its own set of problems. It is essential that a team has strong facilitative leadership in this phase. Norming The thread step of a project which is Storming in Tuck man model As the team moves out of the Storming phase they will enter the Norming phase. This tends to be a move towards harmonious working practices with teams agreeing on the rules and values by which they operate. Team leaders can take a step back from the team at this stage as individual members take greater responsibility. The risk during the Norming stage is that the team becomes complacent and loses either their creative edge or the drive that brought them to this phase. Performing The four step of a project which is performing in Tuck man model Not all teams make it to the Performing phase, which is essentially an era of high performance. Performing teams are identified by high levels if independence, motivation, knowledge and competence. Decision making is collaborative and dissent is expected and encouraged as there will be a high level of respect in the communication between team members. Summary of Myers-Briggs theory: The Myers-Briggs personality typology, unlike some other typing theories such as the Enneagram or Four Temperaments, uses a combination of several aspects to arrive at a composite type, based on the interaction and relative weight of different behavioral and attitudinal factors. The types are expressed as combinations of four letters, as follows: E or I (Extravert or Introvert) S or N (Sensing or intuitive) T or F (Thinking or Feeling) J or P (Judging or Perceiving) Summary of Belbin theory: The term Team Roles was first coined by Dr Meredith Belbin, but is now used more generically to describe team types. A Team Role is defined by Meredith Belbin as: A tendency to behave, contribute and interrelate with others in a particular way. It is usually written Team Roles, but can also be found as teamroles or team-roles. Belbin Team Roles improve self-knowledge and understanding among individuals and teams. Team Roles depict a current behavioural pattern ,Preferences arent fixed, since many factors can influence behaviour, whether a new job, promotion or circumstances outside work. Co-ordinator Shaper Resource Investigator Company worker Monitor evaluator Team worker Completer finishers Specialist Co-ordinator: The co-ordinator is a person-oriented leader. This person is trusting, accepting, dominant and is committed to team goals and objectives. The co-ordinator is a positive thinker who approves of goal attainment, struggle and effort in others. Shaper: The shaper is a task-focused leader who abounds in nervous energy, who has a high motivation to achieve and for whom winning is the name of the game. Resource Investigator: The resource investigator is someone who explores opportunities and develops contacts. Resource investigators are good negotiators who probe others for information and support and pick up others ideas and develop them. Company Worker: Implementers are aware of external obligations and are disciplined, conscientious and have a good self-image. They tend to be tough-minded and practical, trusting and tolerant, respecting established traditions. Team worker: Team workers make helpful interventions to avert potential friction and enable difficult characters within the team to use their skills to positive ends. They tend to keep team spirit up and allow other members to contribute effectively. Specialist The specialist provides knowledge and technical skills which are in rare supply within the team. They are often highly introverted and anxious and tend to be self-starting, dedicated and committed Risk of Team failure Diagnosing Team Failure Teams are put together to combine the knowledge and expertise of team members, this helps to gain greater strategic thinking and enhanced creativity in business solutions. When teams fail to perform as expected, an attempt is usually made to pinpoint and blame the people responsible. However, the answer doesnt always lie in replacing the team or firing the ‘scapegoat but in answering the question, ‘what went wrong with the group as a whole and why? Unless we make an attempt to identify the underlying causes, its unlikely the solution will be found. Factors Identifying Six Common Problem Areas No Trust Between Team Members When team members dont trust each other or are suspicious of each others motives, the end result is a team that is not cohesive in its approach. Ineffective Interaction and Unproductive Team Meetings All the complexities of team dynamics come to the fore at the meeting. The meeting is one of the most critical aspects of the team process with strategies and innovative solutions to problems emerging during this time. Poor Role Clarity Role clarity is a must in a team situation. When roles are not clearly defined, this can lead to conflict and confusion on tasks. Losing Focus of Business Objectives If you dont know where you are heading, how can you get there!? At times a team fails because the goals are unclear to the team members. Faulty Analysis of Market Conditions and Flawed Company Policies At times a team can fail due to uncertainties in market conditions and an inability to read the signs of change. Poor Time Management A team should plan its goals and activities whilst keeping time constraints and deadlines in mind, otherwise their efficiency level in managing and implementing a task can Risk Matrix A Risk Matrix is a tool used in the Risk Assessment process, it allows the severity of the risk of an event occurring to be determined. http://www.databasepublish.com/solutions/project-services/risk-management The identified risks are collected into a Risk Matrix. The Risk Matrix includes the rating of severity, mitigation strategy, owner and contingency plan for each risk. These proposed actions are formulated to address the risks that can be avoided upon implementation of a mitigation strategy. For example Impact Probability High No Trust between team member High Poor Role Clarity High Poor Time Management Medium Faulty Analysis of Market Conditions and Flawed Company Policies Law Ineffective Interaction and Unproductive Team Meetings High H/H Mitigation/Contingency Required H/H Mitigation/Contingency Required H/H Mitigation/Contingency Required H/M Mitigation/Contingency Required H/L Mitigation/Contingency Recommended Midium M/H Mitigation/Contingency Required M/H Mitigation/Contingency Required H/H Mitigation/Contingency Required M/M Mitigation/Contingency Recommended M/L Mitigation/Contingency Optional Low H/H Mitigation/Contingency Required H/H Mitigation/Contingency Required L/H Mitigation/Contingency Recommended L/M Mitigation/Contingency Optional L/L Mitigation/Contingency Optional Probability / Impact Ranking Chart for Risk Matrix of a project The company or organisation then would calculate what levels of Risk they can take with different events. This would be done by weighing up the risk of an event occurring against the cost to implement safety and the benefit gained from it. Contingency Introduction:A project contingency or management reserve is an amount the consultant or the contractor may want to include the unexpected resources that may be overlooked or tasks that may have to be redone because they might not work for the first time. Contingency provision is to cover the elements of unforeseen minor changes in the technical and design specification. Contingency Plan: A defined set of tasks agreed upon by appropriate members of the Project Team that will be undertaken to manage the Project Team in the event the Risk occurs, roughly equivalent to an organizations various Disaster Plans. Tasks should be assignable to a single accountable resource. Given the substantive effect that the Risk is judged to have on the Project, the Contingency Plan may be relatively short with the realization that if it is invoked, it will ultimately give rise to a larger Project Plan detailed elsewhere. Otherwise, the guidelines for granularity etc. of individual tasks are identical to those described for the Mitigation Strategy. All risks with a must have an associated Contingency Plan If the decision has already been made to cancel the project if the Risk occurs, the Contingency Plan should stat

Ghost Light :: essays research papers

Ghost light refers to the superstition that one small bulb should always be left on so that no theater is ever totally dark--and thus vulnerable to "ghosts." A reader of Frank Rich's memoir Ghost Light is likely to conclude, however, that the title refers to the author's attempt to exorcise his miserable childhood. The son of Frank Rich Sr., whose family had been in the shoe business in Washington since the Civil War, and Helene Rich, a teacher, was born in 1949. Members of the family led seemingly ordinary lives in Somerset, Md. There, according to Rich, all the houses looked alike, dads went to work, moms stayed home and television perpetuated the myth that all families were happy. While he was in grade school, Rich's parents split up, making him the first kid on the block to bear the stigma of coming from "a broken home." Both parents subsequently remarried, and, in a telling detail, neither Rich nor his younger sister, Polly, was invited to either parent's second wedding. Rich is venomous on the subject of his stepfather--a crude and violent man with a vicious temper--but acknowledges that thanks to his affluence the family went to the theater often. The protagonist in Rich's life is his mother (described as a Judy Holliday, not physically but emotionally); her death was tragic. The driver of the car in which she was killed was Rich's much-loathed stepfather. Rich, writes freely of having been a lousy athlete, an insomniac and a loner. What pleasures he had in childhood came from theater--listening to recordings of musicals ("South Pacific," "The Most Happy Fella" and, while in bed with measles, "Peter Pan") and reenacting shows in the miniature theaters he created out of shoe boxes from his father's shop. For lighting, a desk lamp was put into service; pillowcases became curtains. He saved playbills (even ones found in trash cans for shows he had not seen), analyzed album covers and memorized lyrics. For his third-grade talent show, Rich sang "You Gotta Have Heart." Educated in public schools, where he claims classes were undemanding, Rich was blessed with teachers, librarians and friends who abetted his passion for theater, for reading and for writing. At the age of 8, he published a neighborhood bulletin that announced the arrival of babies, puppies and new cars. He also wrote a "book" titled "A World All My Own," about a boy who lived in a big box.

PULLMAN Essay -- essays research papers

The Town of Pullman: Success or Failure? The invention of the railroad was probably the most important occurrence in the nineteenth century. The United States became a unified front and interstate travel become safe, cheap and efficient. Industries related to the railroad began to prosper, fueling much of the American economy. Entrepreneurs quickly began to take advantage of this boom and thus â€Å"American Big Business† was born. George Pullman was one of the many prominent tycoons of this â€Å"Railroad Era†. Through the use of his talented ingenuity and high organizational skills, he acquired a vast fortune and immense power. George Pullman is most notably credited for the creation of the Pullman Sleeping Car. Its invention enhanced the pleasure of railroad travel by making it more comfortable, clean and exciting. As George Pullman’s invention gained quick public approval, his company began to expand at an enormous rate. This presented a great deal of proble ms to Pullman. â€Å"The company wanted to increase efficiency and economy in servicing and providing cars by spreading facilities. He [Pullman] wanted several hundred acres adjacent to railroad and water transportation.† In 1868, Pullman decided on the Calumet region in southern Chicago. Pullman selected the Calumet region because it offered â€Å"cheap land, low taxes, and excellent transportation.† Few people knew his second and main intention was to build a model town adjacent to the new factory, which he hoped would improve his business enterprise. Pullman was deeply troubled by the social problems of the mid- nineteenth century. He believed that they were the root of the labor unrest his company was experiencing. â€Å"The period showed a dramatic intensification in the numbers of the urban poor, as people with little capital and few useful skills came to the cities in search for employment.† Living conditions were terrible and congestion, dirt, and poor s anitation were held responsible for diseases. Crime, prostitution and violence were blamed on poor housing while alcoholism became synonymous with the slum. Many attributed the poverty and the poor living conditions of the working class to â€Å"the lack of such virtues such as frugality, industriousness and temperateness.† It was believed that the general solution to the problem of the workingman and his family was to elevate their character. Through Pullman’s experience ... ...n social planning and happiness for the individual. A town is recognized for the individuals who live in it, not the business it seems to incorporate. Pullman had a disillusioned, egotistical regard for his workers. When asked about his intentions on building the model town, he commented: â€Å"Capital will not invest in sentiment, nor for sentimental considerations for the laboring class. But let it once be proved that enterprises of this kind are safe and profitable and we shall see great manufacturing corporations developing similar enterprises and thus a new era will be introduced in the history of labor.† Pullman never seemed to grasp how a workingman’s happiness must be fulfilled on a much deeper level than his mere physical settings. The leisurely enjoyment of oneself as well as an overall establishment of identity was the key. When Pullman planned his model town, it was a dream which he envisioned for himself. A dream which would increase his wealth, improve his business and make him renowned. In his heart, he might have never intentionally wanted to socially deprive his work force; it just so happened that the planning of the town did not take this into proper consideration.

Free College Essays - Indifference in The Stranger by Albert Camus :: The Stranger The Outsider

Indifference in Camus’  The Stranger (The Outsider)  Ã‚     Albert Camus’ novel, The Stranger, examines what happens to a passive man when mixed in a murder.   During the trial of the main character, Meursault, the prosecutor examines Meursault’s normal behavior as callous and cold.   In order for the prosecutor to have a case in the reader’s mind, Camus must create the past that the trial calls for.   Camus shows a passive man, and the way that he deals with normal life occurrences.   Camus must create a portrait of indifference.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   When Meursault is talking to Raymond Sintes, a neighbor of his, Raymond tells his tales of violence and asks Meursault for advice.   Meursault seems withdrawn during his time with Raymond.   Raymond had actually asked Meursault into his room so that he may ask Meursault’s opinion: â€Å"because I was a man, I knew about things, I could help him out, and then we’d be pals.†Ã‚   (Camus, 29)   Meursault remains quiet in the conversation, but eventually does speak up: â€Å"I didn’t say anything, and he asked me again if I wanted to be pals.   I said it was fine with me: he seemed pleased.†Ã‚   (Camus, 29)   It really made no difference to Meursault if he was stated as a friend of Raymond’s or not.   The way that Meursault does not contribute to the conversation and that it is just â€Å"fine with [him]† to be friends creates an image of indifference.   This image continues to grow as Raymond continues to talk to Meursault.   Raymond goes on to tell of his problems with women, and Meursault still remains silent.   After his Raymond’s confessions are over he once again thanks Meursault for being a pal: â€Å"I didn’t mind being his pal, and he seemed set on it.† (Camus, 33) Once again, Meursault’s attitude makes it seem that he doesn’t really care if he is Raymond’s pal.   It has no effect of him, but it will help out Raymond, so he’ll be his pal.     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   When Meursault is asked to deal with serious relationship questions and issues, he shows his indifference again.   Because Meursault becomes romantically involved with Marie, she eventually asks him if he loves her, â€Å"I told her it didn’t mean anything but that I didn’t think so.† (Camus, 35) This seems to be a very cold response to a question that is taken seriously, but M was telling the truth.   It didn’t really matter to him.

Chartism Essay

The working class in Britain was a class that made up the majority of the poplulation, but did not have representtation in the British government. This lack of representation led them to have horrible working conditions, low wages, and widespread poverty throughout the working classes. The people became frusterated and during the 1830’s and 1840’s a new movement, Chartism, came about to solve their problems. Chartism was an attempt to link the economic plight of the working to a program of political reform. The Chartist movement is a complex movement that is viewed as both revolutionary by the Physical Force Chartists and the Middle Class, it is viewed as moderate by the Moral Force Chartists and the Traditional Rulling Classes. The Physical Force Chartists were a small group of working class individuals that were willing to do anything to get political rights. The political rights they wanted were listed in the â€Å"People’s Charter†and called for universal manhood suffrage, annual parliament elections, a secret ballot, no property requirements for parliament, equal representation, and payment for the members of parliament (Doc1). The physical force chartists wanted these rights so bad that they would do anything, such as viloence to obtain them. Physical force chartists saw other chartists that were not willing to work and implement the â€Å"People’s Charter† no matter at what cost as lazy, and an impedement to the movement suceeding, going as far to say if these people in the city do not work everything else is useless (Doc4). This lack of establishment of the moral forces most likely did lead to their demise because if action and authority were not expressed, the movement would be and did, become recognized as a puny and unthreatening movement by the ruling classes. The ruling classes saw the movement as so unthreatening they released the Physical Force leader, Feargus O’Conner, the â€Å"terror to tyrants† from jail (Doc5). After being released from jail, Feargus O’Conner attended a meeting that called for a general strike that would cripple the British economy, but lead them closer to political rights (Doc6). The year The Communist Manefesto was published, and the year of the French Revolution, the Physical Force Chartists took inspiration to call for a working class revolution. They intentionally used the French Revolution because they believed it would create an essence of fear. They start the article with â€Å"Glory to the Proletarians†and this statement directly calls for a European style working class revolution (Doc8). This revolution never succeeded, and was the fall of the Chartist movement. Moral Force Chartists were the more moderate working class individuals that wanted to use more â€Å"mainstream† ways to gain political rights. One â€Å"mainstream†way of obtaining their rights were to pass the â€Å"People’s Charter† through parliament instead of using force to gain the listed arguements. Another differentiating view of theirs was the definition of Universal Manhood Suffrage. They saw this right as having, â€Å"a right to have a good coat to his back, a comfortable abode in which to shelter himself and his family, a good dinner upon his table, and as much wages for that work as would keep him in plenty†¦Ã¢â‚¬ (Doc2). So, their views were far more moderate and humble than that of the Physical Force Chartists, all they wanted was a fair share of life. The Moral Chartists saw physical force as a right to the Constitution, based upon Two Treatises of Government by John Locke, they considered the worst thing short of the right to vote is violence (Doc3). The Moral Force Chartists mimick the high-class, namely the middle class, of British society. They host tea parties sand balls and this shows how moderate they are. The Moral Chartists caused the chartist movement to be considered unthreatening, and eventually caused its demise. The Traditional Ruling class of Britain (landowners, the Prime Minister, and the monarchy) are basically uneffected by the chartist movement and because of this consider it unthreatening and very moderate. They were not afraid, even of the physical force chartist leader, Feargus O’Conner, who they released from jail (Doc5). The Chief of Police at the time even let massive Chartist meetings to occur, showing even more how they were not considered as a threat (Doc10). The Traditional Class saw the demands of the chartists as radical, but because they showed no indications of violence, saw their actions as very moderate. They even knew that any actions committed would not be by the masses, but rather the individual because of lack of communication and resolve(Doc10). So, overall the Traditional Class viewed the chartists as a movement based upon revolution, but acted upon in moderation. The Middle Class viewed the Chartist movement as a threatening and extremely radical movement. The Middle Class viewed the working classes as violent, upon the basis of the French Revolution. They saw the working classes as radical because they wanted to gain rights, that they had fought for, and just barely gained. The Middle Class was in panic, and expected a revolution because they believe that the chartists are determined to have their wishes granted (Doc9). The Middle Class would also consider the working classes as radical because of the people involved in their movement, more specifically women (Doc7). Women had no rights and are at this time, in higher classes, nothing more than a wealth status. They are barely educated and stay at home, doing nothing because even the kids were taken care of by a nanny and the food was cooked by a cook. So, the Middle Class could not fathom why women should vote, and questioned their ability to vote. The Middle Class viewed the Working Class as a violent threat to themselves and to England’s stability.

Auditing Hw Solutions

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