Final Project AAT Essay

1.TERMS OF REFERENCE 1.1 The report has been prepared to cover the requirements of the AAT Unit â€Å"Internal Control and Accounting Systems†. 1.2 The objectives of the report are to analyse the accounting function at Inkwell Ltd and to identify any weaknesses, so that recommendations for the implementation of a new and improved system can be put in place, in order to minimise errors and to prevent fraud. 2. EXECUTIVE SUMMARY 2.1 The aim of the report is to analyse and evaluate the current internal control system and accounts receivable ledger of Inkwell Ltd. 2.2 The findings of the investigation highlighted the flowing weaknesses: The Retail shops use stand-alone computers which are not connected to the network. Lack of security measures put in place to safeguard the sensitive personal data held on individuals, and non-compliance with the Data Protection of 1998. Non-compliance with company policy, as updates only carried out once per day. Data lost due to infrequent back-ups are costly in both time and money. The retail shops have a sloppy approach to cash management. Cash only banked twice per week. The company does not produce or provide any instruction and help guides, which employees can refer to in order to find help and advice. The company do not have contingencies in place for staff absences due to illness or annual leave There is no encouragement for employees to attend training courses. Passwords used are not sufficient to maintain an adequate level of security. The company uses a just in time system of production, and any unforeseen upholds in delivery can cause delays and may have an impact on the company’s reputation. There are insufficient control and monitoring procedures carried out by senior personnel. The company allows customers to pay by cheque. The company does not conduct performance appraisals. The company does not conduct regular staff meetings. Management not upholding ethics and integrity, and not practicing their own policies thus creating an ideal environment for fraud and unethical practices to be committed. Staff shortages contributing to processing delays of sales invoices. 2.3 Suggestions and recommendations have been made to help make improvements which will increase the company’s performance and efficiency and to help  create anti-fraud environment. 3. METHODOLOGY 3.1 The research conducted to create this report was primarily obtained from data provided from the AAT website, the Internet, and reference textbooks. 3.2 A period of four months was taken to monitor the Internal Controls system and Accounts Receivable Ledger to gather sufficient data in order to compile the report. 3.3 A meeting was arranged with Inkwell’s Finance Director and Company Accountant to discuss the areas of concern and the procedures that needed to be implemented to make suitable improvements. 4. INTRODUCTION 4.1 Inkwell Ltd is a large private limited company within the private sector, supplying a complete range of re-manufactured inkjet and laser toner cartridges to its customers. Products can be purchased from either the company’s sixty nationwide chain of high street shops, which are situated in most of the UK cities and large towns, or from their on-line shop facility which is accessible twenty-four hours every day of the week. 4.2 The company is run by three directors who are the main decision makers. Inkwell Ltd was created seven years ago by two of the directors, Mr Paul Farnon (Managing Director) and Ms Victoria Dawson (Sales Director). Mr Anil Gupta (Finance Director) joined Inkwell after investing in the company two years ago. The company shares are owned by internal stakeholders only. 100% of the shares are split between the directors, with the Managing Director being the majority shareholder with holdings of 40% and the other directors each holding 30% of the shares. 4.3 Their head office is situated in an industrial estate, based in Birmingham, where the management team, accounts department, on-line shop and large central warehouse are all located. The company has progressively grown since it was initially set up and currently employs one hundred and eighty full-time employees, and has reported revenue of over sixteen million pounds. . 4.4 Inkwell has a mission to become environmentally friendly and promotes this by ensuring that they continue to strive towards achieving a greener environmental future, without jeopardising or comprising the quality of their products and reputation. The company ensures that products meet with 100% quality satisfaction guarantee, and has made a promise that should certain conditions not be fulfilled; that the company’s policy of replacing the products without rejection, will be adhered to without affecting the customer’s statutory rights. The company assures their customers that the recycled cartridges, which are cheaper than the genuine, original products by up to 20%, will meet or exceed the quality of the original cartridges. 4.5 80% of Inkwell’s sales are purchased by non-trade customers. Trade customers represent the remaining 20%, and these customers are supplied goods on credit terms of between thirty to sixty days. 4.6 The Finance Director, who owns 30% of the company’s shares and reports directly to the Managing Director, is qualified to BSc and FCMA standards, and has worked for the Inkwell Ltd for five years on a full-time basis. This Director is entrusted to ensure that all the financial strategies, support the aims of the business and to identify opportunities in order to achieve greater efficiency and cost savings, as well as driving sustainable and profitable growth and optimising profitability and shareholder value 4.7 The Company Accountant, who reports directly to the Financial Director, is AAT and ACCA qualified and has worked for Inkwell Ltd for seven years on a full-time basis. The Accountant complies, analyses and produces the company’s quarterly and annual financial statements 4.8 The Accounting Technician, who reports directly to the Company Accountant, has worked for Inkwell Ltd for six months on a full-time basis. This employee possesses relevant experience but does not currently have any accountancy qualifications. However, the Technician is currently studying for the AAT qualification, with the aim of passing the exams within the following year. 4.9 The General Ledger Clerk, who reports directly to the Company Accountant, has worked for Inkwell Ltd for four years on a full-time basis. This employee’s principal responsibilities are to input financial data into the computer system, in order to produce monthly trial balances. This clerk does not possess any accountancy qualifications. 4.10 The Accounts Payable Clerk, who reports directly to the Company Accountant, has worked for Inkwell Ltd for three years on a part-time basis, and already holds a level two AAT qualification, but has expressed an interest in progressing on to the next level. 4.11 The Accounts Receivable Clerk, who reports directly to the Company Accountant, has worked for Inkwell Ltd for three years on a part-time basis. This clerk has worked previously within the accountancy industry, but does not currently possess any relevant qualifications. 4.12 The Costing Technician, who reports directly to the Company Accountant, is  highly experienced and competent within this role and has worked for Inkwell Ltd for seven years on a full-time basis. This employee does not currently possess any relevant qualifications and has expressed their reluctance and unwillingness to participate on any training activities 4.13 The Payroll Clerk, who reports to the Company Accountant, possesses a level two AAT Accounting qualification, and is enthusiastic about progressing further. This employee has worked for Inkwell Ltd for four months on a full-time basis, and has very limited experience of working within a payroll department. 5.REVIEW OF THE ACCOUNTS SYSTEM 5.1 Inkwell’s policy for their large business customers is generally to trade on a cash-with-order basis for the initial three months of custom, and uses the services of a credit reference agency which conducts the necessary credit checks. The Accounts Receivable Clerk is responsible for carrying out the credit checking procedures, and after liaising with the Sales Director regarding accounts which require a credit limit of more than  £1,000 per month, recommends suitable credit terms. This is a strength of the accounting system in that by using the credit reference agency it will determine the ability of new customers to pay their debts. This will prevent fraud in that customers would not be able to purchase goods knowingly that they could not afford to pay for them, so increasing cash flow. This will also have an impact on the integrity of the customer. However the weakness should be that a full limit should be set, in that the customer is not allowed to go over a total limit, otherwise the customer could do four or five months trading up to  £5,000 and this would escalate further if they were non payers, meaning the debts are more likely to go bad. This would have an impact on the cash flow of the business. 5.2 All new credit limits and changes to existing limits of more  £5,000 per month, have to be approved by the Financial Director. Risk management is  essential for a company’s survival and success. This is a strength in the company as any increase in limits have to be authorised by a senior member of the finance team. This will reduce the risk of fraud, in that no individual has control over the customer accounts, and can extend limits for customers for their own personal gain. 5.3 A potential customer may want to know the price of the goods before deciding whether to proceed with a proposed transaction, and will request a quote either by phone, email or in writing. As a means of preventing fraud, due to either party contesting the quotes given, the company’s preferred method of issuing these quotes is by email. Written quotes are supplied on a customer’s request, however, Inkwell likes keep this method of issuance to a minimum, as paper usage has an impact on the environment and goes against the beliefs of the company. Inkwell, also prefer not to give a quote over the phone, as a record cannot be kept regarding the quote given, and there would be no written evidence to support against any disputes that may arise in the future. Before proceeding with the order a customer can make comparisons between the prices given by different suppliers. If the customer accepts the price given by Inkwell, and proceeds with the order, the price quoted is fixed and cannot be changed, which is contrary to that of an estimate being given. This has an effect on the ethical principle of objectivity, in other words the customer would be free from biased. 5.4 Once an order is placed it needs to be checked by the appropriate sales representative. This is important, as the recorded data may contain errors which require correction and checks must be made to see if any data that has been omitted, needs to be added. The order form is then passed onto the Sales Manager for additional checking, approval and authorisation. This is good practice and carrying out this procedure, helps to minimise the chances of fraud being committed and over charging being recorded on the order form. However, there is still the opportunity of fraud and misuse of funds and assets taking place as other unauthorised members of staff still have regular and easy access to the system, so is a weakness in the accounting  system. 5.5 It is important that the customer produce an order number as this will hep track the order, but the most important thing is that the purchase order must be authorised. Without this signature the order will not be processed. This is a great strength in that it will prevent fraud, in that goods could not be obtained for employee’s personal gain, so creating fraud. This helps enhance the ethical principle of integrity. 5.6 Once an order has been processed, it is sent to dispatches, ready for transportation. Once the goods have reached their destination, both the customer and the delivery driver are required to sign the delivery note. This confirms that the goods are been delivered and received. This will prevent fraud, in that the customer could not deny that they have not received the goods.. However, if the delivery personnel collects the signatures from the recipient in paper form rather than collecting these signatures directly on a smartphone or digital tablet, in order to confirm proof of delivery and receipt, there is a danger that the paper form confirmation may be lost in transit or may become misplaced, therefore providing no proof that delivery ever took place. The outcome to this is that the customer can abuse this situation by contesting that any goods were received. Also the use of paper has a negative impact and significantly endangers the environment. Having the delivery note in paper format is not sustainable to the environment. . 5.7 Sales invoices are created and issued via the use of a goods dispatched listing, which are then sent out to the customers on a weekly basis. The person responsible for the issuing of these invoices is the Accounts Receivable Clerk. The clerk also has the responsibility for inputting the sales invoices into the accounts receivable ledger system, which also incorporates the general and accounts payable ledgers, which all run on the Windows Vista software package. There is a severe weakness in this  procedure as the purchase orders, dispatch notes and sales invoices are not reconciled against each other. This is a weakness in the accounting system in that invoices could be sent out for the incorrect amounts, or incorrect customers are invoiced for goods that may have not been received. The impact on the company would be the delay of payment which would have an adverse effect on the company’s cash flow. This would also have an impact of the company’s reputation of profess ional competence. 5.8 Inkwell chooses to issue invoices by email, unless a customer requests a posted version. The email method is easy to use and quick to deliver. As emails do not use paper they are environmentally friendly. However, a problem with using emails is that viruses can be transmitted, but with due care and attention, and a strong security software in place this can be minimised. This is a strength of the company’s system. 5.9 The software for issuing invoices is Sage Line 50 and the invoices are sent out to the trade customers on a weekly basis as instructed by the Finance Manager. As the invoices are processed electronically this helps to minimise the chances of errors and discrepancies. Many handwritten invoices contain errors in the calculations. Another strength of processing invoices using the electronic method is that transactions can be traced. One positive part of the system is that all sales invoices are checked for errors by the Company Accountant, by the use of the double entry checking system. This means that there are no time delays encountered by having to make amendments to invoices returned due to containing discrepancies in the recorded data so increasing cash flow. This also upholds the company reputation of professionalism. 5.10 Inkwell issues credit notes, in order to credit all or part of a sales invoice, for goods which have been returned by the customers. The credit notes have to be counter checked, approved and authorised before they can be issued. However, the Retail Shop Managers’ actions are not controlled nor  monitored. The company has placed trust in these Managers, so they have been given the authority to issue refunds on any returns they consider necessary. This gives a Branch Manager the opportunity to commit fraudulent activities and to manipulate figures, by abusing their position of power in order for personal and financial gain. 5.11 To improve the profitability of collection by stimulating payments and minimising the occurrence of bad debts, customer statements showing the payments made, sales, sales returns and calculations, are dispatched every month, by the Accounts Receivable Clerk. This method can be used as a reminder to customers that payment is expected and therefore prompt them into making a payment on their accounts. The statements inform the customers of the status of their accounts, and enables them to make comparisons between the records they hold and that of the supplier. If a customer discovers a discrepancy regarding any of the transactions recorded, they can contact the supplier to question this. These statements can be used as an effective method to highlight any overdue payments, which need to be chased. The statements prevent fraud by the company in the customer is able to check all the invoices and credit notes issued. This would prevent the company form over stating their account or adding fraudulent invoices to their account. 5.12 Large trade customers have credit terms accounts held with the company. Each customer is given between thirty and sixty days depending on their account status. Trade customers can also benefit from a cumulative discount, each quarter, based on the value of their orders. This incentive is to try and keep a steady flow of business and increase sales, whilst at the same time increasing Inkwell’s cash flow due to the prompt payments that would be generated. This is a strength of the company in that increasing sales will eventually increase the profits of the company, creating sustainability of the company. 5.13 All cash and cheques received are compiled and recorded in the cash receipt book. These amounts are then entered into the system using the Sage Line 50 package, in order to update the applicable customer accounts. The Accounts Receivable Clerk, who receives the payments, has the responsibility of banking them on a twice weekly basis. The cash and cheques are held in the company’s safe for security whilst waiting to be banked. This is a strength as it prevents the opportunity for the funds to be stolen, creating fraud. However, there is an increased risk that the cash or cheques may be lost or misplaced, particularly in the event of the office being in disarray, during times of low staffing levels, disruption and having to meet tight deadlines. If there is a lapse in internal controls regarding the checking and monitoring of the accounts receivable ledger, this creates the opportunity for employees to commit fraud using recognised fraud schemes such as lapping, skimming/hiking, the kiting of cash and cheques, the improper posting of cheques and also cash/cheque substitution. This would not protect the company’s reputation of professionalism and integrity. 5.14 Customers can attach a remittance advice slip with their cheque payment to inform the company that they have made a payment on their account using the BACS method. This slip details the amounts that have been paid, the amounts that are left owing and what is being paid for. By summarising the transaction details, the slip ensures that the correct amount has been paid. Any discrepancies can be questioned with the customer. The remittance advice slip will be kept with the customer’s records, as proof that payment has been received, and can be referred and used as evidence in the future. This is a strength as time is not unnecessarily consumed by having to figure out what part of the invoice the payment relates to, as this has already been clarified by the customer. The advantage to receiving payment in the form of a BACS transfer is good, because this is instant cash and helps to increase the cash flow. However, the receipt by cheque delays the access to cash. This method of payment is slow as the cheque needs to go through the clearing system, and there is a danger that it may be returned by the bank, if the customer has insufficient funds. 5.15 The company has implemented a policy that should be followed when dealing with overdue accounts. If an account is seven days overdue, the customer is telephoned to request immediate payment. If after fourteen days of the telephone call, the payment is still outstanding, the customer will be sent a letter requesting the immediate payment, in order to bring their account up to date. This is a strength of the company as credit control is an important part of the business, and collecting monies would increase the cash flow and sustainability of the company. 5.16 The company is being proactive in trying to collect payments before they turn into bad debts and escalate out of control. An effective approach to the collection of debt helps to boost the company’s cash flow and avoids the assistance of debt collection agencies, which costs the business money. Accounts more than one month overdue are inspected by the Company Accountant. Accounts which are overdue by more than two months are reviewed by both the Finance Director and the Sales Director. However, this procedure is not executed, which is a major problem. Both Directors avoid any involvement as the Finance Director has the opinion that the task is of a tedious nature and the Sales Director is anxious that her involvement will damage her relations with the customers. The liquidity of a company is very important. Without funds, bills cannot be paid and the company may encounter financial difficulty. There is danger that Inkwell’s future may be put at jeopardy if debts are not being actively chased. No money coming in whilst money is going out has a severe impact on the company’s cash flow. If it is known to the customers that the company would not go to a debt collecting agency, then they may take advantage of this and receive goods knowingly that they could not pay so creating fraud 5.17 The computers which are located in the retail outlets are stand-alone computers. These computers are operated by Windows Vista software and all have Microsoft Office 2007 installed. However, there is a weakness in this system. Although, shop employees using these computers are not allowed to upload, download or connect any external devices, which have not been purchased or approved by the company, as per company policy instructions, issued by the Finance Director on 23rd May 2010, there is no way of monitoring this. All the computers have full internet access including email using the Firefox Internet web browser. Although it is advantageous to have all the computers running on the same software and web browser systems, there is a downside, in that each computer must be updated and configured individually, which is costly to the company. Had the systems been networked, this could have been done all at the same time, remotely, thus saving the company time and money. This would have an adverse effect on the company’s data and therefore would not be secure and compliant with the Data Protection Act (1998). This would also have a negative impact on the ethical principle of confidentiality and integrity. 5.18 The company’s entire computer systems are password protected which is a strength. However, the problem is that when the computers were installed seven years ago, they were all given the same password, which is â€Å"Go Green†, and no action has been taken to make any changes to this. This has created a massive weakness regarding all aspects of security within the accounting system. Trade customers’ account and bank details are open to exposure and this increases the risk of being abused. This information can be accessed and stolen by dishonest and untrustworthy persons who use this information with the intention of obtaining financial and personal gain, so creating fraud. The company’s policy handbook clearly states that each computer must be individually password protected and only authorised users are permitted access. Staff are required to maintain the confidentiality of such passwords used in order to protect security. However, the policy is being ignored and abused by staff, who continue to disregard and follow the rules and regulations, which is evident, when shop employees are allowing unauthorised persons to use the computers for social media etc., without seeking the authority from senior management first. This is a serious breach of the computer policy and security, as this leaves records, bank details and other valuable information of other staff members, customers and suppliers, open to exposure, which in turn could lead to identity theft,  fraud and therefore the Data Protection Act of (1998) is being breached. 5.19 The computers are protected by Windows Firewall that helps to protect the network, against hackers’ or viruses. When the controller leaves the workstation unattended, they are required to log off, however, if they forget to do this, each computer has an automatic timeout installed that has been set at five minutes. If no activity has taken place within this duration, the computer will revert to standby mode (hibernation). This saves on energy which is good for the environment. Whilst in the standby mode, any sensitive and confidential information is hidden from prying eyes, preventing fraud such as identity theft, and without the correct password, prevents any access to gain such information. At the end of the working day, all computers are required to be shutdown. Protecting sensitive and confidential information is complying with The Data Protection Act of (1998). To disable the standby mode, the controller has to enter the correct password, which is â€Å"Go Green†. As this password is known and used throughout Inkwell, any employee is able to gain access to this data, and therefore the confidential information is not being protected or secured. It is the company’s moral duty to protect confidential information, and they are breaching the Data Protection Act (1998), which carries with it hefty fines and can result in prosecution. This does not uphold the company’s reputation for confidentiality and integrity. 5.20 The Finance Director issued instructions concerning the updating and backup procedures of all the IT systems as per the extract of the company policy handbook, dated May 2010. These instructions required that all of the IT systems are to be backed up twice per day, once at lunch time and again at the close of business. The Company Accountant instructed the accounts department to back up data once only, and only at the end of the working day. This requirement has been in force since the Accountant joined the company, therefore totally disregarding the Finance Directors updated policy. This breach of company policy has already resulted in unnecessary losses in time and money. A power cut that took place in October of 2010 at  the head office premises, late in the afternoon, resulted in the loss of most of the day’s work. The majority of this information has been re-entered into the system but came at a cost, due to the number of hours that had to be paid in overtime. This is a weakness and was not cost effective for the company, as these extra labour hours could have been used doing other duties. 5.21 Maintenance of the recorded stock levels in reference to the company’s printer cartridges which are held as inventory in both the warehouse and shops are not controlled by a password protected, Microsoft Excel spread sheet. Due to the omission of password protection being implemented in this area means that there is an increased chance of the data being altered, whether by accident or by intention. The opportunity for fraud to take place is heightened and there is no way of preventing this occurrence happening again, unless the system is password protected. This means that the company is not abiding by the guidelines laid down by the Data Protection Act (1998). It means also that the company is not treating its data with the ethical principle of integrity and confidentiality. 5.22 The Finance Director noticed that the company did not have a proper system in place to record any of the company’s business dealings relating to any of the previous years’ transactions, so the decision was made to purchase an archiving package. However, the Financial Director has lost interest since and no longer considers this task a point of priority anymore. Therefore the implementation of this package has wasted valuable time, effort and money. This is a weakness of the accounting system, in that all records must be kept for six years. By purchasing an archiving system that is computerised would mean that the company would be proactively following the guidelines of the Data Protection Act (1998), but it would greatly help the sustainability of the environment, and would reduce the use of paper. 5.23 The Payroll and Personnel Clerk completes the annual VAT returns using Her  Majesty’s Revenue and Customs (HMRC) guidelines. This highlights the difference between the input tax charged on the company’s purchases and expenses and the output tax which is charged on the supplies and goods sold to the customers. The net difference indicates whether payment is due to or from HMRC. It is of the upmost importance that the VAT 100 forms are completed promptly and accurately and that payment is made before the deadline is reached. Penalties for submitting a return form late are severe. The Company Accountant is responsible for checking that the details recorded are correct and then passes this form to the Finance Director for re-checking. This is a strength as it minimised the chances of discrepancies occurring or any fraudulent activities being committed. It is against the Law to falsify or omit any information that should be recorded on the VAT 100 form. The company are complying with the VAT Act 1994, s72 (1), (2) and (3) and The Fraud Act 2006. 5.24 The Income Statement and Other Comprehensive Income shows the performance of the company over a given period. This statement shows the company’s income, expenses and the resultant profit or loss figure. The profit or loss can be calculated by deducting all of the expenses incurred including finance expenses and tax costs from the revenue earned to show the profit/loss made. This statement shows entries made using the accruals method. This means that revenue and expenses are matched with each other and recorded when they are recognised (earned/incurred) and not when they are realised (cash received/payment made). Users can analyse the statements and make comparisons with previous years or with other competitors. Both Private Ltd companies and Public Ltd Companies are required by law to submit this statement with the other accompanying statements to Companies House. Various accounting ratios to measure the profitability of the company can be calculated using the financial information as shown on the statement, such as the Gross Profit %, Operating Profit %, and Expense and Revenue %. 5.25 The Statement of Financial Position also referred to as the Balance Sheet shows the company’s assets, liabilities and equity at a given date, and is  useful for interested parties to ascertain the financial health of the business. A formula which is associated with this statement is Assets – Liabilities = Equity. Assets are what the company owns, liabilities are what the company owes and the equity is the residual interest after the liabilities have been deducted from the assets. This statement used in conjunction with the other financial statements can help to assist users when making economic decisions, such as investing, lending, or acquisition etc. This statement can be compared with those of the previous financial years or with the statements of other competitors. The principal users are mainly, investors, lenders and creditors, and like the Income Statement, the Statement of Financial Position also needs to be submitted to Companies House, if the reporting entity is a Private Ltd Company or a Public Ltd Company. Financial information recorded in this statement can be used to calculate various accounting ratios used to measure the Company’s liquidity, effective use of the company’s resources, their financial position and their gearing (the measuring of how much the company is financed by debt). 5.26 The Statement of Changes in Equity is part of the set of the financial statements that accompany each other and shows how the equity has changed over the specific year. The statement links information contained in the Statement of Profit and Loss and Comprehensive Income with that contain in the Statement of Financial Position. The Statement of Changes in Equity shows the entries for ordinary capital shares, share premium, retained earnings, dividends, and unrealised gains on assets etc. 5.27 The Statement of Cash Flow shows the changes in inflows (money coming in) and outflows (money going out) over the financial accounting period in reference to Operating activities, Investing activities and Financing activities. The financial information recorded on the statement gives a user the opportunity to see how feasible it is for the company’s to generate future cash flows, and to assess the company’s ability to meet its obligations and to pay its shareholders their dividends. 5.28 The company does not hold any regular staff meetings and is a weakness in the accounting system. Staff meetings are an effective way to get employees to engage and communicate with each other; sharing and exchanging information and new ideas. Such a meeting would also give staff the opportunity to flag up any problems or issues which need to be addressed. When important decisions regarding the company have been made without the involvement of employees, they can be left feeling frustrated that they have not been given a voice. When the staff members feel undervalued and de-motivated, performance and productivity are affected. Employees may commit fraud as they feel justified by their actions. The number of employee absences may increase and the company will find it difficult to supply their customers as staff shortages may cause delays, due to increased workloads having to be performed by fewer staff members, costing the company money and may damage their reputation. 5.29 The only form of discussion between the departments is via email. Although there is an advantage to using this method of communication, such as convenience, quick delivery, lack of paper (sustainable for the environment), and cost effective, there are also several disadvantages to using this method, as it creates less social contact, messages can be misinterpreted, viruses can be downloaded, unwanted spam, and security issues. Another problem that could have a negative effect on the company is the tension that exists between the Finance Director and the Company Accountant, which has been on-going ever since the Finance Director joined the company two years ago. The Company Accountant was resentful that he was overlooked for this position and feels like he had been demoted. 5.30 The staff members do not get any form of appraisal which would highlight any performance issues relating to each employee. Therefore there is no way of filtering the staff that is underperforming to those that are exceeding requirements and should be considered suitable for promotion. This is a weakness of the company, and not cost effective as employees feel  undervalued and would not work as hard as they should. This will have an adverse effect on the ethical principle of professional competence. 5.31 The company has an issue with regards to staff training. Rather than investing in training courses that would be advantageous to both new and existing employees, the company only provides a one day crash course for new employees. This gives cause for concern as there is no fully trained staff available to cover in the absence of their peers. Also the company does not actively seek to encourage staff to further their skills by encouraging them to participate on any training programmes or courses. This can leave staff feeling demotivated and demoralised. Therefore the employee may become unproductive and uncooperative, which has a negative impact on the company. The company may have an excessive turnover of staff, as employees resign due to the lack of future prospects being made available this can result in a decrease in the overall efficiency of the company, which can cost them dearly. This is a weakness of the system, and is not following the ethical principle of professional competence 5.32 The company does not have any contingency plan in place when it comes to staff absences and so is a weakness of the system. Staff members who are not familiar with the duties of their peers cannot help. This is due to the fact that they cannot get access to useful material such as instruction manuals, guidance tools, help menus, instruction sheets and helplines, as the company have not produced nor made any available. Therefore work does not get done and this has a severe impact on the company as workloads increase, delays occur and errors are made. This can be costly to the company and can damage their reputation of professionalism. 5.33 The company does not have any staff that are adequately trained on work on other practices. This became evident in the month of September when problems linked to the initial stages of the new integrated payroll and personnel system was causing difficulty. The Payroll and Personnel Clerk,  who was only given one day’s intensive training on the system, confessed that she was still struggling to operate the system, even after a month of having worked with it. As no other member of staff was trained on the system, the Payroll and Personnel Clerk had no one to approach who she could ask for help and advice. Another issue that could cause further problems is in the event of the clerk becoming absent from work due to sickness or annual leave, this would have a negative impact on the company because they would have no one who could temporarily cover their role. This is a weakness of the accounting system. 5.34 There is a set of help menus for staff to use on the Sage Line 50 package to help them operate the system correctly. There are step by step guides, online tutorials and PDF guidelines made available, and if any staff member still requires help, they have access to a further phone and email support service. This is a strength as it is cost effective for the company meaning that staff are not tied up shadowing a new employee and are able to still carry on with their own duties. 5.35 Without sacrificing quality, and working towards ensuring a greener environment, Inkwell chooses to use products that are environmentally friendly. This includes the usage of recycled paper that is purchased from specialist suppliers. All employees are required to adhere to the company’s policy of discarding any of unused paper in the recycling bin, which is then sold to a recycling company. Inkwell encourages customers to bring in their old unused ink cartridges in exchange for purchasing re-manufactured ones, and as an incentive Inkwell offers these customers a 10% discount. The company also recycles its own unused ink cartridges, and sends these along with the old cartridges brought in by the customers, to a small number of manufacturers for refilling. This is a strength of the company’s system. 5.36 As an effective way of exposing their existence and improving their image within the community, Inkwell Ltd sponsors the local neighbourhood clean-up  scheme. This helps install pride within the community. Inkwell also receives an incentive from the Government for their involvement. The clean-up scheme brings members of community together, in their quest to clear the streets of refuge and litter. Walls and signs remain free from graffiti. Children can play safely in the streets, and wildlife remains out of harms reach. The clean environment is attracting new home seekers, and visitors therefore bringing more money into the community. Employment is rising due to the influx of visitors and the increasing consumer demand that comes with it, resulting in a happy and satisfied community who look favourably upon Inkwell Ltd. 6. WEAKNESSES 6.1 The company’s high street shops use standalone computers that are not connected to the network. A problem is encountered when installation of new software is required, as this cannot be installed simultaneously but must be installed on an individual basis; this operation is time consuming. Frequent upgrading coupled with regular maintenance is common, and this comes at a price, therefore this is not cost effective for the company. It is difficult to control and monitor the activities performed on these computers so there is a risk of fraud going undetected. A lapse in the adequate security of keeping confidential information protected is violating the Data Protection Act (1998). 6.2. Inkwell uses the password of â€Å"Go Green† throughout the whole company, which is common knowledge. The company is not adequately protecting the privacy of the sensitive information held on individuals, and this increases the risk of fraud. Employees are not demonstrating good ethical practices as they are allowing unauthorised users access to confidential data, which increases the opportunity to commit fraud by abuse and misuse. The company is legally and morally obliged to protect confidential information under the Data Protection Act (1998), but this is being breached. Compliance with the company’s own IT policy is not being adhered to either, as this policy specifically contains clear instructions that all company computers must be  individually password protected. 6.3 Inkwell’s policy that was updated in May 2010 by the Finance Director, gives clear instructions that all IT systems must be fully backed up twice per day. This action should be performed around midday and also at the close of business. The new company policy created by the Finance Director is not being complied with. An incident occurred when the company lost data and this came at a cost to the company in both time and money, and therefore they were negligent in their actions. This is not demonstrating good professional business practices. 6.4 The Microsoft Office Excel program used to store and control inventory levels is password protected but is still awaiting set up procedures necessary to restrict access to authorised users only. At present access is available to all users, which is not complying with the Data Protection Act of (1998), as confidential information is not being adequately protected. Unrestricted access to confidential information increases the risk of fraud, as it creates an opportunity for identity theft and gives a perpetrator the freedom to alter or manipulate the data. The company is not demonstrating good business ethics of integrity and confidentiality, through its negligence to protect confidential information, and they are violating the Data Protection Act (1998). 6.5 On the delivery of goods, the driver and the customer are required to sign a delivery note that shows proof of delivery and receipt. The company uses a paper based proof of delivery. The usage of paper has a damaging effect on the environment, and goes against the company’s beliefs, and this is not sustainable to the environment 6.6 Tension and conflict between the Finance Director and Company Accountant, who are not working together, is having an negative impact on the planning and  organising of work that needs to be carried out and completed. As a result the Accounting Technician has not been able to complete all the tasks that have been given to him, by both parties, but this has gone unnoticed. Work that demands priority and that must meet tight deadlines is left uncompleted and put to the side. Payments are not being collected in a timely manner and this is costing the company money. This is not cost effective for the company. The Finance Director no longer has interest in the projects that he gave to the Accounting Technician to complete, which had initially been considered a matter of importance. Any work that has accumulated regarding these projects has resulted in valuable time, effort and money being wasted, which is also not cost effective for the company. Delays are increased as employees are unable to carry out work until others have finished theirs. These delays have a negative impact on the company’s reputation because they are unable to supply a professional and reliable service. 6.7 Contingency plans are not put in place for the absence of employees who carry out tasks that require day to day processing. Sales invoices were not processed for the period covering the last two weeks of July as the Accounts Receivable Clerk was on annual leave. The company’s negligence in adequately covering this post has resulted in the credit control activities not being carried out, so monies due during this period were left uncollected. This has an impact on the company’s cash flow and is not cost effective for the company. 6.8 Inkwell accepts payment in the form of cheque as well as other methods. Payment by cheque delays the access to funds, as it must go through a three day clearing cycle process, which does not operate on Saturdays, Sundays or Bank Holidays. Even at the end of this process there is no guarantee that payment will be granted as the cheque may be returned to drawer has insufficient funds in their bank account. This is not cost effective for the company and can have a serious impact on the company’s cash flow and profitability. 6.9 Any customer accounts overdue by three months should be referred to a debt collecting agency who works on the behalf of the company to recover any debts owed. This is in accordance with the company’s policy. However, in reality, this policy is rarely followed. The Sales Director, concerned that the active pursuance of any of these outstanding debts may jeopardise the good relations she currently has with the customers, has decided to avoid the involvement of the debt collecting agency. Consequently, Inkwell’s cash flow is negatively impacted due to the lack of money coming in and this is not cost effective for the company. Trade receivables are mounting up significantly and bad debts are increasingly that will ultimately result in having to write them off. This loss in earnings will have to be borne by the company as the funds may become irrecoverable. 6.10 The company do not have regular meetings that give the staff the opportunity to share and exchange information between each other. Regular staff meetings could ensure that better decisions are made through effective communication, and enable staff to disclose any department issues. Because regular meetings are not put in place, this has a negative impact on the company because they are unable operate in an effective and efficient manner. The company is not demonstrating good business practices as employees get demoralised when they feel unappreciated, undervalued and disrespected. This is not cost effective for the company. 6.11 Inkwell Ltd does not have a performance appraisal program put in place in order to monitor the professional development of their employees. Performance appraisals can help to motivate staff and improve company morale, as staff become mindful that good performance can result in promotion and recognition. Due to the non-existence of these programs, management are unable to identify and address any issues or basic training needs of the staff, and therefore are not in a position to offer suitable training that would help staff become better at performing their jobs. This is not making the company cost effective or competitive within the industry 6.12 Inkwell do not offer training programmes to either new or existing employees, nor do they actively encourage staff to engage and participate on any suitable courses, in order to gain new skills, knowledge and qualifications. In a rapidly changing environment, Inkwell needs to be conscious that roles and responsibilities are continually evolving, and should respond to this by ensuring that employees are provided with appropriate job-related training to ensure that they have the necessary skills and knowledge in order to carry out their jobs in an effective manner. The company is not ensuring that the staff are acting with professional competence. 6.13 The company have not produced, nor have they provided any on-site instruction manuals that can be used by employees as guidance tools that are a valuable source of reference. In the absence of staff at short notice, due to sickness, other employees cannot be relied upon to carry out tasks of an unfamiliar nature, as they do not have adequate documentation to hand that contains information that can help guide and instruct the employee to carry out a particular task. This will have a negative impact on labour efficiency in that staff would be shadowing new employees and could be neglecting their own work. 7. RECOMMENDATIONS 7.1 Inkwell needs to remove the standalone computers and replace them with a full networked system. The accounting team would then be able to share data, access information and automatically update all the systems at once. This would save the company money in the long run as once installed it would be far more efficient and increase productivity. A quote can be arranged once decisions have been made concerning company requirements. His is a major overhaul which would be beneficial for the company in the long run, but would require further investigation ensure that the best product was purchased for the best price. 7.2 To comply with The Data Protection Act (1998), Inkwell must make regular updates to password protection every quarter and passwords should be a mixture of alphanumeric characters. Each password should be checked for complexity. Only the employee and the line manager are to know the password. Once in force this will comply with the Data Protection Act (1998). This would not cost the company any money, just for the IT department to set this in place as most computer software has the facility to secure the data. This would enhance the AAT’s code of professional ethics of integrity and confidentiality, and also make them compliant with the law. 7.3 The Accounts Department and Company Accountant must comply with the company policy on backing up the IT system twice daily. This will prevent any possible data loss by accident or otherwise. This will in turn entice other staff to follow suit which will ensure ethical behaviour within the company. This will not cost the company any money as a procedure would need to be typed up or the Finance Manager would put a rota in the daily schedule. It would cost a few labour hours, but as the staff are on salary this would be part of their daily routine. The benefit to the company would be that they would not have to pay extra wages for re-inputting the data lost and therefore make the company more cost effective and competitive within the industry. 7.4 An accurate and updated list with authorised signatories to make entries in the general ledger is of upmost importance to guarantee security of customers’ accounts and prevent fraud. All sales staff should enter transaction information on the relevant sales data spreadsheet and sign it then pass it to the manager for counter checking and password protection before it is forwarded to the Accounts Receivable Clerk. This action will prevent fraud and be insignificant in regards to the cost of implementation. This would not cost the company anything, but the IT department could establish this system, or it could be written up in the company policy  making it mandatory for the employees to do this. The benefit for the company would be that the company would be able to see who made certain transactions and would be able to detect any fraudulent activities and who done them. 7.5 The company should consider investing in electronic signature capture equipment which would remove the problem of paper delivery notes when goods are delivered. It will cost the company initially but will pay for itself in the long term as it would guarantee a traceable signature of the receipt of goods including the data and time and also remove the impact on environmental sustainability. An on line quote from Topaz Systems INC revealed a price of  £86.00 Excluding VAT per device (see Appendix 8.2). This would be beneficial for sustainability of the environment. 7.6 The attitudes of both the Finance Director and Company Accountant need to be addressed. As senior management, they should both pay more attention and interest to reviewing the tasks of staff and ensuring the tasks are being completed correctly and on time. Management should also ensure the tasks are being distributed to the correct staff which will improve efficiency and performance with no costs to the company. It is important that any differences between the senior heads of management are kept behind closed doors. This is being professional and the impact on the company would mean that it would be a happier place to work in, and would lead to better output, making the company more competitive within the industry. 7.7 All invoices must be raised day to day without fail as delayed invoices create delayed payments from customers which reduces the cash flow. The company need to address staff annual leave so as to avoid a situation where there is no cover to continue the day to day invoicing. The company should also promote staff training so that employees are trained on more than one job to allow for any emergency staff absence. It could be that the company could employ agency staff for the cover, but this would come at a cost,  depending on the agency. This would require further investigation to see if the benefits of employing agency staff would actually improve the cash flow of the business. The cheaper option would be for better planning within the company ensuring that all jobs are covered when employees are on holiday. 7.8 The company should look at phasing out the receipt of cheques and promote the use of BACs transfers as the preferred payment method. This allows the company instant control and visibility of all payments and collections, and allows review of the cash analysis. It is the most secure method of payment for the company and customer, prevents fraud and is of no further cost to the company as it is already a system in use by most companies. 7.9 The Sales Director and Company Accountant must review any account that is more than two months overdue and same again when three months overdue. By complying with company policy on this, the Sales Director should promptly pass the matter on to the debt collecting agency in order to recover the money and reduce the debt becoming bad. It will cost the company  £100 plus 25% of any recovered funds but will increase cash flow. However, if overdue accounts are reviewed sooner there is a stronger possibility of avoiding involvement of the debt collecting agency. The fact that this would increase cash flow would able the business to be more competitive within the industry. 7.10 The management must commence regular staff meetings in which any needs or problems can be addressed. Regular meetings will be valuable and important as it will give the staff confidence that the company is listening and acting on any issues they have raised. These could also include the awareness of fraud and the importance of rules and guidelines relating to the Data Protection Act (1998). The costs incurred to introduce regular meetings will be minimal in respect of man hours but will benefit the company in the long term as any problems get resolved and will streamline the running of the business. 7.11 The company should implement staff appraisals as this will allow feedback relating to productivity and performance of each employee. Appraisals have been known to improve staff morale, efficiency, motivation and job satisfaction, and can highlight any training requirements needed. A professional company could be employed to provide this service, but is too costly. A decision was made to devise their own SWOT analysis form and a Performance and Development Plan form, which will cost the company minimal hours of labour only (see Appendix 8.3). This would improve on the AAT’s code of professional ethics in professional competence. 7.12 Regular training programs should be implemented for staff awareness of their role within the company. Regular training will help staff be more accurate and competent to do their job which helps the company and employee, and in the long term is cost effective for the company. An online quote was carried out to find out the cost of a self-study payroll package for levels 1 and 2. The price is  £125.00 exempt of VAT (see Appendix 8.4). This would ensure that staff were up to date with their knowledge making them professionally competent. The company could send their staff to the local training provider and this would enhance sustainability in the community. 7.13 Staff should produce an instruction manual detailing their responsibilities and tasks. This would cost the company minimal labour hours in production but would help the company by allowing staff to concentrate on the task in hand rather than being too focused on training others. This would also ensure the task would be accurately and effectively. This would make the company more cost effective and competitive within the industry. As staff are salaried, this would just be an extra job in their daily routine and the only cost would be the printing of the manuals, however putting the manuals on the staff intranet would not cost money in stationery and printing making it sustainable for the environment.

History of Halloween Essay

Close to $7 billion dollars is what consumers spent on Halloween costumes, candy, and decorations in 2011. When the temperature starts to drop, the leaves turn different colors and the sun sets earlier little by little each day, fall is the perfect season to celebrate Halloween. Millions of children dress up and go to strangers doors begging for candy. Have you ever wondered where this strange and unique tradition originated from? — The three most important points of Halloween can be summed up by looking at its origins, how it came to include jack-o-lanterns and bobbing for apples, and how it is celebrated today with trick-or-treating and haunted houses. Halloween, also known as All Hallows’ Eve, has originated from the ancient Celtic festival known as Samahin (â€Å"sow-in†) derived from the Old Irish Samuin meaning â€Å"summer’s end†. The Celts, who lived 2,000 years ago in the area that is now Ireland, the United Kingdom, and northern France, celebrated the end of the harvest season with the festival of Samhain and celebrated the upcoming new Year on November 1. Used by the ancient pagans, Samhain was a time to take stock of supplies and prepare for winter. October 31 was the day the ancient Gaels believed the boundaries overlapped between the worlds of the living and the dead, and the departed souls would come back to life and cause mayhem such as damaged crops and sickness. The Gaels built massive bonfires and summoned the help from gods through animal and possibly human sacrifices to ward of the spirits. It is believed that the fires attracted insects to the area which in turn attracted bats. These are additional features of the history of Halloween. Halloween is also thought to be influenced by the Christian holy days of All Saints’ Day, also known as Hallowmas, and All Souls’ Day falling on November 1 and 2. It was a time for honoring the saints and praying for the deceased who had yet to reach heaven. Traditionally it was believed that the departed souls roamed the earth until All Saints’ Day, and Hallows’ Eve delivered one last chance before moving on to the next world, to gain revenge on their enemies. Christians would  disguise themselves in costumes and masks to avoid being recognized by the wandering souls. Trick or treating is the practice of dressing up in costumes and going door to door begging for candy and resembles the late medieval practice of â€Å"souling† when the poor would proceed door to door on Hallowmas receiving food, or â€Å"soul cakes† which were pastries, and in return would pray for their dead relative’s souls. It was believed at the time the souls of the departed would wait for passage into heaven until enough people prayed for their souls. â€Å"Soul cakes† would be given in exchange for a song, performance, or another sort of â€Å"trick† in some cultures. Eventually, children embraced this practice and were given money, food, and ale. Jack o ‘lanterns are a Halloween staple today, with at least two historical roots. The first is the pagan Celtic people carved turnips and rutabagas to hold hot coal from the bonfire to light their homes and ward off the evil spirits. Another folklore tale gives jack o ‘lanterns their name. An Irish myth portrays a trickster and a drunk known as â€Å"Stingy Jack†, who asked the devil to have a drink with him. Jack persuaded the devil to change himself into a coin so he could pay for his drink, but instead he put the coin in his wallet next to a silver cross, trapping the devil and preventing him to change himself back. Jack said he would free the devil if he did not bother him for another year. The following year Jack tricks the devil into climbing an apple tree for a piece of fruit. He then carved a cross in the bark of the tree preventing the devil from climbing down. In order to get down from the tree, the devil promised Jack he would not seek his soul anymore. Because of his swindling and drunken ways, when Jack died he was not allowed into heaven. He also was not allowed into Hell because the devil kept his word. Taking pity on Jack, the devil gave him an ember to light his way in the dark, putting it into a hollowed out turnip for Jack to carry on his lonely, everlasting roaming’s around the Earth. People from Ireland and Scotland  would make â€Å"Jack o ‘lanterns† during this season to scare away Stingy Jack and other evil spirits wandering about. Over the next several centuries, superstitions about witches and black cats were added to the folklore and legends of Halloween. Cats were thought of as evil, especially black cats, and were killed by the thousands in Medieval times, possibly contributing to the Black Plague, due to the shortage of the rat’s natural enemy, the cat. During this time, the church created the belief that evil witches existed. Apples, which are a seasonal fruit, and the symbol of the Roman goddess Pomona, were thought at the time to retain qualities of knowledge, resurrection, and immorality. Bobbing for apples was thought to predict the future on the night of Samhain. (sow-in) Halloween eventually made its way over the Atlantic in the second half of the nineteenth century when America became flooded with new immigrants. Taking from Irish and English traditions, Americans began to dress up in costumes and go house to house asking for food or money, a practice that ultimately became today’s â€Å"trick-or-treat† tradition. The 20th century saw an emergence of Halloween as a genuinely North American holiday and one that was becoming an advantage for shopkeepers and manufactures. Costuming became popular for Halloween parties for children and adults as well. The first mass-produced Halloween costumes appeared in stores in the 1930s when trick-or-treating was becoming popular in the United States. Halloween costumes are traditionally modeled after supernatural figures such as monsters, ghosts, skeletons, witches, and devils. Over time, the costume selection extended to include popular characters from fiction, celebrities, and generic prototypes such as ninjas and princesses. Haunted attractions are entertainment venues designed to thrill and scare patrons. Most attractions are seasonal Halloween businesses. Origins of these paid scare venues are difficult to pinpoint, but it is generally  accepted that they were first commonly used by the Junior Chamber International (Jaycees), who are a non-political youth service organization between the ages of 18 to 40, for fundraising. They include haunted houses, corn mazes, and hayrides, and the level of sophistication of the effects has risen as the industry has grown. Haunted attractions in the United States bring in an estimate $300-500 million each year, and draw some 400,000 customers. This maturing and growth within the industry has led to more technically-advanced special effects and costuming, comparable with that of Hollywood films. Halloween is currently the second most important party night in North America, and in terms of its retail potential, it is second to Christmas. Personally, Halloween is one of my favorite days of the year. Even as an adult, to dress up and be someone or something else for the night can be fun and exciting. To escape reality into a fantasy-like world where goblins mingle with princesses is definitely a strange site to see, but is well worth the money and time devoted to one of the spookiest nights of the year. So whether you celebrate Halloween or not, you now have an idea of how Halloween originated, how it came to include bobbing for apples and jack-o-lanterns, and how we celebrate it today with haunted houses and trick-or treating. The sources I cited for this information are from: www.cnbc.com www.halloweenhistory.org www.wikipedia.org www.history.com

Dreamliner 787 Case Essay

Tara Lentini Week 3 Case Assignment Boeing: Dreamliner 787 Discuss the nature of the market structure and demand for the Dreamliner. What are the implications for Boeing and its customers? The market structure for the Dreamliner is that of an oligopolistic nature which means there are few aircraft manufactures who sell large quantities to its buyers. With Boeings biggest competitor Airbus unable to compete with the Dreamliner product, Boeing has the chance to take over the market for commercial aircraft. The demand for the Dreamliner is derived demand. Due to customer demand for comfortable fair priced airline travel, the demand for the Dreamliner will increase. Customers demand comfort during air travel and the Boeing Airliner promises added luxuries that will increase customer purchases to those airlines with a Dreamliner aircraft. The chief project manager for the Boeing, Tim Cogan stated, â€Å"It’s not Just an evolutionary step†¦ it borders on revolutionary. † This statement is supported by many industry insiders. Kotler & Armstrong, 2010, p188) With such support, the emotions of the airline companies umped at the chance to place an order even with the understanding that the estimated time for delivery was at least 4 years and there was little research to support some of the added luxury amenities. What examples of the major types of buying situations do you see in the case? Discuss the implications of each in terms of marketing strategy? A new-task purchase i s seen with the Dreamliner due to the fact that it is a new product being sold by Boeing. The buying team is comprised of numerous members and the team must decide on specifications regarding the product. The marketer (Boeing) â€Å"tries to reach as many key buying influences as possible but also provides help and information. † (Kotler & Armstrong, 2010, pl 73) The amenities of the Dreamliner will assist the buying team in making a decision whether or not the Dreamliner would be a good investment for the company and if so, how many to order. A straight rebuy is also seen in this case. Boeing listed the airliner at a price of $162 million with few customizable options for its buyers. (i. e. seating arrangements). Many aircraft buyers may have already been customers f Boeing and are familiar with their business. A straight rebuy is defined by Kotler and Armstrong as the buyer reorders something without any modifications. Once the buyer purchases the aircraft the straight rebuy buying situation will result in a quicker sale with fewer individuals making a decision on options and product specifications. List the specific features of the Dreamliner. What customer benefits result from each? PASSENGER BENEFITS: 60% quieter than other planes in its class – It is always nice to sleep on a plane however, when seated near the engine it is difficult to rest due to the noise. Many corporate travelers will enjoy this benefit with the late and early morning travel legs. With the added legroom there will no longer be a need to specifically sit in the isle and more options that will equal the comfort of isle seats will come available. Lighting that automatically adjusts to time zone shifts – Changing time zones can be difficult for anyone Circadian rhythms, which are the internal clock we all have which tells us when we it is time for bed and when it is time to rise. These â€Å"clocks† are not easily adjusted when changing time zones. The Dreamliner will posse lighting that imulates â€Å"sunrise and twilight which will assist its passengers adjust to the change in time zones. † (Micke, 2010) Higher cabin pressure and humidity – reducing common flying symptoms such as headaches, dry mouth, and fatigue. All of these symptoms are not what most passengers look forward to; knowing the Dreamliner decreases these symptoms will make it a preferred aircraft for many passengers. Large overhead storage bins – It is always daunting not knowing if your carry on will fit into the overhead storage bins. We have all witnessed a passenger beating their luggage esperately hoping it will pop in before the flight attendant comes by to take it to be stored in the cargo area. 19 inch self-dimming windows – This is a wonderful feature for those who prefer a window seat but have to fght the sunlight to enjoy their flight. Wireless internet and entertainment system – many travelers use the internet to stay connected while away. This option will give business travelers the ability to complete business while on the road. Time sensitive information can be conducted in-flight and travel will no longer be a burden for business travelers. The non-business travel can stay connected with family and friends to inform of flight status and arrival time. Also, wireless access will assist the passenger with passing the time during air travel. AIRCRAFT BUYER BENEFITS: For the buyer of a Dreamliner Aircraft, the marketing aspect will be a breeze. Passengers are always looking for comfort when flying and this aircraft offers many luxury amenities. Airlines with a Dreamliner in their roster will have the ability to sell luxury air travel to its passengers without the luxury cost. The Dreamliner will offer a ighter aircraft resulting in less fuel needed for flights. This aircraft could replace outdated aircrafts that are no longer economically fit. The 787 will expand non-stop markets for its customers with a â€Å"fuel range of 8,500 nautical miles and a maximum speed of Mach . 5. † (Kotler & Armstrong, 2010, p187) Also, the Dreamliner offers passenger capacity of 210 to 330 depending on seating arrangement ordered by the customer. With multiple configurations, the buyer of the aircraft has the option to decide what seating confguration would best meet their airline needs. For example, Southwest Airline only offers economy class, so they would order a Jetliner with one type of seating confguration. There is no need for S outhwest to order a Jetliner with first or business class on a Dreamliner. Other airlines may find it necessary to order multiple aircrafts with different seating arrangement to best meet its marketing and customer needs. Discuss the customer buying process for a Boeing airplane. In what major ways does this process differ from the buying process a passenger might go through in choosing an airline? The buying process for an airline placing an order or a Dreamliner would first have to recognize a need for a new aircraft offering the retire due to age may look at the Dreamliner as good solution to add new innovative products to their fleet. Next the buyer would have to recognize the general specifications and quantity needed of an item. Here a buyer of the aircraft would consult engineers and technical personnel to discuss the options available on the Dreamliner Aircraft. For example, the technical staff should be consulted regarding the wireless entertainment system on a Dreamliner. The control tower may need odifications to ensure interference will not be an issue with this type of system. Product specifications needed to meet the airlines customer and marketing needs would have to be listed. In this process, â€Å"the team decides on the best product characteristics and specifies them accordingly. † (Kotler & Armstrong, 2010, p177) As for the Dreamliner, the airline would specify the seat options available. For example, Southwest Airlines only offers economy seating for their passengers. If Southwest chooses to purchase a Dreamliner, they would specify one seating option or their aircraft. Once the order is placed for a Dreamliner, the buyer should conduct a performance review to ensure the product will be delivered on time and to ensure they are aware of any problems that may arise. At this â€Å"stage of the buying process the buyer assesses the performance of the supplier and decides to continue, modify, or drop the arrangement. † (Kotler & Armstrong, 2010, p179) Most passengers choosing an airline are looking for the least expensive direct flight to their destination. The buying process for an airline ticket for a few hundred dollars is ess complex than that of purchasing an aircraft for over one hundred million dollars. Many travelers have a preferred airline and do not shop around for deals. They use the preferred airline and earn air miles towards free flights. As for me, I do not have a preferred airline, however I do enjoy Southwest because of first come first serve seating. Yet, most travelers will look at price first, direct flight possibilities, and airport location before booking a flight. There is little thought that goes into aircraft options when a ticket is purchased. What marketing recommendations would you make to McNerney as he continues to try to resolve the problems with the 787 Dreamliner program? McNerney needs to stay fully involved in the operations of the Dreamliner to ensure all suppliers and manufactures are completing production on time. Performance reviews of the suppliers must be taken seriously and the decision to drop or modify the arrangement must be made in a timely fashion. With 70 percent of the work being outsourced to dozens of partnering firms, he cannot be blinded by incomplete or inaccurate production. The longer it takes to assess the supplier performance the longer the delay in production and delivery will be for the Dreamliner.

Chinese Nationalists and Chinese Communists in China in the 1920s Essay

Chinese Nationalists and Chinese Communists in China in the 1920s - Essay Example In his article, Analysis of the Classes in Chinese Society, Mao Tse-tung argues that the lower classes of Chinese society will provide the main support for the communist revolution because they have low economic status and are victims of the capitalist exploitation of international imperialism. According to Mao, the origin of massive class disparity in China is the imperial capitalism which places most of the national resources in the hands of a small elite group and leaves the majority of the population, which comprises of peasants and low-level workers, economically deprived and struggling excessively in their efforts to earn a living. Mao believes that these struggling classes are the real friends of the revolution because they stand to benefit tremendously in a system whereby national resources are equitably distributed to all citizens (Tse-tung, Marxists.org).Thesis: Mao’s argument on economic disparity between classes in Chinese society illustrates the reason for the con stant conflict between the Chinese Nationalists and Chinese Communists in the 1920s. Mao’s argument plays a significant role when considering the differences between the Chinese Nationalists and Chinese Communists in China in the 1920s. The policies of the Nationalists tended to lean towards western ideals of capitalism and international imperialism. These policies favored the high classes of Chinese society at the expense of the lower classes. The high classes benefited from this system because they owned capital which they could use for productive purposes. They kept the proceeds from these productive purposes all to themselves, paying peasant workers small wages and overworking them. On the other hand, the Communists recognized that resources are limited, and not everyone in the society can acquire significant resources that will enable them to live comfortably. Therefore, they believed that the government should have sole control of all resources and distribute them equal ly to all members of the society (Ebrey, Walthall and Palais, 427). These massive ideological differences pitted the Communists against the Nationalists in the struggle to establish control over the divided country. It quickly became apparent to the Communists that they would have to drive the Nationalists from power for them to be able to spread the ideals of the revolution. Regime change and complete overhaul of the old system would have to take place if the communist revolution were to achieve success. Consequently, the Communists were a direct threat to the survival of the Nationalist government and to its grip on power and influence. As a result, the Nationalists realized that they would have to stem communist ideals from spreading throughout China in order to prevent the Communists from acquiring enough support to mount a revolution (Ebrey, Walthall and Palais, 431). Throughout the 1920s, there was conflict between the Nationalists and the Communists. The Communists were attem pting to grow their movement whereas the Nationalists were bent on preventing from them from gaining a foothold among rural Chinese peasants and urban dwellers. For example, the Communist Party gained a massive following among members of the General Labor Union of Shanghai. This following enabled the Communist Party to influence the GLU to call for a general strike on March 1921. Consequently over six hundred thousand workers seized the city and demanded a return of foreign concessions. Soldiers and members of the Green Gang loyal to Chiang Kaishek of the Nationalist Party immediately mounted a response, shooting and killing an estimated 5,000 union members and also attacked the union headquarters. This terror did not end with Shanghai. It quickly spread to other Chinese cities whereby soldiers of the Nationalist government destroyed bases of the Communist Party (Ebrey, Walthall and Palais, 427). These events demonstrated the fear that the Nationalists had over the Communists gainin g

Animal Liberation Front (ALF) - USA Essay Example | Topics and Well Written Essays - 1500 words

Animal Liberation Front (ALF) - USA - Essay Example According to media and other researchers, the group could not stand against criminal like activities that were being conducted in the name of animal liberation under the flag or ALF or any other name. During 2002 the department that is responsible for monitoring and controlling extremist like activities reported that ALF has used violent terrorist like activities for their operations and have cost billions by destroying property but have ensured that no human being is harmed 2. 1. Don Liddick,. Eco-terrorism: radical environmental and animal liberation movements. Westport, (Conn.: Praeger, 2006) 127. 2. Yonah Alexander and Michael Kraft (eds.). Evolution of U.S. counterterrorism policy. Westport, (Conn.: Praeger Security International, 2008) 241 - 250. During the period of 2005, homeland security department of US compiled a list of groups that may be a serious terrorist threat to US and within that list, ALF was even considered as a plausible terrorist threat and the US decided to us e its resources against their activities 2. The history of this group can be dated back to the end of 1963 when John Prestige, a British news reporter, gained the duty of viewing an event where hunters had to hunt a deer who was pregnant 3. He stood against this activity and formed HAS (Hunt Saboteurs Association); the aim of this association was to make sure that huntsmen fail in their act of hunting 3. Later, one of the group members named Ronnie Lee made his own group to help animals, this group comprised of young individuals who were against the act of animal brutality, and the group was recognized as the Band of Mercy 4. ALF came into existence and made its appearance when the founder of HAS was taken into defense officials custody for conducting a raid on the Oxford Laboratory Animal Colonies. People revolted against their arrest and later the founder was assigned imprisonment for three years from where he continued to pursue animal liberation by going on a hunger strike and d emanding for vegetarian food in jails 5. Later he was released on parole basis for 12 months; as soon as he gained freedom, he started his activities and to make the group look fiercer to others, he changed the name of the group from Band of Mercy to Animal Liberation Front 6. 3. Norm Phelps. The longest struggle: animal advocacy from Pythagoras to PETA. (New York: Lantern Books, 2007) 201 4. Margaret Pasewicz,. Cultural encyclopedia of vegetarianism. Santa Barbara, (CA: Greenwood, 2010) 27 5. Harvey Kushner, W. Encyclopedia of terrorism. Thousand Oaks,( Calif.: Sage Publications, 2003)10 6. Gus Martin,. The Sage encyclopedia of terrorism. 2nd ed. Thousand Oaks, (Calif.: SAGE Publications, 2011) 45 The group was not only active behind the walls, they even conducted their activities outside the wall, the group had no leader and group members had to follow the stated guidelines of the movement at all times. According to the movements guidelines, to increase economic cost of those who make revenues by manipulating animals, to provide freedom to animals from places where they were treated very badly, to publicize the harsh treatment animals had to go through, to ensure that no animal was being harmed and those individuals who were living in accordance to the constitution created by the movement were entitled as members of ALF even if they had not

Who Killed Palomino Molero by Mario Vargas Llosa Essay

Who Killed Palomino Molero by Mario Vargas Llosa - Essay Example But the relatively sophisticated Silva is not so quick to jump to conclusions. "Nothing's easy, Lituma," he says. "The truths that seem most truthful, if you look at them from all sides, if you look at them close up, turn out either to be half truths or lies" (86)1. Vargas Llosa, playing on the normal expectations of readers of detective fiction, produces a plot that is surprising for the very reason that it contains no surprises. Yet he simultaneously undermines the expectations of postmodernist readers by keeping his detective story plot on track right through to the end. Who Killed Palomino Molero derives a great deal of its energy from metareading effects similar to those so important in Aunt Julia and the Scriptwriter. The text can be read by typical "unsophisticated" fans of detective fiction as an ordinary detective story. The ending of Vargas Llosa's subplot is thus very much like the ending of the detective plots. Silva himself makes the parallel between the plots quite clear: "I've made a vow," he declares early in the book. "I won't die until I screw that fat bitch and until I find out who killed Palomino Molero" (58). 2 The Foucauldian link between sex and epistemology suggested in Who Killed Palomino Molero indicates that these two roles are not all that different.

Anthropology Essay Example | Topics and Well Written Essays - 500 words - 1

Anthropology - Essay Example The investigation of any culture must be implemented carefully and without any preferences in order to define the most important peculiarities of each of them. Traditionally, cultural relativity used double hypothetical method called historical particularism. The term implies that any culture must be studied deeply. This inference is very important not only for anthropology but also for other sciences (Zechenter, 1997). The strong point of  cultural  relativity is that it lets people stick to their ethical principles without being judged by other communities, which have other principles. If people deny this method, they will appear in difficult situation: if they have constant unchanging moral rules, they criticize the communities with other values and maybe even try to make them adapt the moral rules of other community. That will make cross-cultural relations difficult (Zechenter, 1997). Cultural  relativity provides the opportunity to avoid this complexity. According to it, the ethical code of one group of people can be applicable only to their community, that’s why the communities can’t impose their moral standards upon each other. Really, every society has its own values which should be respected by peoples from other cultures (Flew, 1968). When a person comes to another country, he should respect the moral principles existing in this society, but it does not mean that he must adopt them. Every culture has its ethical values which are worth-studying and must be respected by other cultures in certain times (Zechenter, 1997). For example, for our society equal opportunities at work are an ethical requirement, however it is improper in other countries. In the times when patience is considered to be the most essential this can be called a good arrangement (Zechenter, 1997). Nevertheless, the abovementioned point of  cultural  relativity represents also

Authentic Assessment Project (AAP) - Organizational Ethics Issues Thesis

Authentic Assessment Project (AAP) - Organizational Ethics Issues - Thesis Example Ethics involves moral issues and choices, and influences daily decisions made by individuals and organizations. Following are the three ethical issues faced by most of organizations. An individual’s emotions and inner feelings may sometimes stop them from making any ethical decision. If the circumstances seems justified, the managers can think at ease when coming to a conclusion with regards to an ethical issue. â€Å"It is illegal to show favoritism against any individual when recruiting, hiring and promotion, transfer, work assignments, performance measurement, the work environment, job training, discipline and discharge, wages and benefits, or any other term, condition, or privilege of employment† (The U.S. Equal Employment Opportunity Commission, 2008). To do unjustice makes the decision of hiring based on race harder for managers to make. Managers must put personal feeling aside. They need to consider others. They must not forget that their decision is not supposed to hurt anyone. They need to consider the well-being of their organization. If the company or anyone is being hurt by their decision, they will need to think again about their decision. To hire employees because of particular color or race hurts company and people more than it facilitates. Hiring decision should not be based on an individual’s skin color, religion, race or sex. (Jones, 375) Rather, it must take into consideration an individual’s qualification, performance, experience and skills. It is must for Managers to have confidence while taking decisions and stick by their decisions. After the issue of hiring has been evaluated involving all personal perspectives and beliefs, the manager must move on and come up with a decision to the issue. This may appear as the ultimate step in the process of ethical issues resolution. Diversity at t he place of work is valuable for an organization. Excessive executive bonuses have become an

Worksheet 1 (architecture) Essay Example | Topics and Well Written Essays - 250 words

Worksheet 1 (architecture) - Essay Example From Old Main in the Gothic Revival style to the new Performance Hall a range of architectural design can be found. The Family Life Building built in the 1935 was Art Deco. Every building was built in a specific style. The outside might be redone, but many of the buildings are remodeled on the inside alone. Thus the buildings stay true to historical outer facades, but are updated to be modern on the inside. The Manon Caine Russell Kathryn Caine Wanlass Performance Hall is a fairly new addition to the USU. It is the USU Performance Hall. The glass, steel, and concrete geometrical form a terrific acoustical hall for performances. The 400 seat hall is perfect for sound quality. The suspension of all mechanical systems either with pads or springs detracts any vibrations or extra sounds. The Performance Hall was created solely for the best acoustical effects possible. Old Main is my favorite building for several reasons. First, the building had a fire in the 80’s. Instead of tearing the building down, the building was restored. I believe that more old buildings need to be maintained and restored instead of being torn down. Old Main has been remodeled on the interior over the years. Most things need to be maintained. Buildings are no exception. One example of a remodel is the bells. In the tower bells have been located since 1904. Today electronic bells can be heard every 15 minutes during the day. The remodels have made Old Main into a modern building on the inside, while remaining a Gothic Revival tribute on the outside. The oldest building on the Utah State University campus is Old Main. This Gothic Revival building dates back to 1889. The building has been renovated and added on to several times. The building, despite being over a hundred years old, still functions. Old Main currently houses USU administration and main offices for USA departments. The original mission of the university was to promote land-grant or agriculture. The USU was originally the

Implementing & Managing Change Essay Example | Topics and Well Written Essays - 500 words

Implementing & Managing Change - Essay Example The problem with any planned change will always be that it has been planned and therefore managers who have initiated the change largely define the expected outcomes beforehand. Lewin model will help to construct a framework for successful implementation of change. A phase I will occur where staff senses the need to do work in a different way. The second stage begins while changes are being made in the behavior of employees or in the organizational process. During this stage, training will be the main goal. Phase 3, 're-freezing', occurs when the changes are accepted as the new position by the employees most affected by the change (Genus, 1998). The main groups affected by the change involve employees, training staff, managers and the computer support department. Consultants will be engaged to facilitate change and such change, again, will have preset objectives, often focusing not just on long-term objectives but the short-term behaviors as well. Leaders support will be crucial because leaders must be able to cope with complex technological change in their organizations. Leaders should give a personal example which inspires employees and sparkles their interest in training.

Psychological Concerns in Medicine Essay Example | Topics and Well Written Essays - 1750 words

Psychological Concerns in Medicine - Essay Example Pain management is one of the biggest psychological concerns in the field of medicine, there are so many herbal as well as other medicines which help patients in difficult circumstances, but almost all the people lose their composure when in pain. Like in so many divisions of medicine, it is also seen lately that doctors have become experts in treatment of pain. These doctors study about pain inside out, "studying what causes it, how the body reacts to it, how different medications dull or eliminate the pain, and how other treatments can be used to relieve many painful conditions." (American Society, September 2, 2008). These doctors are very good at diagnosis and are very efficient when it comes to pain management provided the patient goes to a trusted Doctor. Pain doctors collect all the necessary details required to know about the pain and then they produce results by curing the patient's pain within very less time. There are many treatments for pain, some of the most used treatme nts are through injections, the affected area is injected with appropriate medicine and pain is taken care of. The next most widely used treatment is the nerve block, in which the plexus better know as the bunch of nerves are blocked by anesthesia and the patient gets relief. Acupuncture comes next, this hails from the Chinese culture, very thin needles are used in this procedure at specific points and the people who do this undergo rigorous training. Some other methods include surgery, various therapies and offering psychological support to the patient. Psychological support can also help a lot and can make a person feel much better; this treatment should always be used because this is one of the best treatments a patient can ever get. Sadness and depression is another psychological concern in the field of medicine, sadness and depression can happen for more reasons than one, for instance lets take an example of a lady who has just recovered form cancer, she might end up sad and depressed because of the shape of her body, appearance does matter to an extent and contributes in a very big way in forming our personality. Even suicide also is a very big concern, suicide also is just like sadness and depression or it is fair to put it this way that sadness and depression triggers off the feeling of suicide in a person. Suicide also can be committed for many reasons for instance if a person knows that he/she is suffering from a deadly disease like AIDS or cancer, it is so often seen in such cases that the patients decide to give up their life, so considering all this it is very fair to say that suicide, sadness and depression are major psychological issues or concerns in medicine. Sadness and depression can also trigger off series of other dysfunctions, for instance a cancer patient feels sad during intercourse, and the same will also contribute towards sexual dysfunction. The people who suffer from deadly diseases may face low self esteem and many other problems. Psychological issues often prove fatal and end up taking the life of so many people and this happens very frequently. Anxiety and depression among children is common, but when it reaches an alarmingly high level, it becomes a big psychological concern. It is often treated by psychotherapy, which involves diagnosis; to know exactly

The Audit Report and Internal Control Evaluation Essay Example for Free

The Audit Report and Internal Control Evaluation Essay Team D Auditing has been evaluating the evidence presented by Apollo Shoes. The audit team has developed an audit report in response to the audit and has also provided a description of the evidence, a description of the account sampling and testing procedures used, and has also given a brief description of the value of an audit report. This report is only to reflect Team D’s opinion regarding Apollo’s internal controls, financial statements, and management’s assessment. Management Responsibilities We have audited the financial statements of Apollo Shoes Inc. , including the balance sheet, income statement, and statement of cash flows. The company’s management is responsible for preparing these financial statements; in addition, the management is responsible for implementing adequate internal controls to ensure the accuracy and completeness of these statements (Arens, Elder, Beasley, 2012). Our responsibility as an auditor is to conduct an audit in accordance with the Generally Accepted Auditing Standards and express an opinion on these statements based on the audit. Audit Scope The audit conducted by Team D Auditing was executed in accordance with standards set by Generally Accepted Accounting Principles (GAAP) and the Public Company Accounting Oversight Board (PCAOB) (Arens et al., 2012). The standards set by these two bodies require the team to arrange and complete an inspection of the evidence to obtain reasonable assurance of whether the company’s financial statements are without material misstatements. Also, the team is to evaluate the internal controls and determine if they provide adequate control over the financial reporting for the material components. The audit includes the examination of the following: Financial Statement Disclosures Evidence that supports reported amounts Internal Controls: Implementation and Current Use Financial Statement Presentation Management-made Estimates Accounting Principle Assessments Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Apollo Shoes, Inc. Apollo Shoes Audit was conducted under the Public Accounting Oversight Board Standards. Under these standards is required to provide assurance about the financial reporting and the internal control place in operation. In order to achieve assurance the financial statements are evaluated based on an examination of evidence providing basis for our opinion. Our examination included: Significant estimates made by management – evaluate the reasonable of the significant assumptions (Becker CPA Review, 2014). Financial statement presentation evaluate the presentation and format of financial information (Arens et al., 2012). Accounting principle evaluation, corrections of errors involving principle or changing principal not acceptable to an acceptable one† (Arens et al., 2012). Adequate disclosures of significant accounting policies, accounting changes or loss contingency (Becker CPA Review, 2014). Since Apollo Shoes was a public traded company is imperative to test the effectiveness of the internal control, which is based on: Preventive controls that are placed in operation indicating that transactions were valid, recognized, and submitted for processing following the internal control objectives (Becker CPA Review, 2014). Detective controls provide assurance that the errors and regularities are discovered and corrected in the normal course of business (Becker CPA Review, 2014). Our evidence examination should provide assurance that the financial statements are correct in order for us to sustain our opinion. However, it is impossible due to inherent limitations that the internal controls may not prevent or detect material misstatements. As discussed in note 5, based on our finding the sales and account receivables were overstated by $5,765,081.82 and the related cost of goods sold by $3,165, 145.10 (Louwers, 2007). We determined that this sale is not in accordance with general accepted accounting procedures. Based on the evidence and procedures performed as mentioned in the previous paragraph, Team D opinion on Apollo Shoes financial statement for the period ending on December 31, 2007 do not present fairly on all material respect the financial position of the company. However, we are confirming the efficiency and effectiveness of the internal control, based on COSO framework. It is important to mention that Apollo Shoes has a litigation suit in the preliminary stage for $12,000,000, which intend to defend them self. It is reasonable that the loss could reach $10,000,000 after legal fees (Louwers, 2007). No adjustments have been made to the financial statements. Since Apollo has lost his major customer, this has raised a substantial doubt about the ability that Apollo Shoes Inc. can continue as a going concern. The financial statements do not include any adjustment that contemplates this uncertainty. Description of Evidence The evidence used for the audit included several items presented by Apollo Shoes. The team was presented with the SEC 10-K filing from 2006, as well as the minutes from the audit committee meeting. The team also reviewed the company Letter to the Shareholders. The SEC filing provided us with historical financial statements and a wealth of other information about the company, including quarterly unaudited operation results. The team also reviewed the company accounting and control procedures manual to evaluate the controls over the accounting functions of the company, such as accounts receivables and cash management. Team D Auditing also performed an inventory observation, reviewed the sales forecast for the upcoming year, and reviewed the Board Meeting minutes from the meeting June 30, 2007. The team was also able to examine the 2006 audited and the 2007 unaudited trial balances, the work papers for the new computer system and the work papers for the internal control systems. The team was able to perform a thorough audit for Apollo Shoes based upon the evidence presented. Account Sampling The goal of an audit is to ensure the financial statements are fairly presented in accordance to the Generally Accepted Auditing Standards, and to obtain reasonable assurance that the statements are free from material errors. It is impossible and costly to test every transaction; therefore, we will be selecting samples for testing and make inference about the overall effectiveness of these statements. We will use the simple random sampling method to select these samples because this method ensures every item has an equal chance of being included (Arens et al., 2012). In addition, depend on the account we are testing different number of items may be included in each sample. Testing Procedures The auditor used industry data and compared it to Apollo Shoes financial information to comprehend the business and its results to determine if the company financial well-being. The auditor also compared the â€Å"client data with similar prior period data† (Arens et al., 2012, p. 227). This included the following: Comparing the current year with the previous year’s audited balance Examine current and previous year’s trial balance to decipher changes. Compared detail of total balances with previous year’s total balance â€Å"Compare details such as monthly totals of current year and preceding year for sales, repairs, loans payable, and other accounts† noticing significant changes (Arens et al., 2012, p. 227). Compared current ratios and percentages of current and previous years Compare current and previous common-size financial statements with vertical and horizontal analysis; Compare ratios analysis â€Å"solvency, efficiency, and profitability ratios† (Boynton, 2006, p. 325). Compared client prepared information with auditor’s expectations Auditor develops an estimation or expectation of results and account balances and compares it to client’s expectations, results, and account balances examining difference. Examine lead schedules prepared by the client. Audit Report Value The value of an audit report is quite simple. It is the written representation of the auditor’s opinion and acts of an almost guarantee for company investors, creditors, and clients. The audit report lists the auditor and director responsibility, gives the scope of the audit, and reports the auditor’s opinion. It lets the users of the financial statements know that they can be reasonably assured statements are without material misstatement and can use the contained information to make their decisions. Of course, the opinion given is not completely guaranteed. Conclusion Team D Auditing carefully considered the given evidence and performed tests of the internal controls and has come to the conclusion that we are unable to provide reasonable assurance that the financial statements are without material misstatement. We are also concerned with the future of Apollo Shoes with the loss of its biggest client and the pending lawsuit. The audit report, including some additional information regarding the evidence, sampling, and testing procedures have been submitted for review. References Arens, A. A., Elder, R. J., Beasley, M. S. (2012). Auditing and assurance services: An integrated approach (14th ed.). New York, NY: Pearson/Prentice Hall Becker Professional Education/CPA Review (2014) Audit Reports; Devry/Becker Educational Development Corp Boynton, W. C. (2006). Modern Auditing (8th ed.). Danvers, MA: John Wiley Sons, Inc. Louwers, T. R. (2007). Apollo Shoes, InC. Auditing and Assurance Services. McGraw-Hill Companies, Inc.