Literary Analysis Of Maya Angelous Caged Bird - 1341 Words

â€Å"Caged Bird Analysis† â€Å"Equal rights, fair play, justice, are all like air: we all have it, or none of us has it.† This quote was taken by the poet Maya Angelou, who stressed the idea of equality in many of her works. One of her poems being, â€Å"Caged Bird.† In the poem the poet references two birds; one who is trapped in a cage, and the other bird who is free. Growing up as an African American in the 1920’s Angelou faced many hardships. She suffered many racial prejudices, and her writing reflects how cruel her society was. When Angelou was younger, a traumatic event happened that left her mute for many years. However, Angelou was very courageous, and nothing could stop her from doing what she loved—poetry. Angelou was inspired by authors†¦show more content†¦The caged bird has been trapped inside of its cage for a long time now, and recognizes its cage as, â€Å"a nightmare.† It still however seeks freedom, by using its voice. The final stanza is a repe at of the third stanza. The tone that is used in the poem stays the same throughout. Angelou would reference the free bird in order for the reader to really comprehend the pain that the caged bird was going through. This would then create tension in the poem. The tension in the poem is caused by the changes of perspectives, which overall deals with an external conflict. This conflict includes the struggle between the caged bird and the barrier that is keeping it hostage. The bird in the cage has a voice, which is being ignored. The free bird also attracts tension by, being the exact opposite from the caged bird. The free bird is very â€Å"joyous,† while on the other-hand the caged bird is completely â€Å"miserable.† Angelou also uses meaning, and word choice to help contribute to the theme of the poem. Some of the connotations in the poem have a big impact on the message, and understanding of the poem. For example, the word â€Å"caged,† has a negative connot ation. The word â€Å"free,† has a positive connotation. Beyond their literal meaning, these words deal with the outside world. The word â€Å"caged,†Show MoreRelatedI Know Why The Caged Bird Sings1482 Words   |  6 Pages Maya Angelou tells of her life experiences and struggles in her book â€Å"I Know Why the Caged Bird Sings† that gives us insight about Maya’s life as a young black girl growing up in a time of racism. The novel discusses various forms of oppression that she had to face as well cope with them. Robert A. Gross wrote an analysis for Newsweek about the book and claimed that Angelou’s book is not only an interesting story of her own experience, but also a portrayal of a Southern black communityRead MoreMaya Angelou: A Model Woman Through Influential Literature Essay1708 Words   |  7 Pagessociety itself. Maya Angelou is a great example of the model woman. She has beaten the odds and has become one of the most well know n African American women of today. She is an author, poet, historian, songwriter, playwright, dancer, stage and screen producer, director, performer, singer, and civil rights activist. Her most influential work comes from her extraordinary books and poems. Her literature has influenced the young and old with their contents. Maya Angelous literary significance restsRead MoreWhy Should Anybody Care?1198 Words   |  5 PagesDOK 1 The concluding section of any written piece that you create is your final chance to make your point. Whether the point is to convince the audience to agree with your perspective, compare and contrast two different texts, or to describe the literary elements that an author used to create his/her text(s), the conclusion should tie everything together. Concluding sections do many jobs, such as: summarizing your points/arguments, restating the purpose of your essay, and connecting to your reader(s)Read MoreMaya Angelou’s Unique Self Essay2562 Words   |  11 Pageschildhood (Angelou, 2009, p.20). In Maya Angelou’s autobiography, I Know Why The Caged Bird Sings, she recounts her early years as a young girl growing up in Stamps, Arkansas who faces displacement, trauma, and prejudice. It is through her character and artistic expression that she is able to overcome the trauma of her childhood and evolve into the distinguished and unique individual that has captivated millions through literature. In her book, I Know Why The Caged Bird Sings, Angelou reflects on theRead More Censorship in the Classroom Essay2774 Words   |  12 Pages The Hobbit and Sounder, and My Brother Sam Is Dead, along with the classics. None of these books ruined my innocence. When I was date-raped the summer I was sixteen -- that ruined my innocence. Since then, I read that Maya Angelous novel I Know Why the Caged Bird Sings has been censored because the rape of eight-year-old Ritie by her mothers boyfriend, Mr. Freeman, is too pornographic. In Moulton, Alabama, the novel was banned in December, 1995, after the superintendent said, When

Civil War Dbq Free Essays

AP US History This DBQ received a 7 Civil War DBQ As American settlers stretched westward in the 1850’s, the ambiguity of the Constitution framed 60 years earlier increased sectional tension over the topic of slavery. Initially, the framers of the constitution left the issue of slavery to be worked out in the country’s future. This in turn convinced the Southern states that their â€Å"peculiar institution† would be â€Å"respected and maintained. We will write a custom essay sample on Civil War Dbq or any similar topic only for you Order Now However, as years passed, the United States acquired more territory, and as more territories applied for statehood, the issue arose whether or not the new states would be admitted as a Slave State or Free State. Americans also disputed the very status of a slave, and whether or not a fugitive slave in the Northern Free States was guaranteed his or her freedom from their masters down south. It was debates like these, due to the vague details of the constitution, that created enormous repercussions– ones that would trigger a series of Slavery related legislation, and ultimately the destruction the union. Following President Polk’s successful victory against the young Republic of Mexico, Americans gained a significant amount of western land including Utah, Nevada, Arizona, New Mexico and most importantly the promising, golden coastal territory of California. To pacify the growing discord between North and South, the Democratic Senator, Stephan Douglas of Illinois, combined 5 Bills that would secure California as a Free State and would abolish slavery in the District of Columbia. It also included the Fugitive Slave Act. In addition, Utah and New Mexico would grant its citizens popular sovereignty. This was the Compromise of 1850. As a result, New Mexico and Utah became slave states. Due to the Federal Constitution’s vagueness, this compromise allowed states to decide for themselves the issue of slavery. Consequently, the most favorable and democratic solution seemed Louis Cass’s idea of popular sovereignty. Four years later, the Kansas-Nebraska Act was passed by Congress, which again allowed popular sovereignty in the Nebraska Territory. This also repealed the Missouri Compromise of 1820, which prohibited slavery north of the 36-30 degree of latitude. As a result, Nebraska became a slave state. However, in the fear of losing Kansas to Anti-Slavery settlers, Pro-Slavery Missourians flooded Kansas to overwhelm the polls on Election Day. Though Slavery had passed in Kansas, it was charged a fraud. In 1856, this erupted into the infamous conflict between the Pro-Slavery â€Å"Border Ruffians† and the John Brown supporters of abolitionism. Nicknamed â€Å"Bleeding Kansas,† it was America’s first violent conflict over the unsettled issue of slavery. As a lame duck, Pro-Slavery President Pierce, relied on settling the conflict with the LeCompton Constitution of 1857—a constitution that would legalize slavery in Kansas. Buchanan, soon after, took office just before congress voted. Though passed by the Senate, the LeCompton Constitution failed in the House of Representatives because Northern Democrats fled to the Republican Party. Pierce’s failure to recognize the depth of the Free-Soiler’s sentiment in the North led the historic Midterm Elections of 1858. Republicans, the Anti-Slavery party established only four years prior, took a plurality in the House of Representatives, foreshadowing Lincoln’s election in 1861 and ultimately, Southern succession. As the creation of Slave and Free States spurred political debate, the individual status of a slave remained questionable due to legislation being nonexistent in the Constitution. Following the Compromise of 1850, the Fugitive Slave Act pressured Northerns to recapture and return slaves that fled north. This mandate became the first constitutional law that limited the rights of slaves, nonetheless â€Å"forcing slavery down the throats† of Free Soilers in the north. Northerns could now no longer ride the fence, because now they were coerced by law to act. This also strengthened the Abolitionist movement led by William Lloyd Garrison, which had already picked up momentum from Harriett Beacher Stowe’s best-selling novel, Uncle Tom’s Cabin, published in 1852. Another historic event that resulted in the Constitution’s ambiguity was the Supreme Court case Scott v. Sanford. Being a former slave residing in the free-state of Wisconsin, Dred Scott sued for his freedom. However, in 1857 Chief Justice Roger B. Taney ruled by â€Å"majority opinion† that any blacks, regardless of their territory, possessed no right to sue. They had rights. This decision angered many Northerns because the ruling was based off opinion alone. There was no clear Constitutional law that had justified prohibiting the rights of Northern free black. Moreover, to maintain national unity, the original absence of any constitutional restriction or protection of the institution of slavery led to sectional discord. Such tension between North and South, due to their polarizing philosophical views on slavery, led individual states to decide whether or not they were Pro- or Anti-Slavery. In addition, Federal (Pro-Slavery) legislation ironically began to deny the citizenship of even Free Blacks within Free States, which seems almost hypocritical for the Pro-Slavery leaders to proclaim States’ Rights to justify their succession. However, because there was no constitutional restriction, Southerns lawfully claimed had the right to succeed from the Union, and did so in 1861 out fear of Lincoln’s Freeport Doctrine. Therefore, because the constitution circumvented the issue of slavery to achieve national unity, the addition of new states reintroduced the sectional discord rooted in slavery, which ultimately dissolved the union. How to cite Civil War Dbq, Essays

Catholic Church And Contraception Essay Example For Students

Catholic Church And Contraception Essay The issue of contraception has been an extremely controversial and debated onein the Catholic Church. The Catholic religion declares that the threerequirements for healthy sexual expression include a mutual physical drive forpleasure, intimacy and committed love between the couple, and the openness toprocreation and parenting children. This last aspect is the subject of muchdisagreement between people both inside and outside the church community. Theauthoritative voice of the church, the Magisterium, holds that artificialcontraception is a sin and only accepts the form of contraception called NaturalFamily Planning. This method involves avoiding sexual intercourse during certaintimes of the month and will be explained in more detail shortly. There aresituations which are argued should be exceptions, such as rape, a family whoalready has children and can afford no more, and the overall health of thecouple involved in the sexual relationship. The viewpoint of the Church is anold one, b ut the Magisterium claims that it will not change anytime soon. Thereare many different types of contraception available. Type one classifiedcontraception includes barrier methods such as condoms, diaphragms, the cervicalcap, and spermicides. Type two classified contraception is hormonal methods,such as birth control pills, emergency contraception or the morning afterpill, IUDs and Norplant. Type three contraception is Natural FamilyPlanning, the only type approved by the Church. Natural Family Planning issometimes confused with the rhythm method, but it actually more effective thanrhythm. NFP is a method that involves careful regulation of a womansmenstrual cycle to determine when her fertile period falls begins. The day ofovulation and a few days before is considered a womans fertile periodand by either avoiding or participating in intercourse during these days, awoman can decrease or increase her chances of pregnancy respectively. The signsthat a woman is close to ovulation are a n increase in basal temperature, changesin vaginal secretions, an opening of the cervical os, physical symptoms such ascramps or moodiness, and an increase in sexual desire. It is important tocarefully monitor all these aspects to ensure proper prevention of pregnancy. This practice is accepted by the Catholic Church because they defend that theintegration of intimacy between partners and the receptivity to procreation arenot obstructed. It is important to observe how we ended up at the teaching thechurch now holds dealing with contraception and sexuality. Throughout thecenturies, many different decisions from the church have influenced the viewthat is now held. In 306, the Council of Elvira found that a priest who wassexually intimate with their wife the night before a mass would lose his job. Atthe Council of Nicea in 325, the rule that priests could not marry after beingordained was created, and in 385, they could no longer sleep with their wives. The first chastity rules were then being formed for religious people. St. Augustine had a profound impact on sexual teachings. He lived from 354-430 as aphilosopher and theologian, recently converted from a sinful life. It isbelieved that St. Augustine developed the first codified teachings of sexuality. He deeply believed the philosophy of Manichaeism, which states that matter isevil opposed to spirit. His teachings were very specific and strict. Stoicphilosophy influenced St. Augustine to require that procreation be the primaryfocus of sexual intercourse and marriage. This teaching was held in the churchall the way until Vatican II. St. Augustine was the first to condemn abstinenceduring the fertile period and coitus interruptus. He did not believe thatthe pleasure involved with sex should in any way be the motivation, but wasacceptable as a necessary side effect. St. Augustine did not view sex interms of love or expression, but simply as a procreative act necessary for life. The Second Council of Tours in 567 excommunicated any religious person found inbed with their wife. In 580, the church leader was Pope Pelagius II who had arather casual outlook on sexual matters. He did not want to bother the clergyand rather looked the other way from the corruption going on. Pope Gregory theGreat served from 590-604 and stated that all sexual desire in any form waswrong. Throughout the world, sexuality was a key issue. Seventh century Francefound most priests to be married. Germany, in the eighth century, reportedthrough St. Boniface that hardly any bishops were following their call tocelibacy. The Council of Aix-la-Chapelle in 836 found that abortions and killingof infants were being practiced in convents and monasteries to concealuncelibate activities of the religious staff. St. Ulrich fixed thisproblem by allowing priests to marry. St. Thomas Aquinas was a key religiousfigure of the Scholastic Period. He was the first to publicly discuss thegoodness of sexuality with reason. He stressed the use of ones conscience todetermine what is right and wrong. He, as well, agreed that sexuality andmarriage should have its main purpose as procreation. Although Aquinas held thebeliefs of many former theologians, there was more leniency towards sexualpleasure. Pope Boniface IX resigned the papacy in order to marry in 1045. In1074, Pope Gregory VII made it necessary for anyone being ordained to take anoath of celibacy. The extremity of this was seen in 1095 when Pope Urban II soldthe wives of priests into slavery and left all children of them abandoned. TheFirst Lateran Council took place in 1123, where Pope Calistus II found allclerical marriages to be officially invalid. This council was supported in theSecond Lateran Council. The Renaissance was quickly approaching and literatureand art were beginning to stress procreation in relationships. The Council ofTrent, from 1543-1563, declared that celibacy and virginity were superior tomarriage. St. Alphonsu s Ligouri, a doctor of the church, was one of the first tostate that an important part of marriage was a means for sexual expression. TheTwentieth Century brought with it many of the most significant documents andmeetings influencing todays stance on sexuality and contraception. TheLambeth Conference took place in 1930 and decided that couples could makedecisions about contraception themselves, but that contraceptives were notapproved by the Church in any way. Pope Pius XI wrote his encyclical, CastiiConubii, in 1940, stating that procreation should be the primary end for sexualintercourse in a marriage. He stated any use of marriage whatever, in theexercise of which the act is deprived of its natural power of procreating life,violates the law of God and nature, and those who commit anything of this kindare marked with the stain of grave sin. (Pope Pius XI). In his Address toMidwives in 1951, Pope Pius XII condemned artificial contraceptives and declaredthat this ruling could not be changed. Pope Pius XII did, however, condoneNatural Family Planning and the rhythm method and became the first time to allowsex apart from procreation. In 1965, Vatican Council II: Constitution on theChurch in the Modern World took place. Pope Paul VI delayed making a decision onthe proposition to have human nature and his acts as the governing principle insexuality at this conference. He was awaiting the presentation by Pope JohnXXIII of the decisions made at the Meetings of the Birth Control Commission,which took place from 1963-1966. Theologians, cardinals, bishops, priests, andlaypeople met to discuss sexual issues, including that of contraception. Thedecision reached was that the previous teachings of the church were notinfallible, that artificial contraception was not evil, and that Catholicfamilies should have freedom to decide their method of family planning. Thesedecisions, however, were overturned by Pope Paul VI in Humanae Vitae in 1968. Marijuana Essay ThesisMany people see hope in reform in the near future despite the insistence by theChurch that these decisions are final. One nun has even made headlines byresigning her sisterhood and devotion to God because of her disagreement withthe way Church has dealt with these issues. Sr. Lavinia Byrne explains herposition by stating I am resigning because of the pressure from theCongregation for the Doctrine of the faith the burden has become intolerable. They are using techniques that seem to belong to mother age and are behavinglike the Inquisition. I feel bullied. (Malcolm 8). There are several reasons whythe present teaching can be changed however. Firstly, the teaching of HumanaeVitae is not infallible, but is only a part of Catholic tradition. Natural lawdetermines a large portion of teachings throughout time and as the way societyworks changes, the teachings of the Church move with it. There is no purenature and there is always room for change and this could lead to a change ofteaching. Also, the Church, in the past, followed many practices that seemridiculous today such as slavery, indulgences, and persecution of women. Theculture that these practices were in changed, and thus, so did the stance of theChurch. This has set a precedent that is expected to be followed. Contraceptionhas been termed a mortal sin, but this would require a grave matter, fullknowledge of seriousness of what you are doing, and sound consent of mind and will. The questionable aspect is the gravity of the sin. The faithful members ofthe Church community have, for the most part, rejected the current teaching. Even those Catholics who are extremely religious use contraceptives, and usuallyfor very good reason. An alarmingly high percentage of Catholics use artificialbirth control, and very few agree with the Church on the evil involved withcontraception. Natural Law was named as one of the factors involved in thetemporary status of the current teaching. There are many differences in howsexuality is incorporated into our society today, compared to the time periodwhen this teaching was created. Rahner, as well, states that The Church ismaking authentic pronouncements which are promulgated by the Magisterium, whichare, for their arguments, dependent on justifications and proofs taken from thesecular sciences and universal human reason. (Rahner 33). The differencestoday that could influence some kind of change include several important aspectsof society. First, females are becoming much more independent and appreciated inthese days. A womans experiences of wifehood, motherhood, and sex are tak eninto account and not looked down upon. Probably the most important change iscontinuing education. Marriages are delayed until mid-twenties and earlythirties on average because of peoples desire to go to college and graduateschools. This leads to longer (and probably more) relationships and a differentmaturity about sex. Artificial contraception is more strongly needed in casessuch as these. Other people these days are just not opting to marry or arehomosexual. Procreation is not in anyway a focus anymore, but is more of anunwanted incident that is possible. Contraception, whether artificial ornatural, is obviously not favored by the Church, but the latter is allowed as acompromise it sometimes seems. The teachings and advisements are rather blatant,but it has been shown that couples are still turning away from the Church onthis matter. Many religious teachers, because of the strong opposition bothwithin and outside the Church, instruct their followers to go with what theirconscien ce feels is right and to use the Churchs teaching as an advisement. To this day though, if one was to strictly follow the teachings of theMagisterium, artificial contraception would be out of the question and toregulate pregnancy, Natural Family Planning would be the right choice. BibliographyCahill, Lisa Sowle. Can We Get Real About Sex? Commonweal 14 Sept. 1990: 497-503. Catholic Church: Pope John Paul II. Familiaris Consortio. Boston:Daughters of St. Paul; 1981. Catholic Church: Pope Paul VI. Humanae Vitae. Catholic Mind. Sept. 1968: 54-55. Harris, Peter. On Human Life: An Examinationof Humanae Vitae. London: Burns Oates; 1968. International HumanaeVitae Conference. America 25 Sept. 1993. Kaufman, Philip, ODB. Why You CanDisagree and Remain a Faithful Catholic. New York: Crossroads Publ.; 1988. Malcolm, Teresa. Bullied By Vatican, Nun to Leave Order NationalCatholic Reporter 21 Jan. 2000: 8-9. Rahner, Karl and Herbert Vorgrimler. Dictionary of Theology. New York; Crossroads Publ,; 1981. Ribadeneira, Diego. Vatican Sets the Record Straight: Its Views on Sex Are Unchanged. BostonGlobe 2 Oct. 1999: B2. Ward, Stephen. Society: Birth Control: Baby Faith GoodCatholics Could Not Use Contraception, Said the Priests. But Now It May Be aMatter for Individual Conscience. The Guardian 29 Apr. 1998: T002. Winikoff,Beverly and Suzanne Wymelenberg. The Whole Truth About Contraception: A Guide toSafe and Effective Choices. Washington D.C.: Joseph Henry Press; 1997. Religion

Regulation in the Financial Crisis 2008

Introduction The US led global financial crisis that struck in 2007 and persisted through 08 and 09 adversely affected the stability of the global economy. The impact of the crisis escalated far beyond its point of origin (US) and affected the countries around the world while spilling over from the financial system into the real economy.Advertising We will write a custom essay sample on Regulation in the Financial Crisis 2008 specifically for you for only $16.05 $11/page Learn More The implications of the crisis were wide ranging and still difficult to conceptualize. This has led to extensive analysis of the financial crisis by policy makers and financial analyst in a bid to develop and formulate measures that would avert future crises and stabilize the global economy. While numerous claims have been put forth to explain the causes of the 2007-2009 financial crisis, there is almost a universal agreement that the major causes of the financial crisis was t he combination of a credit boom and a housing bubble that took place in the United States. The post 2007 crisis consequently features the establishment of numerous regulatory initiatives offering diagnoses and presenting recommendations for financial stabilization. Through literature review, the research paper analyses the varying causes that the crisis has been attributed to, the policies which various major governments sought to implement in response to the crisis, the effectiveness and failures of such policies. The research paper further proposes the alternative areas of focus that may serve to avert future crisis in order to achieve consistent financial stability. Reasons for the 2007-09 global financial crises The decline in the US housing market resulting from the failure of sub prime mortgages and mortgage backed securities coupled with an ensuing credit boom marked the beginning of the financial crisis (Canster Cannex 2011). The housing market suffered a major blow as the m ajority homeowners defaulted on the (sub prime) loans. As a consequence of borrowers defaulting on loans, the financial institutions faced a major challenge as they repossessed the property at a loss which led to a liquidity crisis in banks and their lending capacity was consequently diminished (Obersteiner 2011). In addition, there was lack of confidence by US investors which led to emergence of a credit crunch. The consumer confidence was limited due to widespread uncertainties in the economy. While the housing bubble and the credit crunch in United States has been widely attributed as the major cause of the 2007 financial crisis, a valid argument still stands that the crisis resulted from poorly regulated lending by financial institutions.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The collapse of major financial institutions led to widespread panic as governments across the globe s truggled to rescue the major financial institutions in their regions from collapsing. The Australian government launched the stimulus packages which were aimed at rescuing the collapsing economy while the government of United States proposed a $700 billion rescue plan (Obersteiner 2011). This was met with substantial opposition by congressmen who felt that such spending of taxpayers’ money to rescue Wall Street investment bankers was not justified. Metodi Lazarov (2009) argued that if liquidity was the actual cause of the global financial crisis, then providing more liquidity through reduced interest rates that made borrowing easier would have been appropriate in solving the situation. He cites the ignorance of major financial institutions on their own business models of secularization as the major cause of persistent financial crisis. He further attributes the crisis to globalization, financial innovation and asymmetry of information (Lazarov 2009). Lazarov suggests that the presence of liquidity effects increases the chances of systemic breakdown of any given connectivity between financial institutions which may have caused the crisis. While he agrees that the financial system contained the effects from the housing bubble, he emphasizes on the need for a new and advanced regulatory framework which will shape the financial systems in the future. Fiscal measures are also among the main reasons why investors ran into large risky market such as sub prime which has been cited as a major cause of the 2007 financial crisis. The US government’s move to issue mortgage backed securities coupled with the relative decline in prime mortgage set the stage for the onset of the financial crisis (Lazarov 2009). This saw a significant increase in sub prime mortgage lending which was not in adherence to the government and financial regulations. Further, nationalization of the Fannie Mae and Freddie Mac led to increased investor confidence which led to over relian ce of market participants on government guarantees (Lazarov 2009). Responses of Major Economies to the Global Financial Crisis Australia In Australia, the financial crisis struck at a time when the local economy was suffering from massive inflation. In response to these challenges, the Australian government announced its stimulus packages worth $ 10.4b and the government further sought to guarantee the bank deposits (Canster Cannex 2011).Advertising We will write a custom essay sample on Regulation in the Financial Crisis 2008 specifically for you for only $16.05 $11/page Learn More The economic stimulus played a major role in improving the economy which was suffering from recession and incorporated government transfer payment to consumers which in turn increased sales especially over 2008 Christmas period. The government also provided assistance to various sectors in the economy such as the automotive industry since lenders had lost confidence in the m arket leaving banks as the only credit providers. As the condition of the economy continued to worsen in the beginning of 2009, the government announced a second stimulus package where the government injected $ 47 billion to boost the economy which was then allocated to ailing sectors such as education, housing, infrastructure, small businesses, as well as provision of cash bonuses (Canster Cannex 2011). Consequently, the country suffered less impact of the global financial crisis relative to other major economies of the world. Financial experts argued that the county’s economy was more insulated but evidence of general slowdown in the housing market, and unemployment was still evident in the Australian economy and some questioned the massive government packages claiming that they would haunt the country’s economy in the future as they seek to repay debt. United States In the United States, the financial crisis stimulated substantial debate regarding the governance of global financial markets with the policy makers calling for the creation of a global financial regulator to monitor both domestic financial markets and ensure that other countries implement adequate prudential regulations (Zimmermann 2010). The 2007 financial crisis which set off as the US housing market collapsed offered no guarantee of US leadership in the creation and modification of suitable global financial standards. In deed, the US regulators faced major challenges in trying to focus on the international economy while its internal economy was falling apart. The early stages of the crises were therefore characterized by deep cuts in the US federal funds interest rates nationalization of Northern Bank UK, introduction of the term auction facility at the Federal Reserve, the take over of a major investment bank, Bear Stearns, among other measures (Obersteiner 2011). However, some of the interventions put forth only served to prolong the crisis rather than providing a solution to the situation. In December of 2007, the US government introduced the term auction facility which made it easier for banks to borrow from federal reserves (Taylor 2008). The measure was aimed at increasing the flow of credit in the money market through the reduction of interest rates. This saw a substantial reduction of spreads in the money market during the initial periods of its implementation but this trend only lasted for a short period of time.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The government’s temporary cash infusions implemented under the stimulus Act of 2008 which aimed at sending financial support amounting to over $ 100 billion to individuals and families in the United States was not successful either. Just like the liquidity facilities, the temporary cash infusions were not focused on dealing with the underlying causes of the financial crisis and since the rebate was financed through borrowing rather than money creation, the policy only served to intensify national debt (Taylor 2008). The failure of this policy was further intensified by consumer’s failure to spend as predicted by the permanent income theory of consumption. Consumer spending remained limited due to widespread uncertainties and the consumption was not jumpstarted according to the policy maker’s expectations which consequently increased income rather than consumption. The initial cuts in interest rates in 2008 which saw the federal funds rate target decrease to 2% presented a major challenge to an economy that was already struggling with a credit crunch. Slight reduction in interest rates would perhaps have been effective in rectifying the situation. However, this was only achievable if the interest rates cuts were much less aggressive. The sharp cuts in the federal funds rates led to the depreciation of the dollar which in turn resulted in plummeting of world oil prices evidenced by the doubling of prices from $ 70 per barrel to $ 140 in a period of one year (Taylor 2008). United Kingdom The United States credit crisis appeared as a foreign concern for United Kingdom in the early 2007 (Tindall 2007). However, in mid 2007, when BNP Paribas announced that it would be unable to withdraw funds from its hedge funds and Northern Rock requested for emergency financial support from the Bank of England, the effect of the financial crisis became a reality in the region. In response to the crisis, the Prime Minister Gordon Brown, Chancellor of the Exch equer Alistair Darling, and the Bank of England governor Mervin King sought to implement policies which were aimed at managing the global financial crisis that had hit the region’s economy. The measures included the nationalization of financial institutions and purchase of risky assets (Tindall 2009). The financial regulators in UK ensured that the value added tax was reduced from 17.5% to 15%, the pension for the aged was raised while the government introduced new tax breaks (Tindall 2009). A total of  £ 300 billion was injected into the economy in an attempt to salvage the situation while the bank interest rates were slashed to a historic 0.5 in March 2009 after the 50 billion pound rescue package failed to take effect in the preceding months (Obersteiner 2011). Effectiveness of International Regulation in Dealing with the Crisis The severity of the global financial crisis revealed major weaknesses in the international architecture for prudential financial regulation that has been constructed since the mid 1970s (Zimmerman 2010). While policy makers responded to the crisis through a flurry of ambitious initiatives to reform international standards and strengthen the international regulatory regimes, the questions remain as to whether the regulation of global finance will safeguard the global economy against such crisis in the future and to what extent the financial regulation system should be changed in response to the crisis. This would only be effective if applied on a global scale since the regulations may impose a greater cost on domestic firms than foreign markets resulting in disequilibrium. It is evident from the severity of the global financial crisis that there are substantial weaknesses in the international financial regulation mechanism. Consequently, the aftermath of the crisis saw the formulation of numerous reports and regulatory initiatives which were published by national regulatory agencies, financial industry associations and inter national standards setting bodies. The financial stability forum further integrated these initiatives into a unified international coordinated response which was released in 2008 and incorporated over sixty recommendations to the crisis. While the policy presented through the financial stability forums were quickly endorsed by the G7 among other major international bodies, the effectiveness of the recommendations in the long run remained in question. Since the international financial regulation has emerged in response to the power and interest of the world’s major economies, most of these policies favoured the sectors where leading states could reap benefits while the areas where they would incur greater costs were narrowed in scope. Consequently, the measures proposed served to benefit the major world economies and continued to economically oppress the developing economies. In the analysis of the 2007 global financial crisis, the lasting power of US and Britain economies glo bal financial regulation should be critically analyzed. This is because the domination of these countries in the global market has adversely affected the global economy due to the fragmented, weak, and exclusive institutional context that has emerged in the recent past. Indeed, David Singer agrees that the central role played by United States in the global economy requires able leadership and ambitious regulatory regimes in absence of which results in increasingly vague principles and guidelines which puts the future of the economy at risk (Zimmermann 2010). Elliot Posner further observed that the European Union was very eager to use their economic influence to export EU models to the international level during the crisis (Zimmermann 2010). The fact that the financial crisis hit at a time when the European Union had increased its capacity to influence international regulatory outcomes due to intensified regional integration and its increasing financial market size further raises a l ot of concerns regarding the effectiveness of these economies in international financial regulation. Governments and policy makers should therefore aim at ensuring the shift of power from major economies by diminishing the role of US and British financial markets and major firms in international regulation and putting less emphasis on their financial power which stems from the reputation of New York and London financial centres (Zimmermann 2010). Although the East Asia and other emerging powers are not ready to take on the leadership role in international regulation politics, their active contribution to international regulation seeks to challenge the status quo and are more critical of the existing international standards in banking regulations which may lead to reforms necessary to ensure future stability of the global economy (Zimmermann 2010). Domestic Policies and the Financial Crisis Past literature has revealed that when the domestic societal actors are engaged in debates abo ut international financial regulation, the scope is often narrow relative to other economic areas such as trade politics (Zimmermann 2010). This is primarily due to the complexity of issues involved, the consequences, and an institutional context that in most advanced countries gives financial analysts and regulators considerable autonomy from domestic interests and legislative assemblies. Societal actors who take active interests in constructive international financial debates are financial market participants who are directly affected by international regulations. These actors are mostly concerned with adjustment costs of new standards and view international regulation coordination as a means to gain access to a greater market share. Consequently, they often oppose intrusive regulatory measures and support market driven solutions which limits the efficiency of measures presented to solve the financial crisis. Domestic politics have indeed played a major role in the financial crisi s with the large scale use of the tax payers’ money to rescue financial institutions being used as a tool for politicizing financial regulations especially in the United States and Britain. Consequently, domestic politics unleashed pressure in favour of stronger regulation policies and increased the involvement of legislative bodies in financial regulation (Zimmermann 2010). Consequently, the severity of the 2007 financial crisis demanded the generation of new kinds of regulations for defensive reasons at a time of weakened political legitimacy and for improvement of industries, confidence restoration, and increasing market share. However, the politicization of financial regulation in Europe had an effect of weakening the association between European Union policy entrepreneurs and multinational financial firms which hindered the effectiveness of such policies in solving the financial crisis. Conclusion and Recommendations The global financial crisis of 2007 adversely affected the global economy leading to a recession. While many causes have been put forth to explain the reasons for its occurrence, the housing bubble and the credit crisis in the US have been cited as the major causes of the crisis. In order to reduce the likelihood of such crisis from occurring in the future, much emphasis has been put on increased international financial regulation. However, the appropriate policy response to the crisis extends beyond tougher international regulations to smarter requirements combined with effective political and financial leadership (IMF 2009). This is because as evidenced in the crisis, the banking sector which is already highly regulated proved vulnerable to the systemic shock which has been attributed to lack of coordination and adequate communication in the sector. Consequently the government and financial regulators should aim at restoring the market disciplines, address the fiscal risks posed by systemic institutions, and restoring the level and q uality of bank capital in order to avoid such crisis from occurring in the future (IMF 2009). In addition, the role of international financial regulation should be delegated to both major and developing economies in order to promote efficiency and avoid conflict of interests. Reference List Canster Cannex, 2011. Global Financial Crisis-What Caused It And How The World Responded? Web. International Monetary Fund, 2009. Global Financial Stability Report: 40095. Washington D. C., International Monetary Fund. Lazarov, M., 2009. The Global Financial Crisis 2007-2008: Crisis of Human Knowledge and Government Intervention. Web. Obersteiner, T. Schemes To Asset Relief Measures and Restructuring Plans: EU State Aid Policy And Banking Institutes During The Financial Crisis. Germany, GRIN Verlag. Taylor, B. J., 2008. Financial Crisis and the Policy Responses: An Empirical Analysis of What Went Wrong. Web. Tindall, K., 2009. Framing the Global Economic Downturn: Crisis Rhetoric and the Politics of Recession. Australia, ANU E Press. Zimmermann, H., 2010. Global Finance in Crisis: The Politics of International Regulatory Change. New York, Taylor and Francis. This essay on Regulation in the Financial Crisis 2008 was written and submitted by user Orphan-Maker to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

A Single Man (1964) by Christopher Isherwood

A Single Man (1964) by Christopher Isherwood Christopher Isherwood’s A Single Man (1962) is not Isherwood’s most popular or most lauded work, even after the recent Hollywood movie, starring Colin Firth Julianne Moore.  That this novel is one of the â€Å"lesser read† of Isherwood’s novels speaks volumes for his other works, because this novel is absolutely beautiful.  Edmund White, one of gay literature’s most respected and prominent authors, called A Single Man â€Å"one of the first and best models of the Gay Liberation movement† and it’s impossible to disagree. Isherwood himself said that this was the favorite of his nine novels, and any reader might imagine that it would be quite difficult to top this work in terms of emotional connectivity and social relevance.   George, the main character, is an English-born gay man, living and working as a literature professor in Southern California.  George is struggling to readjust to â€Å"single life† after the death of his long-time partner, Jim.  George is brilliant but self-conscious. He is determined to see the best in his pupils, yet knows few, if any, of his students will amount to anything.  His friends look to him as a revolutionary and a philosopher, but George feels he’s simply an above-par teacher, a physically healthy but noticeably aging man with little prospects for love, though he seems to find it when determined not to look for it. The language flows beautifully, even poetically, without seeming self-indulgent. The structure – like short bursts of thought – is easy to keep pace with and seems to function almost in tune with George’s day-to-day musings.  What’s for breakfast?  What’s happening on the way to work?   What am I saying to my students, but what do I hope they’re hearing?   This is not to say that the book is an â€Å"easy read.†Ã‚   In fact, it is emotionally and psychologically haunting.  George’s love for his deceased partner, his loyalty to a broken friend, and his struggle to control lustful emotions for a student are effortlessly expressed by Isherwood, and the tension is brilliantly constructed.  There is a twist ending which, had it not been built with such ingenuity and genius, could read as something quite clichà ©.  Fortunately, Isherwood gets his point across without having to sacrifice his (or the reader’s) imme rsion into the plot line.  This was a balancing act pulled off immaculately – truly impressive. One of the more disappointing elements of the book may be the result of the novel’s length.   George’s simple, sad life is so ordinary but has so much promise; our understanding of this is largely due to George’s internal monologue – his analysis of every action and emotion (typically literary-inspired).  It is easy to imagine that many readers would enjoy getting more of the back story between George and Jim and more of the relationship (little as it existed) between George and his student, Kenny.  Some might be disappointed by George’s kindness to Dorothy; indeed, readers have consistently expressed that they would not have been able, personally, to forgive such a transgression and betrayal. This is the only inconsistency in an otherwise wholly believable plot line, though, and will likely be subject to reader-response, so we can hardly call it an outright fault. The novel takes place in the course of one day, so the characterization is about as well-developed as it can be; the emotion of the novel, the desperation and sadness, are genuine and personal. The reader at times might feel exposed and even violated; sometimes frustrated and, at other times, quite hopeful.  Isherwood has an uncanny ability to direct the reader’s empathy so that she might see herself in George and thereby find herself to be disappointed in herself at times, proud of herself at other times. Ultimately, we all are left with the sense of knowing who George is and of accepting things as they are, and Isherwood’s point seems to be that this awareness is the only way to live a truly satisfied, if not happy, life.

Akhism, Guild system in the ottoman empire

Akhism, Guild system in the ottoman empire GUILD SYSTEM IN THE OTTOMAN EMPIRE: FROM AKHISM TO GEDIK SYSTEM Akhism which is an organization founded by the Turkish people in Anatolia, is an important guild system for the Ottoman State when we take its regulatory role (of the social order) into consideration. In this paper, I will give detailed information about Akhism until its removal, including its origin, its importance, its guild organization, its norms and its roles in the society. Akhism; being an Arabic word which meant â€Å"brotherhood†, was the name given to the unions of artisans (esnaf) and craftsmen (zanaatà §Ãƒâ€žÃ‚ ±) between the 13th and 20th centuries. Akhi organizations were the associations which have been training their own craft members, which have been organizing and controlling the economic constitutions of the society (ÇaÄÅ ¸atay, 1989:1) and as in all pre-capitalist societies, in Ottoman State, production was organized within the guild organization which had four levels as â€Å"er rand boy† (à §Ãƒâ€žÃ‚ ±rak), â€Å"apprentice† (yamak), â€Å"qualified workman† (usta), and â€Å"master† (Belge, 2005:312). Western orientalists say that the origins of the Akhism go back to the Islamic Futuwah tradition. The Arabic word Futuwah means youthful qualities. These youthful qualities are courage, generosity, hospitality and being skilled in all kinds of physical exercises (ÇaÄÅ ¸atay,1989:2-3). Although some Western social scientists think that Futuwah and Akhism have the same meaning and the same role, Ã…Å ¾anal and which is existing within the society, not being separated from it. Akhi organization which is based on the rules put by Islam scholars tries to provide ethical and well-behaved lifestyle to the artisans; and to ameliorate their craft level to a certain degree to protect standardization. Akhism is seen as the consequence of the service lacks of the state such as supplying security to the individuals, to their proper ties and to their honor; altering communication and education system, and providing equality of rights where there is not a strong juridical system. It is said that in Anatolia, Turkish people shaped and developed Futuwah organization and formed Akhism which is more different than Futuwah and which is proper to Turkish people. Although Futuwah tradition was more authoritarian about religion; and was commanding to the artisans to obey to the Islamic authority; Akhis had a big deal at the issues of economy and politics besides the morality. While Futuwah tradition gave more importance to the individual virtues and military characteristics; Akhism was an organization which helped Ottoman State to put military and administrative institutions in order and which constituted artisan and craftsmen corporations (CaÄÅ ¸atay, 1989: 1). The contribution of the guild system in the Ottoman State’s foundation period may not be despised (Belge, 2005:312). In Anatolia, the foundation of the Akhi organizations was the result of political and socio-economical necessities. At the 13th century, Turks who arrived in Anatolia from Turkestan for escaping from Mongolian invasion formed craft and commercial organizations among themselves to protect their solidarity and to survive amongst the native Byzantine craftsmen. They thought that they could exist only if they sell high quality and standard goods, in a sense by improving their own craft and commercial organizations. The organizations adopted the futuwwatnamas’ religious and moral rules as their laws and this led to the foundation of Akhism with the leadership of Akhi Evran and Abul-Hakaik Mahmud. Later, Akhi organizations were divided into 32 main branches of trade or art and fixed 740 Principles in their futuwwatnamas to form the moral and religious life. Every Akhi had to know 124 necessary Principles (Cagatay, 1989:48-51).

Timeline and Mind Map Essay Example | Topics and Well Written Essays - 1000 words

Timeline and Mind Map - Essay Example Maslow identifies five main concepts of human needs including physical, self-actualization, esteem, love, and safety requirements. After a review of the dynamic needs, Maslow further introduced new concepts into the motivation factors. For instance, cognitive needs came into lights. Knowledge and meaning are important aspects that motivate people towards management needs. Aesthetic needs such as appreciation, balance, form and beauty plays an integral role in the management. A working environment without these factors offer not only a platform of failure but also a denial of human needs. Locke believes a relationship exists between how difficult to perform a specific task and a goal. In many instances, goals are either too easy or vague. It, therefore, is important to formulate SMART goals that are specific and objective. Locke believes success in any management setup without goals is impossible. As a result, he came up with various strategies of setting goals that are both reachable and realistic. Undoubtedly, Locke’s theories remain one of the best guides to formulation of efficient theories. The five principles of goal setting should prioritize clarity of goals. According to him, clear goals are unambiguous, specific, and measurable with a definite time of completion. Clear goals allow employees to work with specific guidelines into reaching success. Additionally, the level of challenge plays an important role in motivating people towards success. Conceivably, people judge success based on the anticipated accomplishments. Rewards increase enthusiasm and realization of more difficult goals. It, therefore, is important to strike a balance between challenges and realistic goals. Commitment allows people to understand and commit into a goal when involved. Certainly, feedback and nature f task also plays an important role in clarity expectations. It vital to adjust goal difficulty, clarify expectation, and modify tasks for effectiveness. John Stacy

Summary of Book Chapter Essay Example | Topics and Well Written Essays - 500 words

Summary of Book Chapter - Essay Example Josephine St. Pierre Ruffin led the Black women in the call for a national club movement that articulates their issues in political life. The organizers defined the main function of the club was to voice their concern on the issue of racism. At the convection, the Black mad a declaration that their movement was open to all unlike the white woman society marred with racist issues. According to Ashburn, â€Å"the national women movement has its directorship and leadership by women to benefit both men and women, ensuring the entire society has liberation from racist notions. The national movement requests the active participation of all men in the society. The movement will also request the participation of American women. The national movement will not alienate or withdraw any other group from joining us. We cordially invite likeminded clubs to join in the quest of freedom. Some of the predominant white clubs refused to come to meetings or the demonstrations since they did not have in terest in women studies. The process of intensifying white, Afro American, Asian, Latina, and Native American women must voice the issue of color as one of their prime agendas. Another issue of Afro-American women is the issue of unemployment that can empower them to earn a decent living in the society. The current economic strata classify the Afro American women as the last in employment. The Regan administration has a high unemployment where the issue affects mostly the black people that whites. A large number of the unemployed are Afro-American women that face utter frustration since unemployment insurance has expired. The current administration depicts an impoverished status of the Afro American women that boasts of a high population close to 14 million that face homelessness. The national movement will also discuss the issue of homelessness in one of its core agendas in an enthusiastic way since it relates to daily life experience. In 1987, United Nations makes a

Effective Study Skills Are the Sole Foundation of a Sound Essay Example for Free

Effective Study Skills Are the Sole Foundation of a Sound Essay Effective study skills are definitely an important factor of a sound education. They dont happen overnight. They evolve and mature through practice, trial and error, feedback from others and reflection through different stages of the course (Cottrell,S.2008. pg1) Working on effective study skills means the individual will find out what works best. Basically learning how to learn (Cottrell,S. 2008. pg 48). There are many different ways in which individuals learn, for e.g. conscious learning when the individual is aware they are learning (Cottrell,S. 2008. pg 48). Unconscious learning when the individual is unaware that it is happening but it may become conscious learning when they just know something and then wonder, how did I know that (Cottrell,S. 2008. pg 48). Each person has 3 different learning styles which affect their lives. Some people learn better using visual learning such as looking at pictures or diagrams. Other people are auditory learners i.e. listening to recordings. Then there are people who are kinaesthetic or tactile learners, they like to touch and play with things. (Wyman,P. 2011). By testing all these types of learning people will see what they find easiest to use and then be able to adapt it to their studies. Effective study skills could definitely be described as the sole foundation of a sound education when doing independent learning. A learner would acquire knowledge by his or her own efforts, therefore good study skills are vital (Meena. 2012). This comes into effect on a distance learning course i.e. foot health diploma. Having the choice of when and where studying takes place, means being disciplined enough to dedicate the time to it. In essence the individual is teaching themselves. To really succeed in a chosen subject doing something with genuine enthusiasm is most important otherwise individuals could just lose interest.

The covenants between God and man Essay -- Old Testament, God, Genesis

The covenants between God and man constitute one of the principal keys to the interpretation of the Old Testament, denoting the dividing lines between the different dispensations and indicating the several changes of procedure in God’s dealings with the earth. There are arguably eight covenants made by God referred to in Scripture. Much could be written concerning these different covenants, but we will only deal with the covenants in Genesis. At various times God condescended to enter into a compact with man, and failure to observe the terms and scope of these compacts leads to the utmost confusion. These covenants are an important pact between Gods relation with man. The Adamic covenant was not the first covenant in the history of God’s relationship with humanity. Rather it was given due to the failure of a perfect obedience of the covenanting partner and had entered into that first covenant with Adam at creation. Some have questioned whether it is appropriate to speak of a covenant when Adam was in Eden. Vavosar Powell preferred to call it a command. Thomas Goodwin saw it as the â€Å"Law of Creation.† The actual word covenant is not used in the Genesis narratives. However, the essential parts of a covenant are all there; a clear definition of the parties involved, a legally binding set of provisions that stipulates the conditions of their relationship, the promise of blessings for obedience, and the condition for obtaining those blessings. Moreover, in Hosea 6:7, referring to the sins of Israel, says â€Å"But they like men have transgressed the covenant.† The Targum, the Talmud, and the Vulgate render â€Å"like menâ₠¬  as â€Å"like Adam.† In the Garden of Eden, it seems quite clear that there was a legally binding set of provisions that defin... ... between Me and you.† (Genesis 17:10) As the Lord has already initiated His covenant with Abraham in Genesis 15:18, this was a further confirmation and ratification of the covenant made previously. Circumcision is the â€Å"sign† of the Lord’s â€Å"everlasting† covenant with Abraham. (Genesis 17:9-13) Significantly, the one in future generations not circumcised â€Å"shall be cut off from his kin,† that is, be expelled from the community that will experience the blessings of this â€Å"everlasting† covenant.† (Genesis 17:14) In conclusion, the covenants between God and man, under gird the totality of the biblical revelation. Specifically elucidated in Genesis, its promises govern the pattern of all that follows in Exodus to Revelation. Everything from the creation to Revelation, speaks of sin and redemption, the violation of the first covenant by Adam, and the following of another. The covenants between God and man Essay -- Old Testament, God, Genesis The covenants between God and man constitute one of the principal keys to the interpretation of the Old Testament, denoting the dividing lines between the different dispensations and indicating the several changes of procedure in God’s dealings with the earth. There are arguably eight covenants made by God referred to in Scripture. Much could be written concerning these different covenants, but we will only deal with the covenants in Genesis. At various times God condescended to enter into a compact with man, and failure to observe the terms and scope of these compacts leads to the utmost confusion. These covenants are an important pact between Gods relation with man. The Adamic covenant was not the first covenant in the history of God’s relationship with humanity. Rather it was given due to the failure of a perfect obedience of the covenanting partner and had entered into that first covenant with Adam at creation. Some have questioned whether it is appropriate to speak of a covenant when Adam was in Eden. Vavosar Powell preferred to call it a command. Thomas Goodwin saw it as the â€Å"Law of Creation.† The actual word covenant is not used in the Genesis narratives. However, the essential parts of a covenant are all there; a clear definition of the parties involved, a legally binding set of provisions that stipulates the conditions of their relationship, the promise of blessings for obedience, and the condition for obtaining those blessings. Moreover, in Hosea 6:7, referring to the sins of Israel, says â€Å"But they like men have transgressed the covenant.† The Targum, the Talmud, and the Vulgate render â€Å"like menâ₠¬  as â€Å"like Adam.† In the Garden of Eden, it seems quite clear that there was a legally binding set of provisions that defin... ... between Me and you.† (Genesis 17:10) As the Lord has already initiated His covenant with Abraham in Genesis 15:18, this was a further confirmation and ratification of the covenant made previously. Circumcision is the â€Å"sign† of the Lord’s â€Å"everlasting† covenant with Abraham. (Genesis 17:9-13) Significantly, the one in future generations not circumcised â€Å"shall be cut off from his kin,† that is, be expelled from the community that will experience the blessings of this â€Å"everlasting† covenant.† (Genesis 17:14) In conclusion, the covenants between God and man, under gird the totality of the biblical revelation. Specifically elucidated in Genesis, its promises govern the pattern of all that follows in Exodus to Revelation. Everything from the creation to Revelation, speaks of sin and redemption, the violation of the first covenant by Adam, and the following of another.

Nursing Care Plan & Basic Conditioning

COMMUNITY COLLEGE DEPARTMENT OF NURSING CLINICAL ASSESSMENT TOOL Subjective Data (Basic Conditioning Factors) Student: Date of Care: 10/03/09 Patient’s Initials: P. V. Age: 37 Room #: 3114 Bed 1Allergies: Food: NKA Gender: FMedications: NKA Environmental: NKA Admitting Diagnosis: Pancreatitis Developmental Stage (Erickson and Havinghurst): (List Developmental stage and tasks, assess each task) 1. Selecting a mate: Although patient is single, she has many friends. Patient was happy to introduce her friends that came to visit. Introductions were all made as friends, no boyfriend or husband mentioned. 2. Starting a family and raising children: Patient is not interested in these aspects of life. Patient is more concerned over her friends and their activities that they do together. 3. Managing home: While the patient lives alone, she would prefer to have a roommate to share housekeeping tasks and rent. 4. Taking civic responsibility: Patient is not interest in helping out community. 5. Starting occupation: Patient has been a Title Researcher for two years, she claims that it is just a job to pay the bills. 6. Finding congenial social group: Patient claims that she has a tight group of friends that she enjoys going out with. While the patient was agreeable, she wanted to be left alone. The Erickson stage that the patient is in is adulthood; Intimacy vs. Isolation. I find that Miss F. V. to be in isolation, developmentally. She wanted no socialization from myself, lives alone, and works alone. She is not actively looking for a mate and was demanding to have her door shut my entire shift, which was the norm since she was admitted 20 days ago. History of present illness: On 9/13/09 patient presented with severe ABD pain in ED. A computed tomography Scan (CT-Scan) of the abdomen and pelvis with contrast was performed; showing severe pancreatitis with prominent pancreas demonstrating significant edema. Moderate to large amounts of ABD ascites demonstrating simple fluid attenuation was noted. Peritoneal enhancement was predominantly noted within the left ABD, reflecting significant peritonitis. No bowel obstruction was noted and pancreatic necrosis was not excluded. Moderate bilateral pleural effusions were also noted. Past medical history : Irritable Bowel Syndrome Anxiety Depression Cocaine use (1998) Smoker Past surgical history: none Medications: Drug NameDoseRoute FrequencyClassification Metoprolol Tartrate50mgPO q12hAntihypertensive Enoxaparin Sodium40mgSQ dailyAnticoagulant Esomeprazole Mag Trihy40gmPO dailyAnti-ulcer Hydromorphone hydr2mgPO PRN Opioid Analgesic Ergocalciferol800int unitsPO daily Vitamin Complementary/Alternative Medical Practices Herbal Remedies: None Vitamins/Minerals: Daily multivitamins Meditation/Yoga: None Massage: None Acupuncture/Acupressure: None Aromatherapy: None Other: None Health Care Systems (Current orders and role of health care members): Low fat diet IV [email  protected]/hr q24h Double Lumen PICC line Left AC CBC OOB Sociocultural / spiritual orientation: none Family system: Patient has family support, however lives alone in a walk up apartment. Patterns of Living: A. Employment: Title Researcher B. Education: Some college C. Hobbies / interest: None D. ETOH / drug use: Social only Environment (Conditions of living and working): Client lives alone, although the answer changed from 9/13/09 to 9/14/09 to lives with a friend. Family is supportive. Friends are supportive. Available Resources (Economic, personal, agencies): Primary Insurance: Primary Insurance is a HMO with BlueCross BlueShield. Objective Assessment of the USCR's Pt: F. V. Room 13314 Bed 1 Jennifer Hughes Please use Y, N, NA to indicate Yes, No or Not Applicable Day 1Day 2Additional Data Psychosocial Solitude v. Social Interaction or Normalcy Well groomed/Good hygieneY Appropriate/Full range affect Y Maintains eye contactN Calm moodN Cooperative attitudeY Able to concentrateY Clear speech (volume/tone) Y Psychomotor retardation N Tics/Tremors N Hyperactivity/Restlessness/Agitation N Hallucinations/Illusions N Suicidal/Homicidal Ideations N Activity/Rest Well-rested N FatiguedN Slept through night N Neuromuscular (prevention of hazards) Alert and oriented Y Times 3 Gait steady Y Hygiene independentN Refused AM care Primary notified Pain free NDilaudid 2mg given @ 6am by primary Hand grasp, strong and equal bilat Y Foot push, strong and equal bilat Y Smile symmetrical Y Tongue to midline Y PERL Y Meets developmental task Y Cardiovascular (air or water) Palpable pedal pulses bilaterally Y Oral mucosa pink Y Conjunctiva pink Y Capillary refill within 2 seconds Y Absence of edema Y Apical/radial regular rhythm YRate= 94 Blood pressure YBP= 86/60 primary notified Telemetry Y Integument (prevention of hazards) Temperature YTemp= 98. 0 Skin turgor WNL Y No tenting noted Skin warm to palpation Y Cool to touch Skin intact Y Incisions N Wounds N Day 1Day 2Additional Data Respiratory (air) Resps easy and even Y Lungs clear Y Secretions N Oxygen in use N Oxygen saturationY 98 Cough and deep breathe N Chest tubesN Gastrointestinal (Food or Elimination) Abdomen softY Tender to the touch Abdomen non-distended Y Bowel sounds presentYAll 4 quads Abdominal drainsN Stomach tubesN Bowel movementN Nausea/vomiting N Feeds selfY Breakfast (% consumed) 50% Lunch (% consumed) 75% Dinner (% consumed) Tube feedingN IV solution (type and rate) YTPN @83cc/hr bag @ 1200cc @ 07:40 IV site (location)YLeft AC PICC Double Lumen IV site without redness or swelling Y IV dressing dry and intact Y Chemstick n/a Gastrointestinal (food or Elimination) Voids in bedpan or bathroom Y Pt. using bathroom Foley catheterN Suprapubic tube N Urine clearY Color yellow-amber Y Yellow Amount (cc's)n/a Continuous bladder irrigation N Lab Data (explain abnormal values) RANGE WBC: 4. 5 – 11. 0 HGB: Men 14. 7 – 16. 1 Women 9. 3 L12. 0 16. 0May indicate anemia. HCT: Men 42. 0 – 52. 0 Women 27. 1 L37. 0 47. 0May indicate anemia, bone marrow dysfunction, malnutrition, over hydration Platelet 490 H150. 0 – 450. 0 Could indicate hemorrhage or inflammatory disorder. Glucose 8370. 0 – 110. 0WNR Sodium 140135. 0 – 145. 0 WNR Chloride 10395. 0 – 110. 0 WNR Potassium 4. 3 3. 5 – 5. 1 WNR Calcium 8. 1 L8. 4 – 10. 2May indicate protein & vitamin D deficiency, malnutrition, cushing syndrome, acute pancreatitis Albumin 2. 6 L 3. 4 – 5. 0Could indicate malnutrition, ulcerative colitis, use of penicillin, sulfonamides, aspirin or ascorbic acid. BUN: 127. 0 – 20. 0 WNR CR: . 40. 3 – 1. 5 WNR PT: Not in labs 10 – 12 sec PTT: Not in labs 3045 sec INR: Not in labs 2 – 3

Chapter 19 Solutions

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