Financial management;Mergers and Acquisition Assignment

Financial management;Mergers and Acquisition - Assignment Example The major reason for citizenship change was to reduce the tax base as it reduced to 26% when both companies combined. Canada usually has a lower tax rate compared to the United States. This move was marred with controversy as many claimed that was tax inversion and it even attracted the attention of president Obama as it was viewed the country’s economy would suffer. Over and above there was no illegality in the relocation hence the company would enjoy lower tax rates ultimately improved the company’s profitability (Shabi, 2012). One of the synergy to be enjoyed by burger king includes revenue synergy. One of the revenue synergy to gain from would be an increase in its market share as by acquiring TimHorton the company also acquired its customers. The company would easy penetrate the Canadian market as TimHorton controlled a large stake of the Canadian market. The acquisition would result to a combined 18000 restaurants in over 100 countries with total sales amounting t o $ 23 billion. Based on burger king would be listed on both the New York stock exchange and Canadian stock exchange. Burger king would also enjoy distribution channels used by TimHorton. Companies buy companies to reach new markets and grow revenues and earnings. A merge may expand two companies marketing and distribution, giving them new sales opportunities. A merger can also improve a companys standing in the investment community: bigger firms often have an easier time raising capital than smaller ones. Burger king would enjoy cost reduction synergies, which include increased economies of scale. The bigger the company the better the purchasing power as size matters. The increase of size would lead to increase in goods sourced from suppliers. Greater quantities would result to increase in discounts offered. This would result in cost reduction and hence increase the organisation productivity. Due to acquisition, there would be reduction of staff, as some would have to lay off to cut

Margaret Atwood Essay Example for Free

Margaret Atwood Essay Margaret Atwood once wrote Does feminist mean a large unpleasant person wholl shout at you or someone who believes women are human beings. To me its the latter, so I sign up. This clearly shows that Atwood believes that feminism is not about depicting a woman as a strong and macho character but a real one with admirable traits and some imperfections. Cats Eye, one of Atwoods acclaimed novels, is distinctively a feminist novel that shows two different kinds of women in society. The first being the stereotypically traditional woman, who is weak and submissive to man. She illustrates this type of woman through her minor characters Ms. Smeath and Susie, both of whom play weak and traditional women who face tragedy in life. Her second kind is the heroic and feminist character that while being admirable and strong has some human weaknesses. She presents this with two unconventional protagonists Elaine Risley and Cordelia. She depicts Elaine and Cordelia as two tough but insecure women who fight to create their unique identity in the society. During the time frame of the book (1940- 1980), society was extremely male dominated especially the literary aspect of it. Most of the famous authors were male and most of the highly regarded books were written in a chauvinistic manner, depicting women as weak, vulnerable, disloyal, unimportant and narrow minded. On the other hand, men were portrayed as heroic, overly strong, and perfect in every sense. Feminist novels, throughout this time, were novels that portrayed women as the hero and protagonists rather than as women. Atwoods Cats Eye, however, differed from the typical feminist novels as it illustrated the women as admirable heroines who were strong and proud but flawed. This brought a realistic touch to the characters as readers were able to understand them better as they seemed more humanlike with strengths and weaknesses. Margaret Atwood cleverly proves her book uniquely feminist through her portrayal of characters as she explores the struggles of dual level of women in society; the stereotypical and vulnerable woman and the strong and unconventional feminist. Ms. Smeath is first introduced as a woman with a weak heart and someone who needs constant rest due to her illness. Already, readers pity her and have a mental image of a weak and frail mother who is in need of help. In contrast, if a novel of the same era were to depict a man with the same condition, he would be shown as someone who is internally very strong and despite his physical illness, he would be fighting to save himself. This is a clear example of the sexist views of society during that time. Through the description of her physical appearance, one can see that Ms Smeath believes that women should dress in a plain and conservative fashion. She is shown as wearing print housedresses which are especially saggy around the chest and Oxfords- which are very plain leather shoes. She also does not wear make-up or make fancy hairstyles and is perceived to be strict, straight and upright. This perception of her is later proven true as Atwood describes her as someone who doesnt laugh, goes to church every week and does not stand for things she does not like like the time she was told that Carols mom and dad slept on two different beds. Mrs. Smeath is not like Mrs. Campbell. For instance, she has no twin sets and views them with contempt. I know this because once, when Carol was bragging about her mothers twin sets, Mrs. Smeath said Is that so, not as a question but as a way of making Carol shut up. In the novel, Mrs. Smeath is depicted as a narrow-minded mother who believes that Elaine deserves to be punished by God because she comes from a family that is not as religious as the Smeaths. Its Gods punishment, says Mrs. Smeath. It serves her right. This shows her high-self esteem and her belief of superiority over others. Mrs. Smeath represents the dark and evil side of women in society during that time period. Another stereotypical woman, fragile and defenceless, is presented in the form of Susie, a fellow classmate of Elaines in night school. Susie is seen as someone who puts on a lot of make-up and jewellery, wears skin-tight clothes, and has a quiet voice. To Elaine, she is just a fake and dumb girl whos just fooling around in class. Elaine also suspects Susie of having an affair with their art teacher Mr. Joseph Hrbik, as she is the only one who sticks up for him when the rest of the class taunts him. In the beginning, Elaine thinks that Susie is incapable of love as she is too superficial; another stereotype of women in that society, she believes that Susie is just playing with Mr. Hrbiks feelings for personal benefit. Susie herself is incapable of love, shes too shallow, I think of her as the conscious one, the one in control: shes toying with him Susie represents the other side of the stereotypical woman in society the opposite of Mrs. Smeath. She is seen as a dependant person as she seems to be in awe of Mr. Hrbik at all times. Another proof of this is the time Susie comes to visit Elaine one last time in Swiss Chalet. Have you seen Josef? she asked. I lied not well No why would I? I just thought you might know where he was, she said. This shows that not only is Susie aware that Elaine and Josef are having an affair; she can do nothing about it, as she is too dependent on Josef. This also proves her to be weak and with a low self esteem. However, Elaine later discovers that Susie was in fact pregnant and knew that Josef would refuse to marry her and so she decides to abort the baby herself. This shows her helplessness, as she is unable to defend herself against the pain of Josef leaving her. Even in her weakest moment, the time she was in the ambulance she pleads with Elaine not to tell Josef. Together, Mrs. Smeath and Susie represent the stereotype of women as either evil and dark or weak and vulnerable in society at th at time period. On the other hand are Atwoods two uniquely feminist characters Cordelia and Elaine. Cordelia and Elaine represent the reality of women rather than the supposed roles represented by Mrs. Smeath and Grace. Cordelia represents a very strong but victimized woman of society and Elaine is the unusual central character that is a very passionate and talented with a traumatic childhood, which influences her entire life. Cordelia is first introduced in the beginning of the novel in one of Elaines first memories. Straightaway, the reader gets the impression of a rebel when the narrative voice says, Were impervious, we scintillate, and we are thirteen. Through the way they express their likes and dislikes, and the power they thought they had, one can easily make out they are feminists. Atwood uses symbolism when she writes Cordelia sits with nonchalance, nudging me with her elbow now and then, staring blankly at the other people with her grey-green eyes, opaque and glinting metal. This symbolizes Cordelias eyes as cold and sharp as metal to show Cordelias attitude towards others. Cordelia has many traits fit for a heroine for example her outer self-confidence she presents herself in an extremely confident manner despite her real feelings inside. Her independence- she is never dependant on anyone to guide her and despite having two sisters and mother to look up to, she lives life her own way almost struggling to create her own place, her own identity in the world. Her intelligence-she got promoted to a higher grade despite being younger than the rest. Her strength to become what she wants and not what the society wants her to be. And her leadership skills, which even though used wrongly, were powerful enough to ensure she was always leader. However, Cordelia has some obvious weaknesses her family. Throughout the book, Cordelia shows that she has a certain discomfort with her family, especially her father who beat her- and her sisters who were the perfect girls thus, creating a lot of pressure for Cordelia to do well. But no matter how well Cordelia did, her dad paid no attention to her. She later on reveals to Elaine that as a child she would swallow mercury so she wouldnt have to go to school, and she would dig holes in her yard so she could be safe in them and how she used to get into a lot of trouble with her dad and that she hated moving to the new house because she didnt have any good friends except for Elaine. At that moment, readers see the broken and hidden child behind the hard and cold exterior. Readers see a young girl who has been a victim to many pressures and responsibilities. Another instance of this is when Perdi says to Cordelia Pull up your socks, Cordelia, or youll flunk your year again. You know what Daddy said last time. Cordelia flushes and doesnt respond. This shows Cordelias fear of disappointing her dad and again readers see this young child just stuck in cruel and cold world, wanting to come out, but never given the chance. Another weakness of Cordelia is her self-esteem, which is very low. When Elaine and Cordelia are in high school, Elaine manages to get more attention from guys than Cordelia as Cordelia comes across as a fake person to most guys since she lacks the self-confidence to behave naturally. One more example of this is when Cordelia looses her job and tries to kill herself at home and gets sent to a mental hospital. Readers can make a connection between Susie and Cordelia, as both in times of trouble resorted to self-harm. And this proves the genuineness of Cordelias character as she has strengths of a hero and weakness of the female stereotype, which form her personality both powerful and vulnerable Elaine Risley, the main unconventional protagonist of the book when first introduced, is a successful 50 year old painter back in Toronto (her home town) to do an exhibition. She is first seen as an insecure woman with a tormenting past but as the book progresses one can fully appreciate Elaines heroic traits. One can see the journey Elaine takes the struggles she faces, the obstacles she overcomes and the memories she leaves behind. Elaine, though not the conventional heroine and perfect, is someone most women will admire as she has a lot of inner strength. There are many times where Elaine shows her inner strength especially when she walks away from Cordelia, Grace and Carol, and when she finds the inner strength (through Virgin Mary) to go back home instead of loosing consciousness at the freezing riverbank. She also finds the inner strength to walk away from a failing marriage, while having no concrete plans. Elaine also has a thirst for finding a place where she belongs, her own identity, which is why she struggles to please people- so she can fit in. She is very unique in her thoughts and actions for example when she runs past her poster and she has moustache, instead of feeling hurt or breaking down as the stereotypical women would, Elaine likes the moustache because she thinks she has achieved, finally, a face that a moustache can be drawn on, a face that attracts moustaches. She is also a proud feminist who stands up for women, when she goes to consciousness raising meeting for women, in which feminine issues are raised. She also feels bitter towards the Art Gallery of Ontario as they refused to hold her exhibit in their gallery because as she says, Because they have a bias towards old dead men. She is also seen as someone who cares for others as she is shown giving money to the poor on more than one occasion and is also seen doing things to please people even if she does not want to for example the interview with Andrea. She also shows her caring side when she finds out Graces mother has a weak heart and so she goes and checks everyday to see if Mrs. Smeath is fine. However, Elaine also has her human weaknesses like her habit on putting on masks and faking things to please people. She also develops neurotic habits such as biting her skin, pulling her hair and peeling her skin so she can feel pain and her existence. She also develops fainting fits and has suicidal impulses. She has moments where she is lost and needs help, she is afraid of galleries, and is afraid to express her emotions and all in all she hold a lot in from her past that she needs to let out in order to move on. She is also self-doubting as she has no confidence in her abilities and she is paranoid as to what other women think and say about her. She is always afraid she is going to end up like someone and so takes pleasure in knowing shes stronger than others. She struggles her entire life to create her own identity that is not pre-determined by society. Elaine and Cordelia represent the unique and real female protagonist Atwood creates to represent the true role of women in society. Through her clever way of portraying characters to represent a society much like a normal one rather than a fake one, Atwood explores the detailed struggle in the lives of all four characters, which at a first glance seem very distinct but are interconnected in their roles in the society. Atwood brings forth an unconventional protagonist, who despite being susceptible to weaknesses and flaws manages to gain the admiration of many readers through her actions in life.

Comparing Families in Song of Solomon, Push, and Incidents in the Life

  Ã‚  Ã‚   One of the objectives of this seminar is to "observe the images of the individual, the family, and alternative families in the writings and experience of minority groups(objective 6a)." The families of the African American subjects in these writings present abnormality and dysfunction. Normalcy, seen in common nuclear families, is absent in the minority families we have read about thus far. The protagonists, Precious, Milkman, and Linda, are shaped by their dysfunctional relationships with their parental figures. The abnormality of the mother and child relationship is apparent in the minority families in these writings. The mother figures seem to have misguided hopes for their children. We see this in "Incidents in the Life of a Slave Girl". Jacobs writes, "...often does she wish that she and they might die before the day dawns(350)." She also tells us, "Alas, what mockery it is for a slave mother to try to pray back her dying child to life! Death is better than slavery.(392)." The mothers would rather wish death upon their children or themselves in order to prevent pain and separation caused by slavery. Song of Solomon, by Toni Morrison, presents an image of an unnatural, extended time of maternal bonding. In this novel, Ruth breastfeeds her son, Milkman, until he is about four or five years of age. Ruth breastfeeds Milkman for this unnaturally lengthy amount of time because it makes her feel like her son is a part of her. Breastfeeding him gives her immense pleasure and satisfaction. However, she hides her indulgence from the rest of the family until Freddie the janitor catches her. She knows it is wrong, but it makes her daily life bearable. In contrast, Sapphire's novel, Push, depicts the bond between the m... ... see her as a human being to be treasured as a father should treasure his daughter. She tells us, "My fahver don't see me really. If he did he would know I was like a white girl, a real person, inside. He would not climb on me forever(32)." These writings, joined by the dysfunction in the families, present an insightful image of the individual and the family of African Americans. Precious, Milkman, and Linda gained strength and courage through their trials of abnormal, sometimes abusive upbringings. Each scar, whether it was mental or physical, was a lesson learned. Works Cited: Brent, Linda. "Incidents in the Life of a Slave Girl". The Classic Slave Narratives. Ed. Henry Louis Gates, Jr. New York: Penguin Group, 1987. Morrison, Toni. Song of Solomon. New York: The Penguin Group, 1977. Sapphire. Push. New York: Vintage Contemporaries, 1996.   

Solution to Auditing and Assurance Service: 1,12,B, 3

SOLUTIONS FOR REVIEW CHECKPOINTS 1. 1Business risk is the collective risk faced by a company that engages in business. It encompasses all threats to and organization’s goals and objectives. It includes the chance that customers will buy from competitors, that product lines will become obsolete, that taxes will increase, that government contracts will be lost, or that employees will go on strike. 1. 2The conditions of complexity, remoteness, time-sensitivity, and consequences increase demands by outside users for relevant, reliable (useful) information. They cannot produce the information for themselves because of these conditions. Company managers and accountants produce the information. 1. 3Information risk, in contrast to business risk, is the risk (probability) that the information (mainly financial) disseminated by a company will be materially false or misleading. This risk creates the demand for objective outsiders to provide assurance to decision makers. 1. 4Students can refer to the AAA and AICPA definitions in Chapter 1. Some instructors may want to extend the consideration of definitions to include the internal and governmental definitions (located in Module D). In response to â€Å"What do auditors do? ,† students can refer to Exhibit 1. 2 and respond in terms of: (1) obtaining and evaluating evidence about assertions management makes about economic actions and events, (2) ascertaining the degree of correspondence between the assertions and the appropriate reporting framework, and (3) providing an audit report (opinion). Students can also respond more generally in terms of â€Å"lending credibility† to financial statements presented by management (attestation). 1. An attest engagement is: â€Å"An engagement in which a practitioner is engaged to issue or does issue a written communication that expresses a conclusion about the reliability of a written assertion that is the responsibility of another party. † To attest means to lend credibility or to vouch for the truth or accuracy of the statements that one party makes to another. The attest function is a term often applied to the activities of independent CPAs when actin g as auditors of financial statements. 1. Assurance engagements are independent professional services that improve the quality of information, or its context, for decision makers. Since information (financial statements) are prepared by managers of an entity who have authority and responsibility for financial success or failure, an outsider may be skeptical that the information is objective, free from bias, fully informative, and free from material error, intentional or inadvertent. The services of an independent-CPA auditor helps resolve those doubts because the auditor’s success depends upon his independent, objective, and competent assessment of the information (e. . , the conformity of the financial statements with the appropriate reporting framework). The CPA’s role is to lend credibility to the information; hence the outsider will likely seek his independent opinion. 1. 7CPAs serve as independent intermediaries who lend credibility to information. Hence, assuranc e services are natural extensions of the well-regarded audit and attest services. CPAs can use their expertise in internal control and measurement methods. Assurance services are natural extensions of attestation services, which earlier evolved from financial statement audit services. Attestation and audit services are highly structured and intended to be useful for large groups of decision makers (e. g. , investors, lenders). On the other hand, assurance services are more customized and intended to be useful to smaller, targeted groups of decision makers. In this sense, assurance services bear resemblance to consulting services. 1. 8There are four major elements of the broad definition of assurance services: Independence. CPAs want to preserve their attestation and audit reputations and competitive advantages by preserving integrity and objectivity when performing assurance services. Professional Services. Virtually all work performed by CPAs is defined as â€Å"professional services† as long as it involves some element of judgment based in education and experience. Improving the Quality of Information or its Context. The emphasis is on â€Å"information†Ã¢â‚¬â€œ CPAs’ traditional stock in trade. CPAs can enhance quality by assuring users about the reliability and relevance of information, and these two features are closely related to the familiar credibility-lending products of attestation and audit services. â€Å"Context† is relevance in a different light. For assurance services, improving the context of information refers to improving its usefulness when targeted to particular decision makers in the surroundings of particular decision problems. For Decision Makers. They are the â€Å"consumers† for assurance services, and they personify the consumer focus of new and different professional work. They may or may not be the â€Å"client† that pays the fee, and they may or may not be one of the parties to an assertion or other information. The decision makers are the beneficiaries of the assurance services. 1. Accountants record, classify, and summarize (report) a company’s assets, liabilities, capital, revenue, and expense in financial statements. Auditors gather evidence related to the assertions management makes in financial statements and render a report. Accountants produce the financial statements; auditors audit them. 1. 10There are three major classifications of ASB assertions with several assertions in each c lassification: Transaction Assertions: Occurrence assertion: The objective is to establish with evidence that transactions giving rise to assets, liabilities, sales and expenses actually occurred. Key questions include â€Å"Did the recorded sales transactions really occur? † Completeness and cutoff assertion: The objective is to establish with evidence that all transactions of the period are in the financial statements and all transactions that properly belong in the preceding or following accounting periods are excluded. Completeness also refers to proper inclusion in financial statements of all assets, liabilities, revenue, expense and related disclosures. Key questions related to completeness include: â€Å"Are the financial statements (including footnotes) complete? and â€Å"Were all the transactions recorded in the right period? † Accuracy assertion: The objective is to establish with evidence that transactions have been recorded at the correct amount. Key questions relate to â€Å"where the expenses recorded at the proper dollar amount? † Classification assertion: The objective is to establish with evidence that transactions were posted to the cor rect accounts. Key questions relate to â€Å"was this expense recorded in the appropriate account/† Balance Assertions: Existence assertion: The objective is to establish with evidence that balance represents assets, liabilities, sales, and expenses that are real and in existence at the balance sheet date. Key questions relate to â€Å"does this number truly represent assets that existed at the balance sheet date? † Rights and obligations assertion: The objectives related to rights and obligations are to establish with evidence that assets are owned (or rights such as capitalized leases are shown) and liabilities are owed. Key questions related to this assertion include: â€Å"Does the company really own the assets? nd â€Å"Are related legal responsibilities identified? † Completeness assertion: The objective is to establish with evidence that all balances of the period are in the financial statements. Key questions related to completeness include: â€Å"Are the financial statements (including footnotes) complete? † Valuation assertion: The objective is to establish with evidenc e that balances have been valued correctly. Key questions include â€Å"Are the accounts valued correctly? † and â€Å"Are expenses allocated to the period(s) benefited? † Presentation and Disclosure assertion: Occurrence assertion: The objective is to establish with evidence that transactions giving rise to assets, liabilities, sales and expenses actually occurred. Key questions include â€Å"are we properly presenting and disclosing transactions that occurred during this period. Rights and obligations assertion: The objectives related to establishing with evidence the proper presentation of assets, liabilities, revenues and expenses to which the company has a legal right or a legal obligation Key questions related to this assertion include: â€Å"Has the company properly presented the assets in its possession? nd â€Å"Are related legal responsibilities identified and properly disclosed? † Completeness assertion: The objective is to establish with evidence that all balances of the period are presented and/or disclosed in the financial statements. Key questions related to completeness include: â€Å"Are the financial statements (including footnotes) complete? † Accuracy and valuation assertion: The objectives are to establish with evidence that balances presented and disclosed in the financial statements have been recorded accurately and have been valued correctly. Key questions include â€Å"Are the accounts valued correctly? † and â€Å"Are expenses allocated to the period(s) benefited? † Classification and understandability assertion: The objective is to establish with evidence that presentation and disclosures are properly classified on the financial statements and that financial statements including footnotes are understandable to the financial statement users. Key questions relate to â€Å"Is this account properly presented in the correct financial statement category† and â€Å"are the footnote disclosures presented to promote an understanding of the nature of the account† . 11The ASB’s assertions are important to auditors because they are the focal points for audit procedures. Furthermore, audit procedures are the means to answer the key questions posed by management’s assertions. The ASB assertions are in more detail than the PCAOB assertions and are categorized into transaction assertions, bala nce assertions, and presentation and disclosure assertions. They include the following additional assertions: cutoff, accuracy, valuation, classification, and understandability. Exhibit 1. 4 explains the difference between ASB and PCAOB assertions. . 12Holding a belief that a potential conflict of interests always exists causes auditors to perform procedures to search for errors or frauds that would have a material effect on financial statements. This tends to make audits more extensive for the auditor and more expensive for the client. The situation is not a desirable one in the vast majority of audits where no errors or frauds exist. However, errors and financial reporting frauds have happened too often. Users of financial statements and audit reports expect auditors to detect material misstatements. . 13Some examples of assurance engagements include: †¢ Internet Website certification (CPA WebTrust) †¢ Accounts receivable review and cash enhancement †¢ Third-party r eimbursement maximization †¢ Rental property operations review †¢ Customer satisfaction surveys †¢ Benchmarking/best practices †¢ Evaluation of investment management policies †¢ Fraud and illegal acts prevention and deterrence †¢ Information systems security reviews (SysTrust) †¢ Internal audit strategic review . 14Major areas of public accounting services: †¢ Assurance services (including audit services and other attestation engagements) †¢ Tax consulting services †¢ Consulting services 1. 15Operational auditing is the study of business operations for the purpose of making recommendations about the economic and efficient use of resources, effective achievement of business objectives, and compliance with company policies. The AICPA views operational auditing as a type of management advisory service offered by public accounting firms. 1. 6The elements of expanded-scope auditing include: (1) financial and compliance audits, (2) economy and efficiency audits, and (3) program results audits. 1. 17Compliance auditing involves a study of an organization’s policies, procedures, and performance in following laws, rules, and regulations. An example is a school’s policies, procedures, and performance in determining eligibility for a free meal program. 1. 18Other kinds of auditors include IRS agents/auditors, state and federal bank examiners, state insurance department auditors, and fraud auditors. 1. 9The purpose of continuing education is to ensure that CPAs in practice maintain their expertise at a sufficiently high level in light of evolving business conditions and new regulations. For CPAs in public practice, 120 hours of continuing education is required every three years, with no less than 20 hours in any one year. For CPAs not in public practice, the general requirement is 120 or fewer (90 in some states) every three years. 1. 20Everything cannot be learned in the classroom, and some on-the-job experi ence is helpful before a person is foisted off on the public as a licensed professional. Also, the experience weeds out some persons who do not want to take the trouble to be involved in accounting work. 1. 21State boards administer the state accountancy laws. State boards make physical arrangements to give the CPA examination, collect the examinations, receive the grades from the AICPA grading activity, and notify candidates whether they passed or failed. After satisfying state requirements for education and experience, successful candidates are awarded the CPA certificate by a state board. At the same time, new CPAs must pay a fee to obtain a state license to practice. Thereafter, state boards of accountancy regulate the behavior of CPAs under their jurisdiction (enforcing state rules of conduct) and supervise the continuing education requirements. 1. 22After becoming a CPA licensed in one state, a person can obtain a CPA certificate and license in another state. The process is known as reciprocity. CPAs can file the proper application with another state board of accountancy, meet the state’s requirements, and obtain another CPA certificate. Many CPAs hold certificates and licenses in several states. From a global perspective, individuals must be licensed in each country. Similar to CPAs in the United States, â€Å"Chartered Accountants† (CAs) practice in Australia, Canada, Great Britain, and India. Efforts are currently underway through NASBA to streamline the reciprocity process so that CPAs can practice across state lines without having to have 50 different licenses. SOLUTIONS FOR MULTIPLE CHOICE-QUESTIONS 1. 23a. IncorrectThis is an attestation to the prize promoter’s claims. b. IncorrectThis is an audit engagement to give an opinion on financial statements. c. IncorrectThis is an assurance engagement on newspaper’s circulation data. . IncorrectThis is an assurance engagement on the performance of golf balls. e. CorrectSince attestation and audit engagements are subsets of assurance engagements, all are assurance engagements. 1. 24a. CorrectThis statement characterizes professional skepticism. b. Incorrectâ€Å"Exclusively an auditor† is not an idea that seems to speak of â€Å"skepticism. † c. IncorrectProfessio nal obligations† is not an idea that seems to speak of â€Å"skepticism. † d. IncorrectThis is more an assumption of necessity than of skepticism. 1. 25a. Incorrect While work on a forecast is covered by the attestation standards, the auditors should give assurance or a disclaimer. b. Correct This is the basic definition of attestation–giving a report on reliability of an assertion one party makes to another. c. Incorrect Tax work is not an attestation service. d. Incorrect Litigation and expert witness services are not attestation services. 1. 26a. IncorrectThe objective of environmental auditing is to help achieve and maintain compliance with environmental laws and regulations and to help identify and correct unregulated environmental hazards b. IncorrectThe objective of financial auditing is to obtain assurance on the conformity of financial statements with generally accepted accounting principles. c. Incorrect The objective of compliance auditing is the entity’s compliance with laws and regulations. d. CorrectOperational auditing refers to the study of business operations for the purpose of making recommendations about the economic and efficient use of resources, effective achievement of business objectives, and compliance with company policies. 1. 27a. IncorrectWhile not the primary objective of an operational audit, auditors should still be concerned about compliance with financial accounting standards. b. CorrectThis statement is part of the basic definition of operational auditing. c. IncorrectAn operational audit does not focus on the financial statements. d. IncorrectAnalytical tools and skills are an important part of financial auditing. 1. 28a. CorrectThe proper reference is to the appropriate reporting framework. b. IncorrectThe AICPA does not refer only to the FASB for the appropriate reporting framework. c. IncorrectThe reference to the SEC is wrong. d. IncorrectThis is an abstract of the AAA definition. 1. 29d. CorrectWhile â€Å"complexity,† â€Å"remoteness,† and â€Å"consequences† are good answers, â€Å"skepticism,† or potential conflict of interest, generally drives the demand for audited financial statements. 1. 30d. CorrectSarbanes-Oxley prohibits the provision of all of the services listed in answers a, b, and c, therefore, d (all of the above) is the best response. 1. 31a. IncorrectAuditors do not reduce business risk. b. CorrectAuditors give some assurance that the information risk is low. c. IncorrectComplexity creates demand for accounting services, but is not an audit objective. d. IncorrectAuditors only indirectly control the timeliness of financial statements. 1. 32d. CorrectAnswers a, b, and c refer to a financial statement audit, an internal controls attestation engagement, and an operational audit, respectively. Compliance refers to following laws, rules, regulations, and policies. 1. 33d. CorrectWhile answers a, b, and c are true, experience, education, and successful completion of the Uniform CPA are all necessary to be licensed as a CPA. 1. 34d. CorrectThe mission of the U. S. Government Accountability Office is to ensure that public officials are using public funds efficiently, effectively, and economically. 1. 35b,d CorrectThe two categories of performance audits are economy and efficiency audit and program audits. 1. 36c. CorrectReview of credit ratings of customers gives indirect evidence of the collectibility (valuation) of accounts receivable. 1. 37a. IncorrectRhonda’s representations are not sufficient evidence to support assertions made in the financial statements. b. IncorrectDespite Rhonda’s representations, Jones must gather additional evidence to corroborate Rhonda’s assertions. . IncorrectRhonda’s representations are a form of evidence (albeit weak) that should neither be disregarded, nor blindly regarded without professional skepticism. d. CorrectRhonda’s assertions need corroboration. 1. 38a. IncorrectAlthough there is a high level of risk associated with client acceptance, this phrase was created by the au thors. b. CorrectInformation risk is the probability that the information circulated by a company will be false or misleading. c. IncorrectMoral hazard is the risk that the existence of a contract will change the behavior of one or both parties to the contract. d. IncorrectBusiness risk is the probability an entity will fail to meet its objectives and, ultimately, fail. 1. 39a. CorrectCompleteness includes cutoff which refers to accounting for revenue, expense, and other transactions in the proper period (neither postponing some recordings to the next period nor accelerating next-period transactions into the current-year accounts). 1. 40d. CorrectThe objective related to rights and obligations is to establish with evidence that amounts reported as assets of the company represent its property rights and that the amounts reported as liabilities represent its obligations. . 41b. CorrectManagement’s existence assertion states that reported assets, liabilities, and equities actually exist. 1. 42a. IncorrectUnder Sarbanes-Oxley, professional service firms are prevented from acting in a managerial decision making role for an audit client. b. IncorrectUnder Sarbanes-Oxley, professional service firms are prevented from auditing the firm’s own work on an audit client. c. IncorrectUnder Sarbanes-Oxley, professional service firms may only provide tax consulting service to an audit client with the audit committee’s approval. d. CorrectSarbanes-Oxley prevents professional service firms from engaging in any of the above listed capacities. 1. 43 d. CorrectReciprocity refers to the process through which CPAs licensed in one state can obtain a CPA certificate and license in another state. 1. 44a. CorrectAuditing is a subset of attestation engagements that focuses on the certification of financial statements. b. IncorrectAuditing is a subset of attestation that provides higher assurance than that provided by an attestation engagement. c. IncorrectConsulting engagements focus on providing clients with advice and decision support. d. IncorrectAssurance engagements are designed to improve the quality of information, or its context, for decision makers. 1. 45d. CorrectAlthough auditing is a subset of attestation, and attestation is a subset of assurance, the focus of the engagements tends to be very specific. 1. 46d. CorrectCredibility, advancement, and monetary rewards are all reasons to become certified. SOLUTIONS FOR EXERCISES AND PROBLEMS 47. Audit, Attestation, and Assurance Services Students may encounter some difficulty with this matching because the Special Committee on Assurance Services listed many things that heretofore ave been considered â€Å"attestation services† (long before assurance services were invented). Maybe this is a good vehicle for discussing the considerable overlap between attestation services (attestation standards) and assurance services. †¢ Real estate demand studies — Assurance service (listed by SCAS but not in the textbook chapter) †¢ Ballot for awards show — Assurance service (listed by SCAS but not in the textbook chapter) [But PwC attested to the Academy Awards ballot results long before assurance services were invented] Utility rate applications — Attestation service (or maybe a consulting service; I’m somewhat surprised the SCAS did not list it as an assurance service. ) †¢ Newspaper circulation audits –Assurance service (listed by SCAS but not in the textbook chapter) [But this work has appeared in prior years in examples of attestation services] †¢ Third-party reimbursement maximization — Assurance service (listed by SCAS and listed in the textbook chapter) †¢ Annual financial report to stockholders — Audit service Rental property operations review — Assurance service (listed by SCAS and listed in the textbook chapter) †¢ Examination of financial forecasts and projections — Attestation service (but also listed by SCAS as an assurance service) †¢ Cus tomer satisfaction surveys– Assurance service (listed by SCAS and listed in the textbook chapter) †¢ Compliance with contractual requirements — Attestation service (but also listed by SCAS as an assurance service) †¢ Benchmarking/best practices — Assurance service (listed by SCAS and listed in the textbook chapter) Evaluation of investment management policies — Assurance service (listed by SCAS and listed in the textbook chapter) †¢ Information systems security reviews — Assurance service (listed by SCAS and listed in the textbook chapter) †¢ Productivity statistics — Attestation service (but also listed by SCAS as an assurance service under various descriptions) †¢ Internal audit strategic review — Assurance service (listed by SCAS and listed in the textbook chapter) †¢ Financial statements submitted to a bank loan officer — Audit service 1. 49 ASB Assertions PCAOB Assertion |Corresponding ASB ass ertion |Nature of assertion | |Existence or Occurrence |Existence |Balance | | |Occurrence |Transactions | | | |Disclosures | |Rights and Obligations |Rights and Obligations |Balances | | | |Disclosures | |Completeness |Completeness |Transactions | | | |Balances | | | |Disclosures | | |Cutoff Transactions | |Valuation and Allocation |Accuracy |Transactions | | | |Disclosures | | |Valuation |Balances | | | |Disclosures | |Presentation and Disclosure |Classification |Transactions | | | |Disclosures | | |Understandability |Disclosures | 1. 52Identification of Audits and Auditors The responses to this matching type of question are ambiguous. The engagement examples are real examples of external, internal and governmental audit situations. You might point out to students that the distinctions among compliance, economy and efficiency and program results audits are not always clear. The â€Å"solution† is shown below in matrix form, showing some engagement numbers in two or t hree cells. The required schedule follows. |Type of Audit | | |Financial Statement | |Economy, Efficiency |Program | |Auditor | |Compliance | |Results | |Independent CPA |2, 10 | | | | |Internal Auditor | |6, 8 |4, 8 | | |Governmental (GAO) | | |1, 3 |1, 3, 9 | |IRS Auditor | |5 | | | |Bank Examiner | |7 | | | |Proprietary school’s training expenses |Economy and Efficiency Program Results |Governmental (GAO) | |Advertising agency financial statements |Financial statement |Independent CPAs | |Dept. f Defense launch vehicle |Economy and Efficiency or Program Results |Governmental (GAO) | |Municipal services |Economy and Efficiency |Internal auditors | |Tax shelters |Compliance |IRS auditors | |Test pilot reporting |Compliance |Internal auditors | |Bank solvency |Compliance |Bank examiners | |Materials inspection by manufacturer |Compliance or Economy and Efficiency |Internal auditors | |States’ reporting chemical use data |Program goal |Governmental (GAO) | |Sports compl ex forecast |Financial statement |Independent CPAs | SOLUTIONS FOR REVIEW CHECKPOINTS 2. 1For independent (external) auditors of financial statements, practice standards are issued by the AICPA Auditing Standards Board (in the form of Statements on Auditing Standards) and the Public Company Accounting Oversight Board (in the form of Auditing Standards). Statements on Auditing Standards are appropriate for the audits of nonpublic entities, while Auditing Standards are appropriate for the audits of public entities. For governmental auditors, the Government Accountability Office issues Government Auditing Standards (also known as the â€Å"Yellow Book†). For internal auditors, the Institute of Internal Auditors issues Statements of Internal Auditing Standards (also known as the â€Å"Red Book†). For fraud auditors, the Association of Certified Fraud Examiners issues Professional Standards and Practices for Certified Fraud Examiners. For auditors in other countries, the IFAC International Auditing and Assurance Standards Board issues International Standards on Auditing and Assurance. 2. 2Generally accepted auditing standards are standards that identify necessary qualifications and characteristics of auditors and guide the conduct of the audit examination. Generally accepted accounting principles represent the requirements for the preparation and presentation of financial statements and accompanying footnote disclosures. These two types of standards are related to one another because a primary objective of a GAAS audit is to allow auditors to conclude whether an entity’s financial statements are prepared and presented in conformity with GAAP. 2. 3The three fundamental principles are: 1. Responsibilities, which involves having appropriate competence and capabilities, complying with relevant ethical requirements, maintaining professional skepticism and exercising professional judgment. 2. Performance, which requires auditors to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatement by: (1) planning the work and properly supervising assistants; (2) determining and applying appropriate material levels; (3) identifying and assessing the risk of material misstatement; and, (4) obtaining sufficient appropriate audit evidence. 3. Reporting, which requires the auditor to express an opinion as to whether the financial statements are prepared in accordance with the applicable financial reporting framework. Auditing procedures relate to acts to be performed during the engagement. Auditing standards deal with measures of the quality of performance of those acts and the objectives to be attained. Auditing standards are less subject to change and provide the criteria for rejecting, accepting, or modifying auditing procedures in a given circumstance. An example of the relative stability of standards and procedures is found in the change from non-computerized information systems to computerized information systems. New auditing procedures were required to evaluate computerized information systems, but auditing standards remained unchanged and were the criteria for determining the adequacy of the new auditing procedures. 2. 4Independence in fact represents auditors’ mental attitudes (do auditors truly act in an unbiased and impartial fashion with respect to the client and fairness of its financial statements? ). Independence in appearance relates to financial statement users’ perceptions of auditors’ independence. Auditors can be independent in fact but not perceived to be independent. For example, ownership of a small interest in a public client would probably not influence auditors’ behavior with respect to the client. However, it is likely that third-party users would not perceive auditors to be independent. 2. Due care reflects a level of performance that would be exercised by reasonable auditors in similar circumstances. Auditors are expected to have the skills a nd knowledge of others in their profession (known as that of a prudent auditor) and are not expected to be infallible. 2. 6Professional skepticism is a state of mind that is characterized by appropriate questioning and a critical assessment of audit evidence. Professional judgment is the auditors’ application of relevant training, knowledge, and experience in making informed decisions about appropriate courses of action during the audit engagement. Auditors are required to demonstrate professional skepticism and professional judgment throughout the entire audit process. 2. Reasonable assurance recognizes that a GAAS audit may not detect all material misstatements and auditors are not â€Å"insurers† or â€Å"guarantors† regarding the fairness of the company’s financial statements. The following characteristics of an audit do not permit auditors to provide absolute assurance: †¢ Mistakes and misinterpretations may occur †¢ Management judgments an d estimates affect financial reporting †¢ Audit procedures cannot always be relied upon to detect misstatements †¢ Audit engagements must be conducted within a reasonable period of time and so as to achieve a balance between benefit and cost. 2. 8Three elements of planning and supervision considered essential in audit practice are: †¢ A written audit plan. †¢ An understanding of the client’s (auditee’s) business. Policies to allow an audit team member to document disagreements with accounting or auditing conclusions and disassociate him or herself from the matter. 2. 9The timing of the auditors’ appointment is important because auditors need time to properly plan the audit and perform the necessary work without undue pressure from tight deadlines. 2. 10Materiality is the dollar amount that would influence the lending or investing decisions of users; this concept recognizes that auditors should focus on matters that are important to financial statement users. Materiality should be considered in planning the audit, performing the audit, and evaluating the effect of misstatements on the entity’s financial statements. 2. 1Auditors obtain an understanding of a client, including its internal control, as a part of the control risk assessment process primarily in order to plan the nature, timing and extent of substantive audit procedures. A secondary purpose is because of auditors’ responsibilities for reporting on client’s internal controls under Auditing Standard No. 5. 2. 12As the client’s internal control is more effective (a lower level of control risk), auditors may use less effective substantive procedures (a higher level of detection risk). Conversely, when the client’s internal control is less effective (a higher level of control risk), auditors must use more effective substantive procedures (a lower level of detection risk). 2. 13Audit evidence is defined as the information used by a uditors in arriving at the conclusion on which the audit opinion is based. 2. 4External documentary evidence is audit evidence obtained from another party to an arm’s-length transaction or from outside independent agencies. External evidence is received directly by auditors and is not processed through the client’s information processing system. External-internal documentary evidence is documentary material that originates outside the bounds of the client’s information processing system but which has been received and processed by the client. Internal documentary evidence consists of documentary material that is produced, circulates, and is finally stored within the client’s information processing system. Such evidence is either not circulated to outside parties at all or is several steps removed from third-party attention. 2. 5In general, evidence that is completely external in nature is most reliable, because the client has not influenced its processing . In contrast, evidence that is completely internal in nature is least reliable, as it may represent a fictitious transaction created or modified by client personnel to enhance perceptions of the client’s financial statements. 2. 16As auditors need to achieve lower levels of detection risk, more appropriate evidence needs to be obtained. Thus, auditors should gather higher quality evidence (more reliable evidence). For example, auditors may choose to obtain evidence from external sources rather than internal sources. In addition, for lower levels of detection risk, auditors need to gather more sufficient evidence. Because sufficiency relates to the quantity of evidence, a greater number of transactions or components of an account balance should be examined. 2. 17A financial reporting framework is a set of criteria used to determine the measurement, recognition, presentation, and disclosure of material items in the financial statements. The financial reporting framework is related to auditors’ reporting responsibilities because this framework serves as the basis against which the financial statements are evaluated and the auditors’ opinion on the financial statements is expressed. 2. 18Four types of opinions and their conclusions: Type | |Conclusion | |Unqualified opinion | |Financial statements are presented in conformity with GAAP. | |Adverse opinion | |Financial statements are not presented in conformity with GAAP. | |Qualified opinion | |Financial statements are presented in conf ormity with GAAP, except for one or | | | |more departures or issues of concern. | |Disclaimer of opinion | |An opinion cannot be issued on the financial statements. | 2. 19The auditors’ report is dated at the point when all significant procedures have been completed by auditors and auditors have gathered sufficient appropriate evidence. This date is referred to as the audit completion date. 2. 20Public accountants should issue a report when they are associated with financial statements because users may mistakenly assume that an audit has been conducted and that the entity’s financial statements are fairly presented according to GAAP. 2. 21The purpose served by the attestation standards is to guide work in attestation areas and engagements other than audits of financial statements. 2. 22The major differences between attestation standards and generally accepted auditing standards (GAAS) lie in the areas of practitioner competence, materiality and the risk of material misstatement, and reporting. GAAS presume knowledge of accounting and require competence and capabilities as auditors (meaning auditors of financial statements). The attestation standards are more general, requiring training and proficiency in the â€Å"attest function† and knowledge of the â€Å"subject matter of the assertions. † The attestation standards have no specific requirement for determining materiality levels or obtaining and understanding of the entity and its environment to assess the risk of material misstatement. Because attestation engagements may cover information not confined to accounting and financial assertions, these activities may not be appropriate for all attest engagements. Reporting is different because attestations on nonfinancial information do not depend upon generally accepted accounting principles. In addition, GAAS do not address two reporting issues (stating significant reservations about the engagement and indicating that the report is only intended for specified parties) that are important reporting aspects for attestation engagements. 2. 23A system of quality control provides firms with reasonable assurance that the firm and its personnel (1) comply with professional standards and applicable regulatory and legal requirements and (2) issue reports that are appropriate in the circumstances. The six elements of a system of quality control are: . Leadership responsibilities for quality within the firm (â€Å"tone at the top†) 2. Relevant ethical requirements 3. Acceptance and continuance of clients 4. Human resources 5. Engagement performance 6. Monitoring 24. In deciding whether to accept or continue an engagement with a client, firms sho uld consider: †¢ The integrity of the client and the identity and business reputation of its owners, key management, related parties, and those charged with governance. †¢ Whether the firm possesses the competency, capability, and resources to perform the engagement. †¢ Whether the firm can comply with the necessary legal and ethical requirements. If firms decide to withdraw from an engagement, the firm should document significant issues, consultations, conclusions, and the basis for any conclusions related to the decision to withdraw. 25. Typically, firms that audit nonpublic companies have peer reviews conducted through the AICPA’s Center for Public Company Audit Firms Peer Review Program. While firms that are subject to PCAOB review requirements can elect to have peer reviews conducted under this program, most choose not to do so. 2. 26The PCAOB’s monitoring role for firms providing auditing services to public entities includes registering public accounting firms and conducting inspections of registered public accounting firms (similar to peer reviews). 2. 7The frequency of PCAOB inspections depends upon the number of audits conducted by member firms. For firms performing audits for more than 100 public companies, inspections are required on an annual basis. For those performing audits for fewer than 100 publi c companies, inspections are conducted every three years. SOLUTIONS FOR MULTIPLE-CHOICE QUESTIONS 2. 28a. CorrectGathering audit evidence is a component of the performance principle. b. IncorrectWhile reasonable assurance is related to gathering audit evidence, this is not one of the categories of principles c. IncorrectThe reporting principle relates to the contents of the auditors’ report d. IncorrectThe responsibilities principle relates to the personal integrity and professional qualifications of auditors. 2. 29a. IncorrectThis practice relates to accountants’ competence and capabilities, not due care. b. IncorrectThis practice relates to the reporting principle. c. IncorrectSufficiency of evidence relates to the performance principle and not due care. d. CorrectThese practices are a part of due care. 2. 30a. IncorrectGAAS relates to the conduct of audit engagements and not overall professional services. b. CorrectStandards within a system of quality control are firm- (rather than auditor-) related. c. IncorrectGAAP relates to accounting and financial reporting, rather than auditing practices. d. IncorrectInternational auditing standards govern the conduct of audits conducted across international borders. 2. 31a. IncorrectRelying more extensively on external evidence is related to the appropriateness (or quality) of evidence. b. IncorrectFocusing on items with more significant financial effects on the financial statements is related to materiality. c. CorrectProfessional skepticism is characterized by appropriate questioning and a critical assessment of audit evidence. d. IncorrectFinancial interests are most closely related to auditors’ independence. 2. 32a. CorrectAuditors study internal control to determine the nature, timing, and extent of substantive tests. b. IncorrectConsulting suggestions are secondary objectives in an audit. c. IncorrectInformation about the entity’s internal control is, at best, indirect evidence about assertions in the financial statements. d. IncorrectInformation about the entity’s internal control provides auditors with little opportunity to learn about changes in accounting principles. 2. 33a. IncorrectExternal evidence is considered to be relatively reliable. b. CorrectManagement representations should least affect auditors’ conclusions, as they have not been validated or corroborated by external parties. c. IncorrectAuditor-prepared evidence is considered to be the most reliable form of evidence. d. IncorrectAlthough a representation of a client employee, inquiry of the entity’s legal counsel is considered more reliable than that of entity management. 2. 34a. IncorrectInquiry of management should least affect auditors’ conclusions. b. IncorrectAlthough very persuasive, auditors’ personal knowledge (choice d) provides the most persuasive evidence c. IncorrectObservation of a client’s procedures provides evidence on the effectiveness of the client’s internal control, but not the existence assertion for newly-acquired computer equipment. d. CorrectAuditors’ personal knowledge provides the most persuasive evidence. 2. 35a. IncorrectInquires of client personnel are the least reliable form of evidence. b. IncorrectWhile more reliable than inquiries (choice a), inspection of internal documents is relatively low in terms of reliability. c. IncorrectWhile sales invoices are documents created by external parties, the fact that these documents were received from client personnel decreases their reliability. d. CorrectBecause the statements were received directly from outside parties, this is a more reliable form of evidence than choice (c). 2. 36a. IncorrectDocumentation of this nature would not be related to independence. b. IncorrectWhile the quality of the documentation and the conclusions included in the documentation might provide information about competence and capabilities, choice (c) is more appropriate. c. Correct Initials of the preparer and reviewer provide evidence that the documentation was reviewed, which relates to planning and supervision. d. IncorrectWhile the quality of the documentation and the conclusions included in the documentation might provide information about sufficient appropriate evidence, choice (c) is more appropriate 2. 37NOTE TO INSTRUCTOR: Since this question asks students to identify the requirement that is not included in attestation standards, the response labeled â€Å"correct† is not included in attestation standards and those labeled â€Å"incorrect† are included in attestation standards. a. IncorrectAttestation standards require adequate knowledge of the subject matter. b. CorrectAn understanding of the client’s environment (including internal control) is not required under attestation standards, because internal control may not always be relevant to the subject matter of the attestation. c. IncorrectAttestation standards require sufficient evidence to be gathered. d. IncorrectAttestation standards require independence in mental attitude. 2. 38NOTE TO INSTRUCTOR: Since this question asks students to identify the concept that is least related to due care, the response labeled â€Å"correct† is least related to due care and those labeled â€Å"incorrect† are more related to due care. a. IncorrectDue care requires the level of skills and knowledge of others in the auditors’ profession, which would require independence in fact. b. IncorrectSee choice (a) above. c. IncorrectDue care refers to the performance of a â€Å"prudent† auditor. d. CorrectDue care recognizes that mistakes and misinterpretations may occur during the audit. 2. 39a. IncorrectInternal documents are a relatively low quality of evidence. b. IncorrectManagement representations (and the related verbal inquiries) are the lowest quality of evidence. c. IncorrectWhile direct, external evidence is of reasonable quality, it is of lower quality than direct personal knowledge of the auditor (choice d). d. CorrectDirect, personal knowledge of auditors is the most appropriate form of evidence. 2. 40a. IncorrectWhile it may increase auditors’ knowledge about the client, obtaining an understanding of a client’s internal control does not directly influence auditors’ competence and capabilities. b. IncorrectObtaining an understanding of a client’s internal control does not directly influence auditors’ independence. c. IncorrectObtaining an understanding of a client’s internal control does not directly help satisfy the quality control standard about audit staff professional development. d. CorrectThe primary purpose of obtaining an understanding of a client’s internal control is to plan the nature, timing, and extent of substantive audit procedures on an engagement. 2. 41d. CorrectIndependence confirmations would ensure that all firm personnel are independent with respect to that firm’s clients, which is related to the â€Å"Relevant Ethical Requirements† element of a system of quality control. It would not relate to acceptance and continuance of clients (a), engagement performance (b), or monitoring (c). 2. 42b. CorrectGovernment auditing standards are issued by the Government Accountability Office (GAO). Governmental accounting standards are issued by the Governmental Accounting Standards Board. 2. 43a. CorrectConsultation with a specialist demonstrates due care if auditors do not have expertise in the area in question. b. IncorrectAuditors are experts in financial matters, not areas of art (and other collectibles) valuation. c. IncorrectGAAS applies to all audit engagements, including audit engagements for not-for-profit organizations. d. IncorrectSince (a) is correct, (d) cannot be correct. 2. 4NOTE TO INSTRUCTOR: Since this question asks students to identify the topic that is not been addressed in the auditors’ report, the response labeled â€Å"correct† is not addressed in the auditors’ report and those labeled â€Å"incorrect† are addresse d in the auditors’ report. a. IncorrectThe responsibilities of the auditor and management are provided in the introductory paragraph. b. CorrectAuditors provide reasonable (but not absolute) assurance in an audit engagement (this is noted in the scope paragraph of the auditors’ report). c. IncorrectA description of the audit engagement is provided in the scope paragraph of the auditors’ report. d. IncorrectThe auditors’ opinion on internal control over financial reporting is provided in the internal control paragraph of the auditors’ report. 2. 45a. CorrectAttestation standards differ from generally accepted auditing standards in that they apply to engagements other than those on historical audited financial statements. b. IncorrectAttestation standards require that the practitioner be independent. c. IncorrectAttestation standards may apply to prospective â€Å"what if† financial statements. d. IncorrectAttestation standards include requirements related to evidence. SOLUTIONS FOR EXERCISES AND PROBLEMS 2. 47Performance Principle The important elements of the performance principle and their relation to the C. Reis Company audit are: 1. Auditors must plan the work and appropriately supervise any assistants. Fulfilling this element would include the preparation of an audit plan for accounts receivable and reviewing it with the assistant prior to beginning the examination. These tasks were not done. Also, the completed audit documentation should have been reviewed to determine whether an adequate examination was performed. The illustration states that this procedure was followed. 2. Auditors must determine and apply appropriate materiality levels throughout the audit. This scenario did not address the process through which materiality levels were determined, so potential strengths and weaknesses related to materiality cannot be assessed. 3. Auditors must identify and assess risks of material misstatement. This element requires auditors to obtain a sufficient understanding of the entity and its environment, including its internal control, to assess the risk of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing, and extent of further audit procedures. The case presented did not reference any work on the internal control. Complete reliance upon prior-year audit documentation in lieu of an evaluation of the existing internal control is improper, because changes may have been implemented to the system and controls by the client. 4. Auditors must obtain sufficient appropriate audit evidence. The assistant’s preparation of audit documentation, confirmation requests, and other procedures seem to fulfill the requirements of this standard if the audit work is properly performed and is of sufficient scope. 2. 48Time of Appointment and Planning From a theoretical viewpoint (and, in fact, from a practical viewpoint as well) such short notice of a request for an audit causes difficulties with planning the audit work, establishing staffing requirements, and reviewing the work; all of these features are important elements in the exercise of due care. The December 26 – January 20 period is a serious time constraint for an initial audit engagement. The greatest difficulties involve due care as well as the ability to appropriately perform the engagement (planning and supervision, determining materiality levels, identifying and assessing risks of material misstatement, and obtaining sufficient appropriate evidence). In view of the short notice and the time constraint, there may be some question as to whether an audit could be adequately completed by January 20. 2. 55Principles Case Study | | | | |Responsibilities | | | | | | | |1. Auditors are responsible for appropriate competence and | |1. It was inappropriate for Holmes to hire the two students to | |capabilities to perform the audit. | |conduct the audit. The examination must be conducted by persons | | | |with proper education and experience in the field of auditing. | | | |Inexperienced persons can assist, if they are supervised. | |2. Auditors are responsible for complying with relevant ethical | |2. To satisfy the independence requirement, Holmes must be | |requirements. |without bias with respect to the client under audit. Because of | | | |the financial interest in the bank loan, Holmes is neither | | | |independent in fact nor appearance with respect to the assignment | | | |undertaken. In addition, because of a number of actions (hiring | | | |unqualified individuals, failure to supervise those individuals, | | | |etc. ), Holmes did not appear to exhibit due care. | | | | | | | | | | |3. The fact that Holmes merely accepted the financial statements | | | |without questioning any evidence demonstrates lack of professional| |3. Auditors are responsible for maintaining professional | |skepticism (as well as a lack of good professional judgment). | |skepticism and exercising professional judgment throughout the | | | |planning and performance of the audit. | | | | | | |Performance | | | | | | | |1. The auditor must adequately plan the work and must properly | |1. This element recognizes that early appointment of auditors has | |supervise any assistants. |advantages for auditors and the client. Holmes accepted the | | | |engagement without considering the availability of staff. In | | | |addition, Holmes failed to supervise the assistants. The work | | | |performed was not adequately planned. | | | | | |2. The auditor must determine and apply appropriate materiality | |2. There was no discussion that appropriate materiality levels | |level or levels. | |were determined or applied for the audit by either Holmes or the | | | |two accounting students. Thus, compliance with this element is | | | |difficult to assess. | |3. The auditor must assess the risk of material misstatement based| |3. Holmes did not study the client’s internal control nor did the | |on the entity and its environment. | |assistants. There appears to have been no audit examination at | | | |all. The work performed was more an accounting service than it was| | | |an auditing service. | | | | | |4. The auditor must obtain sufficient appropriate audit evidence | |4. No evidence was obtained to support the financial statements. | |about whether material misstatements exist. | |The auditors merely checked the mathematical accuracy of the | | | |records and summarized the accounts. Standard audit procedures and| | | |techniques were not performed. | | | | |Reporting | | | | | | | |1. Based on evaluation of the evidence obtained, the auditor | |1. Because a proper examination was not conducted, the report | |expresses an opinion in accordance with the auditor’s findings, or | |should indicate that no opinion can be expressed as to the fair | |states that an opinion cannot be expressed, in the form of a written | |presentation of the financial statements in accordance with | |report. The opinion states whether the financial statements are | |generally accepted account ing principles. |prepared, in all material respects, in accordance with the | | | |appropriate financial reporting framework. | | | | | | | 2. 57System of Quality Control a. Leadership responsibilities for quality within the firm b. Engagement performance c. Human resources d. Monitoring e. Human resources f. Relevant ethical requirements g. Acceptance and continuance of clients h. Leadership responsibilities for quality within the firm i. Engagement performance SOLUTIONS FOR REVIEW CHECKPOINTS 12. Management prepares a report on the effectiveness of internal control over financial reporting. The auditors prepare reports on (1) the entity’s financial statement and other disclosures and (2) the effectiveness of the entity’s internal control over financial reporting. These can be presented as two separate reports or a combined report. 2. Management’s report on internal control over financial reporting consists of the following major components: †¢ A statem ent indicating that management is responsible for establishing and maintaining adequate internal control over financial reporting. †¢ A statement identifying the framework used by management to assess the effectiveness of the entity’s internal control. Management’s opinion on the effectiveness of the entity’s internal control, including an explicit statement as to whether the internal control over financial reporting is effective. †¢ A statement that the registered accounting firm auditing the financial statements (auditor) has issued an attestation report on the entity’s internal control over financial reporting. 12. 3The auditors’ report serves to communicate to users three specific statements with respect to the financial statements, the conduct of the audit, and the entity in general. First, the report indicates whether the financial statements are presented in conformity with GAAP. Second, auditors use their report to indicate any un usual aspects of the audit examination. Third, even if the financial statements are fairly presented and no problems were noted in the conduct of the audit, the auditors can use the report to communicate information useful to decision makers that may not appear on the face of the financial statements. 12. 4Nine important elements of the auditors’ standard report are: 1. Title. The title should contain the word independent, as in â€Å"Independent Registered Public Accounting Firm† or â€Å"Independent Auditors†. 2. Address. The report shall be addressed to the client, which occasionally may be different from the auditee. 3. Notice of Audit. A sentence should identify the financial statements and indicate that they were audited. This appears in the introductory paragraph. 4. Responsibilities. The report should state management’s responsibility for the financial statements and the auditors’ responsibility for the report. These statements are also in the introductory paragraph. 5. Description of the Audit. The second paragraph (scope paragraph) should declare that the audit was conducted in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB) and describe the principal characteristics of an audit, including a statement of belief that the audit provided a reasonable basis for the opinion. 6. Opinion. The report shall express an opinion (opinion paragraph) regarding conformity of the financial statements with accounting principles generally accepted in the United States of America. 7. Internal Control. The report should reference the auditors’ examination, report, and opinion on the client’s internal control over financial reporting. 8. Signature. The auditors (partner of the audit team) shall sign the report, manually or otherwise. 9. Date. The report shall be dated using the date

Criminal Justice Paper

In order to succeed at something so selective and challenging you must understand the cause and truly feel the duty it brings to you. Those that possess the characteristics for becoming a police officer could not do anything but be a police officer, its something you're born with and that you feel. It chooses you, you do not choose it. For many in this world the thought of crime scares them. It brings out the fear Of violence, drugs, and the images of some Of the worst places or scariest people this world has to offer. It gives officers of law enforcement it gives the Houghton of opportunity to make a difference.The times in which most run away, officers of law enforcement run towards. To be a police officer it is not about the paycheck, it is not about the power it gives to you over another citizen. Its the ability to make a difference and impact society, the ability to be a part of something bigger than yourself. Being a police officer is not something you chose to do; it is someth ing that chooses you. It's not just a job, it's a lifestyle, its not just a paycheck but a way of life, those that are destined to become police officers don't â€Å"turn it off' after their shift is over, hey don't call out sick, and they don't work regular hours.Police officers sacrifice; they sacrifice their time off, time with family and friends, but most of all they sacrifice themselves and their own well being for the good of those in which they vow to protect and serve, they sacrifice through every single way possible and in some cases they make the ultimate sacrifice. The life of a police officer is not for the faint of heart. It's not for someone who doesn't fully feel and know in their heart that there is no other profession or road of life they could be on other than that of an officer of the law.Ever since I was a child have been infatuated with the police and law. Remember as a child running around my grandparents neighborhood playing â€Å"reliever† with my fri ends and always wanting to be the team tasked with capturing the other kids, or riding our bikes around the neighborhood pretending to pull one another over and issuing fake tickets, sometimes even arresting each other and using the cheap plastic handcuffs from the drugstore to put the â€Å"suspect† into custody.One of my most vivid memories and the one I believe captured my attention to truly make me feel that coming a police officer was the life path I was destined to take was watching cops with my grandmother. I remember fondly sitting on my grandfathers lay-z-boy becoming instantly fascinated with the different traffic stops and dispute calls the police would perform. I remember every episode, I would become so engrossed with what was happening and the different calls the officers would go on that I would imagine was with them and going along as a fellow officer assisting in the arrests.Throughout my life, my opinions and personality changed. Every three years it seemed I was a totally efferent person than the one before, but one thing that always remained was that wanted to be involved in law enforcement in one way or another, I wanted to be a part of the brotherhood and to make a difference, I knew that had the ability both intellectually and integrity wise to get through law school and become a lawyer but knew from a young age sitting in an office wasn't what I wanted to do, I wanted to impact my community in a positive way through law enforcement, I wanted to be down on the street, in the thick of it. Anted to see and handle the crime and the thugs first hand; I wanted to be he face Of law enforcement. The characteristics of the job that made most people deflect away are what attracted me the most. The long hours, the threat of danger and adrenaline rushes, even the middle class pay grades, they all intrigued me and made me want this type of lifestyle even more.As I got older looked into law enforcement more and more and with much more scrutiny and detail, I heard the positives and negatives, the risks and the rewards, and the one thing that always stuck out in my mind was the fact that no matter what I heard or what learned about the career, never lost interest. I never became deterred, I always carried myself as someone who wanted a future career in law enforcement. While some of my friends got into trouble growing up and during high school I made sure to keep my nose clean.I always spoke to everyone with respect and a professional tone, I took my part time jobs seriously and I made good impressions on all those that I met. Felt, and still do feel, that you cannot make a leader, leaders are born. I firmly believe the same goes for police officers, you cannot take anyone and transform them into a police officer, you can only hope that those that possess the qualities of police officer realize their gift and pursue the career.This mentality has driven me to change myself physically, mentally, and it has also caused me to change the views of those around me. When I was younger and I brought up the fact that I would like to become a police officer my parents were not thrilled. They did not want me to spend my career in danger handling the worst people that society has to offer. They wanted me, like most parents, to become a doctor or lawyer, have a comfortable life both financially and personal safety wise. Knew that was better suited for being a police officer out on the street.I did not care about the money or social sacrifices I would have to make, but most importantly I did not value my personal safety over those that looked up to me, this I believe is a huge quality and characteristic of police officers, to wake up every day and know that you may have to lay down your life in order to protect a complete stranger, not everyone could do this. I learned that I possessed this quality during my years as a high school athlete, I played goalie for my high school lacrosse team.I played a different positi on prior to high school but my freshman year the captains came to the am and asked for someone to step up and play goalie, I was the only one in my class to raise my hand. In all of sports, a lacrosse goalie is ranked as one of the top 3 most dangerous positions because the solid rubber ball in the sport travels at a speed of 80 to 95 MPH. The goalie wears almost no pads other than a helmet, chest pad, gloves, and an athletic cup. Throughout a season a goalie suffers severe contusions all over their body and on top of this, they are the last line of defense for their team.The position is a high risk- low reward position. If the team wins, they overlook your saves and focus on he players who scored the winning goal but if you lose everyone looks at you for the amount of goals you let in. Most importantly the position is chaotic, hectic, loud, and fast paced and you need to make a decision quickly. The average goalie has . 2 seconds to make a decision during a game. Therefore you must possess the ability to think quickly on your feet, read, evaluate, and act on a situation extremely fast. This is a huge characteristic of a being a police officer. New that the position was not for everyone, if it was easy everyone would do it was my philosophy, did not question why no one else raised their hand hat day at tryouts but rather did the job knowing that others relied on me. The same applies for that of a police officer. Police officers don't consider the dangers of the job they do, the risks they take every day and the low rewards that come with the job. The greatest reward is something no one else can see, it's something you feel. It's knowing that you are part of select brotherhood of others that do everything they can, and then some, to make the world safer.There are many different forms of law enforcement in the world. I have chosen to pursue the route of a field officer, someone who goes out and tops crime first hand. I have looked at becoming a lawyer or someone who is a part of the processing aspect of law and the one field of law enforcement that speaks to me and attracts me above all others is that of a field officer, or police officer. I have said before that those that are police Officers do not know why they wish to be a police officer, they just know that it is something that has chosen them.I have looked at the different law enforcement agencies on all levels from federal to state to local. Have narrowed it down to two different possible agencies that am pursing and hoping to be employed tit, these are, the Federal Bureau of Investigation and the Delaware State Police. The FBI is on the federal level while the ADS is on the state level. Each have their own responsibilities, mission statements, duties, and specialized departments within. Before I pursue a career with either of these departments I am attending college and receiving a bachelors degree in â€Å"Criminal Justice†.After college commencement I will be enlisting in the United States Marine Corps Officer Candidate School and serving my country on the national level as a united States Marine Officer for 4 to 6 years of my life. I have chosen the Marines because they claim to be the best. Their motto is ‘The few, the Proud, the Marines†. This has always struck me in a positive, almost challenging way. Other military organizations ask you to join them giving you a list of opportunities and rewards they can give you.The Marine Corps challenge you to join them, they tell you what you can do for them and earn for yourself in the process, they offer the hardest and longest training process out of all the military services and, just like the ADS, they claim to be the best organization out there. Eve always wanted to be a part of the best unit can be. Always wanted to be the best of the best. Feel that there is no other option then to push yourself to the Max and to never Stop trying to get better at everything you possibly can. Eel that obt aining a college degree and becoming an officer in the Marine Corps will help separate me from others in the selection processes of both the FBI and the ADS. Both of these organizations have rigorous and intense selection processes taking on average at least a year to go through both select candidates for specialized training to transform them into effective and capable tools of law enforcement. Eel whole heartedly that the Marine Corps will help prepare me for the discipline and training will endure during the selection process and training periods of both the FBI and the ADS, should I be accepted into these organizations.The Federal Bureau of Investigation, FBI, is a federal police organization that focuses on neutralizing and preventing crime that are too large and diverse for police agencies on the local and state levels. Their mission statement is, â€Å"To protect and defend the United States against terrorist and foreign intelligence threats, to uphold and enforce the crimin al laws of the United States, and to provide leadership and criminal justice services to federal, state, municipal, and international agencies and partners. (Federal Bureau of Investigation, mission statement, 201 2) The FBI has numerous specialized units; in fact, it's safe to say that they are nothing but specialized units that all work together under one name and for the same cause, to protect the United States. The FBI has field units in security, SWAT, drug enforcement, national security, air security. They also have law units that investigate and chase down some of the country's worst criminals; they sometimes go global in order to track threats against the United States.You can be a linguist and handle language barriers, field agents, they also have a hostage rescue team. The FBI selection process is unbelievably intense there are seven steps to the process. There is the online application process which is the first step and gets your name in the system along with your accomp lishments and attributes. Then comes the written test portion which covers your situational judgment skills along with your logical reasoning skills. The second phase Of testing includes a written paper testing portion along with an interview from a anal of FBI board members.The next phase is a conditional letter which must be written by a member of the FBI board and approved, giving you permission to continue and take the physical testing portion of the selection process. This tests your ability to run in both a sprint and a timed mile run and do sit-up and pushup in timed fashion. If you complete and pass these qualifications you are submitted to go through a thorough background check by the FBI and if everything in your background check checks out you are submitted to go through a medical examination to see if you are in proper hysterical health to be an agent in the FBI.The selection process for the FBI is rigorous, in depth, and competitive. They select only the best candidates and those that they think will perform the job to the best of their abilities to help out the bureau in every way possible. The Delaware State Police, ADS, is a state level organization that specializes in the governing three counties in the state of Delaware. Unlike other state police agencies, the ADS not only patrol high ways and enforce traffic violations, they also handle all other police priorities that local police agencies handle as well.The average Delaware State Trooper on a typical day will handle traffic violations and answer domestic dispute calls. They handle crimes ranging from felonies to misdemeanors. The ADS have canine units, detectives, undercover units, scuba units, SWAT units, air units, and patrol officers. As a Delaware State Trooper you can be a part of any of these units as long as you apply and pass the testing for each. The mission of the ADS is, â€Å"To enhance the quality of life for all Delaware citizens and visitors by providing professional, compe tent, and compassionate law enforcement services. Delaware State Police, Mission Statement, 2012). Like the FBI, the ADS selection process is insanely rigorous and intense, it takes roughly a year to complete and over 1000 applicants apply and out of those, only 23 are selected to become Delaware State Troopers (Tap. 1st class Jewell, A. 2012). The selection process contains a written process after being accepted from an online application. Once the written process is done an oral board interview is conducted.If you pass that you are then submitted to the physical fitness portion of the selection process and tested on your ability to reform sit-ups, pushup, and a timed mile run. If you pass the physical fitness portion you are then submitted to undergo a polygraph exam and fill out a background investigation packet while also being investigated by the police department's investigation unit and interview teams. If all of this is completed and you pass, the ADS will decide on whether or not to admit you to the Delaware State Police Training Academy located in Dover, Delaware.In review of both of these organizations have decided that I will pursue a career with the Delaware State Police as primary career source and the Federal Bureau of Investigation as a secondary career source, as I reviewed and compared both of these organizations have sided with the ADS because of their primary cause which is helping make the community safer on more of a local and state level rather than focusing on a national level. Want to help the people in my community and perform the tasks and duties that are required of the Delaware State Police more so than the Federal Bureau of Investigations.I have failed to list the pay grades of both of the organizations as in my personal beliefs I do not feel that is important, in becoming a ember of law enforcement, such a police officer, it is not about the money. Police officers do the job because it is a calling, the fact that the job pays you is a bonus, police officers don't go into work because of the paycheck they go into work every day with the intentions of doing something good for the community and impacting it in a positive way, they chose this career not because of the pay but because they wouldn't be able to do anything else.If you hear the call Of law enforcement there is no escaping it, you must answer it and until you do so you will not feel fully and truly satisfied. This isn't just a bob but a lifestyle. As stated above, I plan on obtaining a 4 year bachelors degree in criminal justice and serving 4 to 6 years in the SUMS. I feel that taking this route before pursuing my career as a Delaware State Trooper will better prepare me both mentally and physically for my tasks as a police officer, as it will also help me standout in the selection process.I have also gone on multiple â€Å"ride-along† with the Delaware State Police and seen firsthand the day to day calls and activities of a State Trooper. Th is career has called me and I am in the process of answering it, one step at a time. Eve kept my nose clean and stayed out of trouble, I will not jeopardize myself and my future career with reckless behavior. â€Å"If it was easy, everyone would do it'- unknown, that quote sums up my entire attitude towards life, I choose to perform the jobs, duties, and tasks that most do not wish to perform. Eel it as my duty and a sense of guilt comes over me when I do not fully undergo and take down these tasks. Believe this is the mentality most police officers and those that have heard the calling feel. The undoubted need and want to help, they undertake the jobs that most would not. In times of peril it is the police, firemen, paramedics, and military personnel that run toward the danger. This is something that cannot be explained by anyone in any of these fields; it is something that is understood as special and unique to a certain breed of individual.Police officers don't question the thou ght of chasing an armed suspect down a dark alley, they just do. Firemen don't wonder why they go into a burning building as others run out, they just do. Paramedics and military personnel don't realize that they are saving lives by risking their own well being, they just do. The sense and feelings of being in one of these positions cannot be explained, many of times my parents, family members, and friends have asked me, â€Å"Tom why do you want to be a Marine? Or Police Officer? And every time I tell them the exact same thing, â€Å"If you have to ask me, you wouldn't understand†. No one besides a police officer understands why they do it, risk their lives for complete strangers for low amounts of pay, long hours, and low social rewards. They don't do it for any of the reasons above, they do it because it's their duty, it's who they are, and it's ingrained in heir blood and DNA The ability to be a police officer is a unique and special trait; it's not just a career but a l ifestyle.

Shaalan V. Jerden Breif Summary †Tort Law Research Paper (300 Level Course)

Shaalan V. Jerden Breif Summary – Tort Law Research Paper (300 Level Course) Free Online Research Papers Shaalan V. Jerden Breif Summary- Tort Law Research Paper (300 Level Course) Shaalan V. Jerden, 713 NE2d 896 Ind. App. (1999) Facts: Rita Wanstrath Jerden gave birth to a son, A.K.S., on January 31, 1992. The next day Rita and Shaalan executed a paternity affidavit. They never wed, but Shaalan lived with Rita and the child or had frequent contact through March 1994. Shaalan paid for four months of day care while Rita provided financial support. Shaalan moved to Maryland in June 1994, but maintained contact with A.K.S. through phone calls and letters for over one year. Shaalan visited A.K.S. in August 1994, and also took him on a vacation in 1994. Beginning in 1996, Rita refused to read letters to the child and returned the letters to Shaalan. Shaalan returned to Indiana briefly in May 1997 and attempted to see the child but a meeting could not be arranged. Rita then married William Jerden on April 12, 1997 and on May 6, 1997, Jerden filed a petition to adopt A.K.S. and Rita consented to the adoption. The petition was granted and finalized on September 23, 1997. Shaalan was informed of the adoption on October 6, 1997. On December 10, 1997, Shaalan filed a putative father registration form with the Indiana State Department of Heath. Procedural History: The trial court held a hearing on October 14, 1998, and on November 12, 1998, issued its findings of fact and conclusions of law denying Shaalan’s motion to reopen judgment and set aside Decree of adoption. Shaalan then appeals. Issue(s): I. Whether the trial court erred by finding that Shaalan was not entitled to notice of the petition for adoption of A.K.S., due to Shaalan’s failure to register with the putative father registry. II. Whether the trial court erred by finding that Shaalan’s consent to the adoption of A.K.S. was not required. Holding: (1) Paternity affiant was entitled to notice of adoption, but (2) affiant’s consent to adoption was not required, based on his failure to support child. Rational: (1) Shaalan was not a putative father required to register with the putative father registry because he had executed a paternity affidavit the day after A.K.S. was born and was acknowledged by both Shaalan and Rita thus, the trial court erred by finding that his failure to register forfeited his right to notice of the adoption. (2) Under Ind. Code 31-19-9-8 provides in part that: A parent of a child in the custody of another person if for a period of at least one year the parent: (a). fails without justifiable cause to communicate significantly with the child when able to do so or (b) knowingly fails to provide for the care and support of the child when able to do so as required in law or judicial decree. There was evidence that supports that Shaalan did make attempts to maintain contact with A.K.S., but Rita refused to let him communicate with his son. However, Shaalan himself testified that he had not provided any support for A.K.S since Shaalan moved to Maryland in 1994 . Even though Rita and Shaalan did not have an order requiring him to pay support, the court stated that â€Å"fathers have a common law duty to support their children which exists apart form any court order or statute.† Research Papers on Shaalan V. Jerden Breif Summary - Tort Law Research Paper (300 Level Course)Personal Experience with Teen PregnancyEffects of Television Violence on ChildrenComparison: Letter from Birmingham and CritoAnalysis of Ebay Expanding into AsiaBook Review on The Autobiography of Malcolm XThe Relationship Between Delinquency and Drug UseThe Project Managment Office SystemAnalysis Of A Cosmetics AdvertisementCapital PunishmentRiordan Manufacturing Production Plan