Man on Wire - 839 Words

Popular but Alone There are people who just suck you up in their lives and throw you away when they don’t need you anymore. Philippe Petit, the main character of the documentary film â€Å"Man on Wire†, directed by James Marsh, is a great example of such a sucker. Barry Greenhouse, Petit’s accomplice, says it during the film, â€Å"He sort of draws you into his world.† Philippe was a brave, enthusiastic and persistent high-wire artist. His raw passion to walk hundreds of feet above the ground on a tightrope helped him to make his dream come true, and he became famous all over the world. Philippe broke the law not only to reach his goal, but because it was an adventure; breaking into the tower to perform wire-walking was like a bank†¦show more content†¦She worried about Petit’s life, but at the same time was sure that her sweetheart could achieve his dream. And what did she get for following and encouraging her boyfriend after his triumph ? She got frustration and disappointment in the man she fell in love with. Petit cheated on her the first day he got popular, with an American fan. They broke up. Annie realized that her boyfriend’s fame changed his mind. They both had to start a new life. His girlfriend was just a toy to play with when Petit was bored or disappointed; friends were just tools, equipment that he used and threw away. Philippe took advantage of his support system. Even though they speak of the event with great awe, they still feel abandoned. Their lips may say, â€Å"We are glad it happened,† but eyes and tears never lie, and say, â€Å"We wish it had the other ending, a happy ending where friendship and love is more important than fame.† It’s two or three times as difficult to succeed without friends and support. Art shouldn’t be more significant than life; otherwise one is fated to be foreverShow MoreRelatedMan On Wire, By James Marsh1153 Words   |  5 Pages Man on wire which was set in 1947 directed by James Marsh about a french high wire artist Philippe Petit who is fascinated by New Yorks trade Centre where he has strung a six metre tight rope between the twin tires and walked across it without any fear. The documentary is about Petit s daring attempt, the aftermath and about his friends and the people who helped him achieve his life goals. Some consider it â€Å"the artistic crime of the century† The director has used many techniques to captivate audiencesRead MoreAnalysis Of The Movie Man On Wire 1394 Words   |  6 PagesThe movie, Man on Wire is a documentary about wire-walker, Philippe Petit, who proves his impossible, yet inspiring dream above the clouds between the World Trade Center’s Twin Towers was indeed possible. During this documentary, Petit magically walked and danced across a wire, leaving the audience filled with suspense and extremely sweaty palms. This project, completed by James Marsh, was truly a j ob well done, because of the way he has Petit narrate the documentary and how he recounts the eventsRead MoreMan on Wire Essay examples614 Words   |  3 PagesPetit: Sane Wire Walker What do you think when you imagine a man walking on a wire higher than 10 stories high? A French wire walker named Philippe Petit walked over many structures from Notre Dame to Sydney, Australia, to New York. Through the things he has done, people may think he is crazy. However, Petit and I think that there is nothing crazy about what he has done. I believe the people/society thinks he is crazy. They see this man up hundreds of feet walking across a wire over famousRead MoreThe Nature Of Truth In Sarah Polleys Man On Wire802 Words   |  4 PagesThe nature of truth presented in Stories We Tell, directed by Sarah Polley stands in stark contrasts with the nature of truth presented in Man on Wire, directed by James Marsh. However these documentaries are both postmodern. Both documentaries presented a variety of documentary, language and film techniques that express the nature of truth in each film. Polley demonstrates the intersubjective nature of truth through the use of interviews and music. Marsh however, uses long angle shots and flashbacksRead MoreHow One Might Find Philippe Petit, â€Å"Inspiring.† the Film Man on Wire1182 Words   |  5 PagesIn August 1974, Philippe Petit, a Frenchman with a passion for walking on wires, captivated New York City as he stealthy made his way to the top of the World Trade Center. Once there, he walked across a cable strung between the Twin Towers, a historic feat that s vividly depicted in a new documentary, Man On Wire (which will be screening tonight). The famous walk turned a void 1/4 mile above the streets into a stage, and made Petit into an instant folk hero. He now lives upstate in Woodstock,Read MoreOut, Out by Robert Frost and Death on a Live Wire by Michael Baldwin954 Words   |  4 Pages Out by Robert Frost and Death on a Live Wire by Michael Baldwin Both of these poems that I have chosen to compare are about death, although the circumstances surrounding the death in each poem contrasts greatly. In the poem â€Å"Out, Out-â€Å" a â€Å"big boy doing a mans work† and getting his hand severed by a buzz saw in a dramatic accident. The injuries sustained in this accident then lead to the â€Å"boys† tragic death. â€Å"Death on a live Wire† similarly involves a death, but unlikeRead MoreMy Mistress eyes880 Words   |  4 Pagespoem is written in iambic pentameter with an abab cdcd efef gg rhyming scheme. My mistress eyes are nothing like the sun; a Coral is far more red than her lips red; b If snow be white, why then her breasts are dun; a If hairs be wires, black wires grow on her head. b I have seen roses damasked, red and white, c But no such roses see I in her cheeks; d And in some perfumes is there more delight c Than in the breath that from my mistress reeks. d I love to hear her speak, yetRead MoreBarbed Wire Essay894 Words   |  4 PagesBarbed wire helped revolutionize the West by dividing up the land evenly and cheaply. However, some people out West found it to be an impediment to moving across wide plains. Cowboys and Native Americans even came up with a new name for it, Devil’s Rope. Joseph Farwell Glidden was a very influential man in the creation of barbed wire and he forever changed the West and the World. Barbed wire helped reform the West, but it had to start somewhere. Joseph Glidden saw a wire attachment at theRead MoreEssay on Frequency, Resonance and Radio Waves 1177 Words   |  5 Pagesexamples of resonance such as mechanical resonance, nuclear resonance, magnetic resonance and phenomena resonance Mechanical resonance are usually made in bridges by wind marching soldiers. Resonance happens very often in nature and is mostly used in man-made objects. Resonance phenomena occur in all vibrations. Its first occurrence in frequency circuits for communication, object circuit receives signals of some frequencies while not receiving others. Resonant systems are used to make vibrations orRead MoreSensory Images in the Visitor1537 Words   |  7 PagesThe Visitor takes place in the home of a married couple on an early October morning. The couple have called a blind piano tuner to tune their piano. After fixing the piano and claiming that the couple was lucky to have fixed the pian o now, the blind man requests that someone play the piano. The wife plays the piano, and the piano tuner eventually leaves, although he leaves an impact on the house: the entire afternoon is filled with music and eventually, the night arrives. There is initially silence

Avoiding Relationships Can Be A Method Of Protecting...

Avoiding relationships can be a method of protecting oneself from hurt. Knowing that only oneself can create irreparable damage ensures that your well-being depends on you. Being involved in a relationship, or experiencing conflicting thoughts on whether one should start a relationship, can ultimately cause fearing for the worst, thus driving individuals towards keeping to themselves. In Zedd’s single, â€Å"Clarity,† the featured singer-songwriter Foxes returns to her senses when she â€Å"dive[s] into frozen waves† (1-2) and realizes she would be better off if she gave up her love for her partner. Often times, however, feelings of needing and wanting someone arise; her partner can cure past or present heartbreak, loneliness, and despair. Foxes believes her lover represents a vital â€Å"piece† (9) of her. While love may present cycles of abandonment and create tragedy, going through the motions of life reveals that love can be a remedy. Foxes’ relationship constantly takes a hit from many different factors, most of which, ironically, stem from the man in her relationship. Their relationship appears to be strict and stressful because their â€Å"clock ticks ‘til it breaks [his] glass† (7-8). Foxes’ partner puts up an emotional wall when trying to push her away and the wall shatters. Although this wall created a barrier in their relationship, the shattering of it demonstrates the truth of the tension; her lover’s wall will keep rebuilding and tragically crumbling because of the relationship’sShow MoreRelatedPrinciples of safeguarding and protection Principles of communication in adult social care settings2202 Words   |  9 Pagesabuse is the illegal or unauthorised use of a person’s property, money, pension book or other valuables. †¢ Institutional abuse involves failure of an organisation to provide appropriate and professional individual services to vulnerable people. 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Copyright  © 2011, 2007, 2005, 2002, 1998 Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproductionRead MoreLogical Reasoning189930 Words   |  760 PagesNot Treating It Fairly ..................................................................... 174 Not Accepting the Burden of Proof ............................................................................................. 175 Diverting Attention from the Issue ............................................................................................. 176 Re-defining the Issue ....................................................................................................................Read MoreStephen P. Robbins Timothy A. 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Chapter 1 Modern Auditing Free Essays

string(66) " opinion on the fairness of the financial statement presentation\." CHAPTER 1 AUDITING AND THE PUBLIC ACCOUNTING PROFESSION – INTEGRITY OF FINANCIAL REPORTING |LEARNING CHECK | 1. SEVERAL COMMON ATTRIBUTES OF ACTIVITIES DEFINED AS AUDITING ARE (A) SYSTEMATIC PROCESS, (B) OBJECTIVELY OBTAINING AND EVALUATING EVIDENCE, (C) ASSERTIONS ABOUT ECONOMIC ACTIONS AND EVENTS, (D) DEGREE OF CORRESPONDENCE, (E) ESTABLISHED CRITERIA, (F) COMMUNICATING THE RESULTS, AND (G) INTERESTED USERS. 2. We will write a custom essay sample on Chapter 1 Modern Auditing or any similar topic only for you Order Now A financial statement audit involves obtaining and evaluating evidence about an entity’s financial statements for the purpose of expressing an opinion on whether the statements are presented fairly in conformity with established criteria–usually GAAP. Thus, the nature of the auditor’s report is an opinion on the fairness of the financial statement presentation. You read "Chapter 1 Modern Auditing" in category "Papers" A compliance audit involves obtaining and evaluating evidence to determine whether certain financial or operating activities of an entity conform to specified conditions, rules, or regulations. A report on a compliance audit takes the form of a summary of findings or assurance regarding degree of compliance. An operational audit involves obtaining and evaluating evidence about the efficiency and effectiveness of an entity’s operating activities in relation to specified objectives. Reports on such audits include an assessment of efficiency and effectiveness and recommendations for improvements. 3. Independent auditors are individual practitioners or members of public accounting firms who render professional auditing services to clients. These services may involve financial statement audits, compliance audits, and operational audits. Internal auditors are employees of the companies they audit. They are involved in an independent appraisal activity, called internal auditing, as a service to the organization. Internal auditors are primarily concerned with compliance and operational audits. Government auditors are employed by various local, state, and federal governmental agencies. They may be involved in all three types of audits. 4. a. The financial statement audit is a form of an examination engagement in which the auditor provides reasonable assurance that the financials statements are free of material misstatement. The CPA might also perform an engagement to examine a forecast or a projection in which the auditor provides reasonable assurance that the forecast or projection reflects the underlying assumptions and that there is support reasonable for the underlying assumptions. A CPA might also perform an engagement to examine an assertion regarding compliance with laws or regulations in which the auditor provides reasonable assurance that the entity complied with laws or regulations. b. A review of financial statements is an engagement in which the CPA provides negative assurance that he or she is not aware of any material modifications that need to be made to the financial statements in order for them to be in conformity with GAAP. 5. Accounting and compilation services provide financial statement users and decisions makers with relevant information. However, they are not designed to test the reliability of such information. The primary benefit received is information that may be relevant to a decision, even though evidence is not obtained about the reliability of such information. . The following table summarizes several assurance services provided by CPAs and explains the how they improve the relevance or reliability of information used by decision makers. |Assurance Service |How the service improves the relevance or reliability of information used by decision makers | |CPA Risk Advisory |Provides relevant information to management or the board of directors about business risks faced| | |by an entity. It ma also provide information about the reliability of management’s system for | | |identifying and monitoring business risks. | |CPA Performance View |Provides relevant financial and nonfinancial information to management or the board of directors| | |about the entity’s performance. It ma also provide information about the reliability of | | |management’s system for monitoring the entity’s performance. | 7. a. The audit provides reasonable assurance that financial statement information is free of material misstatements. Decision makers can uses financial information to anticipate business opportunities and to make business decisions based with reasonable assurance that the information set used to make decisions is reliable. b. A review of financial statements provides less assurance about the reliability of financial information than that provided by an audit. The CPA provides negative assurance that he or she is not aware of any material modifications that need to be made to the financial statements in order for them to be in conformity with GAAP. This service is focused on both the relevance and reliability of information used by decision makers. A compilation does not provide assurance about the reliability of financial statement information used by decision makers. However, a compilation service may provide decision makers with relevant information that they would not otherwise have. c. The CPA risk advisory service may transform complex information into knowledge by helping management better understand business risks. The CPA risk advisory service may also provide assurance about the reliability of information produced by management’s system of evaluating business risks. . The origin of the company audit as we know it can be linked to British legislation during the industrial revolution in the mid-1800s. One or more stockholders designated by other stockholders initially performed company audits, but subsequent revisions in the legislation permitted the use of outside independent auditors, giving rise to the formati on of auditing firms. The focus of these early audits was on finding errors in the balance sheet accounts and stemming the growth of fraud associated with the increasing phenomenon of professional managers and absentee owners. Several important milestones in the rise of the U. S. profession were (1) the passage of legislation (2) the stock market crash of 1929 which drew attention to deficiencies in financial reporting and produced a challenge to the accounting profession to provide stronger leadership, (3) adoption of a requirement by the New York Stock Exchange in 1933 that all listed corporations obtain an audit certificate from an independent CPA, and (4) passage of the Securities Act of 1933 and the Securities Exchange Act of 1934 which added to the demand for audit services for publicly owned companies. Three important changes in audit practice that evolved by the 1040s were (1) a shift from detailed verification of accounts to sampling or testing as the basis for rendering an opinion on the fairness of financial statements, (2) development of the practice of linking the testing to be done to the auditor’s evaluation of a company’s internal controls, and (3) deemphasis of the detection of fraud as an audit objective. In recent years, the profession has come under increasing pressure to reverse the deemphasis on detecting fraud as the public’s expectation that the auditor will detect fraud persists. The quality of audits was questioned when a series of restatements of earnings from public companies such as Sunbeam, Waste Management, Xerox, Adelphia, Enron and WorldCom brought about a crisis of confidence in the work of auditors. By 2002 the collapse of Enron and WorldCom led Congress to pass the Sarbanes-Oxley Act of 2002. This act created the Public Companies Accounting Oversight Board (PCAOB) and gave it responsibility for setting auditing, ethics, independence, and quality control standards for audits of public companies. 9. Four factors that contribute to the need for independent audits are (a) conflict of interest, (b) consequence, (c) complexity, and (d) remoteness. Collectively these factors contribute to information risk. 0. Financial statement audits enable companies to (a) meet statutory and other regulatory requirements that must be satisfied in order to gain access to capital markets, (b) obtain debt and equity financing at a lower cost of capital, (c) deter inefficiency and errors in the accounting function and reduce the risk of fraud in the accounting and financial reporting process, and (d) make internal control and operational improvements based on suggestions made by the auditor as a by-pro duct of the audit. 1. The limitations of a financial statement audit include the fact that an auditor works within fairly restrictive economic limits that impose time and cost constraints and necessitate the use of selective testing or sampling of the accounting records and supporting data. Also, the auditor’s report must usually be issued within three months of the balance sheet date, which affects the amount of evidence that can be obtained. The availability of alternative accounting principles permitted under GAAP, and the impact of accounting estimates and uncertainties on the financial statements represent additional inherent limitations on financial statement audits. 12. Six public sector organizations include (1) the Securities and Exchange Commission, (2) state boards of accountancy, (3) the U. S. General Accounting Office, (4) the Internal Revenue Service, (5) state and federal courts, and the U. S. Congress. Five private sector organizations associated with the public accounting profession include (1) the Public Companies Accounting Oversight Board, (2) the American Institute of Certified Public Accountants, (2) State Societies of Certified Public Accountants, (4) Practice Units (CPA firms), and (5) Accounting Standard Setting Bodies — principally the Financial Accounting Standards Board (FASB) and Governmental Accounting Standards Board (GASB). 3. The Securities and Exchange Commission regulates the distribution of securities offered for public sale and subsequent trading of securities on stock exchanges and over-the-counter markets. The SEC also has the authority to establish GAAP for companies under its jurisdiction, and it currently recognizes the pronouncements of the FASB as constituting GAAP in the filing of financial statements with the agency. In some instances, however, the SEC’s disclosure requirements exceed GAAP. Finally, the SEC also exerts considerable influence over auditing profession. The Sarbanes-Oxley Act of 2002 established a private sector, Public Companies Accounting Oversight Board to oversee the audit of public companies that are subject to securities laws. The PCAOB’s rulemaking process results in proposals that do not take effect until the SEC approves them. 14. a. The PCAOB has authority in five major areas (1) registering public accounting firms that audit the financial statements of public companies, (2) setting quality control standards for peer review of auditors of public companies and conducting inspections of registered public accounting firms, (3) setting auditing standards for audits of public companies, (4) setting independence and ethics rules for auditors of public companies, (4) performing other duties or functions to promote high professional standards for public company audits, and enforce compliance with the Sarbanes-Oxley Act of 2002. . Three important AICPA divisions, or teams, that have a direct impact on auditors are (1) the AICPA Practice Monitoring Program is responsible for quality control standards and peer reviews of firms that provide assurance services to private companies, (2) the Auditing and Attest Standards Team sets auditing and attest standards for audit, accounting, and review services provided to private comp anies, and (3) the Professional Ethics Division is responsible for setting and enforcing the AICPA Code of Professional Conduct. 15. a. A CPA firm may be organized as a proprietorship, partnership, Professional Corporation, or any other form of organization permitted by state law or regulation (including limited liability partnerships (LLPs) and limited liability corporations (LLCs)). b. CPA firms are often classified into the following four groups: (1) Big Four, (2) Second Tier, (3) Regional, and (4) Local. 16. a. The purpose of the profession’s multilevel regulatory framework is to help assure quality in the performance of audits and other professional services. b. The four components of the profession’s multilevel regulatory framework are: Standard-setting. The private sector establishes standards for accounting, auditing, ethics, and quality control to govern the conduct of CPAs and CPA firms. †¢ Firm regulation. Each CPA firm adopts policies and procedures to assure that practicing accountants adhere to professional standards. †¢ Self-or peer regulation. The AICPA has implemented a compre hensive program of self-regulation including mandatory continuing professional education, peer review, audit failure inquiries, and public oversight. Government regulation. Only qualified professionals are licensed to practice, and auditor conduct is monitored and regulated by state boards of accountancy, the SEC, and the courts. 17. The five elements of quality control are (1) independence, integrity and objectivity, (2) personnel management, (3) acceptance and continuance of engagements, (4) engagement performance, and (5) monitoring. 18. a. The key elements of the PCAOB inspection program includes: †¢ Inspecting and reviewing selected audit and review engagements of the firm. Evaluating the sufficiency of the firm’s quality control systems and the firm’s documentation and communication of that system. †¢ Performing such other testing of the audit, supervisory, and quality control procedures of the firm as are necessary or appropriate in light of the purpos e of the inspection and the responsibilities of the board. The PCAOB conducts annual inspections of firms that regularly provide audit reports for over 100 public companies. The PCAOB inspects the quality control activities of firms that provide audit reports for 100 or fewer public companies every three years. b. The purpose of the AICPA practice monitoring (peer review) program is to: †¢ Determine that a firm’s system of quality control for its accounting and auditing practice has been designed in accordance with quality control standards established by the AICPA. †¢ Determine that a firm’s quality control policies and procedures were being complied with to provide the firm with reasonable assurance of conforming with professional standards. Determine that a firm has demonstrated the knowledge, skills, and abilities necessary to perform accounting, auditing, and attestation engagements in accordance with professional standards, in all material respects. |Comprehensive Questions | 1. 19 (Estimated time – 20 minutes) a. Internal auditing is an independent appraisal activity performed by employees of the company being audite d. The objective of internal auditing is to assist management in the effective discharge of its responsibilities. External auditing is done by independent, external auditors for the purpose of expressing an opinion on the fairness of the company’s financial statements. Governmental auditing is done by government auditors to determine (1) fairness of financial reports, (2) compliance with applicable laws and regulations, (3) efficiency and economy of operations, and (4) effectiveness in achieving program results. b. The Public Companies Accounting Oversight Board and the American Institute of Certified Public Accountants, the Institute of Internal Auditors, and the U. S. General Accounting Office establish practice standards for independent, internal, and government auditors, respectively. c. The audits serve different purposes and are made by different types of auditors. Auditing only by internal auditing will not satisfy the requirements of stock exchanges and the SEC for independent audits by external auditors. Moreover, internal audits will not satisfy all government requirements for audits, particularly in the area of compliance with applicable laws and regulations. In sum, each type of auditing is necessary. 1. 20 (Estimated time – 30 minutes) |a. Type of Audit |b. Type of Auditor(s) |c. Primary Recipient(s) | |1. Financial statement (1) |Independent(1) |Stockholders, investors, regulatory agencies, and| | | |general public | |2. Operational (3) |Internal (2), Independent(1) |Senior Management | |3. Compliance (2) |Government – IRS (4) |IRS | |4. Operational (3) |Government – GAO (3) |Congress | |5. Financial statement (1) |Independent (1) |Creditors | |6. Operational (3) |Internal (2) |Management | |7. Compliance (2) |Government – GAO (3) |Congress | |8. Compliance (2) |Independent (1), Internal (2), |Congress | | |and Government – GAO (3) | | |9. Financial Statement (1) |Independent (1) |Citizens, taxpayers | |10. Operational (3) |Government – GAO (3) |Congress | |11. Compliance (2) |Independent (1), Internal (2) |Bondholders | |12. Compliance (2) |Internal (2), Independents (1) |Management | 21. Estimated time – 15 minutes) a. The first step in the accountant’s value chain involves capturing data about business events, such as data about sales and the collection of receivables. The second step involves developing an information set that communicates the total picture with integrity and objectivity. The relevant information set here might include information about sales, receivables and the calculation of inventory turn days. Transforming complex information into knowledge involves understanding how the client’s receivable collection period (58 days) compares with the rest of the industry. In this case the 75% of the industry collect their receivables faster than the client. Anticipating and creating the opportunity involves recognizing that the client will improve its cash flow if it brings its collection days more in line with the industry median. This may further involve a study of specific customers that are delinquent and considering how to take steps to speed collection. The final stage involves management’s implementation of tighter credit policies, improved discounts for paying quickly, or charging interest for being delinquent. b. A financial statement audit is important as it provides reasonable assurance that the sales and receivables information that is being used to make business decisions is free of material misstatement. If the information supporting the calculation of accounts receivable turn days is materially understated, the company may not recognize that it needs to take steps to improve cash flows, and in turn, make poor business decisions. 22. (Estimated time – 20 minutes) a. The benefits of a high quality audit include the following: †¢ Access to Capital Markets. An audit allows companies’ access to public securities markets. In many cases, companies also need audits to support a lender’s loan decisions. †¢ Lower Cost of Capital. An audit often allows companies to obtain capital at a lower cost of capital, because of the reduced information risk associated with audited financial statements. †¢ Deterrent to Inefficiency and Fraud. Research has demonstrated that when employees know that an independent audit is to be made, they take care to make fewer errors in performing accounting functions and are less likely to misappropriate company assets. The fact that financial statement assertions are to be verified reduces the likelihood that management will engage in fraudulent financial reporting. †¢ Control and Operational Improvements. Based on observations made during a financial statement audit, the independent auditor often makes suggestions to improve internal control, to evaluate management’s assessments of business risks, to recommend improved performance measures, and to make recommendations to achieve greater operational efficiencies within the client’s organization. Your fellow business student is correct that these benefits are not achieved when an audit is not performed in accordance with professional standards. b. Even an audit performed in accordance with professional standard may not detect every material misstatement in financial statements. The following inherent limitations explain why an audit can only provide reasonable assurance that financial statements are free of material misstatement, not a guarantee that the financial statements are accurate. †¢ Reasonable Cost. Audits must be performed at a reasonable cost. Auditors use selective testing, or sampling, of the accounting records and supporting data. In addition, the auditor may choose to test internal controls and may obtain assurance from a well-functioning system of internal controls. Audits cannot audit every transaction. †¢ Reasonable Length of Time. The auditor’s report on many public companies is usually issued three to five weeks after the balance sheet date. This time constraint may affect the amount of evidence that can be obtained concerning events and transactions after the balance sheet date that may have an effect on the financial statements. Moreover, there is a relatively short time period available for resolving uncertainties existing at the statement date. †¢ Alternative Accounting Principles. Alternative accounting principles are permitted under GAAP. Financial statement users must be knowledgeable about a company’s accounting choices and their effect on financial statements. For example, there may be a material difference between the value of inventory using LIFO or FIFO. †¢ Accounting Estimates. Estimates are an inherent part of the accounting process, and no one, including auditors, can foresee the outcome of uncertainties. Estimates range from the allowance for doubtful accounts and an inventory obsolescence reserve to impairment tests for fixed assets and goodwill. An audit cannot add exactness and certainty to financial statements when these factors do not exist. 1. 23(Estimated time – 15 minutes) |1. |State boards of accountancy |10. |State societies of CPAs | |2. |FASB and GASB |11. |SEC, state and federal courts | |3. |AICPA |12. GASB | |4. |SEC |13. |AICPA | |5. |AICPA, state societies of CPAs, |14. |State boards of accountancy | | |and state boards of accountancy | | | |6. |FASB |15. |AICPA | |7. |State boards of accountancy |16. Practice units | |8. |SEC |17. |GAO | |9. |AICPA |18. |IRS | 1. 24(Estimated time – 20 minutes) a. The four sets of standards in the private sector and the standard setting bodies are: (1) accounting by the FASB and GASB, (2) auditing by the AICPA, (3) professional ethics by the AICPA, and (4) quality control by the PCAOB and the AICPA. The other compo nents of the regulatory framework are: (1) firm regulation that occurs within the public accounting firm through day-to-day monitoring of the actions of the firm’s professional staff by the firm’s management; (2) inspections and peer reviews that relates to the activities of professional entities outside the firm such as the PCAOB and the AICPA’s Practice Monitoring (Peer Review) program; and (3) governmental regulation that occurs at both the state and federal levels through activities that range from positive enforcement programs to punitive actions. This type of regulation is done by state boards of accountancy, the SEC, and state and federal courts of law. 1. 25(Estimated time – 30 minutes) | | |Purpose of Policy / Procedure |Additional | |Policy/ |Element |(b) |Procedure | |Procedure |(a) | |(c) | |1. Personnel Management |Personnel should have the qualifications to |Establish qualifications necessary for | | | |fulfill responsibilities they may be called upon |each level of responsibility in the firm. | | | |to assume in the future. | | |2. |Engagement Performance |Work at all levels should be supervised to ssure |Establish procedures for reviewing working| | | |that it meets the firm’s standards of quality. |papers and reports. | |3. |Personnel Management |Work is assigned to people who have the technical |Identify areas and specialized situations | | | |training for the assignment and personnel should |for which consultation is required. | | |seek assistance, when necessary, from persons | | | | |having approp riate expertise, judgment, and | | | | |authority | | |4. Independence, Integrity and|All professionals should be independent of |Monitor compliance with independence | | |Objectivity |clients. |rules. | |5. |Monitoring |Determine that procedures relating to the other |Provide for reporting inspection results | | | |elements are being effectively applied. |to appropriate management levels in the | | | | |firm. | |6. Personnel Management |Only individuals who possess the qualities of |Maintain a recruiting program to obtain | | | |integrity, competency, and motivation should be |new hires at the entry level. | | | |hired. | | |7. |Personnel Management |Personnel should have the knowledge required to |Provide Programs to develop expertise in | | | |fulfill assigned responsibilities. specialized areas and industries. | |8. |Engagement Performance |Personnel should have the technical training and |Permit partner in charge of engagement to | | | |proficiency required by the engagement. |approve assignments. | |9. |Acceptance and Continuance |The firm should not be associated with clients |Establish review procedures for continuing| | |of Clients and Engagements. |whose management lacks integrity. |a client. | 1. 6(Estimated time – 30 minutes) a. The PCAOB’s inspection program and the AICPA’s practice monitoring (peer review) program do not have a direct impact on individual members. They are focused on a firm’s quality control activities. However, these programs may have an indirect effect on members who are involved in audits that are subject to inspection or peer review and all individuals in a firm may receive certain types of continuing professional education based on the findings of these programs. . The PCAOB is responsible for the inspection of audit firms that audit public companies. The AICPA’s practice monitoring (peer review) program is focuses on audit firms that audit private companies. The objectives of both program s focus on a firm’s adherence to quality control practices. c. The following table compares the objectives of the PCAOB’s inspection program and the AICPA’s practice monitoring (peer review) program. They both focus on a firm’s adherence to quality control practices. PCAOB’s inspection program |AICPA’s practice monitoring (peer review) program | |In conducting inspections, the Sarbanes-Oxley Act of 2002 states |The purpose of a peer review is to determine whether: | |that the PCAOB should: |The reviewed firm’s system of quality control for its accounting | |Inspect and review selected audit and review engagements of the |and auditing practice has been designed in accordance with quality | |firm. control standards established by the AICPA. | |Evaluate the sufficiency of the firm’s quality control systems and |The reviewed firm’s quality control policies and procedures were | |the firm’s documentation and communica tion of that system. |being complied with to provide the firm with reasonable assurance | |Perform such other testing of the audit, supervisory, and quality |of conforming to professional standards. |control procedures of the firm as are necessary or appropriate in |The reviewed firm has demonstrated the knowledge, skills, and | |light of the purpose of the inspection and the responsibilities of |abilities necessary to perform accounting, auditing, and | |the board. |attestation engagements in accordance with professional standards, | | |in all material respects. | d. The primary activities of the AICPA practice monitoring program include providing peer reviews and issuing reports on a firm’s compliance with quality control standards. Professional Simulation | (Estimated time – 30 to 45 minutes) | |Research | | | | | | |Situation | |Communication | A student can perform the search of quality control standards in two ways. First, the student can do a key words search o n â€Å"monitoring procedures. † Second, if a student looks at the way the Quality Control Standards are organized, he or she will note that QC Section 30 addresses Monitoring a CPA Firm’s Accounting and Auditing Practice. The relevant paragraphs are outline below. 1. Explain the monitoring procedures that should be performed by the firm. QC Section QC 30. 03 -. 08 2. Explain the factors that should be considered by small firms with a limited number of management individuals. QC Section QC 30. 10 -. 11 | | |Communication | | | | | |Situation |Research | | To: Tom Meyers and Kenny Vaughn Re: Monitoring Procedures From:CPA Candidate Based on a review of relevant quality control standards (QC 30. 03-. 09) the firm’s monitoring procedures should include the following: 1) Inspection procedures evaluate the adequacy of the firm’s quality control policies and procedures, its personnel’s understanding of those policies and procedures, and the extent of the firm’s compliance with its quality control policies and procedures. These might include: a) Review of selected administrative and personnel records pertaining to the quality control elements. ) Review of engagement working papers, reports, and clients’ financial statements. c) Discussions with the firm’s personnel. d) Summarization of the findings from the inspection procedures, at least annually, and consideration of the systemic causes of findings that indicate improvements are needed. e) Determination of any corrective actions to be taken or improvements to be made with respect to the specific engagemen ts reviewed or the firm’s quality control policies and procedures. f) Communication of the identified findings to appropriate firm management personnel. ) Consideration of inspection findings by appropriate firm management personnel who should also determine that any actions necessary, including necessary modifications to the quality control system, are taken on a timely basis. 2) Preissuance or postissuance review of selected engagements. 3) Analysis and assessment of a) New professional pronouncements. b) Results of independence confirmations. c) Continuing professional education and other professional development activities undertaken by firm personnel. ) Decisions related to acceptance and continuance of client relationships and engagements. e) Interviews of firm personnel. 4) Determination of any corrective actions to be taken and improvements to be made in the quality control system. 5) Communication to appropriate firm personnel of any weaknesses identified in the qual ity control system or in the level of understanding or compliance therewith. 6) Follow-up by appropriate firm personnel to ensure that any necessary modifications are made to the quality control policies and procedures on a timely basis. How to cite Chapter 1 Modern Auditing, Papers

Integrated Reporting for Auditing & Accountability- myassignmenthelp

Question: Discuss about theIntegrated Reporting for Auditing Accountability Journal. Answer: Introduction The main objective of this essay involves in the analysis and evaluation of all the related issue of integrated reporting so that its major benefits and limitations can be identified for the business entities. Integrated Reporting is regarded as a tool of concise communication showing how the business entities create value for long term, medium term and short term. Integration reporting provides great assistance to enhance the business entitys manner to plan, think and report the different aspects of their business (de Villiers, Rinaldi and Unerman 2014). Apart from this, the implementation of integrated reporting provides the organizations with a major tool that helps in establishing better communication with the stakeholders so that the needs of them can be identified and fulfilled in the most efficient manner. Business organizations irrespective the size and industry can adopt integrated reporting for the establishment of understating and trust within the organizations as one cann ot ignore the significance of trust among the company, stakeholder, suppliers, customers and others. The implementation of integrated reporting assists in bringing trust by focusing on the drivers of values within the organizations (Adams 2015). Benefits of Integrated Reporting The above discussion indicates towards the fact that integrated reporting play an important part in the business organizations for the creation of value. For the creation of value, it is required for the integrated reporting to be concise so that it becomes possible for the highlighting the adopted process by the companies to create value (de Villiers, Rinaldi and Unerman 2014). Thus, it needs to be mentioned that the implementation of integrated reporting provides some major benefits to the business entities and they are discussed below: The effective implementation of integrated reporting in the organizations makes the management of the companies in the development of a better and solid understanding about different elements of the organizations that helps in determining the companies ability for value creation (Flower 2015). Thus, the adoption of integrated reporting leads to the better planning mechanism of the companies and also contributes towards the development of a holistic view on the capital and other resources of the business entities. With the implementation of effective integrated reporting, the management of the business entities become able in gaining effective understanding about the financial capital of the businesses along with other non-financial capital of the companies. As per the framework of integrated reporting, there is the existence of six types of capital in the companies; they are financial capital, manufactured capital, intellectual capital, human capital, natural capital and social and r elationship capital (Abeysekera 2013). The presence of integrated reporting can be regarded as the considerations among various aspects of the above-mentioned capitals, internal factors and external environments. The importance of the presence of integrated reporting cannot be ignored for the implementation of an effective communication tool in order to adders the demands and issues of the stakeholders. It largely helps in the process of the optimization of organizational reporting. For example, integrated reporting can be used for the collaboration among more than one departments in order to share information and to create synergies (Cheng et al. 2014). It helps in the broadening of understanding and knowledge of organization people about different aspects of the companies. For this reason, to strengthen the internal dialogue among different departments can be considered as a major aim of integrated reporting that leads to bring efficiency in resources. For example, it can be seen that the integration between annual report and sustainability report saves both money and time of the entities and provides greater understanding on both the financial and non-financial issues (Cheng et al. 2014). Integrated reports helps in bringing greater efficiency in the value chain of the companies; that leads to faster and effective decision-making process. Bringing simplicity in the assumptions of risk and opportunity management is another positive contribution of integrated reporting. The implementation of integrated reporting contributes towards the correct disclosure of financial information and it operates as an external communication tool for enhancing the image of the entities to the external stakeholders (Stubbs and Higgins 2014). For this reason, the investors can obtain all the required financial information for judging the current financial standing and financial performance of the organizations. It implies that the investors can obtain a holistic picture of the financial conduction of the entities. Financial performance can be a major limiting factor in the way to create value as most of the stakeholders judge the companies based on their financial performance. For this reason, companies are required to provide access to the stakeholders to their audited financial reports for effective investment decision-making (Fras-Aceituno, Rodrguez-Ariza and Garca-Snchez 2013). Apart from financial performance, the stakeholders show their interest in other areas like adopted business model by the entities and overall strategies that help the companies in achieving their desired goals. All these factors are the main aspects of integrated reporting as this report includes information about all these aspects for providing the overall outlook of the organizations. It implies that integrated reporting puts additional focus in the non-financial aspects of the businesses. Major external stakeholders of the companies like creditors, investors, suppliers, lenders and others can understand value cre ation process of the companies by gaining all the required financial as well as non-financial information (Frias?Aceituno, Rodrguez?Ariza and Garcia?Snchez 2014). Integrated reporting should not be burdened with unnecessary details as it is not to report for endless details. It only includes the necessary information so that the erasers become able to get specific results. The implementation of integrated reporting makes the management of the companies largely beneficial as it ensures better access to the required data and information that leads to easier and faster decision-making process. In addition, it also increases the overall efficiency of the whole workforce (Garca-Snchez, Rodrguez-Ariza and Fras-Aceituno 2013). The transparent process to create value with the assistance of integrated reporting helps in bringing improvement in the risk management mechanism of the companies. In the presence of transparent organizations operations, the management becomes able to assess the risk and opportunities from the businesses for the development of effective risk mitigation strategies. The implementation of integrated reporting helps the management of the business entities in the identification of the most efficient employees within the organizations that leads to better value creation process. Value drivers are another major aspect of integrated reporting as it assists the management of the companies in the identification of the factors that work as drivers for creating value (Brown and Dillard 2014). Thus, based on the above discussion, it can be said that the implementation of integrated reporting helps the businesses from both the financial and non-financial perspectives. Limitations of Integrated Reporting The above discussion involves in the identification of the major benefits of the implementation of integrated reporting as the reporting tool. How, it needs t be mentioned that the business entities have to face certain limitation while dealing with the aspects of integrated reporting. All the major limitations related to integrated reporting is shown below: Value creation is the major objective of integrated reporting. However, business entities face some major challenges while creating value through integrated reporting due to the fact that sometimes companies fail in the underatsding and identification of the aspect that is considered as value to the stakeholders (Crowther 2016). After that, another major limitation of integrated reporting is connectivity in the presence of the fact to break down the silos in the business organization in order to bring change in the procedure for collecting data. There are many instances for the implementation of integrated reporting that shows the failure of the business entities to identify the scopes for changing positive improvement with the help of the connectivity of financial as well as non-financial information (Churet and Eccles 2014). By bringing improvement in the process of integrated reporting, management of the companies become able in establishing interrelatedness, combination and depen dencies in order to create value in a better possible manner. Reconciliation of the needs of the major stakeholders of the companies is considered as another major limitation in the way of the implementation of integrated reporting. It can be observed that almost 45% of the integrated reports become successful in providing the explanation about materiality determination process and the overall efficiency of integrated reporting become largely affected by this (Eccles and Krzus 2014). For this reason, maintaining the required consistency in the whole process of integrated reporting is regarded as another major limitation of it. It can be observed that most of the integrated reports have length over 150 pages and it creates difficulties for the management of the companies in the reconciliation of conciseness and efficient communication with the major stakeholders. The absence of balance between the good news and bad news in the integrated reports can be regarded as another major limitation of it as lack of reliability and completeness can be obse rved in most of the integrated reports (Higgins, Stubbs and Love 2014). In order to overcome this limitation, the management are required to understand what is a good news and a bad news that should be included in the integrated reports. Another major limitation of integrated reporting is the presence of resistance to change. At the time of the introducing integrated reporting process in the companies, the management faces major resistance from individual departments as well as specific employees due to the change in the procedures of financial reporting (Busco 2016). At the time of the implementation of integrated reporting, the business entities have to incur large amount of costs. At the same time, large degree of work involved in the process to implement integrated reporting. It implies that both the increased amount of work and higher cost are two of the major limitations of the implementation of integrated reporting (Bartocci and Picciaia 2013). As the overall transparency in reporting process increases due to integrated reporting, it exposes the business entities to some potential risks due to the fact that the companies are required to disclose positive as well as negative performance of them in both financia l as well as non-financial areas. The adoption of integrated reporting brings some drastic changes within the operations of the companies and whole integrated reporting implementation process takes huge time. It takes several years from the initial decision to the full implementation process of integrated reporting and thus, there is a need for great coordination (de Villiers, Rinaldi and Unerman 2014). Apart from this, it also demands experience as lack of experience can lead to the failure in the whole integrated reporting implementation process that can lead to waste of money and time for the companies. Most impotently, there is a need for correct and sufficient data and information for the implementation of integrated reporting as lack of correct and required information can make the whole implementation process ineffective that can lead in the failure of integrated reporting implementation. Moreover, some other limitations of integrated reporting are lack of time, limited number of employees, lack of financial r esources, lack of work alignment related to the clear role of employees in the whole implementation process and others (Cheng et al. 2014). Conclusion The above discussion indicates towards the fact that the implementation of integrated reporting ensures the increased efficiency in the reporting as well as effective value creation. The implementation of integrated reporting ensures that there is an effective tool of combination between the major stakeholders and the company to addressing their needs. Moreover, by accessing the integrated reports, the stakeholders can obtain a holistic picture about the whole financial as well as non-financial performance of the organizations. These benefits of integrated reporting come with some of the major limitations of it. The involvement of large amount of work and higher cost for the companies is considered as major limitations of integrated reporting. At the same time, absence of coordination and inexperienced workforce are major constraints in the effective implementation of integrated reporting. Another limitation of integrated reporting is the absence of conciseness in the reporting proce ss. Thus, in order to ensure the correct adoption and implementation of integrated reporting, companies are required to secure the support from all departments and the companies should take help of external expertise. Apart from this, the introduction of various strategies like training and development campaigns, effective communication and others can ensure the effective adoption of integrated reporting. References Abeysekera, I., 2013. A template for integrated reporting.Journal of Intellectual Capital,14(2), pp.227-245. Adams, C.A., 2015. The international integrated reporting council: a call to action.Critical Perspectives on Accounting,27, pp.23-28. Bartocci, L. and Picciaia, F., 2013. Towards integrated reporting in the public sector. InIntegrated Reporting(pp. 191-204). Springer, Cham. Brown, J. and Dillard, J., 2014. Integrated reporting: On the need for broadening out and opening up.Accounting, Auditing Accountability Journal,27(7), pp.1120-1156. Busco, C.A., 2016.Integrated Reporting. Springer,. Cheng, M., Green, W., Conradie, P., Konishi, N. and Romi, A., 2014. The international integrated reporting framework: key issues and future research opportunities.Journal of International Financial Management Accounting,25(1), pp.90-119. Churet, C. and Eccles, R.G., 2014. Integrated reporting, quality of management, and financial performance.Journal of Applied Corporate Finance,26(1), pp.56-64. Crowther, D., 2016.A social critique of corporate reporting: Semiotics and web-based integrated reporting. Routledge. de Villiers, C., Rinaldi, L. and Unerman, J., 2014. Integrated Reporting: Insights, gaps and an agenda for future research.Accounting, Auditing Accountability Journal,27(7), pp.1042-1067. Eccles, R.G. and Krzus, M.P., 2014.The integrated reporting movement: Meaning, momentum, motives, and materiality. John Wiley Sons. Flower, J., 2015. The international integrated reporting council: a story of failure.Critical Perspectives on Accounting,27, pp.1-17. Frias?Aceituno, J.V., Rodrguez?Ariza, L. and Garcia?Snchez, I.M., 2014. Explanatory factors of integrated sustainability and financial reporting.Business strategy and the environment,23(1), pp.56-72. Fras-Aceituno, J.V., Rodrguez-Ariza, L. and Garca-Snchez, I.M., 2013. Is integrated reporting determined by a country's legal system? An exploratory study.Journal of cleaner production,44, pp.45-55. Garca-Snchez, I.M., Rodrguez-Ariza, L. and Fras-Aceituno, J.V., 2013. The cultural system and integrated reporting.International Business Review,22(5), pp.828-838. Higgins, C., Stubbs, W. and Love, T., 2014. Walking the talk (s): Organisational narratives of integrated reporting.Accounting, Auditing Accountability Journal,27(7), pp.1090-1119. Stubbs, W. and Higgins, C., 2014. Integrated reporting and internal mechanisms of change.Accounting, Auditing Accountability Journal,27(7), pp.1068-1089.

Types of Essays

As aspiring college students, high school students or even professionals, we encounter a lot of different types of writing in essay form. Some of these types of writing may feel unfamiliar to us, whereas others are patently obvious and easy to approach, yet, how can we become the best writers? How can we approach all the different types of writing and conquer all genres of writing with ease? To answer these questions effectively, let us try and understand all types of writing. Persuasive style - one is trying to persuade the audience of their opinion, backing it up. Descriptive style - using descriptive language to describe something to the audience. Expository style - attempting to inform the reader of something, explaining it to them. Narrative style - very common throughout novels. Attempting to tell a story towards an audience. These styles are important to understanding, and they will form the base of essays. But what is an essay? Whatever situation we're in, whether we are still studying at college or working professionally, we will always have to write essays in some form or types of writing. You may be familiar with different types of college essays, or maybe types of expository essays, however, to perfect the way you write you should be able to look at the definition and understand all the types of essay out there. So, what is an essay and how can we define it? Essay definition: "a piece of writing on a particular subject or topic." Now that we have mastered the essay definition, we can begin looking at all the examples of an essay to perfect our writing craft. Types of essays It's great that we looked at how to define essay writing, so now we can familiarize ourselves with all the different types of essays that exist. To perfect one's craft, one needs to know about the broad essay categories. Types of essays: argumentative essays Forming an argument and writing different types of argumentative essays is an essential skill. If you're thinking of writing one of these, the most important thing is that you research your topic thoroughly and mention a well-rounded and unbiased view - after this, one can hone in on their argument. The types of argumentative essays that never work are those that have an obnoxious one-sided view with no consideration of other points, so avoid this at all costs. Here are some of the most popular argumentative essay topics: People need to increase the age of consent in society. Creationism should be and from schools. All actors are overpaid. Being bored often leads to trouble in adolescence. Peer pressure is the cause of smoking in most cases. Expository essays It is often difficult to write an expository essay, otherwise known as the how-to essay type because the idea can often be misunderstood. Whatever types of expository essays you are thinking of writing, there is no room for personal opinion and one should always rely on evidence and facts to explain that how to process. It can be difficult to come up with topic ideas, so take note of some of the following types of expository essays that you could write: A how-to essay: writing about how one can achieve the task. Step-by-step essay: Writing for step by step guides to a process. An analysis essay: The analysis of certain objects, ideas, events et cetera. Descriptive essay: Writing that aims to describe particular ideas or events. Classification essays More often than not, one is wondering about the classification essay - what is this type of essay and how can it be written? One needs to divide and categorize ideas that serve as a basis for classifying. After this, a writer can produce a classification essay. These types of essays are important to organize effectively so that one can categorize things properly. Take note of some of the following things one could write about: Different political management options and their effectiveness. Different UN decisions and their political significances. The most popular ways to reduce stress and their effect on society. College essays With all the different genres of writing, styles of writing and course types, what can be said about college essays in general? It is true that there are many types of writing styles that vary between courses, however, all types of college essays are of a certain standard and have things in common. Take note of some of the following when you're writing your college essay: Write as if you are a mature college student. Approach planning in a professional manner. Refer to trusted and reputable sources when making arguments. Make sure that your thesis statement is on point. Use a good command to make your writing to a high standard. Types of hooks for essays Often when writing essays, one is wondering if their essay is a little mundane to start. With all the different types of essays, how can attention be grabbed at the very beginning? Fortunately, there are types of hooks for essays on whatever subject you are writing about that can serve this purpose. Take note of these types of hooks for essays and try and incorporate them at the very beginning - you'll see how much more engaging your essay will sound. Give a joke that can engage with your subject matter. Talk about an incident that creates drama around the subject. Describe the setting of your essay using engaging emotive vocabulary. Present your paper discovery in a shocking way. Provide some sort of interesting facts about the subject. Good essay topics - general examples Often we sit down to write an essay but even though we know about all the essay types that exist, we can frequently struggle to come up with good essay topics. This is nothing out of the ordinary, in fact, even a lot of college professors may struggle with this, and so if you're unsure, perhaps, these topics can point you in the right direction: About ethics, e.g. "How can one make a distinction between censorship and security regulations?" About the law, e.g. "What are the implications of changing the law after Brexit?" Controversial, e.g. "The use of the death penalty and the controversy." About current affairs, e.g. "The controversy in the Tennis Association's Davis cup." About society, e.g. "Addressing transgender rights issues in society." Types of essays - conclusion There are so many different types of essays to write and a lot of types of writing styles to master, so we hope that you have become more familiar with the essay writing craft. Even if you won't be engaging in all of the types of writing mentioned, you'll be in their letter position to come up with good essay topics and improve your writing in general.

The Oil Business in America

The Oil Business in America Free Online Research Papers Over the past few years a very big topic that has come up in the news and in a lot of conversations is Oil. The definition of Crude Oil is the mixture of naturally occurring hydrocarbons that is refined into diesel, gasoline, heating oil, jet fuel, kerosene, and literally thousands of other products called petrochemicals. Crude oils are named according to their contents and origins, and classified according to their per unit weight (specific gravity). Heavier crudes yield more heat upon burning, but have lower API gravity and market price in comparison to light (or sweet) crudes.(business dictionary) Another definition of crude oil is a naturally-occurring substance found in certain rock formations in the earth. It is a dark, sticky liquid which, scientifically speaking, is classified as a hydrocarbon. This means, it is a compound containing carbon and hydrogen, with or without non-metallic elements such as oxygen and sulfur. Crude oil is highly flammable and can be burned to create energy. Along with its sister hydrocarbon, natural gas, derivatives from crude oil make an excellent fuel.(OPEC) Oil is the lifeblood of America’s economy. Currently, it supplies more than 40% of our total energy demands and more than 99% of the fuel we use in our cars and trucks. The Department of Energy’s Office of Fossil Energy focuses on two important concerns over oil an immediate readiness to respond to oil supply disruptions and keeping America’s oil fields producing in the future. In the event the United States is confronted with a serious disruption in oil supplies, the Strategic Petroleum Reserve can provide an emergency supply of crude oil. The oil is stockpiled in underground salt caverns along the Gulf of Mexico coastline. President Bush has ordered the Reserve to be filled to its full 700 million barrel capacity by 2005. The Department of Energy also maintains an emergency supply of heating oil for consumers in the Northeast who depend on this fuel for much of their heating needs. Two million barrels are stored in commercial terminals and can be released quickly should severe weather or other emergencies create life-threatening fuel shortages. One way to prevent an oil supply disruption is to ensure our domestic production of oil is maintained. Remaining U.S. oil fields are becoming increasingly costly to produce because much of the easy-to-find oil has already been recovered. Yet, for every barrel of oil that flows from U.S. fields, nearly two barrels remain in the ground. Better technology is needed to find and produce much of this â€Å"left-behind† oil, and DOE’s Fossil Energy program, through its National Petroleum Technology Office, is developing new exploration, drilling and production processes that can keep U.S. oil fields producing for well into the future.(USDE) That section states that even though our oil fields are being drained there is still oil in them that we cannot get too. With new inventions and new ways of drilling we will be able to get the rest of the oil that is being left in the oil fields. There is no real energy source that has affected our whole existence with such an impact that crude oil has had. Oil was formed over millions of years from dead plants and animals that lived in the oceans before the dinosaurs and some is from the dinosaurs. This is why it is called a nonrenewable resource because it takes an extremely long time to be made. So when we run through the oil that is in the ground now, we will not have any until another few millions of years from now. In every aspect of life there is a rise a peak and a fall right now we are at a peak, we will never be able to extract the same amount again. And because of this and the fall or drop when we run out we will have no cars no planes, nothing that is propelled by oil or a off product of oil. The all American alternative to oil is Hemp which can be grown on American farms. However, it was banned in the United States in 1937. â€Å"Everything now done by fossil fuels can be done cheaper and better with renewable natural resources grown on American soil by American farmers. For more than 12,000 years before it was banned in 1937, the world’s number one natural resource for food, fiber, fuel and natural oil was hemp.†(hempfarm.org)If we can grow something that is equal to oil and is all natural and reusable, why not. It comes down to politics if it is a truly equal alternative. Hemp is also known as weed, or marijuana. It can be made by boiling it until the needed nutrients are taken out. â€Å"The answer has been available for thousands of years. We can either burn clean hemp biomass fuel to boil water and make the steam that turns the turbines that give us our electricity, or we can burn oil and coal and pretend that nuclear power is Clean Energy†.â₠¬ (hempfarm.org) The only thing in question would be is making a drug legal going to make things worse or better over all. The answer we will never know unless we try it. However it should not be illegal for the farmers who are growing it for the government to sell as a natural alternative to oil. The same goes for natural gas. If we were to convert everything from oil based gas to natural gas, everything would be a whole lot better. In fact if each country had its own way of producing an equivalent resource to oil it would change the crisis we are in currently. Instead of oil ruining the world and shutting down plants it would have minimal effects on the world as a whole. And even though many politicians now are pushing to legalize hemp and put a tax on it; which in turn with the selling of that and collection of taxes from it the United States could receive billions of dollars more a year; and even with that tax hemp would still be much cheaper than oil is now and much safer for the environment. There are many different things that when the time comes we will be forced to have to use, even if there is a strong opposition to it. Another thing that is bad about oil is the danger to and the effects it has on the environment. For example the transportation of oil is very dangerous because of the high chances of an oil spill from oil tankers traveling across the oceans. There is a part of the government that was made specifically for instances like this called the EPA the Environmental Protection Agency. In the case of an oil spill the EPA seeks to prevent, prepare for, and respond to oil spills that occur in and around inland waters of the United States. EPA is the lead federal response agency for oil spills occurring in inland waters, and the U.S. Coast Guard is the lead response agency for spills in coastal waters and deepwater ports.(EPA) When countries are at war, one country may decide to dump gallons of oil into the other country’s oceans. Terrorists may cause an oil spill because they will dump oil into a country’s ocean. Many terrorists will do this because they are trying to get the country’s attention, or they are trying to make a point to a country. Seabirds are strongly affected by oil spills. A seabird may get covered in the oil. The thick black oil is too heavy for the birds to fly, so they attempt to clean themselves. The bird then eats the oil to clean its feathers and poisons itself. If workers have found sea birds that are not dead because of oil, they will take the birds to a cleaning center or captivity where they are kept in a facility because they can not live in the wild on their own. Animals that are in captivity because of an oil spill will be cleaned by professionals and volunteers. When a bird is in captivity, the oil will be flushed from its eyes, intestines, and feathers. The bird will be examined for any more injuries like broken bones, and it will take a medicine to prevent any more damage. And not just birds are affected every animal in the ocean is affected in one way or another. The future of the world still dependent on oil looks very bleak and dreary, there has got to be another way, there is other ways it just all depends on us as people to change it before it gets too bad. 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Cable television in terms of its Respositioned target Market Assignment

Cable television in terms of its Respositioned target Market Demographics using the US - Assignment Example About 52.1% households in the U S earn over $50, 000 per year. This provides cable TV with a high potential of increasing its sales, market share as well as its brand awareness (US Census Bureau, 2009). There is a total of 117, 538, 000 households in the US that comprise all the racial groups (US Census Bureau, 2010). This shows there is a sizeable number of households cable television will market to in the targeted group. Census data also predicts the market has potential of growing in the coming years. Cable television targets families as it provides different channels suitable for family viewing and that will suit each member of the family. Cable television targets a wide range of individuals in all age groups, and they range from 5-60 years. The main users of cable television range from 15 to 40 years. The main target markets, therefore, include students and teenagers, professionals and business people, and seniors. The student and teenage population has an enormous desire for no n-stop entertainment, and easy access to entertainment will attract this group. The population continues to grow, and this is a crucial aspect for cable television’s customer base. ... Types of Research Needed to Reposition Cable Television Cable television is positioned at providing continuous entertainment and information at affordable prices to all its viewers. The main aim of the business is to provide services to its consumers in an effective and unique way. Cable television aims at casting channels through which individuals can access their favorite programs. This concept will enable the business to build a strong relationship with individuals who initially may not like cable television. Repositioning cable television requires extensive research. Market research has to be carried out to determine the preference of individuals and to show people the benefits of the services. This method will convince a large number of people to subscribe to cable television so they can enjoy the new services. Research has to be done regarding market needs of the target population. Rapid growth experienced in the field of information technology is the beginning of a trend towar ds an economy based on the infrastructure of cable television. Cable television should, therefore, ensure that it keeps up with the changing trends that are taking place due to changes in information technology so that it can provide up-to-date services to its customers. Methods Used to Increase Adoption Rates After identifying the target market and researching on consumer insights, cable television should develop a new overall image integrated with an awareness-building program aimed at shifting perceptions about cable television. Cable television would use two key methods to increase adoption rates of the services it offers to customers. The first method will focus on attracting new customers. This will be achieved

Online Social Entrepreneur Essay Example | Topics and Well Written Essays - 2000 words

Online Social Entrepreneur - Essay Example From the essay it is clear that social enterprises are relatively different from the traditional commercial organizations in the sense that they apply business and commercial strategies for maximizing improvements in human and environmental well-being. As such, social enterprises are directed by the ultimate goal of making real change in the human life while not focusing on maximizing their own profits. There is therefore a fundamental difference between how social enterprises and commercial organizations approach the business. This discussion stresses thatmobile apps have been a new revolution in the international economy wherein small developers have been able to develop small applications fulfilling various purposes. Over the period of time, millions of applications have been developed for various platforms including Apple iOS, Google Android as well as Windows 8. These applications are sold through various business models wherein some are offered free, some are paid whereas some are hybrid in nature offering some features for free while premium features are paid in nature. This research proposal will outline as to how business models followed by mobile apps can have potential applications for the social enterprises. This paper will comprises of a literature review, research question and methodology, analysis and results, discussions and the implications and finally recommendations and conclusion will be offered.

Philosophy Essay Example | Topics and Well Written Essays - 750 words - 12

Philosophy - Essay Example †¦ And third, there must be an agent whose activity enables the cognitive power and its object to make contact† (MacDonald, 1998). In sensory vision, this agent is most often called light, which illuminates the objects around us and make it possible for us to see them. For cognition, it is proposed that there is an intellectual light, which makes it possible for us to understand the objects that are being placed in front of us. Augustine developed this idea of Plato’s into a Christian conception by describing the source of intellectual light as Truth or God, presenting it as evidence of God’s work within our minds. This interpretation of intellectual light as Divine Illumination had significant impact on Augustine’s theories regarding the soul, including what the soul was capable of doing and how it related to the body, as well as his development of a ‘psychological model’ of the Trinity. Augustine’s teachings indicate that it is only through Divine Light that we are able to come to the universal truths of our existence. Although we are capable of communicating and sharing ideas, it is only through the activities of God within our souls that we are able to receive the true light of understanding and knowledge. â€Å"My words give the listener an idea that he can then verify for himself in light of God’s illumination. Illumination is what allows us to go from mere true belief to knowledge. Illumination provides justification† (Pasnau, 2002). As proof that God exists, Augustine used the example of a tree. â€Å"He said that we see a tree because it is there to be seen. †¦ Eternal truths are also there, they are part of an intelligible world of truth. We grasp them intuitively. †¦ He said that if the human imagination and its products reflect the changeable human mind, eternal truths reflect the existence of an eternal being† (†Å"Augustine†, n.d.). Based on Augustine’s principles, the soul is essentially that part of our

Types Of Securitization Instruments Finance Essay

Types Of Securitization Instruments Finance Essay Securitization defined as process by which loan is made into tradable security. It becomes tradable security when against it any negotiable instrument or bill of exchange is issued which is backed by the loan or receivables Securitization generally refers to the sale of assets, which generate cash flows, from the institution that owns them, to another company that has been specifically set up for the purpose, and the issuing of notes by this second company. These notes are backed by the cash flows from the original assets. The institution is called originator which issues the the same and own the assets backed by it. Another party to it is Special Purpose Vehicle which purchases the assets and that generate cash flows. The special purpose vehicle will hold the assets that are sold by originator to SPV as collateral which are later sold to investors. Structure of Securitization : The receiver of high net worth receivables sell them to specially formed company named Special Purpose Vehicle and it sells the same to other investors as sale mode transaction against the collateral of receivables. The SPV provides the security to investors in the process by issuing special note or bond or borrowing from bank as security to investor. The SPV pays the servicing fee to it and authorizes the originator to collect funds on behalf of special purpose entity which is used to pay the principal and cost of it for the funded loan. The proceeds are latter invested to earn return. The SPV is not the subsdiary of origniatory thus it is not the company whose shares are held by originator but the charitable trustee or any other than originator. To ensure the recieavles will be sufficient to repay the amount owed to investors on time, other arranegments are made to ensure sufficient liquidity in the process like Credit Enhancement or guarantee by third party or subordinated loan Rating agency often rates the note receivables or the process.The higher the rating, the higher would be funds obtainable. The SPV that generates the income through additional money earned through recieavles to originator to earn profit. SPV pays the same to originator as the fees Below is a figure which perfectly complements our summary: The originator is very important element of this process because it can be real person or legal one which basically initiates the process by sorting out the assets which are to be securitized against the same. Motives for Securitization: Advantages to issuer Funding cost: Depending upon the rating of the fund, cost of fund is charged at low. For Instance a cash flow is rated AA and second one is rated BB , the one with AA ratting will be charged lower than the latter one. Reduces  asset-liability mismatch: From the financial funding exposure point of view , securization offers great opportunity to elimate the issue of duration and pricing concerns at large.Securization offers high cost saver to issuer. For instance banks can utilize it efficiently because they have a large amounts of recievales and collaterials as securities thus they can issue securities backed by these assets and let them to be self funded asset book. Lower  capital  requirements: There are very stiff requirements of the regulatory and legal pertaining to leverage capitalization. The recieavles and assets under securization will considered earning assets and thus removing from balance sheets for accounting purpose. Profit: Given the fact that the specific business block for whose profit is not certain or not yet emerged then the assets of those can be securitized and immediate cash flow can be realized and thus locked in profit for this block results. Transfer of risk:  Securitization process makes it easy to transfer the credit, liquidity reinvestment easy to transfer to those who accept it on condition to receive profit. Off balance sheet: Securitization as implied by derivates which are referred as off balance sheet items which classifiy the same as zero sum impact on balance sheet. There is general requirement internationally that records the derivatives at fair value in the financial statements i.e Balance sheet. Earnings: Securitization makes the oringinator capable to bounce back without addition to the firm whereas the true sale takes place between the orginiatory and special purpose entity.It is to highlight that the earnings of the SPV increase the wealth with parent company. Admissibility of bad debt: Future cash flows may not result in perfect recovery because there is also some bad debt in the receivables. Securitization thus makes it possible to get the immediately cash against those too in advance. Liquidity: Securitization simply provides you the future cash flow now thus increasing the liquidity with the company.Thus it will be available with the company to spend and make investment from the same amount thereby increasing the reinvestment return Disadvantages to issuer May reduce portfolio quality: If the AAA risks, for example, are being securitized out, this would leave a materially worse quality of residual risk. Costs:There are costs involved in the securization process raning from legal fees, system cot, rating cost, underwriting fees and administrative cost. Size limitations: It involves huge amount of funds to structure the same to be efficient if otherwise the funds are less then the process with lesser funds. Risks: It is structured transaction thus it is vulnerable to risks such as prepayment, credit loss and reinvestment Advantages to investors A chance to earn higher rate of return It usually involves high quality assets back because there are very stiff requirements for securitization process, such as attaining high ratings, maintaining liquidity and diversified portfolio. Portfolio  diversification: It is worth narrating here that large institutional investors and corporate investors tend to invest in the securitized funds because returns from their this investment is not related to their equity or bond side investment due to un-correlation between the investment portfolio in the market. Isolation of credit risk from the parent entity: Securitization process desegregate the parent and SPV rating. Regardless the companys rating; SPV may be issued separate rating. Suppose the banks rating is not good but the portfolio of borrower of bank is of high quality thus there are less chances of default of the same and investors in securitized asset are more willing to have them in their portfolio. Risks to investors Liquidity risk(Credit/default) Defualt risk meant inability of borrower to repay the principal and interest payment on due period of time. An indicator of securitys high risk is its credit rating or credit worthiness. High risky portfolio of borrowers receives lower ratting then those of ones with less risky portfolio. Prepayment/reinvestment/early amortization: The securitized assets are always prone to early amortization and reinvestment risk. These risks arises out of huge payouts of the borrowers thus causing premature confession of liability and affecting the rate of return. This also affects the gap between the spread that bank pays and collects from borrowers and investors respectively. Contractual agreements: It is generally perceived that the manager who deals with investors and quote the rate which is solely dependent upon the performance of the underlying asset. Now question arises if the underlying assets become risky from the investors perspective i.e default ratio or high bad debt ratio then the price of portfolio. Types of Securitization Instruments Pass Through Securities: PTS is also called Participation Certificate because it bears ownership of the investors in the underlying asset. The amount received on account of the period payments including principal and interest payment which is collected by SPV and is passed on to the investors. Tranched Securities: In this type of security, the amount received as cash flows in tranches and the same is received as first priority with subsequent payments in latter tranches. Planned Amortization (PAC) Tranches: It is a type of security in which sinking fund is created which controls the prepayments that are beyond the limit thus ensures the stability of cash flows. This offers lower yields while comparing them with those without sinking fund. Z-Tranches or Accretion Bonds: In this type of security, interest payment is not paid in the period in which accrued interest is higher in lock out period. Once the period is over, it starts paying out the interest payments and principal. Principal Only (PO) Securities: These type of securities are issued on discount such as T-Bills. Thereof investors receive their principal in installments. The bonds are issued at huge discount rate and thus remaining amount is paid till the differential payment is made till the face value. Interest Only (IO) Securities: These type of securities have no any specific face value thus they offer only interest components to the investors while cash flows diminishes and is repaid. Floater and Inverse Floater Securities: They are securities which pay interest payments which is dependent upon the performance of any index or benchmark i.e Kibor. Floater and Inverse floater are two opposite type of securities. In Floater, the interest payment moves in exactly the same direction as benchmark rate moves and opposite is true for Inverse Floater securities. Types of Securitization Structures There are several types of Securitization structures: type of securitization structures include: Cash vs. Synthetic Structures: Cash structure is the worlds most followed structure in this field of specialization. In cash Structure, originator sell its assets in exchange of cash immediately. In Synthetic structure, the originator keeps the title with itself and investment is unaffected on the assets. In simple words, he does not put their assets on sale rather the risk/reward is merely transferred being derivative transaction. True sale and Secured Loan Structure: In true sale structure, originator sale the assets in true sprit which involve transfer of title and legal interest in the assets. In SLS, issuer takes the secured lending as loan. Fixed and floating charges are issued to investors to protect their stake and rights over the undertaking of issuer and trustee is empowered to take the possession of assets. Pass Through vs. Collateral Structure: The SPV issues participation certificates to investors that represent the direct participation of them thus they are exposed to performance of assets. Investors receive return when there is any cash generation from those assets and so is true for risk involved in these assets.To mitigate the risk of delay payment credit enhancement is opted. Pay through/Collateralized mortagge obligation(CMO) is another name of collateral structure in which SPV keeps the assets with it whereas charge is given to investors only not the assets. The special purpose entity issues the debt against those assets which are transferred by issuer. Discreet Trust vs. Master Trust: It is a type of structure in which Special purpose vehicle identifies a specificil pool of assets for investors to participates and thereby earn from cash flow pool thus it is called discreet. While Master trust is creation of larger fund backed by many pools which are transferred for several investors in which funds raised are not greater than the assets transferred this also covers the repayemtn structural and tenure issue to reciprocate. Conduit vs. Standalone Transactions: In this type of structure the purchaser or originator collects the assets from different orignators and keeping them backed to debt he issues commericial paper. It is for short term duration and thus it requires short term financing frm the banks. In stand alone strucute, the conduit sources the assets from single originator thus securities are issued keeping in view the maturity of asset pool. ISLAMIC SECURITIZATION Islamic securitization can best be defined as process which satisfy the conventional asset backed securitization and parallel adherence to Islamic laws of economic finance.The rights of cash flows are transferred to SPV from originator thereby issue notes to investors as sold. In this system, SPV becomes the trust and thus holds the assets in capacity of fund manager. The security issued through Islamic securitization is called Sukuk in official terms which is issued by SPV and the income is derived from the funds being received against the funds hold as underlying asset. Islamic finance encourages dealing in assets not the cash as commodity, therefore it is permissible under Islamic finance to securitize the assets provided they adhere to the guidelines of Islamic Finance. The theme is that Islamic securitization can replicate the process of conventional securitization with joint supervision of Shariha and Fund manager.If any thing which is not in compliance to Islamic law then regardless if the process is crystal clear, the securitization stands null and void in the eyes of Shariha. For example, if underlying assets are credit cards and conventional mortgages and income from them will be shared with investors soon shall it realized, the process is null as credit cards income do not comply with Shariha because it has interest bearing instruments attached with it. If investors are investing in assets then the ownership of the same be transferred to them too if it has to comply with Shariha guidelines.It must be noted that transfer of title to assets is not necessary or compulsory but the rights to collect them, access them and right to know them is given to investors that justifies the shariha rules. Investors are supposed to bear risk of loss and profit to underlying asset as they are enterning into ownership contract. Adapting the Principles of Islamic Finance to Securitization Islamic securitization requires two stage evaluation.Firstly Shariha compliance of assets/portfolio and returns from the same, secondly the structure of transaction which includes credit enhancement and liquidity management. The first standing principle is simple Islamic securitization in no way accepts the income that involves interest bearing. It has to be structured in such a way that the investors are exposed to some sort of business risk in relation to their share in investment. Therefore it is made compulsory for the investors that the return must be commensurate to the risk they bear. Islam disallow debt trading, management of prepayment risk and other conventional tools which can cause customers who are income only-centered not to invest with them. Shariha requires procedural and objective evaluation of securitization process to carry on process and prohibits elements of gharar, interest, haram and encourages real economic participation with mutual risk sharing, profit sharing and benefit of entire society. Securitiziation has to adhere to following princples of Islam to be shariha compliant: The purpose of raising funds through securitization must be genuine as not to defraud the investors. And the assets which are under lying in the process must be clearly identifiable and revenue from them must be separable from those which are not under umbrella of securitization. The assets under consideration must not be consumable. Each investor must receiver their share commensurate to their share of investment and risk exposure in the assets. Therefore if assets earn profit, that is sharable other wise you can not fix the rate of return on their investment. The security must not be backed bu the debt or prohibited activity as prohibited by Shariha. It must not be involved in any kind of haram, unethical or exploitation of natural resources with or without non-productive investment The transaction must involve the risk factor and not just the mere return. It must involve compensation for the investor and exposure to risk in the assets under securitization.It must not hold debt as underling security and mere exchange of money and interest on that. It means transaction must not be mere debt and risk free exchange of return. Investors must hold unsecured payment obligation and that be unconditional investment. The principal cannot be guaranteed that the same will be redeemed in full or in part. Investors must be given hand in the ownership of underlying assets The proceeds from investors can not be invested in cash based instruments or interest bearing notes. Without any exception, even the return from that can not be reinvested in any short term cash based instruments or interest based debts(bonds). The turnover must be kept low to avoid any un-utilization of assets.Speculation of underlying assets and payment obligation is to be prohibited without any exception. Islamic takaful should be sought instead of conventional insurance for the credit enhancemenet and liquidity management. There must be Transfer of ownership and direct participation in the assets Exclusive linkage between the cash flows and underlying asset has to be developed. Islamic scholars are of view that credit enhancement be allowed on condition that does not change the over all structure of securitization process. In conventional securitization there is tranche subordination which is not allowed in Islamic law but there is option in Islamic Law the lease-buyback(Ijaraha) transaction. The issuer gives partial ownership rights of underlying assets to investors with respect to risk exposure of their investment in the portfolio thereby leasing back the same in exchange for fixed rental payments which is conditional on repurchasing the portfolio at already specified price on future date. This covers the reinvestment risk of the portfolio. Islamic finance ruled out that interest bear financing instruments are allowed on the basis of partnership not on interest bassis. The point is to refute the concept of interest in all the ways. It is creation of sukuk which shows evidence of ownership on assets i.e tangible and intangilble, fixed or revolving what ever they be but must be productive cash flows within finite period of time. Structure of Islamic Securitization There are following parties involved in the Islamic securitization transaction process. The Originator: It is the issuer of sukuk and is authorized to use the funds against selling of assets to SPV. It may delegate any other institutuons to carry on the issue as under writer. SPV: It is referred as Issuer of the securitization issue. It is entitity established to manage issue and purchases the assets from originator from the funds thereby issuing sukuk. Investment banks: They are agents and underwriters of the sukuk. They manage to raise funds on commission only base. Subscribers of Sukuk : They can be like any thing for instance banks, non financial institutions who basically invests in the sukuk. In its basic concept, originators would sell existing or future revenues from lease receivables (asset-based), sale-back profit (debt-based) or private equity from a portfolio of Islamically acceptable assets to a special purpose vehicle (SPV),30 which refinances itself by issuing unsecured securities to market investors, who are the capital market corollary to a singular lender in Islamic finance (see Figure 3). They assume the role of a collective financier whose entrepreneurial investment does not involve guaranteed, interest-based earnings. If we look at the structure of both conventional and Islamic securitization there it can be depicted there exists no any difference from structural point of view involving parties to it. Originator sells the assets (existing or future ) from a portfolio of Islamically aacceptable assets to SPV, which then refinance itself by issuing securities to investors that are unsecured by nature. The proceeds are then passed on to originator. Like in Ijara sukuk, SPV raises funds to purchase the assets and the same must be equal to purchase price. Investors have equity interest in the SPV in Ijaraha sukuk structure in other words they have direct ownership in the assets. The SPV thereafter leases back to originator. SPV must match the payments with its obligation under Ijarah sukuk and it receives lease payments from seller. Upon maturity, special purpose entitity redeems the assets to originator and liabilities are deducted at source because they are owned by SPV.If any portion of income earne d is categorized as haram or unethical then the same be given in charity without any objection to it. Figure Process of Islamic securitization: Following figure depicts the process of Islamic securitization based on Ijaraha: Islamic securitization will best be categorized as monetization of assets underlying in the securitization process where as conventional counter parts best be defined as mere sale of debts. The process of issuing sukuk is kind of sale of share in assets. Islamic alternative offers almost the same benefits as conventional ones have to offer for instance enhanced asset liability management, term structure transformation, better management and control over assets.