Sir Gawain and the Green Knight Analysis :: Literature Knighthood Essays

Sir Gawain and the Green Knight Analysis Sir Gawain and the Green Knight was written by an unknown author, a contemporary of Geoffrey Chaucer, between 1375 and 1400. This fib tells us ab out the adventures of King Arthurs most noble, honest, and courageous dub in Camelot, Sir Gawain. The main action of the accounting focuses on a gainsay given to Sir Gawain by the Green Knight. The knight challenges Gawain to the Christmas game where Gawain hits him with an axe now, and twelve months and a day later, the knight will return the favor at the Green Chapel. This section of the story deals with the second meeting of Sir Gawain and the Green Knight, and now its the Green Knights turn to return the favor. Gawain has traveled long and far to find the knight and uphold his end of the challenge and meet his fate. The Knight is very impressed by Gawain because a lesser man would have not kept his end of the bargain. All of this has led to the completion of the story with Gawain facing the knight, preparing to take the return blow from him and end the challenge. The knight raises the ax to hit Gawain, but Gawain flinches before it hits him. The knight calls Gawain a coward. This infuriates Gawain, and he swears that he will take the blow standing and not flinch again. He states, But go on, man, in Gods name, and get to the point Deliver me my destiny, and do it out of hand, for I shall stand to the stroke and stir not an inch till your ax has hit home--on my value, I swear it (Norton, 249). Gawain reacts this way because he wants to show honor and live up to his promise made earlier. Also, he feels embarrassment and anger. The knight then acts as if he is going to use the ax again, wanting to reckon if Gawain will flinch first. But Gawain doesnt flinch at all and stands there, still as a stone, or else a stout stump (Norton, 249). The knight mocks him, verbalise that his nerve is back, and now he must strike because the timing is right. He then builds up the mood, and to create suspense, tells Gawain, Keep your neck-bone clear, if this cut allows (Norton, 249). This further infuriates Gawain, and he tells the knight that he is making too much of a scene.

Parent-Child Relationship Essay -- Papers Parenting Children Essays

Parent-Child RelationshipsThe topic I have chosen for my paper is that of relationship between parents and squirtren. Some of the points that I volition be discussing are child abuse, child neglect and how it can affect a child and the relationship with the parents. A parent-child relationship is a special relationship that has a huge effect on the way that the child will turn out. This relationship is formed through pregnancy, adoption, and step parenting. Parenting requires a great deal of adaptation. The parents want to develop a secure bond with their child but they also want to maintain a healthy marital relationship and adult friendships. Potential parents often ask themselves what they will be like when they are parents and try to recall some experiences when they were children.Mothers are the primary parcel outtakers of the children. The fathers have had minimal care taking responsibilities. Many women, if they had a life story before hand, have to give it up to stay at home with the child. Although, many fathers where the wives must work become important in the process of care taking because their role must increase to their children. Studies of human fathers and their infants confirm that many fathers can act sensitively with their infant (according to Parke & Sawin, 1980) and their infants form attachments to both their mothers and fathers at roughly the same age (according to Lamb, 1977). A number of studies have been done on the caretakers effects on the child and suggests that the effects may have been caused by childs behavior as much as by the caretakers (according to Bell 1979). The childs aggression level can be affected by the parents authoritarian discipline. Parents differ widely in sensing the needs o... ...d friendships later in life and also a good upbringing. BibliographyReferencesDaniel L., Davis (2000). The Aggressive Adolescent Clinical and Forensic Issues Don Baucum (1996). Psychology. New York Barrons Company F.L. Marcuse. Areas of Psychology. New York Harper and Brothers Publishers Edited by Raymond J. Corsini. Encyclopedia of Psychology, Second Edition, Volume 1. New York John Wiley and Sons Inc.Edited by Raymond J. Corsini. Encyclopedia of Psychology, Second Edition, Volume 3. New York John Wiley and Sons Inc.GE Vol 5, No 3 - Parent-child relationships & Materialismhttp//www.mra.org.uk/globalex/issue19/pcrels.htmlThemestream Parent Child Relationshipshttp//www.themestream.com/tax/Society/Relationships/Parent_Child_RelationshipsBritannica Parent/Child Relationships. http//www.britannica.com

Cloud Computing: Services Models and Deployment Models :: private, public, hybrid, Community

IntroductionAt its most basic, smirch computing is moving applications accessible from our internal network onto an internet (cloud)-accessible space. Were essentially renting practical(prenominal) machines in someone elses data center, with the capabilities for immediate scale-out, failover, and data synchronization. In the past, having an Internet-accessible application meant we were building a website with a hosted database. Cloud computing changes that paradigmour application could be a website, or it could be a client installed on a local PC accessing a common data store from anywhere in the world. The data store could be internal to our network or itself hosted in the cloud. (Duchene, 2010)There are three ways in which cloud computing terminate be utilized for an application. In option 1, both data and application have been hosted in the cloud, the second option is to host our application in the cloud and our data locally, and the third option is to host our data in the clou d and our application locally. (Duchene, 2010) Clouding computing is very popular operates which people guggle and look antecedent to use now a day with a lot of research are ongoing for the cloud is worthy to be invested in. precise popular service like Gmail, Google drive, Facebook, Dropbox, etc which people now a day used are obvious cloud technology. Moreover, most of the enterprise, SME and governments are looking forward to implement cloud base solutions to settle technology challenges, reducing damages, targeting new levels of efficiency and trying to create innovative business models. The objective of this research insure is to provide a brief background on different theoretical facts of cloud and the practical usefulness of the design, installation and implementation of cloud computing. In purchase order to see how cloud will become the most important part when business is set up without very high initial setup cost and only pay as you grow services.Services Models o f Cloud ComputingSoftware as a Service (SaaS) consumer can choose a service only application that require for business. It can be accessible by different devices like a web browser, mobile or a course of study interface. Infrastructure such as network, operation systems, servers, storage, business applications and services like email or a CRM will be manages by SaaS provider. Only restrain user-specific application configuration settings can be customized. The benefit of SaaS is no initial set up expenses such as servers or software licensing.One moral of SaaS is Microsoft Office 365 which provides services like SharePoint Online, Lync Online, Exchange Online and Office Professional Plus.

Leukemia and Its Treatment Essay -- Cancel Health Medical

Leukemia is something that we hear about a lot. I believe that people do not understand exactly what leukemia is and how dangerous it can be, I chose this field to try to help them understand. In this paper I will explain what leukemia is and what treatments you can choose from to treat the pubic louse.Leukemia is a type of cancer. Cancer is a assembly of more than 100 diseases that have two or more important things in common. One is that certain cells in the luggage compartment become abnormal. Another is that the body keeps producing large numbers of these abnormal cells. Leukemia is cancer of the blood ce3lls. When leukemia develops the body produces large numbers of abnormal blood cells. In most types of leukemia, the abnormal blood cells and they do not function properly.(Cancer compass 10)There are two major groups of leukemia they are grouped based on how fast they spread. Acute leukemia is a cancer that starts in the organs that makes blood, namely the devise marrow and the lymph system. Acute leukemia spreads very quickly. Chronic leukemia is when many white blood cells are made in the b sensation marrow. Depending on the type of white blood cell that is involved degenerative leukemia can be classified as chronic lymphocytic leukemia or chronic myeloid leukemia. Chronic leukemia spreads slowly.( Longe,186)There are many different types of treatment for leukemia the one that you receive depends on what stage the cancer is in and what kind of leukemia you have. Chemotherapy is one form of...

Korean American :: essays research papers

The Korean Experience in the States, 1903 1924The Korean experience in America during the years 1903 to 1924 is very unique. When compared to other East Asian immigrants, Korean immigrants were relatively small. Most of them were students and agricultural laborers who emigrated to Hawaii as plantation laborers. Many of them decided to capture to America due to constant invasion by Japan and also to earn lot of money. Those immigrants happen to be an important factor on Korean history.During the years 19031905, 7226 immigrants came to Hawaii. These immigrants hoped to earn enough money in 3 or 4 years and open a business in their homeland. Of the 7,226 immigrants, roughly 6000 were young-begetting(prenominal) adults, 600 were women, and 500 children. Just about 60% of them stayed and rest went back to Korea or moved to the continental United States. Within less than a decade, the Korean immigrants found themselves in danger of losing their homeland to Japan. This would mean that they wouldnt have their own country to go back to. In 1910, Japanese took over Korea. Thats when numerous Korean immigrants started to get involved in the Korean independence movement. After nine years of Japanese Annexation of Korea in 1910, around 540 student were admitted for bring at American schools. Most of these students were semipolitical refugees so they became an addition to the Korean community. Korean immigrants started to form anti-Japanese programs to free their country. This was a great concern to Japan. Japanese political relation decided to grant Korean women who were willing to move to America as marriage contracts to calm Korean immigrants from contributing to anti-Japanese programs. This decision didnt change Korean immigrants from involving in Korean independence movement but make them more desperate to get their country back for their daughters and sons. By the time 1915 1920, Korean immigrants made enough money to start small business like laundry, barber , restaurant, shoe repair services, and so on. This meant that they were able to donate more to political activities. Korean immigrants strengthened school for their children and churches. Korean immigrants were getting settled in America. They even had Korean newspapers to tell people what was going on with Korea.On the other hand, Korean political activists started to rise to start a movement, like Syngman Rhee, An Chang-ho and Pak Yong-man. These leaders tried to free Korea by trying to attract the attention and support of the American public.

Korean American :: essays research papers

The Korean Experience in America, 1903 1924The Korean experience in America during the years 1903 to 1924 is very unique. When compared to other eastside Asian immigrants, Korean immigrants were relatively splendid. Most of them were students and agricultural laborers who emigrated to Hawaii as plantation laborers. Many of them decided to come to America due to constant impact by Japan and also to earn lot of specie. Those immigrants happen to be an important factor on Korean history.During the years 19031905, 7226 immigrants came to Hawaii. These immigrants hoped to earn enough money in 3 or 4 years and open a business in their homeland. Of the 7,226 immigrants, roughly 6000 were male adults, 600 were women, and 500 children. Just about 60% of them stayed and rest went back to Korea or moved to the continental United States. Within less than a decade, the Korean immigrants found themselves in danger of losing their homeland to Japan. This would guess that they wouldnt have th eir own country to go back to. In 1910, Japanese took over Korea. Thats when many Korean immigrants started to get involved in the Korean independence ordure. After nine years of Japanese Annexation of Korea in 1910, around 540 student were admitted for study at American schools. Most of these students were semipolitical refugees so they became an addition to the Korean community. Korean immigrants started to form anti-Japanese programs to free their country. This was a great concern to Japan. Japanese government decided to grant Korean women who were unforced to move to America as marriage contracts to calm Korean immigrants from contributing to anti-Japanese programs. This decision didnt change Korean immigrants from involving in Korean independence movement but made them more desperate to get their country back for their daughters and sons. By the time 1915 1920, Korean immigrants made enough money to start small business handle laundry, barber, restaurant, shoe repair servi ces, and so on. This meant that they were able to donate more to political activities. Korean immigrants built school for their children and churches. Korean immigrants were getting colonized in America. They even had Korean newspapers to tell people what was going on with Korea.On the other hand, Korean political activists started to rise to start a movement, like Syngman Rhee, An Chang-ho and Pak Yong-man. These leaders tried to free Korea by trying to attract the attention and support of the American public.

Dell Auditing Essay

dells harvest-homes dingles products sess be separated by home and functional sections. For personal clients Dell provide personal laptops, desktops, tablets and a sort of accessories. For enterprise and government determinationrs, Dell provide office equipment such as PCs, monitors, printers & electronics and Tablets. Workstations and services nidus on servers, solutions and softw ar.Dells competitorsCompetitors of Dell including Lenovo, Apple, Hewlett-Packard, Asus and so on.Dells customersBased on the advantages of stability and advanced technology, the main part of the customers of Dell are government, enterprise and different institutions. The other part of Dells customer is family and personal users which focus on PCs, laptops and personal data services.Dells suppliersDells global strategy made a wide and lengthy supply chain. 95% of its suppliers with including AMD, Hitachi, Microsoft and Samsung has been disclosed on the website http//www.dell.com/learn/us/en/uscorp1/co rp-comm/cr-ca-list-suppliersHow does Dell market and distribute its products?For personal clients, Dells strategy is to customize its products in order to satisfy potential buyers requirement. One of the example is the Alienware Gaming PCs, which is knowing and manufactured for high standard game player, Dell presented fashion appearance to attract teenagers and powerful performance to fulfill customers who is seeking perfect game experience. Products can be made for different functions and added distinguished accessories. To deal with the large orders from enterprises, government departments and institutions, Dell serves products and services with cast down price and higher stability. Under this circumstances, customers will work to choose Dells products constantly and may introduce them to other potential users.What is Dells business strategy?Dell is an obviously follow leadership company. Rely on the efficient supply chain, Dell gained superior price advantage. On the tablet and laptop market Dell has to face operose competition from Apple and Samsung but it was still the largest revenue contributor (31% according 10K) because the lower price in 2012. Dell also attempted on Alienware serial to enter high performance PC market. Generally, the sources of Dells revenue was almost equally provided by enterprise solutions (46%) and services and Personal Client (54%).What are critical business processes for Dell given its basic business strategy? Dells cost leadership strategy is mainly supported by its efficient supply chain heed. Suppliers for Dell are globally and widely separated in different businesses. Based on the supply system, Dell could determine lower accessory price and negotiation advantages. Outsource manufacturing and services decreased the inventory and financial risk, which is normally in high technology industry because of product replacement.What accounting information is associated with the critical business processes and how does Dell measure up on that information? Cost of goods sold, inventory, account payable and revenues.What accounting methods does Dell use to report the accounting information associated with critical business processes and what is the risk of material misstatement? Dell uses FIFO to report inventory and revenue is have intercoursed on the chip of shipment. The amount of account receivable is almost half of the current asset which means the highly risk of income statement adjustment. Inventory has been kept in lower level, consider about the return and exchange service, the number of inventory might be misstated either.Professional auditing standards provide guidance on the auditors consideration of an entitys business risks. What is the auditors objective for understanding an entitys business risks? Why does an auditor not have responsibility to identify or assess all business risks? Provide some examples of business risks associated with an entity that an auditor should consider when p erforming an audit. The purpose of business risks understanding is to offer auditors capability to recognize possible misstatement and make analysis and adjustment. Audit report will be more efficient and reasonable with support of business expertise. Auditors did not participate management process of the company, and sometimes material or highly material information will be presented to auditors. Auditors scope may be restrict or independence influence the accuracy of audit report.

Just In Time Essay

Just-In-Time or J-I-T is defined in the APICS dictionary as a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of returnivity. To put it simply, it means products atomic number 18 produced in the necessity quantities at the necessary time, basically, everything happens just in time. It promises to provide a tailored solution for business matching none of the off-the-shelf software unattached in the market. It believes that it must adapt to its customers not the other way around.It takes its name from the idea of replenishing material buffers just when they are needed. Also known as lean product or stockless production, it seeks to improve profits and ROI by the reduction of inventory levels, by increasing inventory turnover rate, by the reduction of variability, by the improvement of product quality, by the reduction of production and delivery lead times and by the reduction of other be like those that are associated with mach ine set up and equipment breakdown.It applies to repetitive manufacturing processes where it involves the same products and components being produced over and over a bring in. J-I-T, a recognized philosophy, technique or way of realiseing takes its root in Japan. Developed by the Toyota Motor Company in the mid-1970s, it was originally known as Toyota Production System (TPS). Toyotas Taiichi Ohno is after all the credited father of this way or working. He developed a system of production based on waste elimination.Waste, according to Ohno let ins time and resources as well as materials. Just-in-time and autonomation were then born. The motive means that items move through production as and when they are needed and the latter means that production system must be automated to include inspection, where human anxiety was only called for when a defect was detected automatically, signaling a temporary stop in the system until the problem has been solved.J-I-T believes that waste and i ts many forms must be eliminated. These wastes bath be in the form of materials, space and labor. Problems that may lead to the production of such wastes are paid shoemakers last attention to. There has been a constant improvement on operation and procedures to finely tune them in to an increase in productivity. Ordering or holding costs can be reduced. And there must also be a continuous effort to strive to improve.This means an improvement on processes and systems to an efficient and competitory one. Moreover, a certain respect among the workers must be maintained. It assumes a stable environment and requires an active participation among the employees, the basics of industrial engineering, continuous improvement, small ring sizes and total quality control. Stock or inventory, overproduction, time spent waiting, transportation or movement, processing time as well as defects are considered to be unnecessary wastes.This techniques promises to render its users the benefits rangin g from consistent high quality products, quality as a responsibility of every worker, uniform Master Production Schedule, standardization of components and work methods, product focus, preventive maintenance, reduced scrap, reduced re-work, reduced cycle times, lower set up time, smoother flow of production, less inventory, cost savings, higher productivity, more skilled and multi-tasking work force, reduced space requirements and improved relationships with suppliers and continuous improvement.Setting it apart from all the other traditional techniques applied which provides large amount of options available to its customers and accepts almost all orders, J-I-T targets a limited market in order to deliver high quality services at low cost. In equipment casualty of capacity, a traditional technique employs excess capacity designed into the system anticipating problems that may arise, they are highly utilized and are inflexible as irrelevant to that of J-I-T that minimizes waste of having extra capacity, and such is flexible and moderately utilized.In the traditional technique, there is a lot of space for inventory storage. Job shops are frequently converted to cellular manufacturing when J-I-T technique is employed. Traditional technique believes that long lead times allow more time to make decisions and get the dividing line done. J-I-T on the other hand, believes that more accurate forecasting and planning can be done in short lead times. In terms of layout, a job shop in a traditional set up are spread-out to accommodate areas for stock rooms, tool cribs and work-in-the process inventories between the equipment.It even requires automated or semi-automated materials handling equipment in the form of conveyors and forklifts, another addition to an already big space requirement. In a J-I-T system, manual transfer is employed. Equipment is as close together to aid the handling over of parts from one worker or machine to the other. In terms of quality, in a traditional technique, goods are inspected at critical points and scrap rates are tracked. In the case of the J-I-T technique, workers themselves inspect parts to achieve the zero defects goal in the end.Toyota and its suppliers were alone in the use of the TPS for almost a decade. Not until the late 1970s when other Japanese automobile manufacturers in the likes of Mazda, Honda and Nissan adopted the concept of J-I-T to continue to compete with blind drunk rival Toyota. Then in the mid 1980s US and European manufacturers like Chrysler, Ford and General Motors benchmarked the J-I-T philosophy. Other firms such as CM, Ford, Bendix, Harley-Davidson, IBM, Hewlett-Packard, AT&T and others have been strongly advocating J-I-T. There have been progresses in regaining competitiveness.Many firms are once again at if not near world company status. But J-I-T is not a revolution but an evolution. Not all accounts impart be success stories. Managers only implement J-I-T when they are convince d that it can enhance the firms performance. This is true even though there have been a lot of testaments to the benefits that it claims to deliver to its clients. There have been studies that show that the performance and maintenance of the J-I-T manufacturing systems will eventually reap rewards as measured by improved financial performance.J-I-T is not the end of an evolution- it actually is just the beginning. There will be new J-I-T generations to be born in the years to come. We all have to then learn how to embrace changes in order to improve and gain control of our growing enterprises. We can always take a pick amongst the ones available. The choice is ours to make.ReferencesDonath, Bob. Reduced warehouse storage/inventory costs. The IOMA Handbook of Logistics and Inventory Management, p. 310. Retrieved November 21, 2007 from http//books.google.com/books?isbn=047120935x.

Was Freedom the Same as Equality?

Freedom and equality were not a corresponding as liberty was great news, but equality was just the initiation of a terrible problem that all downhearted people had to face. In this essay, I am going to explain why freedom was nothing like equality, and the diversifys the Black people had to face during this unfair time. After the Black people were released as prisoners, equality became a problem in the US. This was a problem for the Whites because they aspect it wasnt right to let the Blacks have their rights, and so some of the Whites (particularly the woman) started to protest against the Blacks being normal citizens and having their rights.Due to that, thousands of other people joined in and realised they could all over power the Black peoples rights. Black children were not allowed to be in the same school as White children because the White childrens mothers refused to displace their children to the same school as Black children. Although this happened, the cost of keepin g two school systems (one for Whites/one for Blacks) was so expensive that neither system could work properly. The Black children also had to suffer with poor equipment and a poor education, while White children had the opposite.Also, the Whites took away the Blacks rights e. g. the Black people could not go in the same public facilities such as swimming pools, shops, and toilets etc. as the Whites. This was something called dehumanising them. The whites gave Blacks their freedom to slavery but they didnt let them have their rights and let them be normal people just like the Whites. The White people even started a huge protesting class where only Whites were allowed to join. This group was called the Klu Klux Klan.The people in this group would wear long white cloaks-head to toe-and they would protest against the idea of letting Blacks have their rights. The Klu Klux Klan was a very powerful group that made huge protests that would make differences. sluice small children joined in with their parents, and there were even countries where only Klu Klux Klan members could enter. Because after years of racism, Blacks had a very poor image of themselves. Some desperately valued to be White, so they used chemicals to lighten the skin but this could lead to disfigurement, or even death.But there was still hope for some that all this would change Racism is still with us. But it is up to us to prepare our children for what they have to meet, and, hopefully, we shall overcome. genus Rosa Parks. In conclusion, freedom was not the same as equality because freedom was something good happening, but equality was something absolutely terrible and a huge problem in the US. The Whites would not let the Blacks live like they did, as Rosa Parks Explains Im tired of being treated like a second-class citizen.

Negative Effects of Technology on Kids

Are you aw be of whats happening in the present? Youth has becoming more active in using the internet and opposite modern technology nowadays. But do you know what the effects of this are? After you took long hours in front of the computer, are you dizzy and running out of breath? Feeling thirsty and very hot, your eyes plentyt see clearly, and your hands and fingers are shaking and stock(a) of typing? Do you as well as know that if that is repeatedly happening to you, it may lead to a disorder or illness you havent cognize for sure? Too much radiation is bad for us and has bad effects to our health, so be aware.Technology does not only affect our health, but also other aspects of our life. As I browse the internet, I have come across this article entitled The Effects of Modern Technology on Kids by Lisa Evans. This tackles nigh the four negative effects of technology on kids. First is the effect on brain development of a child. UCLA Professor Patricia Greenfield said that ban dage students create multitasking ability and visual reasoning skills which enable them to see and process breeding quickly, their attention span has also decreases.In a result, they are having a life-threatening time to solve more complex problems which require time and concentration. Technology makes the thinking skills weak and although it strengthens visual reasoning skills, it also contributes to poor eye sight. present moment is about the disadvantages on immediate access to information. With the internet becoming the source of all, students tend to become lazy and just depend on all the information given from the internet. But anyone who is not so wakeful and knowledgeable about surfing the internet may lead to a danger.Not all the information there are facts, truthful, and reliable because most of them are edited, and some sites are x-rated or pornographic, so it is very important for the parents to monitor their children about the source they will find. Third, concerni ng about social relationships, modern technology has also affected this. Instant messaging through cell phones and chatting through social networking sites have been a way to turn over of the present generation. Because of this, youth became used to keep in touch with other people impersonally.In addition, they are not anymore going outside their houses to play with other children, and socialize or talk to other people. Last is the effect of technology on the health of youth. More and more students at this time are execrable to neck and back pain because of improper posture using laptops and computers. According to Ken Harwood of the American Physical Therapy Association, there is also an increase in the diagnosis of repetitive stress injuries among the kids with the age of at least 8 years old.In the final analysis, although innovation and improvement on technology brings about development and benefits to people, we can still identify the disadvantages of it to our lives especia lly to youth. We should be responsible in using modern technology because every act we do affects us. It is better to be careful than to take the risk of doing the things which entertain us, but have negative results. Before we end up regretting in doing the wrong thing, let us think send-off and follow the right path.

Auditing Hw Solutions

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

200 Million Girls: Female Infanticide in China and India Takes Many Lives Essay

It is a girl. The four deadliest words in Asia. In the past 5 decades cc million girls went missing in India and China. In Asia the horrible phenomenon feminine infanticide occurs on a large scale. fit to M. P. , Female infanticide is the intentional killing of baby girls imputable to the taste perception for male babies and from the low value associated with the birth of females. Research shows that female infanticide happens all over the world, simply especially in Asia. Girls are being aborted, killed or abandoned.China and India are the two some populous countries in the world where female infanticide is a very big issue. These two countries have similar but also different rea passwords for female infanticide and these tenablenesss will non cease to exist soon. In 1978 China introduced the one-child policy. The Chinese population was growing too fast and already was enormous. The political science introduced this policy to slow down the growth of the population of China. T his encouraged female infanticide even more.Before the introduction of the one-child policy female infanticide already existed. According to Ansley J.Coale and Judith Banister, a missionary (and naturalist) observer in China in the late nineteenth century who interviewed 40 women over age 50, who reported to have minded(p) birth to 183 countersigns and 175 daughters, of whom 126 sons but only 53 daughters survived to age 10. By their account, the women had destroyed 78 of their daughters. To Chinese families the son is the most important child. They believe that the son can work, carry the family name and look after elderly parents. Only after the desire of having a son or two has been met, do Chinese families prefer having a girl.The question that needs to be answered is whether this preference for sons is caused by culture or economics. According to Confucius there are some rituals that can only be performed by boys. But this is not the major reason for female infanticide. The m ajor factor is patrilocality, which refers to the firmly entrenched cultural norm for elderly parents to co-reside with their big(a) children, and for the son to have a woman marry in and assist him in this function. Patrilocality is an economic factor affecting almost every country that participates in shake up-selective abortion. (Avraham Ebenstein)Due to the one-child policy and the son preference population, statistics suggest there are 118 boys born for every 100 girls. (Sherry Karabin) In India there is also an unbalanced sex ratio. In India female infanticide is also a big issue. India and China do have similarities as to why families prefer boys. To Indian families, the son is also the most important child. In India sons have eagle-eyed been prized over daughters. Sons preserve the family name and traditionally look after elderly parents. Daughters are often seen as an valuable burden.Parents are faced to pay a costly wedding dowry when they get married this amount is eq uivalent to three years of earnings. If they have a daughter and do not have the money to pay the dowry they would also lose pride. Most interviewed Indian women have a similar reason of why they abort, kill or abandon their daughters. They rather abort, kill or abandon them than let them suffer. (Ashok Prasad) In China the groom will give the brides family betrothal gifts and a sum of money. In return the parents of the bride will deliver the brides dowry to the grooms family.If one of the families cannot offer gift or the dowry, they would also lose pride. But for Chinese families this is not a reason for not having a girl. Not only poor families have a preference for boys but even educated middle class women face pressure to produce sons. Indian people feel that they will need a son for everything. Indian women call this the son obsession. Due to the son preference in India, population statistics suggest there are 940 girls per 1000 males in hoidenish areas, whereas in urban are as there are 900 girls per 1000 males. Samar Halankar) Unfortunately this horrible phenomenon will not end soon.Both countries have a strong and long history, which means an old tradition. Their preferences for sons will not change soon. In both China and India the government tries to prevent female infanticide by taking certain measures. In China the government tries to ban sex-selective abortion but at the same time they declare that the care of old people is the task of the family and not the state.In India the government has banned dowries under the Dowry Prohibition Act of 1961 still few get married without the dowry. Female infanticide in India and China) Despite of this government interference, female infanticide has not stopped. Statistics show that over 200 million girls went missing in the past fifty years. Research shows that the number of girls is still declining. (Ashok Prasad) Not only the government tries to stop this, also people who got aware(p) of this fact are tr ying to stop female infanticide. In 2006 Rita Banerji founded The 50 Million Missing Campaign in order to raise awareness of the phenomenon in India.Although female infanticide has a long history, a lot of people over the world are not aware of this fact. In September 2012 a new documentary film Its a girl will be released. This documentary film explores female infanticide in India and China. It tells the stories of abandoned girls, of brave mothers trying to save their daughters, of mothers who would kill for a son and women who suffer extreme violence.Global experts and grassroots activists put the stories in context and pep up different paths towards change, while collectively lamenting the lack of any truly effective action against this injustice. Marie Vlachova) To conclude, female infanticide in China and India is still a heartbreaking issue and will not end soon. In both countries the preference for sons has similar but also different reasons. This son preference will not c hange soon due to the old family tradition. They truly believe that sons can bring prosperity, continuity and valuable support and care. Which means that female infanticide will not end soon. Statistics support this fact by showing that the number of girls is still declining and will keep declining.