Philosophy of language Essay Example | Topics and Well Written Essays - 3000 words

Philosophy of language - Essay Example Traditionally, opponents of the CTP have held that the statement â€Å"that appears/seems red† is reserved for situations in which there is reasonable doubt in an individual’s mind regarding whether something is truly red or otherwise. In that sense, part of the meaning inherent in â€Å"that appears/seems red† is attributable to the doubt in the speaker’s mind concerning whether something is red. Consequently, it would be inappropriate, and quite rightly so, to suggest that there is any ounce of doubt regarding whether something is red and it is false that anything â€Å"appears/looks/seems red† when one sees something red. For that reason, critics of the CTP have argued that seeing red cannot be analysed in causal terms, that is, in terms of it being caused to be in a manner in which an entity â€Å"looks/appears/seems† red. In 1961, Herbert Paul Grice, notable for his pioneering work in the philosophy of language, came to the defense of CT P; this paper explains the manner in which Grice employed his notion of implicature in defense of the Causal Theory of Perception. Grice published an article in which he distinguished between what is meant (what is said) and what is implied (implicated) (Bardzokas 2010, p.114); basically, Grice argues that in saying â€Å"that appears/seems/looks red†, one may implicate that something is not really red but does not out rightly refute that something is red or mean it is not really red. According to Grice, it is actually possible that one who says â€Å"that looks/seems/appears red† sees something red and it could also be that they see something that seems red to them (even if otherwise). If to say â€Å"that appears red† implicates that something may not necessarily be red, it is contradictory to say â€Å"that appears red, and it is red†; Grice posits that the implication that a thing is not really red can be explicitly cancelled out. Consequently, if the implicatum of what a speaker says

Three Perspectives of Viewing Crime Essay Example | Topics and Well Written Essays - 1000 words

Three Perspectives of Viewing Crime - Essay Example Traditional thinking also inhibits change in the criminal justice. Command structures must also get the priority for notable change to occur. Having talks with the community members are also, ways that the criminal justice practitioners seek to enhance their participation in the policymaking. These theories of crime have their own views as to the course of people engaging in criminal activities within a society. Personal definition of crime of criminologists defines their ultimate choice of theory preference. The three perspectives of viewing crime are the consensus view of crime, the Interactionist view of crime and the conflict view crime respectively (Siegel, 2006). According to the consensus view of crime, crimes are simply repugnant behaviors of elements linked directly or indirectly to the society. With regard to this view of crime, the substantive criminal laws serving as the written rule define crime related to punishments. This means that if one goes contrary to the written rules deserves punishment. The best example of this is when curfews come from criminologists and when one does contrary to the curfew, punishment becomes the order of the day. Substantive criminal law ultimately depicts the values, opinions and beliefs of the society. The consensus word in the consensus view of crime provides an implication that there is a general agreement among a large portion of society about the unacceptable behaviors that the society should consider as crimes. There have been many attempts in the recent past of creating thorough, concise and encompassing consent crime definition. Donald Cressey, Edwin Sutherland and a few other criminologists support the standpoint of conjoining criminality laws with crime. According to this view, crime encompasses morality, rules and beliefs. Sutherland and Cressey agree that criminal law application exists uniformly to all social classes depending on the rules to refer. This means that everybody has beliefs and hopes just as the author does in fair and legal system where all types of people regardless of the social class. The best example or illustration for consensus view of crime is that law prohibiting theft, robbery and burglary directly points towards controlling poor, the lower class, needy individuals and the disabled. At the same time laws focused on corporate price fixing, embezzlement and insider trading prevention are in existence for the purposes of controlling the upper class, wealthy and rich in the society. In consensus view of crime, criminal and illegal behavior has a close relationship with social harm meaning that there is need to stop, control and manage every bad behavior causing harm or disturbance to other people. Social harm is what progresses to social crimes and sets deviant and strange behaviors that are shocking and seem immoral but may not necessarily be criminal. In many instances, the religious people condemn such behaviors though they do not consider them crimes because t he general community consensus is that they cause no harm not unless they involve children in any way. There is much controversy attached to the consensus vie

Policy Analysis Essay Example | Topics and Well Written Essays - 1000 words - 1

Policy Analysis - Essay Example The center sought to consolidate the country’s security resources such as personnel, databases, and infrastructure in the fight against terrorism. This way, the process of tracking, apprehending and litigating terrorists become easier and faster possibly creating a safer society for the American population. Rule Terrorism is the greatest threat to the American development and often jeopardizes the country’s ability to provide her citizens with the quality of life it espouses on its bill of rights. Terrorism is the worst international crime that seeks to instill fear on a country’s population thereby sparking revolt against the serving government. Terrorists operate on the principles of mass destruction and murder thereby instilling fear on the citizens owing to their government’s ability to protect them. Such are likely to stifle the government’s operations thus causing constitutional crises in the country. With an elaborate understanding of the abi lities of terrorism and the intent of terrorists, the country developed the Homeland directive in order to increase protection on the American president. The United States of America is the global super power with the best economy and the strongest military apparatus in the world. With such titles, the citizens of the country therefore feel entitled to several life provisions such as increased longevity owing to the government’s ability to provide a safe and secure environment. The president of the United States of America is an international figure of both power and authority. Should terrorists access and cause injury to such a figure, it would portray the country’s inability to protect its institutions of power thus imply that the citizens are most vulnerable. The country invest billions of dollars in guaranteeing the safety of her presidents in order to prevent the recurrence of the murder of serving presidents as witnessed with two historical figures. Application H omeland is the security outfit mandated with the internal protection. The security outfit has an unprecedented amount of resources to carry out extensive research on battering the state of security in the country. The homeland security presidential directive 6 provides the security outfit with the ability to monitor the activities of the citizens and every other person migrating into the country in order to determine the terrorists networks and their supporters. The directive provides for the establishment of a terrorist screening center administered by the Federal bureau of investigation, which is the country’s biggest security apparatus with access to the international security contraptions has the ability to keep the country safe from both internal and external threats. Several security bodies in the country approved the development of the terrorist center in order to integrate the operation of the previously segmented security apparatus that often resulted in confusion of jurisdiction in the country. After the 9/11 incident, the government determined the potential of the country’s enemies and therefore developed a number of security institutions to help create a safer nation. The 9/11 commission approved the development of the screening center since such would pool the country’

WHEN sTORIES sHAPE lIVES Essay Example | Topics and Well Written Essays - 500 words

WHEN sTORIES sHAPE lIVES - Essay Example d when she met Carson Gueye, the first time her mother allowed her to go the market alone, and love blossomed since then, though they knew it was doomed love. Carson was a market worker. He did anything he could for people inside it, like carrying boxes and cleaning stalls. He was an orphan, but an old man, Chan Mo-wan, took him in. In the market, the noise and nauseating odors of men and butchered animals that Shiniang used to hate were gone. Instead, she saw human life and freedom. More than that, she saw Carson. He was sixteen, but already he hovered over others with his 5’11 height and large frame. Shiniang blushed, for he caught her staring at him. Shiniang ran, or rather, stumbled away, nearly falling on women on the floor selling dried fish. She dared look back, and Carson was still there, with a smile on his dark brown eyes. Shiniang was about to go home, hardly able to carry what she bought, when Carson helped her. Their arms brushed and their eyes met. What they saw inside each other’s eyes married their souls. Afterwards, Shiniang and Carson found ways to be together. Young love was not assuring, however. Shiniang once confided to Carson that her cousin, Li-Wang, committed suicide to avoid arranged marriage. It was not new news for many young women killed themselves to oppose arranged marriages (Man 123). Carson asked Shiniang to never do the same thing. Shiniang shook her head: â€Å"I’d rather die than marry a stranger.† Carson kissed Shiniang for the first time on the lips. Their love was doomed, but loyal nonetheless. Shiniang raked her mind, trying to find a solution to her problem, until one story gave her a fitting solution. Uncle Chow Li-Bao was angry when he came to their house years ago. His daughter, Hsien-Hsien, was supposed to be married to a rich trader, when her lover kidnapped her. Marriage by kidnapping was looked down in their community, but it was effective (Zhongyi 58). Risking her own life, Shiniang escaped and found Carson.

Policy Analysis Essay Example | Topics and Well Written Essays - 1000 words - 1

Policy Analysis - Essay Example The center sought to consolidate the country’s security resources such as personnel, databases, and infrastructure in the fight against terrorism. This way, the process of tracking, apprehending and litigating terrorists become easier and faster possibly creating a safer society for the American population. Rule Terrorism is the greatest threat to the American development and often jeopardizes the country’s ability to provide her citizens with the quality of life it espouses on its bill of rights. Terrorism is the worst international crime that seeks to instill fear on a country’s population thereby sparking revolt against the serving government. Terrorists operate on the principles of mass destruction and murder thereby instilling fear on the citizens owing to their government’s ability to protect them. Such are likely to stifle the government’s operations thus causing constitutional crises in the country. With an elaborate understanding of the abi lities of terrorism and the intent of terrorists, the country developed the Homeland directive in order to increase protection on the American president. The United States of America is the global super power with the best economy and the strongest military apparatus in the world. With such titles, the citizens of the country therefore feel entitled to several life provisions such as increased longevity owing to the government’s ability to provide a safe and secure environment. The president of the United States of America is an international figure of both power and authority. Should terrorists access and cause injury to such a figure, it would portray the country’s inability to protect its institutions of power thus imply that the citizens are most vulnerable. The country invest billions of dollars in guaranteeing the safety of her presidents in order to prevent the recurrence of the murder of serving presidents as witnessed with two historical figures. Application H omeland is the security outfit mandated with the internal protection. The security outfit has an unprecedented amount of resources to carry out extensive research on battering the state of security in the country. The homeland security presidential directive 6 provides the security outfit with the ability to monitor the activities of the citizens and every other person migrating into the country in order to determine the terrorists networks and their supporters. The directive provides for the establishment of a terrorist screening center administered by the Federal bureau of investigation, which is the country’s biggest security apparatus with access to the international security contraptions has the ability to keep the country safe from both internal and external threats. Several security bodies in the country approved the development of the terrorist center in order to integrate the operation of the previously segmented security apparatus that often resulted in confusion of jurisdiction in the country. After the 9/11 incident, the government determined the potential of the country’s enemies and therefore developed a number of security institutions to help create a safer nation. The 9/11 commission approved the development of the screening center since such would pool the country’

Sensor Project Essay Example for Free

Sensor Project Essay I have decided to measure the temperature of a greenhouse using a thermistor in a potential divider circuit, and then when the temperature gets too cold, the relay will activate and turn on a heater. A thermistor is a temperature sensor in which its resistance will increase or decrease with temperature change depending on what type of resistor. An alternative for this experiment could have been measuring light levels in a greenhouse using an LDR. A light sensor in a green house could tell you when and where in the greenhouse the most intense sunlight is, which you could you use to aid your growing skills. I decided to design a temperature sensor for a greenhouse using a thermistor, as temperature can be critical in growing plants especially if it gets too hot or too cold. As my thermistor is an NTC this means that as temperature decreases its resistance increases, and when temperature increases its resistance decreases. Plan: Circuit Explanation The water is boiled until it reaches a temperature of just above 90i Celsius. The thermistor is inserted into the hot water and the voltage across it is measured for a temperature of 90i. The varying voltage across the thermistor is measured as the temperature falls at 10-degree intervals. The experiment is repeated and a second set of readings obtained. An average set of readings is obtained and a voltage-temperature conversion graph is plotted. Then test the sensor by attaching the amplifier and relay. Materials/Apparatus Needed: Thermometer, Thermistor, Beaker, Electric kettle, Power supply, Multimeter, Variable resistor, Amplifier, Relay, Leads. These pictures show me testing the thermistor (left), and testing the amplifier to see at what voltage it activates (right). Variables The volume of water used for this experiment was kept at 250cmi The experiment was completed over one day, and on the day, the temperature in the physics laboratory where the experiment took place was 19i C. Results Calculation of R1: I want my amplifier to activate at 10i C, for the heater to come on. The amplifier turns on at 1. 93V, as I have tested, and because the voltage is proportional to the resistance, I will work out which resister to use using the equation below. (At 10i C the thermistors resistance is 124. 8? )

Audit Planning And Risk Assessment Accounting Essay

Audit Planning And Risk Assessment Accounting Essay Chapter 6 [LO1] The audit plan documents detailed information about audit procedures to be performed on the engagement. T [LO2] Scaling the audit refers to fitting the audit work into the proper context in terms of the engagements size, environment, and complexity. T [LO2] Statutory audits are required on all integrated audits performed in accordance with international accounting standards. F [LO2] An audit plan will be the same regardless of whether the client company outsources its financial activities to a service provider or conducts the activities in house. F [LO3] Materiality is a measure of magnitude; yet, it is affected by both quantitative and qualitative factors. T [LO3] Materiality is first set at the account balance level and is then aggregated to the financial statement level. F [LO4] The components of the fraud triangle include incentive, opportunity, and rationalization. T [LO5] A client companys new or modified accounting information system requires more audit effort to understand the new system and assess its design and operating effectiveness. T [LO5] An audit strategy will focus on going concern issues for a client company operating in an industry which has experienced a recent market downturn. T [LO6] Computers are the primary resources used on an audit. F [LO6] A highly effective audit would have all of its testing performed at an interim Øلن¦ÃƒËœÃ‚ ¤Ãƒâ„¢Ã¢â‚¬Å¡ÃƒËœÃ‚ ªÃƒËœÃ‚ © date. F [LO7] An IT specialist may be used to inspect systems documentation and perform other procedures for an audit engagement when the client company uses new, emerging technology. T [LO7] Preliminary time budget information is compared to actual time worked and is used for purposes of billing, performance evaluation, and future bidding. T [LO8] Auditors test the operating effectiveness of those controls that are intended to prevent and detect material misstatements. T [LO8] Tracing refers to looking at the supporting documentation for a recorded number. F [App.A] A principal auditor may share responsibility for an audit opinion when another auditor performs all of the audit procedures for subsidiary of the client company. T [App.A] For accounts that involve significant estimates, require a high degree of judgment, or are susceptible to management override of controls, a principal auditor may completely rely on the work of others in determining whether those accounts are materially misstated. F Multiple Choice [LO1] Planning is a continuous process that must occur throughout the audit engagement because (a) disconfirming information is likely to arise. (b) the audit committee is likely to point out flaws in the original audit plan. (c) all information affecting the audit occurs concurrently. (d) auditor skill levels are continuously fluctuating. A [LO1] Development of the audit strategy includes all of the following activities except (e) specifying the work that has to be performed. (f) specifying the timing of the work to be performed. (g) documenting an audit planning memorandum. (h) defining initial estimates of audit risk and materiality. C Risk assessment points the auditor to the important areas of the clients operations and financial statements in order to (i) understand important areas of the clients operations and financial statements. (j) identify potential problems. (k) determine what needs to be accomplished during the audit. (l) all of the above D LO1,2] Which of the following is not a consideration for an auditor while scaling the audit? (m) The client company has multiple locations throughout the region. (n) Another firm is responsible for auditing one of the clients out-of-town subsidiaries. (o) An outside service provider prepares all of the client companys payroll accounting records. (p) The client company plans to hire and develop employees so that it can prepare its payroll accounting records in-house within the next two years. D [LO2] An experienced audit team will begin planning the audit before it knows all the specific information about a particular client company because (q) experienced auditors know the general framework of what needs to be done on any audit. (r) auditors experienced in the clients industry understand the activities and risks of the industry, which gives them an understanding of the important financial statement accounts and ICFR areas. (s) auditors experienced with this client company have already gained quite a bit of information from the client acceptance or continuance processes. (t) all of the above D [LO2] Scaling the audit refers to (u) weighing the risks associated with the clients susceptibility Ù‚ØØ ¨Ãƒâ„¢Ã¢â‚¬Å¾Ãƒâ„¢Ã…  ÃƒËœÃ‚ © to fraud. (v) preparing evidence for an outside service provider. (w)fitting the audit work to the specific characteristics of the client. (x) delivering products or services as contracted in the engagement letter. C [LO2] Deliverables refers to the (y) timing of the auditors acceptance of the client company. (z) products and services as contracted in the engagement letter. (aa)degree of correlation between the audit work to the specific characteristics of the client. (bb)auditors experience in the clients industry. B [LO2] The scope of the engagement depends upon all of the following considerations except the (cc) presentation of the clients accounting information. (dd) use and importance of IT to the clients activities and ICFR. (ee) ability to use audit evidence performed by the clients internal auditors. (ff) timing of the clients fiscal year-end. D [LO2] The scope of an audit teams work will be more extensive (gg) for a first year audit engagement as opposed to a continuing audit. (hh) when internal auditors perform work to be used as evidence by the external auditors. (ii) when a user companys auditor relies upon a report provided by an auditor of the service provider. (jj) for a company with effective entity-level controls. A [LO3] An internal control that is ineffective to the extent that it might not prevent the financial statements from being materially misstated is referred to as a (kk) significant risk (ll) substantive error (mm) material weakness (nn) tolerable misstatement C [LO3] Which of the following would not be an appropriate benchmark Ù†¦ÃƒËœÃ‚ ±ÃƒËœÃ‚ ¬ÃƒËœÃ‚ ¹Ãƒâ„¢Ã…  ÃƒËœÃ‚ © to use in setting financial statement-level materiality? (oo) a percentage of total revenue (pp) a percentage of total assets (qq) a percentage of current liabilities (rr) a percentage of profit from continuing operations C [LO3] The materiality threshold Ø ¹ÃƒËœÃ‚ ªÃƒËœÃ‚ ¨ÃƒËœÃ‚ © for each account balance or class of transactions is called (ss) tolerable Ù†¦Ãƒâ„¢Ã¢â‚¬Å¡ÃƒËœÃ‚ ¨Ãƒâ„¢Ã‹â€ Ãƒâ„¢Ã¢â‚¬Å¾ÃƒËœÃ‚ © misstatement (tt) material assertion Ø ªÃƒËœÃ‚ £Ãƒâ„¢Ã†â€™Ãƒâ„¢Ã…  ÃƒËœÃ‚ ¯ (uu) substantive rule of thumb (vv) account deficiency A [LO3] For purposes of an integrated audit, materiality is assessed within the context of users who have (ww) appropriate knowledge of business and economic activities (xx) an understanding that financial statements are prepared and audited to levels of materiality (yy) the ability to make appropriate economic decisions on the basis of information in the financial statements (zz) all of the above D [LO4] Which of the following is not an area of interest for anti-fraud controls? (aaa) journal entries and adjustments made in the end-of-period financial reporting process (bbb) related party transactions (ccc) auditor credentials وؠ«ÃƒËœÃƒËœÃ‚ ¦Ãƒâ„¢Ã¢â‚¬Å¡ ØلؠªÃƒâ„¢Ã‚ Ãƒâ„¢Ã‹â€ Ãƒâ„¢Ã…  ÃƒËœÃ‚ ¶ (ddd) significant management estimates C [LO4] An example of an incentive/pressure for fraudulent financial reporting risk factor is (eee) a threat to the client companys financial stability caused by rapid growth compared to that of other companies in the same industry. (fff) significant operations located across international borders in jurisdictions where differing business environments exist. (ggg) inadequate job applicant screening processes for employees with access to cash. (hhh) ineffective communication of the companys ethical standards by management. A [LO4] An example of an opportunity for misappropriation ØØ ®ÃƒËœÃ‚ ªÃƒâ„¢Ã¢â‚¬Å¾ÃƒËœÃƒËœÃ‚ ³ of assets risk factor is (iii) compensation ØلؠªÃƒËœÃ‚ ¹Ãƒâ„¢Ã‹â€ Ãƒâ„¢Ã…  ÃƒËœÃ‚ ¶ inconsistent Ø ºÃƒâ„¢Ã…  ÃƒËœÃ‚ ± Ù†¦ÃƒËœÃ‚ ªÃƒâ„¢Ã¢â‚¬  ÃƒËœÃƒËœÃ‚ ³Ãƒâ„¢Ã¢â‚¬Å¡ÃƒËœÃ‚ © with expectations. (jjj) lack of complete and timely reconciliations of assets. (kkk) managements practice of committing to creditors to achieve unrealistic forecasts. (lll) known history of violations of laws and regulations. B [LO5] Significant developments within the client that affect audit strategy include: (mmm) A change in ownership and/or capital structure has occurred. (nnn) Acquisitions or discontinued operations have recently occurred. (ooo) The accounting information systems have been modified. (ppp) All of the above D [LO5] Significant developments in the clients external environment that affect audit strategy include: (qqq) Industry competition has increased. (rrr) Acquisitions or discontinued operations have recently occurred. (sss) A change in ownership and/or capital structure has occurred. (ttt) All of the above A [LO5] Going concern issues may arise when: (uuu) Acquisitions or discontinued operations have recently occurred. (vvv) The accounting information systems have been modified. (www) The economy has negatively impacted the client company. (xxx) Changes in applicable accounting standards affect the client company. C [LO5] When audit clients acquire new, more sophisticated IT systems, (yyy) The audit strategy will not be impacted as long as the duties of accounting personnel are primarily unchanged. (zzz) Auditors with advanced IT knowledge may need to be added to the audit team. (aaaa) The design of internal controls will be considered ineffective until those new controls have been tested. (bbbb) The timing of the auditors procedures for reviewing interim financial statements will be accelerated. B [LO5] One of the first procedures performed by auditors during on-location audit work is the (cccc) Development of the firms audit strategy. (dddd) Preparation of the audit report. (eeee) Design of the audit plan. (ffff) Establishment of an understanding of the companys ICFR systems. D [LO5] Auditors may obtain information about a client company during other engagements conducted for the client such as (gggg) audits of a subsidiary or other related party entity. (hhhh) reviews of quarterly financial statements filed with the SEC. (iiii) examinations of information included in a registration statement. (jjjj) All of the above D [LO6] Which of the following would not be likely to participate in an audit planning meeting? (kkkk) The core audit engagement team. (llll) The audit teams tax manager (mmmm) The audit teams partner for IT (nnnn) The chair of the clients audit committee. D [LO6] Which of the following items are included in the audit planning meeting? (oooo) brainstorming about fraud risks (pppp) establishing responsibility for preparing the financial statements (qqqq) establishing responsibility for monitoring of internal controls (rrrr) preparing the engagement letter. A [LO6] Which of the following items would an audit engagement partner likely communicate with the members of his or her audit team during a planning meeting? (ssss) Responsibility for notifying appropriate individuals of any significant issues or difficulties encountered during the audit. (tttt) Identification of the type of audit report to be issued. (uuuu) The need to complete the quarterly review before communicating with any tax professionals assigned to the audit engagement. (vvvv) Responsibility for notifying the audit committee and internal auditors of the firms specific audit approach. [LO6] The audit planning meeting must (wwww) take place before the client acceptance decision is made. (xxxx) be attended by the entire core engagement team and the predecessor auditors. (yyyy) establish an understanding among the members of the audit team about the objectives of the audit. (zzzz) prepare the internal auditors for the work they will be asked to perform to supplement the auditors procedures. C [LO6] The document that presents all of the issues discussed as part of audit strategy is the (aaaaa) engagement letter (bbbbb) quarterly financial statements (ccccc) audit planning memo (ddddd) risk assessment memo C [LO6] Which of the following items in not typically documented in an audit planning memo? (eeeee) audit engagement objectives and deliverables (fffff) the auditors understanding of ICFR and IT systems (ggggg) planned use of the work of others during the audit (hhhhh) results of the quarterly review process D [LO6] What is the primary resource used on an audit engagement? (iiiii) the clients IT systems (jjjjj) the auditors IT systems (kkkkk) human resources of the audit firm (lllll) the clients internal auditors C [LO6] To properly instruct and review the work of audit team members, the supervising auditor must: (mmmmm) keep abreast of accounting and audit issues and manage differences of opinion among team members regarding audit findings. (nnnnn) obtain instruction from the chair of the audit committee regarding the objectives of the audit engagement. (ooooo) communicate with the predecessor auditor regarding differences of opinion regarding prior year audit findings. (ppppp) all of the above A [LO6] It is important for auditors to be on-location on the last day of the clients fiscal year when the client (qqqqq) operates a restaurant that does a considerable amount of business on New Years Eve. (rrrrr) has significant inventory activities such that the receipts and shipments of inventories at year-end should be observed. (sssss) relies upon electronic verification to indicate the timing of transactions. (ttttt) refuses to pay overtime rates for the audit team during its busy season. [LO6] Which of the following is not a valid reason for the performance of audit procedures at an interim date? (uuuuu) More time is available for management to correct problems identified by interim audit testing. (vvvvv) The client company does not retain the records that are needed as audit evidence through the year-end time frame. (wwwww) Most controls and transactions cannot be audited during busy season. (xxxxx) More time is available for the auditors to concentrate on problem areas, if needed. [LO6] If audit tests are performed at an interim date, supplemental audit evidence: (yyyyy) is not necessary because the same controls are assumed to be in place that resulted in the balances tested during interim. (zzzzz) is still needed regarding the account balances between the interim testing date and the end of the fiscal year. (aaaaaa) is obtained from the predecessor auditor, when needed to corroborate any changes in the clients ICFR systems. (bbbbbb) is the responsibility of the audit committee, as it would be inefficient for the auditors to focus on a single audit area during multiple time periods. [LO6] When audit tests are performed at an interim date, the auditor must (cccccc) obtain a letter from management to confirm the continued performance of internal controls and accuracy of the year-end balances. (dddddd) perform roll forward audit procedures to determine whether a control continued to perform the same way through year-end. (eeeeee) reconcile account balances tested at an interim date with the year-end balances in the same accounts. (ffffff) Both (b) and (c) [LO7] Which of the following is an example of a specialist who might assist an audit engagement team on a high-risk audit area? (gggggg) actuary (hhhhhh) banker (iiiiii) internal auditor (jjjjjj) tax accountant [LO7] An IT specialist may be involved in an audit engagement to assist with any of the following except (kkkkkk) inspecting systems documentation. (llllll) inquiring of company personnel about how the processes are carried out and how IT controls are designed. (mmmmmm) preparing the IT planning memo. (nnnnnn) planning the tests of IT controls. [LO7] Which of the following is not a relevant consideration in deciding whether an IT specialist is needed: (oooooo) the client companys capital structure (pppppp) the complexity of IT controls and systems (qqqqqq) the use of emerging technologies (rrrrrr) the use of data by multiple systems or processes [LO7] Audit firms use time budgets for (ssssss) indicating the amount of time expected for the various levels of auditors for each audit area. (tttttt) tracking and reporting time spent on each audit area. (uuuuuu) billing and bidding and future engagements. (vvvvvv) All of the above. [LO7] Time budgets are typically (wwwwww) approved by the audit committee (xxxxxx) detailed by areas of the audit (yyyyyy) signed by the predecessor auditor (zzzzzz) All of the above. [LO8] Auditors test the operating effectiveness of internal controls only if they (aaaaaaa) are effectively designed to prevent or detect material misstatements. (bbbbbbb) address multiple risk factors. (ccccccc) are applied in conjunction with other controls to address a single risk factor. (ddddddd) cause susceptibility to material misstatements. [LO8] Substantive audit procedures are performed so that the auditor may identify (eeeeeee) deficiencies in the design or operating effectiveness of internal controls. (fffffff) weaknesses in the effectiveness of the client companys audit committee. (ggggggg) material misstatements in the client companys financial statements. (hhhhhhh) Calculations and controls that mitigate the risk of fraud. [LO7] Which of the following is not a form of audit evidence? (iiiiiii) recalculation (jjjjjjj) reperformance (kkkkkkk) repetition (lllllll) inquiry [LO7] ICFR tests to provide evidence on whether the controls can be relied upon for the financial statement audit can be performed (mmmmmmm) only during year-end because they must be performed at the same time as financial statement audit procedures. (nnnnnnn) only during interim because they must be performed at the same time as financial statement audit procedures. (ooooooo) at any time the evidence is available, as long as the entire period of reliance is evaluated. (ppppppp) at any time after the substantive procedures have been completed, so that the opinion on financial statement misstatements is not superceded by the opinion on the effectiveness of controls. [LO8] Sufficient evidence may be provided without examining all of the transactions in an account balance is the auditor uses well-designed (qqqqqqq) sampling approaches (rrrrrrr) internal control procedures (sssssss) inspection techniques (ttttttt) assertions related to the fair presentation of account balances. [LO8] The nature, timing, and extent of audit needed audit tests will depend upon the answers to each of the following questions except TYPO / Grammar suggest deleting highlighted words (uuuuuuu) How could a material misstatement happen? (vvvvvvv) What internal controls has the client implemented to address potential misstatements? (wwwwwww) How might internal controls fail such that a material misstatement occurs? (xxxxxxx) How many times have material misstatements been undetected? [LO8] When inquiry, observation, and inspection are all used to trace a transaction as it is initiated, authorized, processed, and recorded, the process is called a(n) (yyyyyyy) inspection (zzzzzzz) walkthrough (aaaaaaaa) assertion (bbbbbbbb) analytical procedure [LO8] If an audit program calls for the auditor to interview the client about an important control activity, this is an example of which type of audit procedure? (cccccccc) reperformance (dddddddd) tracing (eeeeeeee) inspection (ffffffff) inquiry [App] Which of the following is not a form of evidence obtained through the auditors direct personal knowledge? (gggggggg) observation (hhhhhhhh) reperformance (iiiiiiii) inquiry (jjjjjjjj) inspection [App] A principal auditor may share responsibility for an audit opinion with (kkkkkkkk) another independent auditor who has performed a significant portion of the audit work. (llllllll) the clients internal audit staff, if they provide significant assistance to the audit team. (mmmmmmmm) a specialist who provides expert advice on the valuation of inventory. (nnnnnnnn) an attorney who provides expert advice on a pending legal matter. [App] Which of the following is not an indicator of competence that is relevant to an auditors evaluation of other individuals performing a portion of the audit work? (oooooooo) professional certification (pppppppp) professional experience (qqqqqqqq) level of education (rrrrrrrr) access to the board of directors [App] If internal auditors provide direct assistance to the external audit team, the independent external auditor must (ssssssss) reperform all of the work provided by the internal auditors. (tttttttt) supervise and evaluate the work performed by the internal auditors. (uuuuuuuu) refuse to issue an audit opinion, due to a lack of independence. (vvvvvvvv) indicate a division of responsibility in the performance of the audit. Matching [LO3] Following are the planning steps involved in considering materiality in a top-down approach to planning for tests of controls. Number the items in from 1 (top) through 6 (bottom) to indicate the proper top-down sequence of the steps. ___ Identify risks that could cause material misstatement of relevant assertions in a significant account. ___ Set financial statement level materiality ___ Design audit procedures addressing controls ___ Investigate controls addressing risks ___ Identify significant accounts ___ Determine relevant management assertions for significant accounts and set materiality at the account level Short-Answer Questions and Exercises [LO4] For each scenario below, indicate which element of the fraud triangle is present. (wwwwwwww) Large amounts of cash are on hand. (xxxxxxxx) Management failed to correct ICFR deficiencies in a timely manner. (yyyyyyyy) The organizational structure is complex and lines or authority are unclear. (zzzzzzzz) Future employee layoffs are expected. (aaaaaaaaa) Employee behavior suggests dissatisfaction with the company. (bbbbbbbbb) Restrictions on the auditor limit access to evidence. (ccccccccc) Management attempts to influence the scope of the audit work. (ddddddddd) Industry factors threaten the companys financial stability. (eeeeeeeee) Significant related party transactions are audited by another firm. (fffffffff) The personal financial situation of management is threatened. [LO6] Indicate the preferred timing during the audit process for performing each of the following procedures. Explain your choice. (ggggggggg) observing the clients physical inventory (hhhhhhhhh) testing of the operating effectiveness of ICFR (iiiiiiiii) observing the shipment and receipt of inventories (jjjjjjjjj) substantive testing of property and equipment account balances (kkkkkkkkk) roll forward procedures (lllllllll) testing of the design effectiveness of ICFR (mmmmmmmmm) examining adjustment made during the course of preparing the financial statements [LO8] What different audit procedures (forms of evidence) are appropriate for financial statement audits that are not applicable for testing of controls? [LO8] For each of the following audit procedures, indicate the type of evidence that is involved. (nnnnnnnnn) reading a sales contract (ooooooooo) determining whether a sales invoice is properly included in the sales journal (ppppppppp) communicating with management about changes in accounting personnel (qqqqqqqqq) watching the cashier perform the daily closing procedures (rrrrrrrrr) verifying the mathematical accuracy of discounts included on the sales invoice (sssssssss) verifying the accuracy of the sales journal by reference to a supporting shipping document and sales invoice (ttttttttt) receiving verification from an independent third party Suggested Solutions for Test Bank Questions Chapter 6 True/False T T F F T F T T T F F T T T F T F Multiple Choice a c d d d c b d a c c a d c a b d a c b d d d a a c c d c a b c b d a c a d b a c c c a d b d c a d b Matching 4,1,6,5,2,3 Short-Answer Questions and Exercises a. Large amounts of cash are on hand. Opportunities b. Management failed to correct ICFR deficiencies in a timely manner. Attitude/Rationalization c. The organizational structure is complex and lines or authority are unclear. Opportunities d. Future employee layoffs are expected. Incentives/Pressure e. Employee behavior suggests dissatisfaction with the company. Attitude/Rationalization f. Restrictions on the auditor limit access to evidence. Attitude/Rationalization g. Management attempts to influence the scope of the audit work. Attitude/Rationalization h. Industry factors threaten the companys financial stability. Incentives/Pressure i. Significant related party transactions are audited by another firm. Opportunities j. The personal financial situation of management is threatened. Incentives/Pressure k. observation of the clients physical inventory should be performed at the end of the clients fiscal year so that the financial statement balances can be verified. l. testing of the operating effectiveness of ICFR should be performed at interim, as internal controls are expected to be operating and subject to evaluation at any point. Also, the interim testing will provide time for the auditor to spend more time on related testing if problems are encountered, and management will have more time to remedy the problem before the end of the fiscal year. m. observation of the shipment and receipt of inventories should be performed at the end of the clients fiscal year so that the auditor can determine that the transactions were recorded in the proper period. n. substantive testing of property and equipment account balances should be performed during the year-end testing phase, as final account balances. However, it is also possible to audit these balances during an interim testing phase and later perform a roll forward to year-end. o. roll forward procedures must be performed during the year-end testing phase, as final account balances are needed in order to evaluate the change during the period from interim testing through the date of the clients fiscal year-end. p. testing of the design effectiveness of ICFR should be performed at interim for efficiency reasons. See b. above. q. examining adjustment made during the course of preparing the financial statements must be performed during year-end testing (after the financial statements have been prepared). Both tests of controls and substantive tests of financial statement account balances involve inquiries, inspection of documents, observation of operations, and reperformance of controls. However, the following additional procedures are available for audits of financial statements: i. inspection of tangible assets ii. external confirmations iii. recalculations iv. analytical procedures r. reading a sales contract inspection of documents s. determining whether a sales invoice is properly included in the sales journal inspection of documents; tracing t. communicating with management about changes in accounting personnel inquiry u. watching the cashier perform the daily closing procedures observation v. verifying the mathematical accuracy of discounts included on the sales invoice recalculation w. verifying the accuracy of the sales journal by reference to a supporting shipping document and sales invoice inspection of documents vouching x. receiving verification from an independent third party external confirmation