Fred Stern & Company, Inc.

F passing Stern & Comp both, Inc. was a rubber importer based out of New York City during the 1920s. This capital-intensive business was in towering demand for numerous industries at the time. As such, Fred Stern & Co. relied heavily on lenders to finance its daily operations. In 1924, Fred Stern & Co. approached a finance company named Ultramares Corporation for a loan of $100,000. Before accept the terms, Ultramares Corp. requested an studyed balance sheet to serve as support for the loan.A well-respected accounting impregnable named Touche, Niven & Co.had provided assurance for their logical argument a few months earlier, which each(prenominal)owed the deal to go with. The following social class, in January 1925, Fred Stern & Co. filed for bankruptcy and Ultramares Corporation imbed itself suing Touche, Niven & Co. for fraud & negligence to recover $165,000 lost in the agreement. When reviewing the strip thoroughly, there are various red flags, overlooked by Touche Niven that should look at been clear indicators of fraudulent revealing by Fred Stern Co. Firstly, when commencing the scrutinise in February, Touches auditor Siess had to complete the general ledger & trial balance himself.It had not been posted since the prior April. This resulted in him reviewing some of his own work. Following this eveningt, Sterns accountant booked an additional entry debiting receivables and crediting rude sales in the come of $700,000, to a greater extent than doubling the accounts receivables account. As an explanation, he claimed that the entry represented December sales omitted from the accounting records. Additionally, while auditing inventory, Touches auditor discovered several errors, which caused the inventory record to be over evinced by more than $300,000, an overstatement of 90%.Also, while auditing payables, more errors appeared and the auditor discovered that the company had improperly promise the same as even outs as collateral for several ba nk loans. We should also consider the absence of a smashed regulatory system at the time as well as the old acquaintance and legal affinity between the firm and the client as red flags, which may fill led the auditing firm to under-evaluate the risks of the audit. This field led to a long legal battle between the defendant Touche Niven & Co. , and the plaintiff Ultramares Corporation.In the kickoff ruling, the jury found the audit to be negligent but not fraudulent however, the judge set this finding aside based on the doctrine of privity, which protects auditors from troika party suits. Essentially, this ruling states that in car park law, only parties of the contract or relationship in place should be allowed to sue and claim damages. set forth parties that used the reading in the audit report to make decisions did not have an explicit contractual agreement with the auditors. Therefore, a third party could not sue the auditor for damages if the audit report was misleadi ng and caused the third party to lose money.The s of 1933 did not hold auditors legally responsible to these third parties. As we burn down see, auditing rules have changed quite substantially from the 1920s to today. Following this ruling, the plaintiff appealed the ruling where an arbitrate appellate court reinstated the negligence verdict stating that by offering an unqualified report, Touche Niven & Co. had an obligation to Ultramares since they relied on this information to base their decision of lending money to Fred Stern & Co. Finally, Touche Niven appealed the ruling which as a result brought the case to the New York Court of Appeals where a final decision was established.In a unanimous decision, the court, led by taste Benjamin Cardozo ruled the defendant not guilty based on the same conclusion from the beginning(a) ruling. He stated that the law should not admit to a liability in an indeterminate amount for an indeterminate time to an indeterminate class. He believe d that Touche, Niven was not guilty to third parties because its relationship was with Fred Stern & Co. period. It is grand to mention that judge Cardozo went on to criticize the accounting firm for its audit of the Fred Stern Co.fiscals and that had they sued on bum of gross negligence, they would have been successful. Distinction being the fact that blindly giving assent is as bad as committing fraud. To reiterate, the difference between negligence (which they sued for) itself and gross negligence is in fact a relationship that exist between the parties in dealing. This case established that an auditor could be sued by a primary beneficiary for damages from negligence. A primary beneficiary is a party that has a direct receipts from the audit.Non-privity parties could also sue for gross negligence. This increased the auditors legal exposure to third parties. The SEC of 1934 reflected these changes and galore(postnominal) others one significant change was that auditors had a much higher judicial proceeding risk due to their wise responsibility to third parties. The audit report in the 1920s was rattling basic. The audit report was titled the Certificate of Auditors and said that the auditors had examined only the balance sheet accounts and these accounts were in air travel with the explanations and information given to the auditors.It then said that the statement presented a true and correct view of the fiscal condition of the company. This is very different from the audit report used today. Today, the audit report is much more detailed to service auditors parry liability. Instead of simply examining the balance sheet, forthwith we audited the balance sheet, income statement, statement of kept up(p) earnings and gold flows. Beyond just simply stating that the accounts are in line with the explanations and information received, auditors state that we manoeuvre the audit in line with Generally Accepted Auditing Standards and explain what this me ans.In the 1920s, where the audit report would have said that the statements present a true and correct view of the fiscal condition of the company, the report nowadays state that the statements present fairly, in all material respects the financial position of the company, and that the operations and cash flows are in line with Generally Accepted Accounting Principles. Many changes in the auditing profession have required these changes to avoid confusion from financial statement users.The decision of extending the liability of auditors to third parties had impacts on all parties involved in an audit (accounting firms, audit clients and third-party financial statement users). The question of whether the auditors are responsible for socialisation investment losings became important. Socializing investment losses and privatizing profits can be defined as how businesses and individuals can successfully benefit from any and all profits related to their line of business, but avoid los ses by having those losses paid for by society.Privatizing profits and socializing losses suggests that when large losses occur for speculators or businesses, they are able to successfully lobby government for aide rather than look the consequences of said losses. 1 In other words, when losses are occurred by the investors or creditors of an audit client, the auditors would be as liable to them as the audit client itself to compensate for the losses occurred due to misrepresentations on the financial statements or in case of fraud. This is basically what extending the liability of auditors did.The changes in the SEC of 1934 and the new laws that arrived after that, obligate certain changes to the way the auditors had to approach their work. It is now their responsibility to ensure that the work being done is adequacy to provide a high level of assurance to all the users of financial statements. This means ensuring that they do their due diligence, in case that there is misreprese ntations in the financial statements audited or fraud and that they are being sued for gross negligence. The auditors would have to prove that they did the work necessary to provide that high level of assurance.The auditors would also have to be more careful when choosing their audit clients as they cannot chose anyone they are already doing consulting for (remain independent). However, the fact that the consulting firms and auditing firms are now separate for the same client eliminates the estimateing of audit fees. The change to the liability of auditors also impacted the audit clients because they are no longer the only one responsible in case of misrepresentations if the financial statements. However, since the auditing firms no longer lowball their fees, the clients leave alone now have to pay more for the same audit.The change also impacted the third-party financial statement users. They now have more peace of mind when it comes to the information they are reading since they eff the auditors know that they have to keep them in mind when doing their audit. This fact is enforced by the idea that the third-parties now have insurance from the auditors that if any misrepresentations occur in the financial statements that incurred losses for the investors or creditors of the audit client, they can now recover some (or all) of it by suing the auditors for gross negligence.The decision of extending the liability of auditors to third-parties was make by courts. This brought up the question Who should have the assurance to chose who should socialize the investment losses? Since the accounting profession is supposed to be self-governing, this question is valid. The Canadian Institute of Chartered Accountants (CICA) is the association responsible of their members when they break the code of conduct in Canada. It hands penalties to the members but also sets guidelines as to what is ethically expected of them. However, they do not have the authority to serve as a court because they are not considered naive.An argument can be make to say that the government should protect the investments. The government can do such a thing by developing laws that will help the courts make their decisions. An example of the government making a law to help determine who is responsible in case of fraud would be Bill C198 (the equivalent of Sarbanes-Oxley for Canada). Since it is the courts duty to refer the rule of law () and enforce laws in a fair and rational manner2, it is their responsibilities as impartial party to determine who is responsible for the losses occurred in cases of fraud.When conducting an audit, auditors must ensure always ensure that any and all information influencing third party users decisions is included in the financial statements and/or attached notes. To ensure this, the auditor must determine these users. Knowing and understanding the third party users will inform the auditor of worrys desired results and will therefore enable the auditor to conduct the audit more efficiently.For example, a company who is looking to secure new loans will want to understate the current debt on their balance sheet as well as show a high working capital ratio to ensure their creditors will loan them the desired financing. Contrary to this example would be companies entering the nervous strain market. With the launch of an IPO, companies want to show profitable results as well as increase growth to ensure a high stock price. This is especially true for companies whose loans are secured by their stock (i. e. Enron with its stock trigger).This stage of the audit planning must be completed/updated every year since managements goals may vary from year to year. The auditor will then use managements biases to organize the audit. More experienced auditors will work on the riskier accounts, whereas newer employees will work on the little risky accounts thus explaining why the junior accountant will be responsible for auditing the cas h percentage while the senior auditor might work on deferred revenues for a company receiving all of its revenues through exterior funding.Knowing and understanding the third parties needs will ensure a more efficient audit. However, even with all improvements made to the accounting world, cases like these still happen today. In a recent case involving a very reputable accounting firm, Ernst & four-year-old, audited fraudulent financial statements of Sino-Forest made their way to the public. Evidently, this led to many losses, specifically for Sino-Forests shareholders who investment decision was based on the companys financial statements.During their audit, Ernst & Young failed to discover that management materially overstated the size and value of its forestry assets. 3 Ernst & Young had to pay a $117M settlement of a shareholder class-action lawsuit. 4 Due to cases like these, changes are continuingly made to auditing standards to adopt when new issues surface. The case brought up a possible change the inclusion of the third party users in the audit report. Evidently, clients would be resistant to this change as it would limit their options.If a client discovers later on in the year a shortage of cash but did not mention a creditor in the audit report, creditors might not want to finance their activities solely on that basis. Furthermore, due to the importance and the quantity of users relying on the financial statements, enumerating all of them in the audit report would be impractical and unnecessary. Auditors need to remain alert when conducting their work and limiting their responsibilities to a specific number of individuals would not benefit the public.We would not want another(prenominal) case like this one to enable an auditor to conduct a negligent audit without ache the necessary repercussions. In conclusion, the accounting world is an ever evolving practice. New rules and regulations are approved every year when loopholes are discovered and ab used. The accounting profession has surely matured since the 1920s. Who knows what other changes will be made in the future. Maybe auditors will need to disclose a summary of all unadjusted misstatements or even need to create a different audit report for every different user.

Autobiographical Essay on “the Life as a Small Business Thinker”

I was born in 1978, and started my life-education when I was at 5 years of age in a USM kindergarten, Penang. I grew up in Penang, had an ordinary secondary education in two schools (SMKA Almashoor and St. Georges Girls School), which I find two diverse cultures in both schools. While in an Islamic school, we were thought all in all the essential Islamic determine which (I think) made the most of who I am today. Meanwhile being in St Georges Girls School, a multi-cultural school, has actual me into a self-confident woman and motivated in life and what I do.Most of this essay is a serial of vignettes from my professional life, in chronological order. This is the story of my life, with an elaboration of what I think is the point of it all my personalised assessment of what I did and why I became a marketer. At the age of 34, I was beginning to re-think all the closes that Ive made by my life and all the what ifs question that was not answerable up work on now. For weeks, I hav e been contemplating and have faint urges to pursue more in life, and get hold of matchless most important thing in my life graduate with a MBA in my handWhen I enrolled to UiTM, the decision to major in broadcasting was something I did not take lightly. I was sure of the decision I made without knowing the after-crisis that I might face later on. I spent 4 years of my life majoring in Broadcasting, and was enjoying college life as much as I could. I was ever so fascinated by the world of broadcasting and all its stories. Its impossible for me to pin-point when I first became interest with broadcasting as it has been there for as long I can remember.I was lucky enough to come a 6 months practical at a production house that had given me exciting insights in the world of broadcasting. I remember going back to class from the 6 exciting months feeling burning about life, work and all the people that I have met in the industry. The months of hardworking, fast-paced industry were wha t I longed for. At this point, my post-graduation plan was to work in a tv mail (or small market station at least). I was expecting a low salary and ungodly hours, but I was looking at the experience as an extension of my education.I remember when I completed my paper during my finals, my head was racing with supposed future plans, and I could remember that faint twinge of excitement as I flip through the newspapers looking for chores in tv station. I also remember the journey to several tv place that I went for interviews that turned me down as I had no relevant experience for the job. I pass judgment quickly, the jobs available to me were limited, because I was lack of experience, and I was young. After weeks of searching, and drilling interview sessions, I finally dirt a marketing job at Seniko Sdn Bhd. an IT company in Cheras, Kuala Lumpur. I took the job instantly, as I thought, I must have done something right to market myself that the Manager offered me the post immedia tely. My first job in a way has changed my outlook and way of life. It was really the key that made me start to assume as a person, and expanded my responsibilities extensively. The first job was always the hardest to cope with, until I realized galore(postnominal) things in life is implied through my first marketing job.

How Do Gangs Affect Adolescent Behavior?

Since the early 1920s, researchers have closely studied the relations amongst the street gangs and violent crime froma variety of perspectives criminological, sociological and psychological (Thomas, 2008). Whatever the underlying causes for gang membership, the resuls seems faint members of street gangs admit to a far greater rate of serious crime, and to far more puckish acts of of the same age, race, and socioeconomic background (Penly Hall, Thornberry & Lizotte, 2006) than non-gang members of the same age, race, and socioeconomic background (Battin-Pearson, Thornberry, Hawkins & Krohn, 1998).According to the Web site safetyouth. org (n. d. ) gang rage is certainly a cause for concern Gang members are responsible for much of the serious military unit in the United States . . . Teens that are gang members are much more likely than other teens to believe serious and violence crimes. For example, a survey in Denver found that while only 14% of teens were gang members, they were responsible for committing 89% of the serious violent crimes. (n. p. ) Many researchers have come to the conclusion that gangs necessarily cause violence and deviant behavior.As a matter of policy then, it seems clear that the solution of a lean of social ills is to break up, disrupt, or prevent the formations of gangs (Battin-Pearson, et al. , 1998). Yet, is this the solution? As George Thomas (2008) states, The problem is complex, so the solutions cannot be complex (p. 88). So what is the solution? According to the U. S. Department of Education (n. d. ), all factors of age, race, and socioeconomic background must(prenominal) be taken into consideration . . .

Applied Managerial Dision Making

Applied Managerial Decision Making MGMT600-1301B-03 Phase 3 unmarried project Rocklyn Kee Colorado Technical University Online Professor Donald Pratl March 11, 2013 T present argon 500 rentees in the gross gross revenue force of Company W that ar spread out over Southeast, Northeast, West, and Central regions. The company has tardily incorporated a new softw atomic number 18 program in and attempt to monitor how many gross revenue are generated by each employee. It is expected that each month each region should sell the alike(p) aamount of products.It has been noted that over the last three months however that this expectation has only been reached by half of the employees in each region. Before a decision can be made on possible theories as to why this is, some statistical testing must be done. Company W knows that there are different techniques that can be utilize to statistically analyze this issue. The one that we will be discussing here will be non-parametic statistics an d hypoyhesis testing along with chi-square distribution testing of data. Let us begin by first defining these terms for a better understanding. Hypothesis Testing This is a technique that is apply sequentially by businesses in order to obyain concluions in regard to population utilizing reading obtained from a sample. This schooling is gathered so as to enable a decision to be made as to the borrowing or rejection of the guesswork by the researcher. The researcher makes a decision on two types of hypotheses the aught (Ho) and the alternate(a) (H1). The research is actually done on the null supposition, as this is the one that trys to reject the hypothesis contestation by proving it to be untrue.The researchers testing end result will do one of two things choose or reject the null hypothesis narration. Should the statement be proving to be untrue and rejected, the alternative hypothesis would in turn then be accepted. CTU Online, (2013) * Non-parametric Statistics This is what is known as an assessment to savorlessly apply information. The informationcan be ordinal or nominal. The researcher will be allocated to classify information that is presented as qualitative for variables that are nominal, while the researcher will be allocated by ordinal variables th categorize the presented information so it can be ranked.There will be no formulated statements from non-parametric analysis in regard to the information that is presented by the researcher. The ANOVA, (analysis of variation) is a commomlly use method of non-parametric. The researcher does an analysis with the ANOVA to see if there is a differentation among groups, and if the mean of them are the alike(p). With a null hypothesis the ANOVA will determine if the information that has been presented has the same means, while with the alternative hypothesis it will determine if the information has defferent means.CTU Online, (2013) There is a one agency method and a two way method for an ANOVA ana lysis that can be used by the researcher. There is only one factor for the researcher to test for equality of the presented information in the one way method, and the two way mwthod allows for distinguishing if there may be another factor. * Chi-Square Distribution subroutine Two types of information can typically be generarted when variables have no pattern, categorical or numerical. Researchers employ using the chi-square distribution in order to unmask the distinctions and to see if they are independent.Categorical variables are specific variables with no fixed numerical value, and numerical type variables are numerical. In this regard there are brain asked like, what type of work do you do, or do you own a vehicle? These types of questions are categorical variables because of the answers which would be for example, construction and yes or no, which are different responses from that of other questions like, what is your weight or what is your GPA? , that are numerical variables . These can be continious or discrete, for instance how many homes do you own? This is discrete.What is you height? This is continious. The figuring of particular things is where the discrete data comes, and measuring a particular thing is where the continious data comes. CTU Online, (2013) * Using Chi-Square analytic thinking There can be a fluctuating in the testin using of the chi-square analysis based on the collected information, such as in this case of the representatives that reached the quotas and those who did not. In relation to the null hypothesis the statement would be, the sales representatives using the new sales software were able to meet their sales quotas vs. he sales representative not using the new sales software where not able to meet their quotas. The null in this statement cannot be proven to be true, because there is no proof that the sales representatives that used the new software were the ones to meet their quotas and the ones not using it where the ones who did not. Theory here is that the null hypothesis is false, and the alternative hypothesis is accepted. This means that the same amounts of products were not sold by representatives using the new sales software.To progress statements of truth in regard to issues and problems in order to accurately classify is why researchers do hypothesis testing. The researcher has to have a complete understanding of the question or issue in odere to collect, analyize, and envision data. A researcher has to analyze different theories statistically in order to be useful in educated business decisions making. Voelz, V. , (2006) References . CTU Online. (2013). Applied Managerial Decision Making www. ctuonline. edu Voelz, V. , (2006). Hypothesis testing www. standford. edu

Characteristic of Good Co-Worker Essay

When you work at a company, your colleagues obviously constitute an important factor that conduce to an interesting or horrible job. As far as Im concerned, a wide colleague is an enthusiastic, responsible, and friendly soulfulness.To begin with, I believe that an enthusiastic worker will not entirely accomplish his or her tasks quickly but also be able to foster other passel who collaborate with him or her . This is because when I was previously working in a software development team, wiz of my teammates always showed zeal for our projects. He agreed to do every tasks that team leader gave to. In addition, he normally spotless the tasks earlier than other co-workers. This resulted in that other people in the team including me were further by his great enthusiasm. We tried our best to work and complete our tasks as soon as possible. Our projects, therefore, were normally accomplished before deadline.Secondly, how do you work with irresponsible co-workers? My buddy, who work in a bank, usually complains most his colleagues. Since they usually leave their position during working hours for personal activities, they dont fulfill their tasks, hence my brother have to help them to carry out their ones. Consequently, for me, being responsible is always considered to be a racy trait that every co-workers needs to possess.Last but not least, friendly co-workers will create a friendly and comfortable working atmosphere that can increase the interest of employees in their job. For example, I was pressurized greatly into doing my projects one year ago. However, by communicating with friendly colleagues, I felt more relaxed and was able to do the project completely. Furthermore, since we are friendly people, our team are capable of collaborating more efficiently. Thus, our projects are usually finished quickly.In conclusion, although I have not had many chances to work with various people yet, there may be more other characteristics to define a great colleague. However, I believe that a person who possesses enthusiastic, responsible and friendly qualities is definitely a great colleague.

Religious Health Care Research Paper Example | Topics and Well Written Essays - 1250 words

Religious Health Care - Research Paper typefaceIn guild to scale up their productivity, the facility has to eliminate mistakes in its operation. There are aboriginal questions that this write-up will address in relation to the strategic performance of Religious Health Care as discussed below ( Milano, 1998).It is important to mention that Religion Health Care is in the forefront and in order to uphold its reputation. It must continue to offer quality services to its tolerants as the just about important stakeholders in the governance. As a facility, they intend to expand in technology with an intention to improve on patient satisfaction. Religion Health Care and consultant team work together to ensure success in every faculty (Svensson, 2003).Q1). A number of critical issues must be solved by the organization as an expert falls on the governing board. The roles of the board are essential to the organizations success. The following suggestions depict steps that are imperative t owards ensuring the board of management makes satisfying improvements. The board should select the chief decision maker to govern all the operations within the organization. The officer may oversee all activities and direct the most appropriate techniques that should be employed to arrest risky situations. Develop a framework of workmanship by maintaining a healthy relationship to enhance performance. The framework may help to ensure that there is no overlapping of task. Workers will know the activities that they should execute to ensure organization actualize its goals.To begin with patient and family satisfaction, significant decline can be observed from the hospital over the past one and half year. The psychiatric hospital uses a certain firm to tabulate the responses from already discharged patients. Before the start-up of the process, satisfaction reached 91% and from that tip forward, it dropped 85 %. This can be

Effect of positive feedback on achievement Essay

Effect of autocratic feedback on achievement - Essay ExampleThe study focuses upon the impact of positive feedback on achievement. This might be best supported by the idea of formative assessment techniques, which alleviate in shaping a students learning ability and educational gains acquired by the pip-squeak during the process of classroom education. Interaction between a teacher and a student is the key to approach in the effective gains from education accruing to the student. Formative educational techniques entail the diagnostic application of evaluation inwardness where the teacher needs to assess a student based on observations, discussions in the classrooms, homework make by the student, tests and analysis of the work of a student. Taras (2008) notes that much needs to be done in request to understand the recent improvements or changes brought about in the area of assessment in education.Black & William (1998) in their work Inside the Black Box observe that the evaluat ion system is formative when the feedbacks or development collected by the teachers are utilized in reshaping the principle and learning process such that the true requirements are met. These might incorporate some alternative teaching practices, adjustments in the instruction or providing much occasions for practice to the students. The aim of this paper is to explore the impact of positive feedback on the achievement of an individualistic with a focus on the areas of improvement essential for the implementation of formative assessment procedures.In the mise en scene of education, assessment plays a very important role. This is especially true in case of children and adolescents. Certain teachers think that earning involves the transfer of knowledge from the teachers to the learners and understanding can develop later. Others are committed to form a teaching base, which involves interactions. In such an environment formative