benefits of technology :: essays research papers

Ever since it developed, there has been controversy over whether or not mechanical inventions benefit our lives. Doug Rennies article, Faxed to the Max, says the timesaving devices we created give us more freedom to do what we want rent instead imprisoned us in our own technology. Although this may be true to some people, everyone has the advocator to resist technological devices. People can chose to use these tools to enhance their lifestyles, like they can chose to use a hammer or a saw for a project they dont necessarily need it, but it would save time and energy. It is the ability to mistreat these inventions that makes some people uneasy towards about utilize technology in their daily lives. Although it can be abused in many ways, technology used properly is a tool that aids in education, health and communication.Our physical health has benefited greatly from technology. Through inventions like the pacemaker and artificial limbs, a tremendous amount or people have had ruin physical conditions. This biological technology is not favorable to all. Some say that it is better for nature to do its work and people should not interfere. The spread of virgin inventions can soon get out of hand. For example, if we have the ability to clone humans, our lifestyles will change. People will abuse this power by being offhand about their health. They believe people think technology can save them in the end, so they can exercise less and eat more foaming foods. On the other hand, curative inventions have saved lives and allowed people to lead healthier ones. There can be ways to make technology favorable to only certain people, but there is no reason to stop the usage of these medical products if they can help save lives. An example of one of these products is the pacemaker, invented by Canadian electrical engineer, John Hopps. Because the heart stops beating when it cools, he found that mechanical or electric stimulation could make the heart come forth up again. Since then, many were given healthier lives. Prosthetic limbs have also played a great role in helping the lives of amputees. Artificial limbs with sensors and microchips have recently been designed so that these people can maintain an active lifestyle rather than being confined to wheelchairs. Technology plays a very essential role in the communication of people today. With the touch of a button, the Internet and the cellular telephone can allow us to transmit our message to person on the other side of the planet.

Costcos Unorthodox Management Essay -- Costcos Success

The victor of a go with entirely falls on the shoulders of true solicitude. If you have enceinte management the company go forth run actually smoothly. There atomic number 18 so many things that take place when you have safe(p) management. It encourages initiative, encourages innovation, helps with growth and expansion, improves the life of workers, motivates employees and much more. Without good management there would be no success. Costco is the company that I have chosen to write about in this essay. Costco is a membership only wargonhouse club that provides a huge merchandise selection. They are the second largest retailer in United States. Costco had 2.3 million members in 2009 and in the year of 2011 they had four million members sign up. Its not just their enchanting bargains that persuade people to pass a member. It is also their management style. It is the environment at Costco and the attitude of the company that also sells them on a membership. Costco is a ver y successful company that will continue to rise and become even more successful in the future, all because of the management. It is inevitable that Costco has to have a majuscule management style because the company is so large and is doing so well. How do they keep the company running great though? How do they keep their employees and customers happy, piece of music making money at the same time? In this essay we will find out how the CEOs and managers run this company. We will take aim the style of management and how Costco keeps the employees and customers happy. Costco Wholesale was founded on September 15, 1983 by Jeffery H. Brottman and James Sinegal. There are fifteen people on the board of directors, Jeffery H. Brottman is the chairman at Costco whole sale. He is on the board of director ... ... customers, it all improves Costco that much more. The management at Costco has made their success soar sky high. The success is relieve rising today. With their great management that is being instilled, Costcos success will continue to progress. In conclusion, I believe that the board of directors slipway of managing this company is brilliant. They have great techniques that will continue to carry the company to the top. All of these techniques that Costco uses are the reasoning behind their success. This is why I believe their success will only progress. They are great to their employees, customers and partners and that is why their company will do even better in the future. Works Citedhttp//phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-homeprofilehttps//www.openforum.com/articles/what-costco-ceo-james-sinegal-can-teach-you-about-management/ Costcos Unorthodox Management Essay -- Costcos Success The success of a company all falls on the shoulders of good management. If you have great management the company will run very smoothly. There are so many things that take place when you have good management. It encourages initiative, encoura ges innovation, helps with growth and expansion, improves the life of workers, motivates employees and much more. Without good management there would be no success. Costco is the company that I have chosen to write about in this essay. Costco is a membership only warehouse club that provides a huge merchandise selection. They are the second largest retailer in United States. Costco had 2.3 million members in 2009 and in the year of 2011 they had four million members sign up. Its not just their attractive bargains that persuade people to become a member. It is also their management style. It is the environment at Costco and the attitude of the company that also sells them on a membership. Costco is a very successful company that will continue to rise and become even more successful in the future, all because of the management. It is inevitable that Costco has to have a great management style because the company is so large and is doing so well. How do they keep the company running gr eat though? How do they keep their employees and customers happy, while making money at the same time? In this essay we will find out how the CEOs and managers run this company. We will learn the style of management and how Costco keeps the employees and customers happy. Costco Wholesale was founded on September 15, 1983 by Jeffery H. Brottman and James Sinegal. There are fifteen people on the board of directors, Jeffery H. Brottman is the chairman at Costco whole sale. He is on the board of director ... ... customers, it all improves Costco that much more. The management at Costco has made their success soar sky high. The success is still rising today. With their great management that is being instilled, Costcos success will continue to progress. In conclusion, I believe that the board of directors ways of managing this company is brilliant. They have great techniques that will continue to carry the company to the top. All of these techniques that Costco uses are the reasoning beh ind their success. This is why I believe their success will only progress. They are great to their employees, customers and partners and that is why their company will do even better in the future. Works Citedhttp//phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-homeprofilehttps//www.openforum.com/articles/what-costco-ceo-james-sinegal-can-teach-you-about-management/

The Reflection: A Song Essay -- Literary Analysis, Aphra Behn

The poem The Reflection A Song was written in 1684 by Aphra Behn and seems to feature around the theme of realisation and betrayal. Written by a woman, the poems main character of a betrayed distaff has a subjective stance, which evokes a backbreaking emotion of sympathy from the reader as it could represent a true life event. The structure of the poem is set out in seven stanzas, consisting octad lines. What is interesting about the structure is the use of iambic tetrameter with the first, third, fifth and seventh lines of each stanza and iambic trimeter with the second, fourth, sixth and eight lines. This gives the poem a lyrical troll as well as encouraging visual interest for the reader. Rhyme scheme follows quite a unclouded A, B, A, B pattern. The reason for the description of loose is that some lines end without true hoarfrost. For example, her fate (l.2) then she sat (l.4) does not follow the pattern which has been set out for most lines such as to bemoan (l.1) and alone (l.3). Furthermore, dialect may excessively interfere with pronunciation, especially with the end words of tongue (l.6) and wrong (l.8). This reoccurs later on with strove (l.33) and love (l.35) as well in other areas of the poem. However, seeming as this was composed in the seventeenth century, diction would have been different to that of the contemporary reader, meaning the form of the poem, in terms of reading aloud, may have had the correct rhyme intention. Internal rhyme is also seen with my (l.18) and thy (l.19) which also contributes to the lyrical style and creates a smooth rhythm when reading. As this poem follows along the theme of betrayal and love, devices such as repeating are used to emphasise this theme. Within stanza five, ana... ...escape. She does not try to portray the idea in a metaphoric sense, but instead uses the direct manner of speaking to make the statement adamant. This close textual analysis has shown how the feeling of despair can be portrayed through a variety of devices. The fact that in that respect is a prominent rhyme scheme makes the poem traditional, as well as the theme being about love. What may have been seen as contentious could be the fact that the poem was written by a woman, especially as this was written in the 17th century. Following on, as a female herself, Aphra Behn is able to create a believable female character by using real life concepts such as betrayal. Whether Behn experienced this emotion herself would subscribe to further reading, however the emotion within in the poem seems to be precise and may have been from a personal experience the writer incurred in her lifetime.

Donald Johanson :: essays research papers fc

Donald JohansonDonald Johanson was born in Chicago in 1943, the son of Swedish immigrants. His father died when he was two, and his mother moved to Hartford, Connecticut, where he developed an interest in anthropology from a neighbor who taught the subject. Although he initially studied chemistry at university, he eventually switched majors to anthropology, and worked during summers on archeological digs. He transferred to Chicago to study under F. Clark Howell for his graduate studies, doing a comprehensive study on chimp dentition for his doctoral thesis. In 1970 and 1971 he visited Africa to do field work at Omo in Ethiopia. In 1972, he and some colleagues went on a goldbrick exploratory expedition evaluate the Afar Triangle region of Ethiopia. They were impressed by its promise, and planned a full-scale expedition the following year. Back in the USA, Johanson completed his Ph.D. and started a teaching position at Case Western Reserve University.(Johanson) In 1973 he discovered AL 129-1, a small save humanlike knee, and the first knee k this instantn from the hominid fossil record. The following year, Johanson and Tom Gray discovered an even more spectacular figure, AL 288-1, a partial skeleton of a female australopithecine better known by its nickname of Lucy. (Farah-Karls, 21). In 1975 there was yet another major find when his team found a collection of fossils at a single site that was nicknamed the First Family. In 1976, more hominid fossils were discovered, along with stone tools, which, at 2.5 million years, were the oldest in the world. After 1976, political conditions in Ethiopia prevented further expeditions for nearly 15 years.(Johanson).Johanson, who in 1974 had become a curator at the Cleveland Museum of Natural History, now tackled the task of analyzing the fossils with the aid of Tim White, a young hardly highly regarded scientist who had just finished his Ph.D. Johanson had originally thought that the Hadar fossils were a mixture of Homo and Australopithecus specimens, but White eventually convinced him that all of them belonged to just one species. In 1978 they named that species Australopithecus afarensis.(Johanson). In 1981, Johanson founded the Institute of Human Origins, a non-profit research institution attached to the study of prehistory. In 1987, the IHO was given permission to conduct an expedition to Olduvai Gorge in Tanzania, and found a partial skeleton, OH 62, which is generally attributed to Homo habilis.

Japanese Auto Manufacturing :: essays research papers

The Road to lacquerese Automobile Manufacturing DominanceJapan was devastated at the end of World War Two. Although the automobile industriousness wasnt as heavily hit as some of the other(a) industries, there were some severely hindering effects on production. Steel and other materials were difficult to obtain causing production to drop 50% by the end of the war (Chao, 1997). Now they are the leading automobile manufacturers in the world. Japan is the epitome of car manufacturers.Japan had a big ditch to dig themselves out of. First of all to enter into any kind of production they had to nurture permission from the General Headquarters of the Allied Powers of G.H.Q. This entity regulated trade of the Japanese until 1955. They allowed for as many as thirty manufacturers to enter the production of trucks in 1945, and in 1947 as the ambitions of the industry increased they allowed manufacture of small passenger cars (although limited to only 300 cars per year). With such small pote ntial for production there was bus unemployment and the manufacturers had to take on the repair of their own damaged vehicles. Consequently, in 1949 with the tight government finance and banking policies adopted (to suppress inflation) Japan was hit with a colossal recession. It was a real blow to the automobile industry manufacturers had to cut wages and layoff workers. From 1949 to 1950 employment in the automobile industry was slashed by 23% (6,200 people). The craunch unions confronted the management of the car makers, and all the manufacturers were hit with the longest strikes in Japanese history. Japan struggled through the early 1950s, and in 1955 the Post-War Era officially ended. With the G.H.Q. out of the picture the Ministry of Transportation announced the Peoples Car Plan, which gave Japanese auto manufacturers an excellent opportunity to develop new original cars of their own. The plan was eventually be scrapped because the manufacturers thought that proposals requi rements would be impossible to manufacture with the performance and sales price requested (Shimokawa, 1994). The Peoples Car Plan did define competition to market new products and it gave primarily three-wheeled vehicle makers a way to enter the four-wheel market. Suzuki, Fuji (Subaru), Mitsubishi, and Toyo Kogyo (Mazda) all entered small cars into the market most immediately.Moreover, the first two small cars that really made a name for themselves were the Toyota Corona and the Nissan Bluebird. Of course 90% of these cars were used for business (Rinehart, 1997).

the unbearable lightness of being Essay -- essays research papers

The inaudible Voice of CommitmentWhat the reader understands of the infidelity of Milan Kunderas characters in The Unbearable Lightness of Being is a mere distraction from the real substance of the invention and of the characters real purpose. Kundera offers the reader a red herring and only through coating examination can one dissect and pilfer the true essence of for each one characters thread that links them to one another in this story. For it is not clearly seen in fact, it can not be seen at all. It is the fierce absence of the word load that is so blatantly seen in each individual, yet the word itself is buried so deep inside of Tomas and Tereza that it takes an animals steadfast and unconditional love to make the meaning and understanding of commitment penetrate the surface.Tomas and Terezas marriage was fragile and base on Tomass sympathy for his wifes irrevocable urge to fully complete him, mentally and physically. In this Tomas did only what he could do go from wo man to woman while carrying the scent of female genitalia with him. Tereza carried her grief and regret in purdah yet she remained undaunted by an unexplainable force. Their quest after Karenin seemed to be the only connection the couple shared. This animal gave them earnest trust and in return they commit their love. It is a completely selfless love, Kundera writes, Tereza did not fate anything of Karenin she did not ever ask him to lov... the unbearable lightness of being Essay -- essays research papers The Unheard Voice of CommitmentWhat the reader understands of the infidelity of Milan Kunderas characters in The Unbearable Lightness of Being is a mere distraction from the real substance of the story and of the characters real purpose. Kundera offers the reader a red herring and only through close examination can one dissect and abstract the true essence of each characters thread that links them to one another in this story. For it is not clearly seen in fact , it can not be seen at all. It is the fierce absence of the word commitment that is so blatantly seen in each individual, yet the word itself is buried so deeply inside of Tomas and Tereza that it takes an animals steadfast and unconditional love to make the meaning and understanding of commitment penetrate the surface.Tomas and Terezas marriage was fragile and based on Tomass sympathy for his wifes irrevocable urge to fully complete him, mentally and physically. In this Tomas did only what he could do go from woman to woman while carrying the scent of female genitalia with him. Tereza carried her grief and regret in solitude yet she remained undaunted by an unexplainable force. Their dog Karenin seemed to be the only connection the couple shared. This animal gave them earnest trust and in return they committed their love. It is a completely selfless love, Kundera writes, Tereza did not want anything of Karenin she did not ever ask him to lov...

Management Control Systems at Reliance Industries Limited Essay

credence Industries Limited (RIL) is worlds leading and Indias no 1 Private Ltd. companion. RIL group is a highly diversified group and is in to multiproduct business like oil / gas exploration, retail of petro / consumer products and mfg. of petrochemical / ameliorate and textile products. Also, in to infrastructure and transportation sectors. he Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is Indias largest private sector enterprise, with businesses in the zip fastener and materials take account chain. Groups annual revenues are in excess of US$ 44 billion.The flagship federation, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerst wiz of the evolution and development of Reliance. Starting with textiles in the late seventies, Reliance pursued a scheme of reversive vertical integration in polyester, fibre intermediates, plastics, petrochemicals, pe troleum refining and oil and gas exploration and mathematical product to be fully incorporated along the materials and energy value chain.The Groups activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and special economic zones. Reliance enjoys b every-shaped leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major(ip) petrochemical products.Major Group Companies are Reliance Industries Limited (including main subsidiary Reliance Retail Limited) and Reliance Industrial Infrastructure LimitedOrganizational social organization of Reliance Figure 1 Reliance Major Subsidiaries * Reliance Petroleum Limited (RPL) was a subsidiary of Reliance Industries Limited (RIL) and was created to exploit the emerging opportunities, creating value in the refining secto r worldwide. Currently, RPL stands amalgamated with RIL. 7 * Reliance Life Sciences is a look into- set, biotechnology-led, life sciences organization that participates in medical, plant and industrial biotechnology opportunities.Specifically, these relate to Biopharmaceuticals, Pharmaceuticals, clinical Research Services, Regenerative Medicine, Molecular Medicine, Novel Therapeutics, Biofuels, Plant Biotechnology and Industrial Biotechnology. 8 * Reliance Industrial Infrastructure Limited (RIIL) is engaged in the business of setting up / operating Industrial Infrastructure that also involves leasing and providing services connected with computer software and data processing. 9 * Reliance Logistics (P) Limited is a single window solutions profferr for transportation, distribution, warehousing, logistics, and supply chain needs, supported by in house state of art telematics and telemetry solutions. 11 * Reliance Clinical Research Services (RCRS), a contract research organization (C RO) and wholly owned subsidiary of Reliance Life Sciences, has been set up to provide clinical research services to pharmaceutical, biotechnology and medical device companies.As far as Board structure of RIL is concerned there are 8 Non executive directors and four executive directors, hence RIL is strictly by-line suggestions wedded by Kumar mangalam Birla committee regarding corporate governance. Figure 2 Reliance Board Structure Figure 3 Reliance Reporting Hierarchy structural structure Employees within the functional divisions of an organization tend to perform a specialized set of tasks, for instance the engineering department would be staffed only with production engineers. This leads to operational efficiencies within that group.However it could also lead to a lack of communication between the functional groups within an organization, making the organization s paltry and inflexible. As a whole, a functional organization is best suited as a producer of standardized goo ds and services at large volume and get-go cost. Coordination and specialization of tasks are centralized in a functional structure, which makes producing a limited amount of products or services efficient and predictable. Moreover, efficiencies can further be realized as functional organizations integrate their activities vertically so that products are sold and distributed quickly and at low cost.For instance, a small business could commencement exercise making the components it requires for production of its products instead of procuring it from an external organization. But not only beneficial for organization but also for employees faiths. Hence Reliance is Having Highest Operational dexterity as compared to competitors. Management Style And Culture At Reliance Industries Limited Reliance Industries Limited (RIL) has emerged as Indias largest private-sector enterprise and carved out a distinct place for itself in global Fortune 500 companies.Reliances business success and co mpetitive position reflect the leadership provided by its founder, Mr.Dhirubhai Ambani who said, Growth has no limit at Reliance. I keep revising my vision. Only when you dream it do you get it. The leadership system delimitate by Ambani is based on value creation towards both its customers and stakeholders. The same vision has been taken up and forwarded by his son Mr. Mukesh Ambani, current Chairman and Managing Director of RIL. Reliance believes that any business conduct can be ethical only when it rests on the nine core values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship and Caring.The existence of the culture in RIL is driven towards achievement of excellence in systems, processes, technology and people and also toward the fulfillment of their corporate vision i. e. To become a globally competitive enterprise, driven by the market, creating and maintaining a lead over competition through quality products and establishing itself to be the preferred supplier of its customers. With the vertical integration of chain from refinery to textiles, RIL has unique fully integrated structure.Basically it is a process centric organization that maximized synergies across all interfaces, leverage core competencies of various disciplines to maximize value from current assets and create growth opportunities opus allowing people to develop and contribute to their full capabilities. When we talk about the organization culture, specifically RIL tensenesses on high performance work culture which fosters innovation, entrepreneurship, inclusiveness, teamwork and never-ending improvements. Among all RIL basically focuses on innovation and has a innovative council for promoting the same.The company believes hat it is the innovation in thinking and execution that has made RIL reach where it is today. The libertine belief of innovation being the differentiator for future and the source of competitive advantage shows the vastn ess that is given to it. RIL in the early 1990s did suffer from low employee participation in improvement activities and low customer satisfaction. The introduction of various quality improvement tools in the facilities like the Total Quality Management( TQM), Kaizen Activities and customer focus approach led to the improvement in quality, productivity improvement and customer satisfaction in the organization.RIL realizing the importance of human and intellectual capital for business success, has given more importance to the use of its human potential and the creation of Learning organization to help in continued success in future. RIL in its importance to the health and prophylactic also has also initiated Safety, Health and Workplace Environment Program (CASHe) which is an initiative to promote healthy workplace and reducing health and safety risk has been instrumental in creating a culture of implementing health, safety and surround project on a priority basis.This program has a lso been able to improve the performance of the company on the occupational health and safety front. The Health and Safety Principles that were put forward in this regards to articulate the stakeholders expectation along with the existing values of the company underpin both the corporate culture and cooperation across the company. The growing importance of Corporate Governance by RIL shows its priority towards a vaporish and accountable organization thus being able to meet the needs of all the concerned stakeholders.The publication of annual corporate governance report is one important aspect showing its growing inclination towards it and its aim to have fair and equitable treatment of its employees, shareholders, customers and investors. They aim to provide timely and balanced divine revelation of all material information concerned towards stakeholders. Moreover they aim to have a sound system of risk attention and internal control.The existence of polity for board of directors and board committees, code of business conduct and ethics for director/management personnel signifies the existence of the culture driving the whole organization towards utile corporate governance. RIL has a long and strong tradition of supporting the larger communities that it connects with from education, health, drinking water, large-scale development of employable skills, to assistance during natural calamities such as earthquakes and cyclones.The Reliance Foundation would address social development imperatives of India, specifically quality, formal and vocational education, affordable high-quality health care, meaningful rural development and urban renewal, and testimonial and promotion of Indias priceless heritage of arts and culture. Management in simple words are characteristic ways of making decisions and relating to subordinates. Different management styles and employed by different organizations depending on the prevailing culture, the nature of the business, the natu re of the task and the personality and skills of the leaders.RIL is an organization which is operation in nine-fold facets. They have multiple manufacturing facilities at multiple locations where by dealing in different product ranges. The supreme authority of the company is Board of Directors. But they have given frequently more independence to the individual units at different level to take decisions at their level. There is a good mix of corporate level strategy (taking RIL as a whole which is set up by the BOD) as well as appropriate business level and operational strategies at each segment as well as business units to accomplish the corporate level strategy.Every unit which is a part of RIL has its own hierarchy, headed by the chief executive officer or the President, but a more of a democratic style of leadership is seen. Since they promote innovation and value their human capital they promote participative environment at different levels of management to be able to make a better and informed decision. Empowering the employees in RIL is relevant. However the level of decisions and intensity of problems are defined whereby decisions can be taken at particular level of management.Management Control Systems Internal Controls RIL has a comprehensive system of internal controls to safeguard the Companys assets against loss from unauthorised use and ensure proper authorisation of financial transactions. The Company has an exhaustive budgetary control system to monitor all expenditures against approved budgets on an ongoing basis. The Companys accounting process is based on uniform accounting guideline that sets out accounting policies and evidentiary processes and deadlines on a company wide basis.There are inding directives for internal reconciliations and other accounting operations. The Company maintains a system of internal controls designed to provide a high degree of assurance regarding the effectiveness and efficiency of operations, the reliability of financial controls, and compliance with laws and regulations. RIL has well established policy towards maintaining the highest standards of health, safety and environmental norms while maintaining operational integrity. This policy is strictly adhered to all RIL manufacturing facilities.The Company has an internal audit function, which is empowered to examine the adequacy and compliance with policies, plans and statutory requirements. It is also responsible for assessing and better the effectiveness of risk management, control and governance process. The management duly considers and takes appropriate action on the recommendations made by the statutory auditors, internal auditors and the independent analyze Committee of the Board of Directors. Internal Checks and Balances.

Comparing Microsoft Windows NT and Unix

The decision to utilize Microsoft Windows NT horde or one of the many Unix in operation(p) arrangements is the clientele of many IS managers around the world today. Unix is not a single operating system it refers to a family of operating systems which includes AIX, BSDI, Digital UNIX, FreeBSD, HP-UX, IRIX, Linux, NetBSD, OpenBSD, Pyramid, SCO, Solaris, SunOS, just to name a few. Microsoft Windows NT has a well-known reputation. But these managers welcome to consider whether or not choosing a Microsoft product can increase the companys profits.The cost of the network operating system (NOS) pass on be the ultimate factor in their decision. It is not just the initial cost of the hardw ar however, but rather many other factors give inquire to be considered to insure that further maintenance costs atomic number 18 not overwhelming. For instance, softw atomic number 18 licenses will have to be procured. Technical support agreements will need to be assessed. The costs of upgrades /service packs, hardw atomic number 18 upgrades will need to be weighed for some(prenominal) compositors cases of systems.Determining which system has a greater occurrence of glitches can be a factor in estimating lost profits for every hour of downtime. If the company should experience a glitch, how substantial will personnel costs for recovering/recreating data be? Knowledgeable systems administrators will need to be employed to maintain the system. This task is not to be taken lightly as these are only some of the situations to be considered prior to making a decision on which NOS to purchase.Since accruing costs is a primary concern for managers, the conditions previously discussed give an recital that a combination of horde hardware and operating systems seems to be the most cost-effective option for long term use. Unix is a fully developed, group of operating systems known for its performance, reliability, and security in a server environment. On the other hand, Windows N T Server has the advantage of Windows 95s popularity. This desktop operating system is already being apply in homes and offices everywhere.Before making the operating system decision a manager should consider visiting the local library to research the particular subject. It will be difficult to find current unbiased literature. But a determined manager or QM student should be able to separate the alpha information from personal preferences. Most of the older books are concerned with theory using Unix as a guide. For current information, periodicals are the best source. But as stated earlier, much of it is very biased one way or the other. The preferences are split down the middle with half of the professionals supporting Unix or a Unix stress and the other half supporting Microsoft products.Operating systems (OS) were origin every last(predicate)y developed as a large set of instructions for large mainframe computers in order to control the hardware resources of the mainframe. Th ereafter, they have been developed to run on smaller and smaller computers, first mini computers then on the new personal computers (PC). But, the main job of the OS was the same, a layer between the hardware and the user.The main reason for having an OS is for the application programmers to have a common stem upon which to run their applications, no matter what hardware is being used. One important function of the OS is to perform file management. This allows applications to read or write to phonograph recording, irrespective of the hardware being used or how it is stored. Without this feature programmers would have to write new programs for every different type of hardware and every different type of hardware configuration. However, Microsoft Windows is the dominant PC OS, so most of the applications written today are written for the Windows environment.When businesses initially began to use desktop PCs in the 1980s, there was no connection between PCs and mainframes or between the PCs themselves. The PC was normally used for word processing, spreadsheets, etc. Soon users wanted to more efficiently share resources than turn swapping allowed. A solution emerged, networking, and to control these resources, network operating systems (NOS) were developed. At first NOSs allowed the most basic of functions like sharing printers and files. Soon the NOSs role expanded greatly to management of the resources in the local network, and to link up with other local area networks (LAN), therefore creating wide area networks (WAN).NOSs controlled the network through a server. The server only controlled the resources directly linked to it and the PCs used a second OS that controlled their specific hardware. Peer-to-peer networks later developed. While using a peer-to-peer LAN there was no need for a dedicated server, which was great for small businesses with few users. But with many users and large amounts of data, a greater need surfaced for a dedicated server.Managers w ithout experience or experience with systems and network administration find it difficult to choose a server platform. This report will attempt to compare and contrast Microsoft Windows NT Server and Unix, a mixture of commercial and non-commercial operating systems originating from the same source so they share many similarities. The main focus of the paper is to assist managers in choosing a network operating system using quantitative methods. The issues of comparison discussed are in the areas of product costs and licensing, functionality, reliability, and performance. These are presented to provide a more ace view of these products.Most managers will agree that the mere cost of an operating system is trivial when evaluating the big picture. Although Windows NT Server 4.0 can be expensive, a Unix variant can be bought for a minor dollar amount. In order to match the functionality of a BSDI (a variant of Unix) installation, additional Microsoft products and third party solutions would bring the terminal price of a comparable NT solution within a reasonable cost.What can you expect from Windows NT Server and from Unix immediately after acquiring the systems? NT and Unix can both communicate with many different types of computers. Both Unix and NT can secure sensitive data and keep unauthorized users off the network. Essentially, both operating systems meet the minimum requirements for operating systems functioning in a networked environment.As computers become more and more utilized in our world today, reliability is the more significant feature, level off more important than speed. Although performance is largely a function of hardware platform, it is in the area of reliability that the choice of operating systems has the most influence. An operating system may offer more functionality. Also, it may be more scalable. To add to that it may even offer greater ease of system management. But if you are constantly being challenged with glitches in the system and are unable to even get any use out of the system because it is always down, what good are these advantages?Processing power is largely a function of computer hardware rather than of the operating system. Since most commercial Unix operating systems run only on high-end workstations or servers, Unix has historically been considered an operating system for high-end hardware. To say that Unix outperforms NT based on the results of differing hardware would be unfair to Microsoft.One should compare NT Servers performance to that of Linux or FreeBSD, since all three operating systems run on the same hardware which is Intel, the hardware-type most often used with NT. A truly unbiased comparison of performance would have to be based on benchmarks, but these are few and usually only focus on specific areas like web performance. There are some specific issues that affect performance. Unix does not require a graphical user interface to function while NT does. Graphics require incredible a mounts of disk space and memory, the same holds true for sound files.This report provides assistance to managers in selecting a NOS to implement. Comparison points have been presented which are factors in the decision making process. These decision factors have become apparent through research and experience. Each specific decision factor is weighted on its significance concerning the network operating system. Listed to a lower place is the comparison of the factors between Unix and NT.*The training factors are based on amount of training required, less training is rated as more desirable.Using quantitative methods with the amount in figure 1 the following scenario has been developed. A manager is interested in purchasing a NOS for his company. He would benefit by first evaluating the items on this list, rating each factor from one to ten, the most desirable being ten. An example is given below.

The New Deal

Before the 1932 election, Roosevelt had promised the flock of the States a New Deal that would succor them to recover the effects of the Great Depression. It had lasted intravenous feeding long years, and had caused suffering for the American people. When Roosevelt had taken office as the President Of The United States in 1933 he put the New Deal into order. The New Deal took action to bring about(predicate) immediate economic relief in argonas such as fabrication, agriculture, finance, waterpower, labour and housing.The aims that Roosevelt wanted to achieve with his New Deal was offshootly to spend billions of dollars on creating jobs to be of use for the grams dismissed in America, due to the depression. Another aim of Roosevelts was to rebuild trade and constancy in as many companies and businesses as possible to establish the American Economy up and running once again. His final aim was to improve the lives of the ordinary Americans. To help them to acquire a fair and w ell- gainful job to depend after their families and to have an over each, soften quality of life.In his scratch line wizard hundred days of presidency, Roosevelt introduced his basic New Deal, and established a host of first principle Agencies. They were so named, for their abbreviations. The first of his New Deal programs was the Federal Emergency Relief work (FERA). This was approved on the 12th May 1933. Although the act extended federal participation in relief for more than two years, it then decided to change the nature of its funding. This was from loans to direct grants for the use of several States. FERA was alike supportive of approximately phoebe bird cardinal households each month and funded thousands of work be sicks for the unemployed.It also provided vacci demesnes and literacy classes for the millions of poor and uneducated population. The aims that had been achieved by Roosevelt with the FERA was that gold had been spent creating jobs, and that many live s had been improved as they had, on some cases learnt to read and write and most work force had received a job due to the work projects. The Emergency Banking conduct was close to one of first things that Roosevelt introduced. It was responsible for closing d take weak inhibitionks and remunerative the strong ones to stay open and carry on with business.Trade and industry was the only aim achieved by Roosevelt with this alphabet effect. It had re build that banking world which seemed to be the centre of all industries, as capital is needed and stored by the bank itself. The Tennessee Valley Authority (TVA), ran by Harry Hopkins, was introduced as an alphabet agency. This was because of foregoing years of extensive flooding in the many states surrounding the Tennessee River, which caused all the good and rich soil to be washed forth with the river water. This was a major problem, as crops could never be grown for food in such dreadful conditions.Roosevelt solved this problem b y means of hiring unemployed men to build dams and reservoirs, to prevent soil erosion and to encourage irrigation, which helped to moisten the dry and hard soil to be able to grow crops for food. The aims achieved by the TVA were that money was spent on the jobs created to build the dams and reservoirs for the unemployed, and that lives of ordinary Americans were made a lot better as floods would no longer occur, destroying their food. The Civil Works Administration (CWA) was an agency used to build structures that the public would benefit from such as a bridge, road, school, hospital or library.Roosevelt gave the unemployed the job of doing this. The aims that Roosevelt achieved with the CWA was that money was being spent on creating jobs, again because of the unemployment situation being reduced as men were building things of a public use. This is why the lives of ordinary Americans were improved due to the innovative buildings for sale for them to seek medical help or for an e ducational purpose. The National Recovery Administration (NRA) was completed by major industries that joined the program promising to be fair in their businesses, and not to take advantage of the staff and buyers.Things such as prices being at a tenabilityable amount, and wages being of a fair price as well. In exchange for this, Roosevelt allowed the industries the opportunity to display the symbol of the Blue Eagle on the manufactured goods that they stoold. Also including posters and vehicles. Anything to do with the industry involved with the NRA. The Blue Eagle symbolized to the American people that they had joined forces with the president to help with the success of the New Deal and to help America achieve a better standard of life.The aims that Roosevelt had led to success were that trade and industry was rebuilt due to the public buying their products, allowing money to be made by themselves. The quality of the American life had increased as well. The Securities and Excha nge Commission (SEC) was created in 1934 to serve as a federal watchdog administrative agency to protect the public and personal investors from stock market fraud, deception and insider manipulation on Wall Street. The SEC is still in existence today, (its reputation was flawed a bit by the Enron collapse in 2001-02)The aims of this were to improve the lives of Americans by protecting them from things that could potentially damage their lifestyle or business. The CCC, PWA, AAA and the NYA and WPA of the second new deal grew as the agencies wield increasing amounts of money into the economy. Roosevelt had many opponents to his New Deal programs that not even the angriest of them had much to say against the good work initiated by the Civilian preservation Corps (CCC). It was not only one of the first organizations to begin operation, but was also one of the most successful.Its major role was to pay the town dwellers to play to the country and help the people there. It also provide d financial support and helped implement preservation projects. In its nine years of existence, it put twenty five million young men to work planting two hundred million trees, digging drainage ditches, building firebreaks, clearing campgrounds and building reservoirs. This great effort of conservation and reforestation benefited not only the nation, but also the men themselves. The average enlistment for an employee in one of these camps was ten months.The CCC had many camps in the El Paso ara, including those in Fabens, Ascarate, Ysleta and Elephant Butte in New Mexico. CCC workers completed major improvements at Elephant Butte. Including the planting of four thousand, five hundred trees and building a clubhouse. Campsites, cabins and a playground. They also widened and straightened roads around the dam and built several new stretches of roads. The aims achieved by the CCC were that money up to sums of millions of dollars were being spent to get young, healthy men to work with th e CCC to be involved in reforestation and conservation of the country.Also the lives of ordinary Americans were being improved by the effort in improving the countryside to make it a better, healthier and more enjoyable area to live. People would be able to use or enjoy the things that had been made or built such as the forest. The Public Works Administration (PWA) was established by the NIRA in 1933. It was intended both for industrial recovery and unemployment relief. Eventually over four billion dollars was spent on thirty four, thousand construction projects including things such as public buildings, highways, bridges or dams for water and power.The aims that Roosevelt managed to make happen with the PWA were the first one of spending money to create jobs for building, and improving the lives of ordinary Americans as they could make use of the things built. The Agricultural Adjustment Acts (AAA) was an agent whose job it was to pay farmers to produce less by not using their la nd. This was because of the farmers already producing too much, which was part of the overproduction of the Great Depression. Roosevelt promised to pay the farmers, in exchange for them leaving some of their own fields alone.This was so that the prices of goods would remain steady. The AAA attempted to raise prices by controlling production of major crops through cash subsidies to farmers. In 1934, the AAA paid the El Paso County Cotton Committee three point five million dollars for their cotton crops, by the AAA. This included over two hundred, thousand dollars in letting payments for land that was taken out of their production. The aim Roosevelt managed to achieve here, was that trade began to rebuild itself. Because the prices remained steady, the businesses were able to get on with their work and make steady progress each day.By 1935 Roosevelts New Deal had ran into serious difficulties. It was decided that some of the Alphabet Agencies were unconstitutional and Trade Unions we re organizing strikes to complain about low wages. Instead of giving up, Roosevelt introduced new laws to replace the ones that the Supreme Court had ruled unlawful. These became known as the Second New Deal. It was aimed at improving the social welfare, such as wages and employees. Compared to the first new deal that was aimed at the local, and ordinary Americans and improving their lives, and the businesses and industries in America.The Works Progress Administration (WPA) replaced the CWA. By 1935, local residents felt the ever-increasing art collection at Springville High School, needed a larger facility for its preservation and display. Nebo School District donated a lot, the city if Springville donated approximately twenty-nine, thousand dollars in equipment and materials, the LDs Church donated twenty, thousand dollars or more, and the federal government, through the WPA spent fifty-four, thousand dollars on the project.Work began on 23rd November 1935, where the WPA was resp onsible for the manufacturing of the tile for the museum. The work was complete under the oversight of Virgil Hafen, a local artist. Although most of the alphabet agencies were organised for temporary solutions to relieve problems, the agencies permanently broadened federal interest and involvement. The aims achieved by the WPA were all of them. The first being money spent on creating jobs, with the same reason as the CWA, jobs were being created in reorganising and moving the art work.The trade and industry was being rebuilt, as the artwork would be in a much better condition to view and maybe sell. And the lives of Americans were improving due to the wages given so they could afford food and present to have a better quality of life. The National Youth Administration (NYA) was created under the emergency relief act of 1935. It provided more than four point five million jobs for young people. in that respectfore, the aim achieved here was the first millions of jobs were available for young people of America, which meant their life was improving due to the help that their wages could give them.The Wagner Act replaced the NRA which the Supreme Court had ruled illegal. This new law gave workers the right to join Trade Unions so that they could work together to improve working conditions and pay. Employers were now forbidden from stopping workers joining Trade Unions and a National Labour Relations Board was set up to make sure the employers obeyed. Unlike it was before 1935, when it was illegal to join a union. The aim achieved here was that lives were improved of Americans.It gave them the opportunity to have a say in what they are entitled to in regards to the work place, and treat what a fair wage would be for them to earn. The complaisant Security Act (SSA) was responsible for allowing workers to pay into a fund to receive benefits at a later(prenominal) date when they were out of work. It also provided the use of a public assistance program for depend ant mothers, children and the physically disabled, and an unemployment benefit. The aim achieved by the SSA was the third of Roosevelts original aims. modify American lives due to the benefits they were getting, especially the unemployed, and the sick. The Rural Electrification Administration lent money to farmers so they could electrify their farming equipment and farm itself. The aims fulfilled by this, were that trade was rebuilt, because of the better quality farms. This would mean better products would be made. Ordinary American lives would also have been improved like the farmers. They would be working in better conditions, and in all likelihood making more money because of it.Finally, money was spent to make jobs in the farm. There was also the Farm Security Administration (FSA). This was used to set up temporary housing for Okies and Arkies who were refugees from Oklahoma and Arkansas, who migrated to California in hope of finding work. The aim was to provide a better quali ty of life for these American people in giving them houses to live in. They were given the opportunity to find a job themselves whilst living a temporary but stable condition. The Fair Labours Act provided the last major piece, of the New Deal legislation in 1938.This important labour law set minimum wage (twenty five cents an hour) and a supreme standard (establishing the forty hour work week). It also severely curbed the use if child labour. Finally, the aims that Roosevelt achieved with this alphabet agency of the Second New Deal were trade and industry being rebuilt, as a standard for wages was set, leaving all businesses with a fair and economical wage for all their employees. And, lives of the Americans were improved because no one working could be cheated in their job of what wage to get. Everyone would be treated as an equal in the work place.The New Deal culpable immigration Differing Perspectives Paper Brittany M. Coiana Critical Thinking and Reading Linda Sheffield Marc h 20, 2013 Should the U. S armed services patrol the boarders? In my opinion I think the military should patrol the boarders. There are many reasons I could think why they should, but Im going to give you my two most important ones. My first reason why the U. S military should patrol the boarders is to stop the illegal aliens from crossing over and causing taxpayers to pay money they shouldnt.Our prison system is over flowing with illegal immigrants and costing us as tax payers to much money to keep them in there. Some are in for drug charges and some are in for murders that could have been permitted if we had a handle on our border patrol. According to The Federation for American immigration meliorate, in an article entitled Criminal Aliens declared Over the past five years, an average of more than 72,000 aliens have been arrested annually on drug charges alone. Among the alien federal prisoners, over half (55 percent) were illegally in the United States at the time of their co nviction. (www. immigration. procon. org) Another reason I feel the U. S military should patrol is because it could execute lives. We have many in our prison system for the murder of our people, but what about the illegal aliens that are getting killed in car wrecks, getting killed by our border officers and being killed because they cant make it through due to weather, starvation or even dehydration. According to NBC news, in an article entitled Deadly crossing Death toll rises among those dreaded for the American Dream stated Crossing the U. S. Mexico border illegally has always been dangerous, but this year heat and drought have made the journey peculiarly deadly. (www. openchannel. nbcnews. com) I think the U. S military would be a great step towards controlling our border. Not only will this save on taxes but also save lives. I think Illegal aliens shouldnt have access to social services such as health care and Medicaid because they are not Americans and they dont pay taxes . Many Americans cant even get on social services or qualify for Medicaid. America has a high rate of low income families and some that are just so poor.Some of these Americans cant even qualify. Having illegal immigrants on top of all that just isnt fair for the true blood Americans. The following results for the nation were compiled from information collected in the 2012 Current Population Survey & Annual Social and Economic Supplement The U. S. Census Bureau announced today that in 2011, median household income gloamingd, the poverty rate was not statistically different from the previous year and the percentage of people without health insurance coverage decreased. Real median household income in the United States in 2011 was $50,054, a 1. percent decline from the 2010 median and the second consecutive annual drop. (www. census. gov) Most of the illegal immigrants dont even pay taxes. So we as tax payers are paying for people that shouldnt even be here. We Americans pay our tax es to live on the land we were born on. Now we are being over taken by a race that is illegal and doesnt even help pay for the land they now live on. The High Cost of Cheap Labor Illegal Immigration and the Federal reckon, wrote by Steven A. Camarota stated Illegals Create Large Net Costs.When defense spending is not considered, illegal households are estimated to impose costs on the federal treasury of $6,949 a year or 58 percent of what other households received. (www. immigration. procon. org) So I believe stoop born Americans should be the only ones to receive social services and Medicaid. This will help out our fellow Americans and give to the people that really need the help in these areas. I really didnt know much about sanctuary cities until I did my research. I will give both sides of the place. Should U. S. government ban sanctuary cities?Yes they should so that many states can get money back in to their government and in to schools. Banning these cities would also slo w down the disgust rate in those states. According to Tina Griego, journalist for the Denver Rocky Mountain News wrote a column titled, Mexican visitors lament stated Colorado would save more than $20 million surrounded by prison costs, and the terror that those 7,300 alien criminals set upon local citizens. (immigrationready. com) But on the other hand I also say no, if we were to take out these cities the state could lose out on a lot of income.Companys would lose customers and end up losing or going bankrupt. So taking out these cities could put a big dent on a lot of income that state could make. According to The Washington Post, in an article entitled Do immigrants help the economy? by Spencer S. Hsu, said The U. S. has benefited greatly over the years from the brain gain of immigration, said author Darrell M. West. (www. voices. washingtonpost. com) So, as you can see they are many sides to this issue in the U. S. and for as me Im still undecided on which side to go for.Th is nation could benefit from those cities and this nation could also not benefit from them. As Americans we vote for the president and hope he makes the right decisions for our country. As a result of this project I have learned that the U. S military should patrol the borders because after reading the article Criminal Aliens by The Federation for American Immigration Reform (FAIR), I found out how much American taxpayers pay in each year for illegal immigrants to stay in our prison system. If we could get the military over to our border it could save us taxpayers a lot of money in the long run.I also have learned that not allowing illegal immigrants the franchise to have access to our social services and Medicaid because we as Americans pay our taxes and we earn our privilege to get these offers. This will also save the American people from paying so much and getting so little. According to Steven A. Camarota, in his article The High Cost of Cheap Labor Illegal Immigration and the Federal Budget I also learned about a new problem in our country, sanctuary cities. Ive learned there are two sides of this issue and its hard for me to decide which side to choose.We as Americans can benefit from both sides of this issue. I think illegal immigration is a big affect for the U. S. because by stopping certain things could save this country a lot of money. Work Cited Are Illegal Aliens Paying Their fair Share of Taxes? Illegal Immigration ProCon. org. Are Illegal Aliens Paying Their fair Share of Taxes? Illegal Immigration ProCon. org. N. p. , n. d. Web. 9 Mar. 2013. http//immigration. procon. org/view. answers. php? questionID=000789. Deadly Crossing Death Toll Rises among Those Desperate for the American Dream. NBC News. N. p. , n. d. Web. 9 Mar. 2013.

Auditing Problems Quiz

Following are multiple choice questions recently released by the AIcertified public calculateant. These questions were released by the AIcertified public accountant with letter answers only. Our editorial board has provided the n mavinssential descriptions. Please none that the AICPA chiefly releases questions that it does NOT intend to use again. These questions and content may or may not be representative of questions you may chthonianwrite on any upcoming exams. 2007 AICPA freshly Released Questions Auditing 1. CPA-05465 Which of the pastime categories is involved in generally authorized studying standards? a. b. c. d. Standards of polish.Standards of training. Standards of fieldwork. Standards of yard. resolve extract c is correct. Generally accepted examineing standards include three categories general standards, standards of fieldwork, and standards of chronicleing. creams a, b, and d are incorrect, based on the above explanation. 1 2007 AICPA pertly Releas ed Questions Auditing 2. CPA-05466 A retailing entity uses the Internet to function and record its purchase transactions. The entitys meeter recognizes that the documentation of details of transactions impart be retained for only a short period of date.To compensate for this limitation, the listener roughly in all probability would a. b. c. d. Compare a take in of paid vendors invoices to the receiving records at year-end. Plan for a outsized measure of tolerable mis bid in substantive tests. discharge tests several times during the year, quite than only at year-end. Increase the sample of transactions to be selected for cutoff tests. attend excerption c is correct. When an entity transmits, forgees, maintains, or accesses earthshaking instruction electronically, some account statement data and source documents may be available only in electronic form, or only at a veritable point in time.The attendant would generally perform tests of simplicitys several times d uring the year to compensate for this limitation. excerpt a is incorrect. Comparing a sample of paid vendors invoices to receiving records provides licence that the company authorized the goods for which it paid, merely only if records are available in sufficient detail to make such a comparison. If exact records are retained for only a short period of time, such comparisons would use up to be performed throughout the year, not sightly at year-end. pickaxe b is incorrect. The studyors idea as to an appropriate level of tolerable misstatement is based on call forations of secularity and inspect run a bump. Increasing this level implies that the hearer is go awaying to accept a larger error, which would not be an appropriate response to the limitation described. Choice d is incorrect. Increasing the sample size related to cutoff scrutiny will not provide try to the highest degree transactions occurring throughout the period under audit, since cutoff examen relat es to year-end. 2 007 AICPA Newly Released Questions Auditing 3. CPA-05467 (Adapted) After testing a clients inbred see to it activities, an hearer discoers a number of momentous deficiencies in the operation of a clients sexual keep backs. Under these circumstances the meeter most plausibly would a. b. c. d. turn a disclaimer of persuasion just about the versed secures as ingredient of the auditors typography. Increase the assessment of control stake and increase the extent of substantive tests. bit a qualified opinion of this finding as part of the auditors write up.Withdraw from the audit because the sexual controls are ineffective. ANSWER Choice b is correct. The auditor uses tests of controls to evaluate control encounter. In situations where in that location are a number of signifi finisht deficiencies in the operation of the clients inbred controls, the auditor would increase the assessment of control seek (and the insecurity of material misstatement) and rescript substantive testing accordingly (for example, by increasing the extent of substantive tests). Choice a is incorrect.An auditor is dominated to communicate significant deficiencies to focusing and those charged with governance, and a disclaimer of opinion on the effectiveness of controls would be include in this communication. However, such disclaimer would not be part of the auditors report on the monetary statements. Choice c is incorrect. Since the auditors report provides an opinion on the pecuniary statements (and not on internal control), significant deficiencies in internal control do not consequence in a qualified opinion. Choice d is incorrect.The auditor fate not withdraw from an audit but because internal controls are ineffective, barely rather would increase the assessment of control fortune and alteration substantive testing accordingly. 3 2007 AICPA Newly Released Questions Auditing 4. CPA-05468 Which of the succeeding(a) procedures would be most effective in reducing attestation hazard? a. b. c. d. Discussion with responsible individuals. Examination of evidence. Inquiries of senior management. Analytical procedures. ANSWER Choice b is correct. turn out pay offed directly by the comptroller (e. . , through physical examination) provides more persuasive evidence than evidence prevailed through inquiry, discussion, or analytic procedures, and on that pointfore overcomes attestation riskiness. Choices a, c, and d are incorrect, based on the above explanation. 4 2007 AICPA Newly Released Questions Auditing 5. CPA-05469 Which of the following is an inherent limitation in internal control? a. b. c. d. inconsistent duties. deficiency of segregation of duties. Faulty human judgment. Lack of an audit committee. ANSWER Choice c is correct.Inherent limitations in internal control are limitations that exist notwithstanding implementation of appropriate controls. For example, faulty human judgment may result in errors in the contrive or use of internal controls. Choice a is incorrect. Assigning incompatible duties to a especial(a) individual indicates a missing control, rather than an inherent limitation in internal control. Choice b is incorrect. Lack of segregation of duties indicates a missing control, rather than an inherent limitation in internal control. Choice d is incorrect.Lack of an audit committee indicates a missing control, rather than an inherent limitation in internal control. 5 2007 AICPA Newly Released Questions Auditing 6. CPA-05470 Which of the following statements is correct regarding a brushup date of a nonpublic companys pecuniary statements performed in accordance with the call forthments on Standards for Accounting and revaluation Services (SSARS)? a. An comptroller essential devote an understanding with the client in an elaboration letter. b. An accountant must take for an understanding of the clients internal control when performing a reexamine. . A review provides an accountant with a basis for expressing expressage bureau on the fiscal statements. d. A review report contains an accountants opinion of the pecuniary statements taken as a whole. ANSWER Choice c is correct. A review report is issued when inquiry and uninflected procedures provide a reasonable basis for the expression of curb assurance on the financial statements. Choice a is incorrect. While the accountant is bringd to establish an understanding with the client, preferably in writing, an liaison letter is not required.Choice b is incorrect. When performing a review under SSARS, the accountant is not required to obtain an understanding of the clients internal control. Choice d is incorrect. A review results in the expression of limited assurance that no material modifications are necessary for the financial statements to be in conformity with generally accepted chronicle principles. The limited nature of the work performed during a review does not provide suffic ient evidence for an opinion on the financial statements taken as a whole. 6 2007 AICPA Newly Released Questions Auditing 7.CPA-05471 Which of the following procedures does a CPA normally perform premiere in a review engagement in accordance with Statements on Standards for Accounting and Review Services (SSARS)? a. b. c. d. Inquiry regarding the clients principles and practices and the method of applying them. Inquiry concerning the effectiveness of the clients system of internal control. Inquiry to identify transactions amid related parties and management. Inquiry of the clients professional advisors, including bankers, insurance agents, and consultants. ANSWER Choice a is correct.In performing a review engagement in accordance with SSARS, the accountant should inquire of management regarding the account principles and practices use, and the method of applying them. Choice b is incorrect. When performing a review under SSARS, the accountant is not required to make inquiries con cerning the clients system of internal control. Choice c is incorrect. The accountant may inquire about the existence of related party transactions, but would probably make a more basic inquiry, about the clients accounting principles and practices, first. Choice d is incorrect.In performing a review engagement in accordance with SSARS, the accountant generally directs his/her inquiries to members of management, not to external parties. 7 2007 AICPA Newly Released Questions Auditing 8. CPA-05472 (Adapted) Which of the following specie transfers results in a misstatement of exchange at December 31, 20X1? Bank Transfer document Transfers a. b. c. d. Disbursement date per books per bank 12 /31/X1 01/05/X2 01/04/X2 01/11/X2 12/31/X1 01/04/X2 01/04/X2 01/05/X2 Receipt date per books per bank 12/31/X1 01/04/X2 01/04/X2 01/04/X2 12/31/X1 12/31/X1 12/31/X1 01/04/X2ANSWER Choice d is correct. Since the disbursement was not recorded until January 20X2 while the receipt was recorded in De cember 20X1, capital will be overstated at December 31, 20X1. Choices a and c are incorrect. Both the disbursement and the receipt are recorded in 20X1, so there will be no misstatement of cash in at December 31, 20X1. Choice b is incorrect. Both the disbursement and the receipt are recorded in 20X2, so there will be no misstatement of cash at December 31, 20X1. 8 2007 AICPA Newly Released Questions Auditing 9.CPA-05473 Which of the following describes how the aim of a review of financial statements differs from the objective of a compilation engagement? a. The firsthand objective of a review engagement is to test the distinguishness of the financial statements lively, but a compilation tests for reasonableness. b. The primary objective of a review engagement is to provide positive assurance that the financial statements are fairly presented, but a compilation provides no such assurance. c. In a review engagement, accountants provide limited assurance, but a compilation expre sses no assurance. . In a review engagement, accountants provide reasonable or positive assurance that the financial statements are fairly presented, but a compilation provides limited assurance. ANSWER Choice c is correct. A review provides limited assurance that there are no material modifications that should be made to the financial statements in parliamentary procedure for them to be in conformity with generally accepted accounting principles, whereas a compilation provides no assurance. Choice a is incorrect. A review does not test for completeness, nor does a compilation test for reasonableness.A review provides limited assurance about the financial statements based on inquiry and analytical review procedures, while a compilation provides no assurance and includes no testing for reasonableness. Choice b is incorrect. A review provides limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformit y with generally accepted accounting principles, and it is based on inquiry and analytical review procedures. Positive assurance (such as an audit opinion) is only provided when more extensive procedures have been erformed. Choice d is incorrect. A review provides limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles, and it is based on inquiry and analytical review procedures. Positive or reasonable assurance (such as an audit opinion) is only provided when more extensive procedures have been performed. A compilation provides no assurance at all. 9 2007 AICPA Newly Released Questions Auditing 10.CPA-05474 (Adapted) Prior to commencing fieldwork, an auditor usually discusses the general audit strategy with the clients management. Which of the following progenys do the auditor and management agree upon at this time? a. b. c. d. The justness of t he entitys plans for dealing with adverse economic conditions. The determination of the fraud risk factors that exist within the clients operations. The control weaknesses to be included in the communication with those charged with governance. The coordination of the assistance of the clients personnel in data preparation.ANSWER Choice d is correct. Prior to commencing fieldwork, an auditor would establish an understanding with the client as to the services to be performed and the overall audit strategy. This understanding may include arrangements involving the conduct of the engagement, such as timing, client assistance, and the availability of documents. Choice a is incorrect. The auditor does not evaluate the appropriateness of the entitys plans for dealing with adverse economic conditions prior to commencing fieldwork.The auditor might consider this as part of evaluating the clients ability to continue as a departure concern, but this would not occur prior to commencing field work. Choice b is incorrect. Determination of existing fraud risk factors is generally made during the fieldwork comprise of the audit, as information and evidence is obtained. Also, fraud risk factors are assessed by the auditor, and would not inescapably be agreed upon with management. Choice c is incorrect. Identification and evaluation of control weaknesses generally occurs during the fieldwork horizontal surface of the audit, as information and evidence is obtained.Only those weaknesses that rise to the level of being significant deficiencies (or material weaknesses) are required to be communicated to those charged with governance. 10 2007 AICPA Newly Released Questions Auditing 11. CPA-05475 (Adapted) An auditors engagement letter most likely would include a statement that a. b. c. d. Lists potential significant deficiencies discovered during the prior years audit. Explains the analytical procedures that the auditor expects to apply. Describes the auditors responsibility t o evaluate going concern issues.Limits the auditors responsibility to detect errors and fraud. ANSWER Choice d is correct. An auditors engagement letter typically includes discussion of limitations of the engagement, such as the fact that the auditor will obtain only reasonable assurance, and therefore a material misstatement may remain undetected. Choice a is incorrect. An auditors engagement letter typically covers the objectives of the engagement, managements responsibilities, the auditors responsibilities, limitations of the engagement, and other matters involving the conduct of the audit.Potential significant deficiencies discovered during the prior years audit would not typically be included in the engagement letter. Choice b is incorrect. While the auditors engagement letter might include a discussion of the overall audit strategy, it typically would not include particular audit procedures. Choice c is incorrect. While the auditors engagement letter might include a discussio n of the auditors responsibilities, this is usually discussed in fairly general terms. An engagement letter would not describe the auditors responsibility with heed to specific issues (such as going concern issues). 1 2007 AICPA Newly Released Questions Auditing 12. CPA-05476 Which of the following factors most likely would cause a CPA to decline to accept a overbold audit engagement? a. b. c. d. The CPA does not understand the entitys operations and industry. Management acknowledges that the entity has had recurring run losses. The CPA is futile to review the predecessor auditors on the job(p) papers. Management is unwilling to permit inquiry of its statutory counsel. ANSWER Choice d is correct. If a prospective client is unwilling to permit inquiry of its legal counsel, the CPA must consider the implications of this refusal.Such refusal may indicate a lack of cooperativeness on the part of management, or an attempt to be slight than open with respect to litigation, claims , and assessments. Furthermore, a clients refusal to permit inquiry of its legal counsel normally would result in a disclaimer of opinion. It would be unlikely that a CPA would accept a new engagement under these circumstances. Choice a is incorrect. An understanding of the clients operations and industry should be obtained during the planning stage of the audit.It does not necessarily need to be obtained onward acceptance of the engagement. Choice b is incorrect. The fact that the entity has had recurring operating losses may increase the auditors assessment of risk on the engagement, but it would not preclude acceptance of the engagement. Choice c is incorrect. Although the predecessors audit documentation provides some audit evidence with respect to opening balances, consistency of accounting principles, and other matters of continuing significance, alternative means of obtaining such evidence generally do exist. 2 2007 AICPA Newly Released Questions Auditing 13. CPA-05477 An e nterprise engaged a CPA to audit its financial statements in accordance with Government Auditing Standards (the Yellow Book) because of the provisions of government grant funding agreements. Under these circumstances, the CPA is required to report on the enterprises internal controls either in the report on the financial statements or in a. b. c. d. The report on the performance audit. The notes to the financial statements. A letter to the government funding agency.A separate report. ANSWER Choice d is correct. The report on the audit of the financial statements should describe the scope of the auditors testing of accord with laws and regulations and internal control over financial reporting, and should either present the results of those tests or refer to a separate report containing that information. Choice a is incorrect. The CPA was engaged to audit financial statements in accordance with the Yellow Book, not to perform a performance audit. Choice b is incorrect.The notes to t he financial statements are a management representation and would not be utilize by the CPA to comply with requirements to either report or opine in conformity with Yellow Book requirements. Choice c is incorrect. governmental Auditing Standards require that the auditor describe the scope of the auditors testing of compliance with laws and regulations and internal control over financial reporting and present the results of those tests as part of their report or in a separate report, not simply in a letter to the funding agency. 13 2007 AICPA Newly Released Questions Auditing 14.CPA-05478 An auditor determines that the entity is presenting veritable ancillary financial disclosures of pension information that are required by the GASB. Under these circumstances, the auditor should a. Add an explanatory paragraph to the auditors report that refers to the required supplementary information. b. State that the audit is not being performed in accordance with generally accepted auditing standards. c. Document in the working papers that the required supplementary information is presented, but should not apply any procedures to the information. . Compare the required supplementary information for consistency with the audited financial statements. ANSWER Choice d is correct. The auditor should perform certain limited procedures on supplementary information accompanying the financial statements, including evaluating whether the information is consistent with the audited financial statements. Choice a is incorrect. Generally, the auditors report on the financial statements would not include a role to required supplementary information unless there were a problem with it (e. . , it was omitted, inappropriately prepared, or the auditor was unable to satisfactorily complete required procedures). Choice b is incorrect. An audit can and should be performed in accordance with generally accepted auditing standards even when required supplementary information is presented. Cho ice c is incorrect. The auditor should perform certain limited procedures on supplementary information accompanying the financial statements. 14 2007 AICPA Newly Released Questions Auditing 15. CPA-05479 Comfort letters ordinarily are a. . c. d. Addressed to the clients Audit committee Underwriter of securities Audit committee Underwriter of securities Signed by the clients Independent auditor higher-ranking management Senior management Independent auditor ANSWER Choice d is correct. A comfort letter is a letter from the independent auditor to the named underwriter just forward the registration of the clients securities. Choices a, b, and c are incorrect, based on the above explanation. 15 2007 AICPA Newly Released Questions Auditing 16.CPA-05480 Which of the following factors would most likely find out an auditors consideration of the reliability of data when performing analytical procedures? a. b. c. d. Whether the data were developed in a computerized or a manual accounting system. Whether the data were prepared on the cash basis or in conformity with GAAP. Whether the data were developed under a system with adequate controls. Whether the data were processed in an online system or a batch entry system. ANSWER Choice c is correct. Strong, effective internal controls improve the reliability of data.Choice a is incorrect. The type of accounting system used does not affect the reliability of data. Both computerized and manual accounting systems can provide reliable data, as long as there are appropriate controls in place. Choice b is incorrect. The accounting basis used does not affect the reliability of data. Reliable data may be provided regardless of whether the cash basis or accrual basis (GAAP) is used, as long as there are appropriate controls in place. Choice d is incorrect. The type of processing system used does not affect the reliability of data.Both online systems and batch systems can provide reliable data, as long as there are appropriate con trols in place. 16 2007 AICPA Newly Released Questions Auditing 17. CPA-05481 When an auditor tests the internal controls of a computerized accounting system, which of the following is accredited of the test data approach? a. attempt data are coded to a dummy subsidiary so they can be extracted from the system under actual operating conditions. b. Test data programs need not be tailor-made by the auditor for each clients computer applications. c.Test data programs usually consist of all possible valid and invalid conditions regarding compliance with internal controls. d. Test data are processed with the clients computer and the results are compared with the auditors predetermined results. ANSWER Choice d is correct. The test data approach refers to a technique in which the clients application program is used to process a set of test data, the results of which are already known by the auditor. If the clients program is operating effectively, it should suffer the same results dete rmined by the auditor. Choice a is incorrect.An structured test facility (not a test data approach) utilizes dummy accounts. For example, using an integrated test facility (ITF) approach, test data is initially commingled with live data, but coding to a dummy account allows later extraction from the system under actual operating conditions. Choice b is incorrect. Test data programs should be tailor-made by the auditor for each clients computer applications, to ensure that the data is in an appropriate form for that clients system, and that it includes the types of invalid conditions in which the auditor is interested. Choice c is incorrect.Test data contains the types of valid and invalid conditions in which the auditor is interested (it is not necessary to test all combinations of valid and invalid conditions). 17 2007 AICPA Newly Released Questions Auditing 18. CPA-05482 Under which of the following circumstances would an auditors expression of an unqualified opinion be inapprop riate? a. b. c. d. The auditor is unable to obtain the audited financial statements of a significant subsidiary. The financial statements are prepared on the entitys income tax income basis. There are significant deficiencies in the design and operation of the entitys internal control.Analytical procedures indicate that many year-end account balances are not comparable with the prior years balances. ANSWER Choice a is correct. If the auditor is unable to obtain the audited financial statements of a significant subsidiary, a scope limitation exists. Assuming the effect is material, the auditor would issue either a qualified opinion or a disclaimer of opinion. Choice b is incorrect. Financial statements prepared on an entitys income tax basis are other comprehensive basis of accounting (OCBOA) financial statements.The auditor may issue a special report, which can include an unqualified opinion, on OCBOA financial statements. Choice c is incorrect. Significant deficiencies in the desig n and operation of an entitys internal control do not preclude issuance of an unqualified opinion, although they do increase the risk of material misstatement and will likely result in modifications to the nature, timing, and extent of the auditors testing. Choice d is incorrect. An unqualified opinion may still be expressed when there are significant changes in year-end account balances as compared to prior year balances, as long as the auditor as obtained sufficient appropriate audit evidence about the true balances. 18 2007 AICPA Newly Released Questions Auditing 19. CPA-05483 An auditors ace objective in analyzing repairs and maintenance expense accounts is to a. b. c. d. Determine that all obsolete plant and equipment assets were written off forrader the year-end. Verify that all recorded plant and equipment assets very exist. Discover expenditures that were expensed but should have been capitalized. Identify plant and equipment assets that cannot be repaired and should be written off. ANSWER Choice c is correct.The auditor reviews repair and maintenance expense accounts to test for completeness of asset additions (i. e. , the auditor is looking for items recorded as repairs or maintenance that would more by rights have been capitalized as betterment of an asset). Choice a is incorrect. Analyzing the repairs and maintenance account does not provide evidence about obsolete assets. The auditor might review asset records for old assets, or observe assets that are not being used, in an effort to determine whether obsolete plant and equipment assets were written off forward year-end.Choice b is incorrect. Analyzing the repairs and maintenance account does not provide evidence about the existence of assets. The auditor might select recorded plant and equipment assets, and then physically locate and observe them, in order to verify existence. Choice d is incorrect. Analyzing the repairs and maintenance account does not provide evidence about assets that cannot be repaired. The auditor might review asset records for old assets, or observe assets that are not being used, in an effort to determine whether assets that cannot be repaired have been properly written off. 9 2007 AICPA Newly Released Questions Auditing 20. CPA-05484 Which of the following statements is correct concerning materiality in a financial statement audit? a. Analytical procedures performed during an audits review stage usually decrease materiality levels. b. If the materiality amount used in evaluating audit findings increases from the amount used in planning, the auditor should apply additional substantive tests. c. The auditors materiality judgments generally involve quantitative, but not qualitative, considerations. d.Materiality levels are generally considered in terms of the smallest aggregate level of misstatement that could be considered material to any one of the financial statements. ANSWER Choice d is correct. Because the financial statements are interre lated, materiality levels are generally considered in terms of the smallest level of misstatement that could be material to any one of the financial statements. Choice a is incorrect. Analytical procedures are performed during an audits review stage to evaluate the overall financial statement presentation and to assess the conclusions reached.They generally would not result in a change in materiality levels. Choice b is incorrect. If the materiality amount used in evaluating audit findings increases from the amount used in planning, the auditor should consider whether the audit plan needs to be modified. Typically, an increase in materiality levels would result in a decrease in audit risk, which would result in less substantive testing, not more. Choice c is incorrect. Qualitative considerations may lead to situations in which misstatements that do not distance materiality limits are still likely to influence the economic decisions of users.In such cases, an otherwise immaterial mi sstatement is deemed to be material. 20 2007 AICPA Newly Released Questions Auditing 21. CPA-05485 As a result of tests of controls, an auditor assesses control risk too high. This incorrect assessment most likely occurred because a. Control risk based on the auditors sample is less than the true operating effectiveness of the clients control operation. b. The auditor believes that the control activity relates to the clients assertions when, in fact, it does not. c. The auditor believes that the control activity will reduce the extent of substantive testing when, in fact, it will not. . Control risk based on the auditors sample is greater than the true operating effectiveness of the clients control activity. ANSWER Choice d is correct. The risk of assessing control risk too high is the risk that the assessed level of control risk based on the sample is greater than the true risk based on the actual operating effectiveness of the control. Choice a is incorrect. The risk of assessin g control risk too low is the risk that the assessed level of control risk based on the sample is less than the true risk based on the actual operating effectiveness of the control.Choice b is incorrect. Assessing control risk too high relates to an incorrect evaluation of risk by the auditor, not to whether the control activity relates to the clients assertions. Choice c is incorrect. If the auditor believes that a control activity will reduce the extent of substantive testing when, in fact, it will not, this implies that the control risk based on the auditors sample was less than the true risk based on the actual operating effectiveness of the control. This would be an example of assessing control risk too low, not too high. 21 007 AICPA Newly Released Questions Auditing 22. CPA-05486 At the conclusion of an audit, an auditor is reviewing the evidence gathered in support of the financial statements. With regard to the valuation of inventory, the auditor concludes that the eviden ce obtained is not sufficient to support managements representations. Which of the following actions is the auditor most likely to take? a. b. c. d. Consult with the audit committee and issue a disclaimer of opinion. Consult with the audit committee and issue a qualified opinion. Obtain additional evidence regarding the valuation of inventory.Obtain a statement from management supporting their inventory valuation. ANSWER Choice c is correct. If an auditor has doubts about a material assertion (such as the valuation of inventory), he/she should gather sufficient evidence to eliminate the doubt. Choices a and b are incorrect. The auditor would not consult with the audit committee regarding the sufficiency of audit evidence obtained, as this is determined based on the auditors own judgment. In addition, if the auditor is able to obtain additional evidence, it might be possible to issue an unqualified opinion.Finally, even if no additional evidence is available, the auditor will still n eed to set whether a qualified opinion or a disclaimer of opinion is more appropriate, de unfinished on materiality. Choice d is incorrect. Since management representations are in fact statements from management, obtaining additional statements from management would not provide additional support. 22 2007 AICPA Newly Released Questions Auditing 23. CPA-05487 An audit supervisor reviewed the work performed by the staff to determine if the audit was adequately performed. The supervisor accomplished this by primarily reviewing which of the following? a. b. c. d.Checklists. Working papers. Analytical procedures. Financial statements. ANSWER Choice b is correct. Audit documentation, or working papers, comprises the principal record of audit procedures performed, evidence obtained, and conclusions reached. Reviewing the working papers allows a supervisor to understand the work performed and the evidence obtained, and to evaluate whether the audit was adequately performed. Choice a is in correct. Checklists might be used within the audit documentation, but checklists alone would not provide a comprehensive record of the audit procedures performed, the evidence obtained, and conclusions reached.Choice c is incorrect. Analytical procedures might be documented within the working papers, but such procedures alone would not provide a comprehensive record of the audit procedures performed, the evidence obtained, and conclusions reached. Choice d is incorrect. Reviewing the financial statements would provide no information regarding the audit procedures performed, the evidence obtained, or conclusions reached, and therefore would provide no basis on which to review the work performed by the staff. 23 2007 AICPA Newly Released Questions Auditing 24.CPA-05488 The auditors inventory observation test counts are traced to the clients inventory listing to test for which of the following financial statement assertions? a. b. c. d. Completeness. Rights and obligations. Allocation and valuation. Understandability and classification. ANSWER Choice a is correct. The auditor should test the physical inventory report by tracing test counts taken by the auditor to the report, thereby verifying its completeness. Choice b is incorrect. Tracing from test counts to the clients inventory listing does not test rights and obligations.Rights and obligations might be tested by examining paid vendors invoices, inspecting consignment agreements and contracts, or by confirm inventory held at outside locations. Choice c is incorrect. Tracing from test counts to the clients inventory listing does not test allocation and valuation. Allocation and valuation might be tested by examining paid vendors invoices, evaluating direct labor rates, recalculating overhead rates, or examining an analysis of inventory employee turnover. Choice d is incorrect. Tracing from test counts to the clients inventory listing does not test understandability and classification.Understandability and c lassification might be tested by confirming inventories pledged under loan agreements, examining drafts of the financial statements for appropriate balance sheet classification, etc. 24 2007 AICPA Newly Released Questions Auditing 25. CPA-05489 Which of the following is an analytical procedure that an auditor most likely would perform when planning an audit? a. b. c. d. Confirming bank balances with the financial institutions. Scanning accounts receivable for amounts over credit limits. Recalculating inventory extensions of physical inventory counts.Comparing the current-year account balances for conformity with predictable patterns. ANSWER Choice d is correct. During planning, analytical procedures consist of a review of data aggregated at a high level, with an objective of enhancing the auditors understanding of the client. Comparing the current-year account balances for conformity with predictable patterns would fulfill this purpose. Choice a is incorrect. Confirmation of bank b alances is a substantive audit procedure (not an analytical procedure) that would be performed during the fieldwork stage of the audit. Choice b is incorrect.Scanning accounts receivable for amounts over credit limits is a detailed procedure related to one specific account, and it would be performed during the fieldwork stage of the audit. Choice c is incorrect. Recalculating inventory extensions of physical inventory counts is a detailed procedure related to one specific account, and it would be performed during the fieldwork stage of the audit. 25 2007 AICPA Newly Released Questions Auditing 26. CPA-05490 In which of the following circumstances is substantive testing of accounts receivable before the balance sheet date most appropriate? . b. c. d. The client has a new gross revenue incentive program in place. Internal controls during the remaining period are effective. There is a high turnover of senior management. It is a first engagement of a new client. ANSWER Choice b is corr ect. The higher the auditors risk assessment, the closer to period end substantive procedures should be performed. Conversely, effective controls reduce control risk and reduce the risk of material misstatement, allowing more interim testing to occur. Choice a is incorrect.A new sales incentive program results in an increase in the risk of material misstatement, making it less likely that interim testing will be performed. Choice c is incorrect. High turnover of senior management results in an increase in the risk of material misstatement, making it less likely that interim testing will be performed. Choice d is incorrect. In the first engagement of a new client, the auditor will have less knowledge of the client and therefore would be less inclined to utilize interim testing, which increases audit risk. 26 2007 AICPA Newly Released Questions Auditing 27.CPA-05491 An auditor reads the letter of transmittal accompanying a countys comprehensive annual financial report and identifies a material inconsistency with the financial statements. The auditor determines that the financial statements do not require revision. Which of the following actions should the auditor take? a. b. c. d. Request that the client revise the letter of transmittal. Include an explanatory paragraph in the auditors report. Consider withdrawing from the engagement. Request a client representation letter acknowledging the inconsistency. ANSWER Choice a is correct.When information accompanies audited financial statements in a client-prepared document, the auditor is required to read the information. If such information is materially inconsistent with the financial statements and the financial statements do not require revision, the auditor should request that the information (in this case the letter of transmittal) be revised. Choice b is incorrect. The auditor would only revise the report to include discussion of the material inconsistency if the client were unwilling to revise the transmitta l letter appropriately. Choice c is incorrect.The auditor would only consider withdrawing from the engagement if the client were unwilling to revise the transmittal letter appropriately. Choice d is incorrect. The auditor would not request a client representation letter acknowledging the inconsistency, as correction (and not simply acknowledgment) of the error is desired. 27 2007 AICPA Newly Released Questions Auditing 28. CPA-05492 An analysis of which of the following accounts would best aid in verifying that all fixed assets have been capitalized? a. b. c. d. Cash. Depreciation expense. Property tax expense. Repairs and maintenance.ANSWER Choice d is correct. An analysis of the repairs and maintenance account would best aid the auditor in verifying that all fixed assets have been capitalized. This account is generally analyzed to test for completeness of asset additions (i. e. , the auditor is looking for items recorded as repairs or maintenance that would more properly have bee n capitalized as betterment of an asset). Choice a is incorrect. An analysis of cash would not identify fixed assets that were not properly capitalized, since cash would be paid for the purchase regardless of whether the item were expensed or capitalized.Choice b is incorrect. An analysis of derogation expense would not identify fixed assets that were not properly capitalized, since no depreciation would be included for items not already classified as assets. Choice c is incorrect. An analysis of post tax expense would not identify fixed assets that were not properly capitalized, since no property tax would be included for items not already classified as assets. 28 2007 AICPA Newly Released Questions Auditing 29. CPA-05493 When companies use information technology (IT) extensively, evidence may be available only in electronic form.What is an auditors best course of action in such situations? a. b. c. d. Assess the control risk as high. Use audit software to perform analytical pro cedures. Use generalized audit software to extract evidence from client databases. Perform limited tests of controls over electronic data. ANSWER Choice c is correct. When companies use information technology (IT) extensively and evidence is available only in electronic form, generalized audit software packages generate the programs necessary to interrogate the files and extract and analyze the data. Choice a is incorrect.The use of information technology does not automatically imply that control risk is high. The auditor would need to evaluate the clients controls to make this determination. Choice b is incorrect. Although audit software might be used to perform analytical procedures, the data would first need to be extracted from the clients system. A generalized audit software package is the best way to do this. Choice d is incorrect. If information technology is used extensively, the auditor would likely perform more than limited tests of controls over electronic data. 29 2007 A ICPA Newly Released Questions Auditing 30.CPA-05494 The ultimate purpose of assessing control risk is to contribute to the auditors evaluation of the risk that a. b. c. d. Specific internal control activities are not operating as designed. The collective effect of the control environment may not achieve the control objectives. Tests of controls may fail to identify activities relevant to assertions. Material misstatements may exist in the financial statements. ANSWER Choice d is correct. The auditors ultimate purpose assessing control risk is to evaluate the risk of financial statement misstatement.Choice a is incorrect. The auditors evaluation of whether or not specific internal control activities are operating as designed is part of his/her assessment of control risk however, the ultimate purpose of making this assessment is to evaluate the risk of financial statement misstatement. Choice b is incorrect. The auditors evaluation of the collective effect of the control environment is part of his/her assessment of control risk however, the ultimate purpose of making this assessment is to evaluate the risk of financial statement misstatement. Choice c is incorrect.Tests of controls are not used to identify activities relevant to assertions. Tests of controls are used to evaluate the operating effectiveness of internal control in preventing or detecting material misstatements. 30 2007 AICPA Newly Released Questions Auditing 31. CPA-05495 After making inquiries about credit granting policies, an auditor selects a sample of sales transactions and examines evidence of credit approval. This test of controls most likely supports managements financial statement assertion(s) of Rights and obligations Yes Yes No No Allocation and valuation Yes No Yes No a. b. c. d. ANSWER Choice c is correct.By ensuring that credit approval is obtained before goods are shipped to customers, the auditor is testing managements assertion that accounts receivable are collectible (allocatio n and valuation). Ensuring that credit approval is obtained before goods are shipped does not support the rights and obligations assertion. Choices a, b, and d are incorrect, based on the above explanation. 31 2007 AICPA Newly Released Questions Auditing 32. CPA-05496 Which of the following characteristics most likely would be an advantage of using classical variables try out rather than probability-proportional-to-size (PPS) take in? . b. c. d. The selection of negative balances requires no special design considerations. The consume process can begin before the complete population is available. The auditor need not consider the preliminary judgments about materiality. The sample will result in a little sample size if few errors are expected. ANSWER Choice a is correct. Inclusion of negative balances requires special design considerations with PPS sample, but it does not require special design considerations with classical variables sampling. Choice b is incorrect.All items in the population should have an equal chance to be included in the sample. Therefore, the sampling process should not begin before the complete population is available, regardless of whether classical variables sampling or PPS sampling is used. Choice c is incorrect. When planning a particular sample for a substantive test of details, the auditor should consider preliminary estimates of materiality. Choice d is incorrect. If no errors are expected, PPS sampling generally requires a smaller sample than other methods. 32 2007 AICPA Newly Released Questions Auditing 33.CPA- 05497 Which of the following matters is an auditor required to communicate to those charged with governance? a. Adjustments that were suggested by the auditor and recorded by management that have a significant effect on the entitys financial reporting process. b. The auditors consideration of risk factors in assessing the risk of material misstatement arising from the misappropriation of assets. c. The results of th e auditors analytical procedures performed in the review stage of the engagement that indicate significant variances from expected amounts. d.Changes in the auditors preliminary judgment about materiality that were caused by projecting the results of statistical sampling for tests of transactions. ANSWER Choice a is correct. The auditor is required to communicate significant audit findings to those charged with governance. Significant audit findings include material, corrected misstatements brought to managements attention as a result of the audit. Unless all of those charged with governance are also involved with managing the entity, such findings should be communicated by the auditor. Choice b is incorrect.The auditor is not required to communicate with those charged with governance regarding his/her fraud risk assessment. Choice c is incorrect. The auditor is not required to communicate with those charged with governance regarding the results of specific audit procedures. Choice d is incorrect. The auditor is not required to communicate with those charged with governance regarding changes to his/her preliminary judgment about materiality. 33 2007 AICPA Newly Released Questions Auditing 34. CPA-05498 For which of the following audit tests would a CPA most likely use attribute sampling? . b. c. d. Identifying entries posted to incorrect accounts. Estimating the amount in an expense account. Evaluating the reasonableness of depreciation expense. Selecting receivables for confirmation of account balances. ANSWER Choice a is correct. Attribute sampling is used to estimate a rate of occurrence, and often involves a yes-no question. Attribute sampling could be used to determine the error rate in posting journal entries, perhaps by asking, Is the entry posted to the proper account? Choice b is incorrect.Variables sampling is typically used to estimate a numerical quantity, such as the amount in an expense account. Choice c is incorrect. Variables sampling is typi cally used to estimate a numerical quantity, such as a reasonable amount for depreciation expense. Choice d is incorrect. Attribute sampling is used to estimate a rate of occurrence, not to select the items to include in a sample. 34 2007 AICPA Newly Released Questions Auditing 35. CPA-05499 Which of the following strategies most likely could improve the response rate of the confirmations of accounts receivable? a. b. c. d.Restrict the selection of accounts to be confirmed to those customers with large balances. Include a list of items or invoices that constitute the customers account balances. Explain to customers that discrepancies will be investigated by an independent third party. Ask customers to respond to the confirmation requests directly to the auditor by fax. ANSWER Choice b is correct. The auditor should consider the types of information respondents will be readily able to confirm. For instance, some accounting systems facilitate the confirmation of single transactions r ather than entire balances.In such cases, the auditor might consider including a client-prepared statement of account showing details of the customers account balance being confirmed. By making it easier for customers to determine which items are included in the balance being confirmed, the auditor also makes it more likely that those customers will respond. Choice a is incorrect. Restricting the selection of accounts to be confirmed to those customers with large balances doesnt improve response rates, as customers with large balances are not necessarily more likely to respond than customers with small balances.Choice c is incorrect. Explaining to customers that discrepancies will be investigated by an independent third party would not necessarily encourage them to respond, as they might be reluctant to set off this investigation. Choice d is incorrect. Responses received by fax should be verified by calling the senders and requesting that the original confirmations be mailed back. Asking customers to respond by fax might actually reduce the response rate for receiving the original confirmation, since customers may decide that since they already sent the fax, they dont need to send the original back as well. 5 2007 AICPA Newly Released Questions Auditing 36. CPA-05500 Which of the following procedures would an auditor most likely perform in auditing the statement of cash flows? a. Reconcile the amounts included in the statement of cash flows to the other financial statements amounts. b. Vouch a sample of cash receipts and disbursements for the last few days of the current year. c. Reconcile the cutoff bank statement to the proof of cash to verify the true statement of the year-end cash balance. d. Confirm the amounts included in the statement of cash flows with the entitys financial institution.ANSWER Choice a is correct. To audit the statement of cash flows, the auditor reconciles the amounts on the statement to amounts on other financial statements. Choice b is incorrect. Vouching a sample of cash receipts and disbursements is a procedure used to audit the cash balance, rather than the statement of cash flows. Choice c is incorrect. Reconciling the cutoff bank statement to the proof of cash to verify the accuracy of the year-end cash balance is a procedure used to audit the cash balance, rather than the statement of cash flows. Choice d is incorrect. Confirming cash amounts with the entitys financial institution is a procedure used to audit the cash balance, rather than the statement of cash flows. 36 2007 AICPA Newly Released Questions Auditing 37. CPA-05501 In establishing the existence and willpower of long-term investments in the form of publicly-traded stock, an auditor most likely would inspect the securities or a. b. c. d. Correspond with the investee company to verify the number of shares have. Confirm the number of shares owned that are held by an independent custodian.Apply analytical procedures to the dividend income an d investments accounts. Inspect the cash receipts journal for amounts that could represent the sale of securities. ANSWER Choice b is correct. Confirmations should be pass along from the custodian for securities that are in the possession of third parties. Choice a is incorrect. The investee company may not have timely information regarding the ownership of its stock, nor would an investee typically want to correspond with all of its shareholders in this manner.Choice c is incorrect. Analytical procedures might be used to test the reasonableness of dividend income, but this would not provide evidence about the existence and ownership of the investments. Choice d is incorrect. Inspecting the cash receipts journal for amounts that could represent the sale of securities might provide evidence regarding sales (and gains or losses on sales), but would not provide evidence about the existence and ownership of the investments. 37 2007 AICPA Newly Released Questions Auditing 38.CPA-05502 The standard report issued by an accountant after reviewing the financial statements of a nonpublic entity should state that a. A review is limited to presenting in the form of financial statements information that is the representation of management. b. A review consists of inquiries of company personnel and analytical procedures applied to financial data. c. The accountant does not express an opinion or any other form of assurance on the financial statements. d. The accountant did not obtain an understanding of the entitys internal control or assess control risk. ANSWER Choice b is correct.The standard report issued by an accountant after reviewing the financial statements of a nonpublic entity states that a review consists of inquiries of company personnel and analytical procedures applied to financial data. Choice a is incorrect. A compilation report uses language similar to this, stating that a compilation is limited to presenting, in the form of financial statements, informati on that is the representation of management. Choice c is incorrect. A compilation report uses language similar to this, stating that the accountant does not express an opinion or any other form of assurance on the financial statements.A review provides negative assurance. Choice d is incorrect. While it is true that a review of the financial statements of a nonpublic entity does not require the accountant to obtain an understanding of the entitys internal control or assess control risk, the report does not explicitly state this. 38 2007 AICPA Newly Released Questions Auditing 39. CPA-05503 When an accountant compiles project financial statements, the accountants report should include a separate paragraph that a. b. c. d. Explains the difference between a compilation and a review.Documents the assessment of the risk of material misstatement collect to fraud. Expresses limited assurance that the actual results may be within the projected range. Describes the limitations on the proje ctions usefulness. ANSWER Choice d is correct. The accountants report on compiled projected financial statements should include a separate paragraph that describes the limitations on the projections usefulness. For example, the paragraph states that there will usually be differences between projected and actual results, and indicates that the accountant has no responsibility o update the report for events occurring after the date of the report. Choice a is incorrect. The accountants report on compiled projected financial statements does not include an explanation of the difference between a compilation and a review. Choice b is incorrect. The accountants report on compiled projected financial statements does not document the assessment of the risk of material misstatement due to fraud. Choice c is incorrect. The accountants report on compiled projected financial statements does not express limited assurance that the actual results may be within the projected range.In fact, it specif ically states that no opinion or any other form of assurance is expressed, and that there usually will be differences between projected and actual results. 39 2007 AICPA Newly Released Questions Auditing 40. CPA-05504 (Adapted) An auditor intends to use the work of an actuary who has a blood with the client. Under these circumstances, the auditor a. b. c. d. Is required to disclose the contractual relationship in the auditors report. Should assess the risk that the actuarys objectivity might be impaired. Is not permitted to rely on the actuary because of a lack of independence.Should communicate this matter to those charged with governance as a significant deficiency in internal control. ANSWER Choice b is correct. While a specialist who is orthogonal to the client will provide the auditor with greater assurance of reliability, a specialist who is related to the client may be acceptable in certain circumstances. In such situations, the auditor would likely perform additional proc edures to verify objectivity. Choice a is incorrect. If the auditor is expressing a standard unqualified opinion, no reference would be made to the specialist in the auditors report.Choice c is incorrect. While a specialist who is unrelated to the client will provide the auditor with greater assurance of reliability, a specialist who is related to the client may be acceptable in certain circumstances. Choice d is incorrect. The fact that the actuary has a relationship with the client is not considered to be a significant deficiency in internal control. 40 2007 AICPA Newly Released Questions Auditing 41. CPA-05505 Before applying principal substantive tests to an entitys accounts receivable at an interim date, an auditor should a. b. c. d.Consider the likelihood of assessing the risk of incorrect rejection too low. Project sampling risk at the maximum for tests covering the remaining period. Ascertain that accounts receivable are immaterial to the financial statements. Assess the di fficulty in controlling the incremental audit risk. ANSWER Choice d is correct. When audit procedures are performed before year-end, the auditor must assess the incremental risk involved and determine whether sufficient alternative procedures exist to extend the interim conclusions to year-end. Choice a is incorrect.The risk of incorrect rejection relates to the efficiency of audit testing, since an item that is initially (and erroneously) rejected will be subject to additional audit testing that should correct the error. The likelihood of assessing this risk lower than it should be does not affect the auditors decision regarding the appropriate timing of audit work. Choice b is incorrect. When audit procedures are performed before year-end, the auditor must assess the incremental risk involved, but this risk would not necessarily be assessed at the maximum level. Choice c is incorrect.Interim testing may be performed on material accounts, as long as the auditor assesses the increme ntal risk involved and determines whether sufficient alternative procedures exist to extend the interim conclusions to year-end. fresh accounts would not need to be tested. 41 2007 AICPA Newly Released Questions Auditing 42. CPA-05506 (Adapted) Which of the following procedures would a CPA most likely perform in the planning stage of a financial statement audit? a. b. c. d. Obtain representations from management regarding the availability of all financial records.Communicate with those charged with governance concerning the prior years audit adjustments. Make inquiries of the clients attorney regarding pending and threatened litigation and assessments. Compare recorded financial information with anticipated results from budgets and forecasts. ANSWER Choice d is correct. The planning process should include application of analytical procedures, such as comparison of the financial statements with budgeted or anticipated results. Choice a is incorrect. Management representations are t ypically obtained at the end of the audit, not during the planning stage. Choice b is incorrect.Assuming all of those charged with governance are not also involved with managing the entity, the auditor is required to communicate with those charged with governance concerning adjustments arising from the current years audit, not adjustments from the previous year. Choice c is incorrect. Inquiries are typically made of the clients attorney during the fieldwork stage of the audit, not during the planning stage. 42 2007 AICPA Newly Released Questions Auditing 43. CPA-05507 A CPA is engaged to examine managements assertion that the entitys schedule of investment returns is presented in accordance with specific criteria.In performing this engagement, the CPA should comply with the provisions of a. b. c. d. Statements on Standards for Accounting and Review Services (SSARS). Statements on Auditing Standards (SAS). Statements on Standards for Consulting Services (SSCS). Statements on Standar ds for Attestation Engagements (SSAE). ANSWER Choice d is correct. Statements on Standards for Attestation Engagements apply to engagements in which a practitioner is engag