Private Prisons Profiting Over Mass Incarceration

Jennifer Wongsosaputro UGBA 107 March 22nd Professor Alan Ross Private prisons: Profiting over Mass Incarceration Crime rates are down in America, yet there is an unproportionately large number of Americans incarcerated. This paper will delve into and examine this problem and how it is closely linked to private prisons and the issues surrounding them. While private prisons claim to be cost effective and well-run, evidence has shown that these profit-driven companies ignore ethical consequences by purposefully lengthening prisoners’ sentences, target certain groups for incarceration and maintain despicable living standards for the prisoners; ultimately, these prisons have caused more harm than good for the state. The Rise in Private†¦show more content†¦Claiming that they would be a cost effective alternative, companies started managing and running entire prisons instead of the state. As a result, the population in private prisons increased by an astounding 1600%. In any given year now, incarceration rates has tripled with approximately 13 million people introduced to American jails in any given year. This increase in the prison population far outpaced the crime rate and the US population growth. Today, America has around 5% of the world’s population but a quarter of the world’s prison population. Today, the private prison industry is big and extremely profitable. The industry is dominated by two large companies, Corrections Corporations of America (CCA) and the GEO group. The annual combined revenues for both companies amount to over $3 billion while their top executives get compensation of over $3 million each. However, the way these companies operate is wholly unethical. Bed quotas: Harmful prison occupancy requirements In many of the contracts between private prisons and the state, prisons actually get a guarantee that their prisons will be filled up which mean more money to the company. In the Public Interest, an organization dedicated to high quality accurate research for the public, analyzed 62 contracts from private facilities and found that 41 of the contracts contained quotas. These quotas were occupancy requirements that the

Anne Frank The Diary of a Young Girl Essays - 1608 Words

As an ordinary Jewish girl who was one of the most discussed Jewish victims of the Holocaust, Anne Frank was an incredibly memorable girl due to the publication of her diary. Anne Frank was a liberal Jew; as for she did not follow all the traditions of Judaism. On the fourteenth of August 1944, a group of German uniformed police arrested the Frank family and was sent into The House of Detention, transitioned into the Westerbork Transit Camp and then to the Auschwitz concentration camp. In July 1945, after the Red Cross confirmed the death of the Frank sisters, Otto Frank passed Anne’s diary to historians who made continuous attempts to publish it. The official publication of the diary in 1947 was named Het Achterhuis, and was later on†¦show more content†¦This shows how Anna Frank’s style in writing was advanced for a thirteen-year-old. There were many Jewish teenagers like Anne Frank who kept a diary, but that was not the reason to Anne’s high quality i n writing. Anne provides more than just short descriptions of her day. She contributes logical thoughts on various happenings and things she has heard and seen. As an example, Anne Frank remarks a saying that she reflected about when she was depressed, â€Å"Paper has more patience than people.† (8) Judging by the fact that she had no other friends than the stiffed-back notebook, grandly referred to a diary, she was right. She had a family and a roof above her home. She had everything that she needed except for a true friend. She complains about how she couldn’t bring herself to talk about anything but ordinary, everyday things with her friends. Evidently, she differed from other teenagers. She explained to never being able to get farther than just talking about the normal, proving that she was capable of talking about anything but the usual. Anne Frank did not want to jot down the facts like everyone else did, but she wanted to keep her diary as a friend, because that was the only way she could communicate about anything but the ordinary. It is recognizable how Anne Frank lives from moment to moment each time she wrote a new entry. She is profoundly occupied with her social and educational world, showing that she is still sane even with the restrictions set by theShow MoreRelatedThe Diary Of A Young Girl By Anne Frank977 Words   |  4 PagesFor my second book review I chose to read The Diary Of A Young Girl by Anne Frank. This novel follows the life of a young Jewish girl named Anne Frank as she struggles to survive in hiding during the Holocaust. It is composed of journal entries that Anne herself actually wrote as a thirteen to fifteen year old girl in hiding. The book begins when Anne’s parents give her a diary on her thirteenth birthday. Anne is excited about the book and begins writing right away. She writes about everythingRead MoreThe Diary Of A Young Girl By Anne Frank934 Words   |  4 PagesHumans don t realize how much they appreciate something until they lose it. This is especially true when it comes to freedom. In the novel, Anne Frank: The Diary of a Young Girl, the main character, Anne Frank, and her family were prosecuted for being Jews during World War 2. Along with two other families, to save their lives, they took refuge in entering the Secret Annex to escape the barbaric prosecution by the Nazis. However, they paid a heavy price by sacrificing their freedoms. Their yearningRead MoreThe Diary Of A Young Girl By Anne Frank1782 Words   |  8 PagesThe Diary of a Young Girl by Anne Frank is about a Jewish girl sent into hiding with her family during World War II to escape from the Nazis. Forced together with seven others she hides in the secret annex at Prinsengracht 263 in Amsterdam. After more than two years in hidi ng they are discovered and deported to concentration camps. Anne’s father, Otto Frank, is the only one of the eight people to survive. After her death, Anne becomes world famous because of the diary she wrote while in hiding. Anne’sRead MoreThe Diary Of A Young Girl By Anne Frank905 Words   |  4 PagesAlejandra Vazquez-Garcia Professor Hill LIBR – 470 12/04/2015 Nonfiction—Evaluation Anne Frank: The Diary of a Young Girl by Anne Frank is the story of a Jewish girl and her family who hide away in the attic of Otto’s, Anne’s father, company during the Nazi occupation of the Netherlands. She received the diary when she was turned 13 years old and a month later one of her sisters is called to appear before authorities which will mean certainly that she’ll be sent to a concentration camp. The familyRead MoreThe Diary of a Young Girl by Anne Frank Essay1323 Words   |  6 PagesToday, I am going to discuss the bestselling, fictional novel, The Diary of a Young Girl by Anne Frank. In her book, Annelise Marie – better known as Anne Frank, documents her experiences during the Holocaust and World War II (WWII). Readers are better able to get a feel for the suspense going on and emotion that Jews experienced, through a teenage mind. Anne Frank was only about 13 when she began writing about her book and 14 during hiding. She talks about the dange rs of outside, bombings, shootingsRead MoreEssay on The Diary of a Young Girl by Anne Frank541 Words   |  3 PagesThe Diary of a Young Girl by Anne Frank was published in 1947. When the book was published a lot of people were impacted. It started getting more and more famous all around the world. In no time 30 million copies of the book was sold. Frances Goodrich and Albert Hackett decided to make a play based on Anne Franks book. The play was a huge success and it was nominated for 8 Oscars and won 3. After George Stevens decided to make a movie about Anne Frank. There were some famous actors in the movie likeRead MoreEssay on The Diary of a Young Girl by Anne Frank853 Words   |  4 PagesTeenagers What makes Anne Frank: The Diary of a Young Girl so touching is that Anne Frank was not any different from a typical teenager. Anne Frank has the common teenage debates with her parents, as well as the thoughts of being an self-regulating girl hoping to fall in love, just as most teenagers do today. Anne had relationship issues with her mother, other members of the household, and of course, boys. In our society today, teenagers experience these same issues as Anne had while being held captiveRead MoreAnne Frank s Diary Of A Young Girl1919 Words   |  8 Pages As an ordinary Jewish girl who was one of the most discussed Jewish victims of the Holocaust, Anne Frank was an incredibly memorable girl due to the publication of her diary. Anne Frank was a liberal Jew; as for she did not follow all the traditions of Judaism. On the fourteenth of August 1944, a group of German uniformed police arrested the Frank family and was sent into The House of Detention, transitioned into the Westerbork Transit Camp and then to the Auschwitz concentration camp. In July 1945Read MoreAnne Frank: the Diary of a Young Girl Response1873 Words   |  8 PagesAnne Frank: The Diary of a Young Girl Response The Diary of a Young Girl written by Anne Frank is an inspirational coming of age diary written to teach the reader that difficult situations lead to maturity. Anne’s diary shows the evolution and maturity of Anne’s character over a few years. Anne had to face many challenges in her difficult situation. She was hiding in a confined Annexe because she was a targeted victim of genocide during the Holocaust. These situations led her to an entire new levelRead MoreBig Simbol of the Holocaust: The Diary of a Young Girl by Anne Frank777 Words   |  4 PagesAnne Frank’s diary is known all over the world. She was in hiding for 2 years, and she wrote in her diary. Writing was one of her hobbies. There is more than just one of Anne Frank’s writings. It is very impressive of being such a big symbol about the holocaust, writing about your life in hiding. But there are plenty of other pieces of work she has done. She has written many short stories, letters and poems of her own; during the time she was in hiding, and before that. Anne Frank has always loved

The Sources Of Business Communication Samples †MyAssignmenthelp.com

Question: Discuss about the Sources Of Business Communication. Answer: Introduction Communication is the lifeblood of business. Without it, it becomes almost impossible for a business to survive. Different channels can be used to convey business information to consumers and potential customers. A business chooses the channel to employ depending on its purported suitability, effectiveness, and convenience. Nevertheless, the message has to be in line with the principles of effective communication such as brevity, clarity, simplicity and accuracy. In this paper, we shall analyze the sources of business communication. The information shall focus on the telecommunication industry (Smartphones), specifically Samsung and Apple Inc. Report Overview This report analyses the source of business information used by Samsung and Apple Inc. Consumers and potential customers have to be enlightened on the products offered by a company using different channels such as Television, Social Media, Newspapers, journals, and magazines. This report analyzes Television and social media as the main sources of business information. The focus is placed on the advertising form of communication. We shall highlight when each business used a particular channel, when this communication succeeded or failed, and the reasons behind this. Discussion and Research Analysis Samsung Smartphones The Samsung Electronics industry was founded in 1969 in Suwon, South Korea (Eom, 2016). In 2009, the company released its first Android Smartphone with the launch of Android tablet. Today, the company is among the most respected players, globally, in the Smartphone market. The company deals in the following products: Galaxy J3, z4, Galaxy J3 Prime, Galaxy C5 Pro, Galaxy Cover 4, Galaxy S8+, Galaxy S8, Galaxy C7 Pro, Galaxy Note7, e.tc (Eom, 2016). Apple Inc. Apple Inc. is a multinational company founded in 1977 and based in the U.S (Graham, 2017). The company designs and sells computers, software content-based services, and consumer electronics. Phones made by Apple Inc. are among the best in the phone market worldwide. The following are the products offered by the company: Mac line of computers, the iPod, iPhone, iPod Touch, iPad and iTunes Store (Hattersley, 2017). For a very long time, Apple had the greatest market share. Samsung tried different strategies to catch up with it. The strategies paid off, because of today, Samsung is the worlds largest technology company by revenue. Stiff competition between the two is seen regarding the forms and types of communication employed in advertising their phones (Luca, 2015). Advertising as a form of communication Advertising is a form of communication intended to persuade an audience to purchase or take action upon products, ideas or services (Vertino, 2014). Advertising does the pre-selling of the product and makes the job of the sales person easier. It is the element of marketing that entails giving product information in a precise but concise manner (Musaraj, 2013). For the development of advertising and to get results one needs to follow the advertising process step by step until its execution (Vertino, 2014). This process incorporates distinct elements, and many considerations are made to make the difference between the success and the failure of the advert. For an advert to be successful, the company has to choose the right medium and structure the message well to catch the audience attention (Wood, 2015). Therefore, we shall analyze Social media and television as the two sources of communication used by Samsung and Apple to advertise their products. Social media Many describe social media as the greatest invention of all times. This is because, for the first time in history, people from all over the world can communicate, exchange ideas and bring significant change together (Kiesler, 2014). Social media networks like YouTube, Facebook, and Twitter, have created new channels of mass communication with new possibilities. Social media networks have enabled a networked society and global connectivity (Leung, 2015). Today, communication on business, politics, economy and social welfares happen beyond national borders and seen by everyone from anywhere so long as one has access to the Internet. Groups, like Samsung and Apple, have taken advantage of this feature of social media networks to popularize their ideologies, advertise products and mobilize the masses to help in achieving their objectives. Television Television is an influential mass media in modern society. The first television broadcast to be aired to the public was in Germany in 1935 (Leung, 2015). The invention of television came after the invention of printing, the radio, film, and the newspaper. Television is the most popular because of its affordability and capability to capture reality through adverts, news, features, documentaries and current affairs programmes. For businesses, using television to advertise is more rewarding than using other channels like print media. Watching an advert on TV is a lot easier for people to understand and is more convenient than reading it on paper. For the people who are always in a rush in the morning, its more convenient to turn on the TV and listen to whats going on rather than try to read a paper because it will only slow your task down. Also, for the people who dont know how to read and for elders whose eyes do not function properly, the TV is a better source of understanding business information. Not only can they watch, if their eyes are messed up, they can also listen. It does not require any thinking or straining the eyes trying to read. It may be seen as very much relaxing. Both Social media and television are effective in business communication. This is because of their large coverage and ability to deliver information instantly. However, this does not imply that using these channels is always a success. In fact, sometimes a business faces a backlash from the customers because of how they have used these channels (Truong, 2015). In the following section, we are going to point out when Samsung and Apple used television, when it was a success and when it turned out not successful. Report Analysis Samsung Galaxy S8 TV Commercial Unlike their normal routine of running through the phones main features or taking a hit at their competitors (Apples iPhone), Samsung chose to use animals. This is an enormous score for the company because everybody loves animals. In the video; there is a curious ostrich that gets stuck into Gear VR headsets that are playing a flight simulators video. Throughout the entire video, we are shown the ostrichs immersive Gear VR experience. Also, we see how the ostrich is determined to do the unthinkable after having the Gear VR experience. The ostriches that did not get to play with a Gear VR are left clueless about the experience. (https://www.youtube.com/watch?v=hjkdUCPYYfeature=youtube_gdata_player) Why this TV commercial was excellent This commercial was a success because the message being sent was very clear; The Gear VR needs the Galaxy S8 phone inside to work. Apart from being appealing and fun, the message was also simple and concise (Graham, 2017). This way, the audience not only got to enjoy the clip but also understand d the point being driven. Samsung Galaxy Note7 apology Samsung went through a lot of struggle to win back trust from its customers following incidences of Galaxy Note7s battery exploding. The company had to publish a series of apologies using various channels such as their Facebook page and website. The companys CEO, Gregory Lee, wrote to the customers on their website (Eom, 2016). He reassured the consumers of the companys commitment to offering best-in-class safety and quality. He also reassured people that the company had reached a decision to recall 2.5 million of the devices that had been shipped for sale and terminated the production of more phones of this model (Eom, 2016). Why using Social media was poor Choosing to apologize for their mistake was a right move. However, it was not okay to publish a full page of an apology on the companys website without taking into account the customers emotions. By the time the company had recalled back the shipped phones, the damage was already done. Analysts say that the Samsung apology was heavy in battery failure and light on admitting its failure. This means that the message was not structured right. Moreover, although it reached people, the impact was not as anticipated. Also, there are various channels the company could have exhausted apart from Facebook and website. If the goal was to reach as many customers as possible, then they could have used television and print media. Social media is frequently used by a particular group of people-not everyone (Haddon, 2016). Apples Romeo and Juliet advert Apple is known for its best and iconic adverts. One of the most memorable adverts from the company is the much talked about Romeo and Juliet advert which focused on the video graphics capabilities of the iPhone 7 Plus. In the advert, we see how the phone can make a video shot by the phone can make a high school play look like a Hollywood movie. Also, the look on the dads face at the end brings out the sentimentality of the advert. (https://www.youtube.com/watch?v=qStdSMad6TYfeature=youtube_gdata_player) Why this TV ad was a success This advert was a success because it focused on the most outstanding feature of the phone; special camera (Graham, 2017). The phone has two camera systems. The dual camera system enables the user to acquire super sharp close-up photos and videos with optical zoom at 2x. Therefore, the success of the advert can be attributed to the direct communication in it; it made it easier for people to know what was unique about it thus justifies reasons for buying. Kids in schools with iPads This is a 60-second TV commercial that begins by showing kids in school using iPads while a voice in the background is declaring Apples product design goals. This is a great shift from the nature of the companys ads. The consumers translated the advert as Apple bragging. This ad earned the lowest score of 26 Apple TV ads. This is according to Ace Metrix, a consulting firm which investigates the effectiveness of TV ads through conducting surveys (Wlliams, 2015). Why this TV advert was poor In communication, one has to be careful about the tone so as not to come out as condescending (Vertino, 2014). The fact that there is a voice highlighting how great the company is making one question whether the advert is meant to show the products features or the companys greatness? The campaign failed because the tone of the message was not right and in harmony with the pictures showing on the screen (Hattersley, 2017). Conclusion In this report, we highlighted the types/forms of communication used by Samsung and Apple. It can be seen that the choice of the communication channel and message structure is crucial and can make the difference between the success and failure of business communication. References Eom, Y. (2016, October 2017). An open Letter to all Galaxy Note7 Customers. Retrieved May 18, 2017, from Samsung: https://www.samsung.com Graham, J. (2017, May 3). Apple iPhone sales slip on next-iPhone hype. Retrieved May 18, 2017, from USA TODAY TECH: https://www.usatodaytech.com Haddon, L. (2016). The Social Dynamics of Information Communication Technologies. The Journal Of Internet Banking and Commerce , 5-12. Hattersley, L. (2017, 20 January). The 17 best Apple ads of all time: Funny, weird and embarassing Apple adverts. Retrieved May 18, 2017, from Mac World: https://www.macworld.co.uk Kiesler, S. (2014). Culture of the Internet. Psychology Press. Leung, Y. Z. (2015). The New Media and the society: A review of the Social Networking Service. New Media Society , 1007-1024. Luca, N. (2015, october 9). Towards a service-dominant approach to social marketing theory. Retrieved 12 November, 2016, from sage pub.com: https://www.sagepub.com Musaraj, A. (2013). Intercultural and Religious Communications in the Balkans. Academicus International Scientific Journal , 25-36. Truong, V. (2015). Social marketing quarterly. Elsevier , 230-248. Vertino, K. (2014). Effective Interpersonal Communication. The Online Journal of Issues in Nursing , 5-10. Wlliams, O. (2015, July 10). Apple has forgotten to sell the iPhone. Retrieved May 18, 2017, from The Next web: https://www.thenextweb.com Wood, J. (2015). Meeting the Challenges of Human Resource Management: A Communication Perspective. Management Revue , 69-72.

Minicase Solutions Essay Example

Minicase Solutions Paper According to the Merriam-Webster Online Dictionary corrupt means (selected meanings relevant to this issue): to change from good to bad in morals, manners, or actions or to degrade with unsound principles and or moral values to become morally debase to cause disintegration or ruin The term corrupt, especially as indicated in second bullet above, could be applied to the actions of Andersen as a firm and might indicate that the firm avgas corrupt. It is important here to know how the definition normally used by the SST Circuit Court included the word dishonest, which does not appear in any of these definitions. 2. The issues are debatable and still center on the motives Of David Duncan when he ordered the shredding of documents and whether Andersen had an obligation to modify its procedures if an investigation was imminent. Remember, once Andersen was served with formal notice of an investigation, no documents were shredded. 3. The opinions of students will vary. Clearly, the contested issues concerning jury instructions were all decided in favor of the prosecution, The fact that by impeding an investigation, even without meaning to do so, was allowed to indicate that an obstruction of justice occurred could have major legal ramifications it used as a precedent. For example, it on your way home from class you inadvertently got in the way of a police officer responding to a crime, under he impede rule, could PU be guilty of obstruction of justice? 4. Again, opinions will vary. We will write a custom essay sample on Minicase Solutions specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Minicase Solutions specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Minicase Solutions specifically for you FOR ONLY $16.38 $13.9/page Hire Writer However, with hindsight and based on the actions taken in the KEMP investigation, the loss of one of the large CPA firms and the loss of jobs appears to be a penalty to too many innocent people. It is probably more appropriate to seek out individuals who engaged or directed illegal activities and take the appropriate actions against those individuals. 5. Students should understand that even if an action is legal it may not be ethical. Clearly, there were some actions taken that are questionable. The reminisces of ethics require auditors to act with integrity and to be mindful of the public trust. There are clearly issues Of integrity and the public trust in both the audit work and the shredding of documents following the disclosure that Enrons financial statements were fraudulent. 6. Opinions will vary. David Duncan directed the actual shredding of documents and probably knew an investigation was imminent. Even if he received direction from Nancy Temple concerning the document retention policy, he had the opportunity to determine the applicability of the policy to the situation and the mummifications outlining the policy in this instance. Remember, many people have gone to jail or suffered even greater consequences utilizing the defense that they were only following orders or, in this case, policy. 7. In litigation the plaintiffs attorneys often name multiple defendants. They do this for two basic reasons. First, if one of the plaintiffs is found harmless (the tort case equivalent of hot guilt, other plaintiffs may be found negligent or to have engaged in fraudulent actions. Therefore, the plaintiffs may still prevail (and collect damages) against those defendants. Second, if one or more defendant becomes insolvent (which may happen during a long trial where legal fees can escalate and cause create cash flow problems), the plaintiffs may collect from other defendants found liable in the lawsuit. This ability to collect in full from those who have the ability to pay is the basis for joint and several liability. Class action lawsuits can be the most damaging to plaintiffs. Several plaintiffs (sometimes thousands of plaintiffs) can file one lawsuit seeking damages that can total into millions Of dollars if proven. In addition, class action lawsuits may often e heard in several jurisdictions. Allowing the plaintiffs attorneys the ability to shop for a court they believe will be sympathetic to their clients. If a class action lawsuit is not allowed, many of the smaller claims may be dropped (the costs of the lawsuit outweighs the potential reward) and even larger suits must bare the legal fees individually. Further, the defense team is not engaging in a Winner take all contest. Each suit, possibly heard in different jurisdictions, will be required to prove its individual case for its plaintiff. OPT CLUB THE HARBINGER go THINGS TO COME? I _ Both Andersen and Elevenths Warmouth placed increasing profits as a greater priority than quality work or the public interest. While all firms engaged in providing services try to satisfy their client needs, firms must evaluate the overall situation and must consider their reputation for quality and doing the right thing. The desire to do whatever it takes to retain the client cost both firms greatly. 2. Students can debate this at great length. Clearly people tend to look at past events in shaping their decisions. We may have never been in a serious car accident, but knowing individuals that have had such experiences often hanged our driving habits. On the other hand, criminal psychics tells us that individuals that engage in criminal or unethical behavior rarely think about getting caught. This is especially true for top executives at firms and corporations that have often risen to their high position by taking significant risks in their career. They have reached the top level to the organization because these risks have generally proven rewarding. These past events often lead individuals to exhibit significant hubris in their decisions and actions. 3. Again, this is a question that can provide significant debate. There is no CPA or other authoritative pronouncements that has stated any restrictions on the use of an audit report on the financial statements as long as the accompanying information is not misleading. Clearly, the client paid for the product and, as such, has the right to its use. Indeed, using it to allay financial fears of investors and customers is clearly a societal demand for the existence Of an audit function. On the other hand, auditors do not write their audit reports such that it is suitable a general marketing tool. Audit reports are written for individuals hat understand the nature of auditing and financial reporting. A CPA firm may be able to restrict the use of its audit report through its engagement letter. However, the use of the audit report for unintended purposes may best be prevented through auditor/client communication and a continued professional relationship. The client should be encouraged to discuss uses Of its financial statements and accompanying information (including the auditors report). Misuse of the audit report over the firms objections should be a factor debated during the retention discussion for next years audit. . Normally a sales cutoff is performed only to determine that sales were recorded in the appropriate period. Therefore, it would not be within the normal audit procedures for Dolomite auditors to evaluate subsequent sales for other purposes. However, it can be argued that professional skepticism should require the auditor to evaluate sales (even subsequent sales) in evaluation of the limits placed on these sales, This should illustrate that doing what was done in prior audits or following audit programs blindly may not be sufficient to uncover existing problems. Conversely, Elevenths Homage audited sales and had no knowledge of the sales limits. This illustrates a lack of complete understanding of the clients business and sales process. S. Generally audit firms accept high-risk clients when revenue is deemed to exceed the risk. This often occurs when firms place an inordinate emphasis on maintaining or increasing revenue. 6. Many analytical procedures may be used especially those that looked at solvency. However, a vertical common size financial statement may be the best analytical procedure. The use Of expenses as a percentage Of sales, specifically n executive compensation and non-operating expenses, may have indicated to the auditors that insufficient earnings were flowing back into the organization. Clearly, audit procedures designed to look at executive compensation should have detected the underlying problems (the most likely did detect the problems; however, the red-flags were ignored). Confirmations with suppliers may have indicated missing documentation for construction. 7. Staff auditors are often reluctant to rock the boat. Often a staff auditor (with limited experience) is at a client that has been audited for many years either y his firm or another firm and processes have not be previously questioned. Members of the clients accounting and management teams are viewed as experts in their industry, business, and/or practice (e. . A payroll clerk who has been processing payroll for the client for 10 years), In addition, in-charge auditors, managers, and partners may have been past auditors of these practices and a question of the practice may be viewed as a question of the prior audits of the process. In addition, staff auditors often do not want to be the source of conflict between the client and the firm and view the questioning of the clients recesses and procedures as a potential conflict. 8. Ethics standards state that auditors should not accept engagements where they do not have (and cannot get) sufficient competence. OPT avgas clearly a unique business. Auditors accepting this engagement should have knowledge of not-for-profit accounting including issues regarding the raising of funds and the proper expenditure Of funds. L Auditors could spend additional time in the P TTL business following and understanding processes. Auditors may hire a consultant (specialist) to work With the firm to better understand the unique aspects Of the equines. Auditors may hire additional staff with experience in auditing other not-for-profit religious organizations that had some similar elements. 9. While in an audit off for-profit client tax issues may be viewed as a separate engagement. Only the issues of tax expense, tax payable and deferred taxes as they appear on the financial statements may be an audit issue. A not-for-profit organizations very existence may depend on maintaining its not-for-profit status. Therefore, significant violations that threaten this status may be viewed similarly to a going concern issue. As in evaluating going concern issues, auditors need to be aware of any items identified during the audit that threaten the not-for-profit status Of the organization (for an example see footnote l). 0, Clearly the preparation of checks violated the code of ethics as the auditors were knowingly acting as an employee of the organization and engaging in questionable client activities. Not signing the checks was a futile attempt by the auditors to meet the letter of the ethics standards. Students must understand that ethics transcends the few principles and rules set forth by the CPA and often trying to meet a standard (by not signing the check) cannot cleanse clearly unethical behavior. Undoubtedly, this issue would violate the principle Of the public trust as avgas a mechanism to donated funds sent to the organization by individuals to foster the work Of the OPT Club. Not-for-profit organizations are required to have mission statement. All money expended by the organization must be spent in fostering that mission. In auditing a not-for-profit organization it is imperative that auditors evaluate expenditures for proper use as well as all CPA assertions. Improper expenditure of money may result in the organization losing its not-for-profit status. RUNNING ON EMPTY I _ Examining the financial information in Exhibit I, it appears that Gas financial distress began in 2005_ It was during this year that GM suffered its first negative operating loss and first net loss. Similarly, Exhibit 2 reveals that Gems stock price significantly declined during 2005. 2. Professional standards identify the following factors indicative Of going- concern uncertainties: Negative trends (such as recurring operating losses, working capital deficiencies, active cash flow from operating activities, or adverse changes in key financial ratios). Other indications of financial difficulties (default on loan or similar agreements, reassess in dividends, denial of usual trade credit from suppliers, restructuring of debt, noncompliance with statutory capital requirements, the need to seek new sources or methods of financing, or the need to dispose of substantial assets). Internal matters (work stoppages or other labor difficulties, substantial dependence on the success to a particular project, uneconomic long-term commitments, or the need to significantly revise operations). External matters (legal proceedings; legislation; loss of a key franchise, license, or patent; loss of a principal customer or supplier; or, uninsured or undesired catastrophes 3. This is a question that requires judgment on the part Of the student. Clearly, while the losses in 2005 are of concern given Gems consistent profitability to that point, 2005 may have been viewed as an abnormal year and the loss judged to be a one-time occurrence. While GM also experienced a net loss in 2006, the amount Of this loss was louver than that in 2005 (likely because Of the spin-off Of GAMMA). In OTOH years, GM showed negative cash flow from operations, raising further questions as to Gems ability to continue as a going-concern. In 2007, Gems net loss reached almost $39 billion; however, cash flow from operations was a positive SO,7 billion in that year. Based on ALAS 341, the third consecutive year of recurring operating losses (see (2) above) might be interpreted as some to have been indicative of going-concern uncertainties. However, it is also reasonable to conclude that the positive cash flow from operations in 2007 might mitigate Dolomite Touches concerns to some extent. The following general economic factors in 2008 may have contributed to Dolomite Touches decision to issue an opinion modified for going-concern uncertainties: High oil prices, which resulted in high gasoline prices that reduced consumer demand for trucks and sports utility vehicles. The international credit crisis, which resulted in increased difficulty for Gems customers in obtaining credit, reducing demand for all vehicles. The general worsening of the U. S. Economy (including extensive layoffs and increases in unemployment), Which reduced consumer demand for all vehicles. 5. While it is far too early to comment on Gems potential success, these events following the GM bankruptcy may alleviate some Of the concerns Of Dolomite Touchà ©: Increased access to consumer credit and a more positive U. S. Economy, which may increase demand for vehicles. The terms of the restructuring plan, which provided the following potential benefits to GM: (a) additional capital; (b) organization of the less viable GM brands under Motors Liquidation Company; and, (c) reduced levels of debt, employees, dealers, and manufacturing plants (Exhibit 3). The Cash for Clunkers program that temporarily increased consumer demand or vehicles. The primary issue raised by a going-concern opinion is the continued existence of the entity receiving that opinion. Many speculated that such an opinion would make customers wary of purchasing automobiles from GM. Because of the inability to obtain parts or warranty service on the automobile if GM were to fail. With respect to investments in GM. The potential failure of an organization would make investors similarly wary. There is no correct response as to Whether a going-concern opinion is a self- fulfilling prophecy. The threat of continued existence is one that will never be solved with certainty.