High Stakes Testing In The Modern World Education Essay

I think that in today ‘s modern universe, everyone is determined to hammer some type of achievement, whether it is academic or vocational. In some instances high bets proving are used to find most of these accomplishments. High bets trial are hence used to verify a broad scope of critical results which allow pupils to come on to the following degree. High bets proving can be traced back to the 1965 mandate of the Elementary and Secondary Education Act ( ESEA ) . This was to better doing of import determinations about pupils, instructors, and decision makers in the simple and secondary schools and besides for measuring the schools and school systems. Clarke, Shore, Rhoades, Abrams, Miao, and Li ( 2003 ) found in their National Board survey that answerability systems with high bets test helped instructors aim countries for future direction, and transformed the accent on authorship and critical thought accomplishments. I ‘m of the steadfast sentiment that high bets test allows pupils to analyze and measure a given job or state of affairs by get the hanging the cardinal content cognition and achieving the accomplishments necessary for future success in instruction and work force. Besides instructors provide feedback so that accommodations and even restructuring could be applied. With high bets proving some instructors have adopted a more student-centred attacks Jones, Jones & A ; Hargrove, ( 2003 ) , and aligned their course of study to the province criterions, which in bend increased teacher coaction Marshall ( 2003 ) . Students have to be given the chance to construct on their old cognition and explicate their ain thoughts as to do sense of what is being taught. The civilization of the instruction has to be in coherency with the province or state to let pupils to bring forth at an optimal degree. Students must be able to associate and place within their linguistic communication, beliefs and norms. High bets proving besides highlights the accomplishments gaps between rich and hapless territories, rural and urban countries and among cultural and cultural groups. Uncovering these informations can let pedagogues to turn to the prevalent jobs, particularly if wagess and countenances to schools, instructors and pupils are specified. Administrators and instructors can nail possible jobs and readdress the course of study and instructional activities accordingly. Conversely, the high bets trials constrained many instructors ‘ ability to learn creatively Gordon & A ; Reese, ( 1997 ) ; Jones, Jones & A ; Hargrove, ( 2003 ) and undermined their sense of professionalism and liberty. Some of these high interest trials have defined course of study and fashioned direction. Teachers now have moved to where everything has got to be aligned and tightly structured. A sense of autonomy is no longer executable due to the authorizations and force per unit areas to execute. Teachers are hence learning the course of study and implementing a strategic method of memorisation – a pupil ‘s ability to shop and reproduce names, day of the months and facts for the benefit of go throughing a certain degree of their academic accomplishment. In add-on to the above, high bets test have the inclination to over trial and under-examine pupils abilities and accomplishments. This places an tremendous sum of force per unit area on the instructors and pupils likewise to follow a narrow course of study and concentrate on memorising facts alternatively of developing more advanced abilities. High bets proving has maintained a narrow appraisal of pupil capablenesss and so pupils do what they must in order to go through the test and nil more. Education becomes a inactive experience and this transcends the schoolroom to the work environment. Finally by far the most compelling indictment of these high-stakes scrutinies is that they test what pupils know instead than what they can make and as such motive is an authoritarian factor. Education should be an active experience where pupils are invariably engaged and where a love for acquisition is developed, instead than a hatred for concluding tests. Ash and Persall ( 2000 ) stated that motive can drastically impede school betterment and make an discerning and dead environment in which instructors are isolated, without chances to collaboratively work out jobs, portion cognition, or larn together. In reasoning the intent of high interest trials is to better pupil accomplishment. While pupils with larning disablements have a batch to derive from increased focal point on pupil accomplishments it is besides evident that high bets trial does hold major deductions. Crucially, with respects to high bets proving more direct and concrete information is needed to demo that pupils are using factual information and reassigning their cognition, accomplishments and thoughts into a merchandise, a public-service corporation or a public presentation. However, high bets trial are geared towards bettering pupils and heighten the answerability that the contrivers are urgently seeking and supply the equity and regard that each and every kid is entitled to in the school system. Then it might be merely possible that every kid would acquire a opportunity to reflect.BACKGROUND TO HIGH STAKES TESTING IN TRINIDAD AND TOBAGOIn Trinidad and Tobago High Stakes Testing are done throughout our primary schoo ls, secondary schools and third establishments as these establishments have maintained a stiff arrested development on scrutinies. Standardized trials are good in that they are utile for comparing pupils countrywide since they are all required to analyze the same course of study for the same test. The Secondary Examination appraisal is no different as it awards a kid for farther accomplishment in the academic field. Secondary Entrance Assessment ( SEA ) Examination is a high interest trial that is used in Trinidad and Tobago to ease the arrangement of pupils in Secondary Schools.A The SEA comprises of three documents Creative Writing, Mathematics, and Language Arts with an allotted clip frame for each topic and covers the national course of study for Primary-level instruction with a focal point on Standards three to five. The Common Entrance was replaced with this debut of the SEA scrutiny high-stakes trial to be used as one of the tools to drive the instruction system in the right way. Planners would no uncertainty argue that there is good virtue for the application of this high interest appraisal. Besides the SEA exams uses standard tonss to use the discrepancy in each paper and hence allows the pupil ‘s to keep a criterion when they are combined, therefore guaranting equity in the arrangement procedure. Placement in secondary schools continues to be on the footing of virtue, pick of schools and gender. Merely when pupil ‘s picks of schools have been exhausted, will try be made to put pupils in schools closest to their places. In such a high interest trial as the SEA exams the paper contains open-ended points for which pupils are required to build their responses, instead than choose them from a figure of other options. Open-ended points can arouse different right responses from pupils, but the accent is on uncovering pupils ‘ thought. This high interest trial gives room for originative and critical thought leting pupils to develop their accomplishments. Students are required to demo their cognition of the mechanics of linguistic communication and expose their academic competences. While their exists certain wagess to the SEA high bets test the sum of accent placed on larning through past documents, â€Å" brochures † and sample trials speaks to the unfortunate importance of the understanding the trial format over the importance of understanding the existent stuff. Furthermore, what makes a â€Å" good school † good is how good its pupils perform at the terminal of these trials. This places an tremendous sum of force per unit area on the instructors to follow a narrow course of study and concentrate on memorising facts alternatively of developing more advanced abilities. For case where a instructor would wish to give her pupils a hebdomad to plan an experiment to prove the consequence of planetary heating, the clip factor before the S.E.A. exam merely does non allow her to make so. Alternatively of advancing fresh groundbreaking thoughts, instructors are forced to restrict themselves and pupils to walking the beaten way. Another downside is that the instruction system is organized in such a manner that if you have jobs memorising and regurgitating, you are branded as a individual who is â€Å" non bright † and your way is set from every bit early as the S.E.A. scrutinies. Those doors are non unfastened to you who have jobs declaiming information, because even if you somehow do it go through the first phase of S.E.A. , you end up in the same state of affairs at higher degrees in a system that has the same learn-by-heart demands of its pupils. This civilization of high interest trials in instruction has limited the capacity of our citizens to bring forth at an optimal degree in our society because it has limited creativeness of the instructor, of the pupil and of the ensuing work force. Standardized testing besides limits creativeness of the instructors. Our state ‘s overexploitation of tests to measure pupil public presentation is holding serious negative effects on instruction and acquisition. The trials have defined course of study. The standardised testing of SEA exams merely assesses pupil ‘s ability to shop and reproduce names, day of the months and facts. What is of import is that pupils memorize the expression and non that they understand it. This leads to a entire deficiency of capacity for groking cardinal constructs and believing in abstract footings. In add-on, how the topic is tested has become how the topic is taught and what is non tested is non taught. Students should non be asked to reproduce a twelvemonth ‘s work in a 70 proceedingss exam because this does non develop their critical thought accomplishments and analytical techniques. By heightening creativeness in the schoolroom, it will cultivate originality in believing which will enable citizens to see things otherwise and use new schemes and attacks to work outing jobs. Education should be an active experience where pupils are invariably engaged and where a love for acquisition is developed, instead than a hatred for concluding tests. Fortunately for us, Ras Shorty I did non hold to go through a music test in order to contrive soca and it is a good thing that Brian Lara did non larn to play cricket through a cricket enchiridion with batting expression. It is non the sweeping reproduction of novel-writing but the originative usage of written linguistic communication that makes VS Naipaul an acclaimed author. In decision high bets test such as the SEA scrutiny has its benefits and its negative impact. It is utile in puting criterions across the schools, territories and state. Besides it would be polar in constructing answerability into the system. Hence provide feedback so that accommodations and even restructuring could be applied to the system. However, peculiar attending to the course of study and instructional techniques, alteration of proving methods, more teacher encouragement and good observation are some of the other factors that will besides promote pupils to accomplish higher classs.Campaigners InterviewedData Collection InstrumentDate and Time of Interview1. Teacher 2. Parent 3. Student: One Two Three Interviews – Interviews were conducted with a instructor, parent and students, with respects to high bets proving. 2rd June 2010 @ 2:00 autopsy 4th June 2010 @ 3:30 autopsy 7th June 2010 @ 2:00 autopsy 9th June 2010 @ 2:00 autopsy 11th June 2010 @ 2:00 autopsyTeacher:After carry oning an interview with a SEA test instructor, Mr. Mehindra stated that most pupils sitting the S.E.A Examination are under intense anxiousness as the course of study had many countries to specify. He stated that the SEA scrutiny course of study is rather regime and demands a batch from the pupils composing the test. A major job he stated was the clip restraint that inhibits pupils from being originative as there is small or no clip to experiment with information. Formulae, regulations and grammatical constructions are learnt and merely applied to inquiries. While he found a high interest trial such as the S.E.A. scrutiny to be relevant and necessary as it standardizes proving of pupils who portion similar learnt cognition and ability as to what they have studied throughout their primary instruction. He stated that as a S.E.A. exam instructor such a high interest trial is indispensable because it allows for pupils to be motivated and encourages an environment for competitory acquisition. He besides mentioned that the accomplishment of transportation is at the bosom of larning and should non be left to speculate. It must be officially encouraged and become profoundly engraved and structured into the course of study in schools. In contrast he besides claimed that the existent winners are ever those who think outside of the box and who have put their cognition and endowments to creative usage in the humanistic disciplines, concern, scientific disciplines, humanistic disciplines, athleticss and across subjects and have good balanced and holi stic development.Parent:Most parents want what ‘s best for their kids. They want their kids to go critical minds with the accomplishments necessary for higher instruction and great success in life. As a parent of a kid who sat the SEA test late she was much relieved that it was done and over with. She stated that utilizing high bets test to do determinations with of import effects for single pupils can be intimidating. Her concerns were if the trials are being used right and reasonably. She besides stated that it was much work for her as it was for her kid because she spent same sum of hours awake and was emotionally stressed out by the volume of worked needed to be covered by her kid. Besides the memorisation of all the assorted expression and grammatical regulations were rather overpowering. She found that the SEA test high bets test promoted a narrow focal point on acquiring the right reply and contract the course of study to whatever information is expected on the trial. Thinking outside of the box is discouraged. Capable countries such as art, music, wellness and scientific discipline got fringy attention.A Conversely she besides expressed rather an interesting point by acknowledging that high bets test facilitates higher acquisition accomplishments. She besides appreciated the fact that the SEA test high interest trial in peculiar besides encourages an environment for competitory acquisition.Student # 1As a SEA exam pupil it proved to be rather ambitious and boring Cavita stated with a diffident smiling. She has late completed the SEA scrutiny and shared some of her late fond memories. The effects of the high interest SEA test did so take a toll on her. Her full agenda had changed as she had increased her perusal hours because the work got really demanding, which in bend reduced her extracurricular activities by about half. She besides stressed of the scope of inauspicious emotional reactions, of which she frequently felt down, disquieted, or embarrassed. Besides at times she felt stupid and less proud of herself. While there was the motivative factor of competitory acquisition she besides stated that it was so a immense challenge. Cavita besides mentioned that her parents were rather supportive and did so attend to her every demand. Her female parent would frequently remain up while she studied and if she was hungry made a speedy bite for her to crunch on. She did nevertheless hold that standardising a high bets test such as the SEA tests do hold its benefits, as it allowed a similar scene of criterions across the schools, territories and state. Furthermore she stated that it gave a sense of what to anticipate at secondary and third degree scrutinies.Student # 2Ravi is a originative kid who is non really fond of tests. When questioned about the SEA test he was a spot hesitating about the subject because he found the test to be an highly hard undertaking. He argued that it was excessively much work to larn in excessively small clip. He stated that at times the focal point on memorisation of ex pression and grammatical regulations were rather overpowering. Besides he stated that instructors teach the course of study and merely what is in the course of study and as such originative humanistic disciplines and scientific discipline undertakings are sidelined in order to complete the demanding course of study. Next, he mentioned how boring it used to be as instructors focus on so many trial documents and past documents that at clip he felt suffocated. His extracurricular activities were denied as he had excessively much work to concentrate on. However he besides stated that he was a spot slower than others and frequently felt down and defeated, therefore, the demand to seek harder. On the positive side he was appreciative to the fact that in such a high interest trial as the SEA exam he can look frontward to capture into a secondary school, which in bend was his motivative factor.Student # 3Small speculative heads ever think critically, as such is this student who late wrote the high bets SEA test. She found the SEA scrutiny to be a ambitious vas to greater accomplishment. She stated that it a mechanism that is used to actuate pupils and instructors likewise. Student should desire to execute good to experience a sense of achievement as go throughing this test allows you to graduate and travel on to a secondary instruction. Teachers should besides experience accomplished when their clip and attempt is appreciated, non merely by their pupils but parents every bit good. She besides pointed out that standardising trial such as the SEA scrutiny will let pupils a just opportunity of equality as the same trial is given to each kid. She besides did non bury to advert that a high interest trial as the SEA test will besides help in puting criterions across the schools and state. On the downside nevertheless, she stated that a batch of analyzing had to be done and as such her extracurricular activities were minimum. Besides being originative was non an option as memorisation of assorted expressions and grammatical regulations was a cardinal factor in go throughing the SEA test.THEMES DERIVED FROM ALL INTERVIEWS TAKENHarmonizing to the World Wide Web, a subject â€Å" is a consolidative thought that is a perennial component in literary or artistic work, † in a sentence, paragraph or try. Many subjects can be derived from the interviews taken every bit many responses were likewise based. While it s true that each individual has given their valuable and honest parts towards this assignment, it can be noted that many of us are of the same position when it comes to standardised testing, and to a big extent Secondary Entrance Assessment Examinations, and that it that it is clip devouring with its overladen course of study, it encourages competitory acquisiti on, disputing, motivationally structured and it diminishes any excess clip towards extra-curricular or other capable affairs. As a instructor in the primary school, I am to the full cognizant that the clip tabular array is shifted doubtless when a kid escalates to the standard 5 category. Besides, small or no clip is given to extra-curricular activities every bit good as Creative Humanistic disciplines, Music, Science and Social Studies. It was besides highlighted that there are excessively many expressions, regulations and grammatical constructions which are to be mastered in order to keep and put high at its terminal. Decision In kernel, high-stakes testing has its benefits and its disadvantages. High bets trial is aimed at making better accomplishing pupils. A High-stakes testing is designed to keep single studentsA accountable for their ain trial public presentation, unlike â€Å" system answerability, † which is aimed at the suppliers of instruction, such as, school territories, and schools. However, this can non be achieved if the system is smothering the creativeness of the people. Memorizing a text edition is no replacing for advanced thought. The creativeness for advancement that should hold been cultivated in the schoolroom is missing. Therefore neglecting to go through for a esteemed school at the S.E.A. scrutiny does non specify a individual it merely puts you at a different degree. Rather the inquiry is how best to utilize high-stakes testing. Furthermore, sufficient resources must be provided for professional development of instructors in the usage of trials and redress of pupils who ab initio fails. Policymakers must non lose sight that the ultimate end of a comprehensive answerability system is non to honor or penalize, but to better the bringing of course of study and increase pupil larning. Some balance could be brought to bear on the overdose of these pen-and-paper trials if schools become committed to a annual expounding of kids ‘s work highlighting, among others, their accomplishments in athleticss, the ocular and executing humanistic disciplines, and the school ‘s outreach community programme, to be viewed publically by school functionaries, nucleus stakeholders and other service suppliers. It provides indirect grounds that pupils are showing understanding of their cognition in context. Therefore it is of my sentiment that a high interest trial does non specify an person but help a pupil into going a more successful and accomplishing individual. In Trinidad and Tobago we must recognize that the consequence of the instruction system which revolves about high bets scrutinies is non ever the most achieving method but a mechanism used to assist ease higher accomplishment.

Laboratory Method

Laboratory method Lesson 42: Different Methods of Plant Propagation Reference: Effective Technology and Home Economics II By: Luz Villanueva Rojo Julia Garcia Cruz Dr. Cristina Villanueva I. Preparatory method Motivation Let the students guess the picture. Jot down their guesses on the board. Reveal the picture. 1. Have you tried planting a seed? 2. Have you tried propagating a plant using different kind of method? Orientation to the Work/Activity Read this  Respiratory ActivityMarcotting is another way of plant propagation where in the stems are included to take roots while still attached to the mother plant. Presentation of the Materials 1. Young plant 2. Knife 3. Moistened soil 4. Plastic 5. Coconut husk 6. String 7. Pot Procedure 1. Remove a ring of the bark below the node 3-5 cm long. 2. Scrape the cambium layer but not too deep into the wood to prevent healing before root formation takes place. 3. After the callus formation has taken place, wrap the surface with moist soil and coconut husk. . Cover securely with plastic and tie both ends using string, water the marcot regularly to prevent the drying and hardening of the soil. 5. When enough roots grow cut off the marcot just below the ball of soil that holds the root. 6. After cutting the marcot place into a pot big enough to provide sufficient room for the roots. 7. Place in a cool and shady place. 8. Precautionary Measures 1. Be careful in using the knife. 2. Make su re that your hands are covered with plastic when touching the soil. . Wash hands after the activity. II. Supervise Work Period or Laboratory Visit each group and observe if proper handling of tools is applied and steps are being followed correctly. III. Culminating Activities †¢Each group will have their representative to report the result of their experiment. †¢How is marcotting different from seed propagation? †¢What have you conclude after the experiment? †¢Do the process at home and produce a new plant.

Chapter 19 Solutions

Chapter 19 Completing the Audit / Postaudit Responsibilities |Learning Check | 19-1. The three categories of activities in completing the audit are (a) completing field work, (b) evaluating the findings, and (c) communicating with the client. 19-2. The activities involved in completing the field work are (a) making subsequent events review, (b) reading minutes of meetings, (c) obtaining evidence concerning litigation, claims, and assessments, (d) obtaining client representation letter, and (e) performing analytical procedures. 19-3. a.Subsequent events are events that occur between the balance sheet date and the issuance date of the auditor's report (which is not the same as the date of the report) that may affect the financial statements on which the report is rendered. The subsequent events period extends from the balance sheet date to the end of field work on the engagement. b. The types are: †¢ Type 1 consists of those events that provide additional evidence with respect to conditions that existed at the date of the balance sheet and affect the estimates inherent in the process of preparing financial statements. Type 2 consists of those events that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. †¢ Type 1 events require adjustment of the financial statements. Type 2 events require disclosure, and in very material cases, by attaching pro-form data to the financial statements. c. The auditor is required by GAAS to search for and to evaluate subsequent events up to the date of the auditor's report, which should be as of the end of field work.This responsibility is discharged by (1) being alert for subsequent events in performing year-end substantive tests after the balance sheet date, and (2) performing specific procedures at or near the completion of field work. 19-4. a. Regarding litigation, claims, and assessments (LCA), the auditor should obtain evidential matter o n †¢ The existence of a condition, situation, or set of circumstances indicating an uncertainty as to the possible loss to an entity arising from the LCA. The period in which the underlying cause for legal action occurred. †¢ The degree of probability of an unfavorable outcome. †¢ The amount or range of potential loss. b. A letter of audit inquiry is a letter sent by management to the company's outside legal counsel requesting the lawyer to send specified information directly to the auditor about LCA against the company. The letter is the auditor's primary means of obtaining evidence about LCA. c. When the lawyer fails to respond, the auditor has a scope limitation.Depending on materiality, the auditor will express either a qualified opinion or a disclaimer of opinion. 19-5. a. The objectives of a â€Å"rep† letter are: (1) confirm oral representations given to the auditor, (2) document the continuing appropriateness of such representations, and (3) reduce the possibility of misunderstandings concerning management's representations. b. When the auditor is unable to obtain a rep letter or support a management representation that is material to the financial statements by other audit procedures, there is a scope limitation.Depending on materiality, the auditor will express either a qualified opinion or a disclaimer of opinion 19-6. a. The objectives of an overall review are to assist the auditor in (1) assessing conclusions reached in the audit and (2) evaluating the financial statement presentation taken as a whole. b. The review should be made by an individual having comprehensive knowledge of the client's business and industry. Normally, either the partner in charge of the audit or the top manager on the engagement makes the review. c.Analytical procedures performed during the final stages of the audit should be †¢ Applied to critical audit areas identified during the audit. †¢ Based on financial statement data after all audit adjustments and reclassifications have been recognized. As in other cases, the data may be compared to (1) expected company results, (2) available industry data, and (3) relevant nonfinancial data. 19-7. a. The two objectives in evaluating the findings are determining (1) the type of opinion to be expressed and (2) whether GAAS has been met in the audit. . Four steps in meeting these objectives are: †¢ Making a final assessment of materiality and audit risk. †¢ Making a technical review of financial statements. †¢ Formulating an opinion and drafting the audit report. †¢ Making final review(s) of the working papers. 19-8. a. The purposes of the auditor's final assessment of materiality and audit risk are to determine whether (1) the auditor's preliminary judgments concerning materiality have been met and (2) audit risk is at an acceptable level to warrant the expression of an opinion. . Known misstatement is an uncorrected misstatement in an account identified thr ough substantive tests of details of transactions and balances. Likely misstatement is the total error in an account resulting from (1) known misstatements, (2) projected uncorrected misstatements estimated through audit sampling techniques, and (3) estimated misstatements detected through analytical procedures and quantified by other auditing rocedures. Aggregate likely misstatement is the sum of likely misstatements in all accounts. 19-9. a. Professional standards establish a responsibility for the auditor to evaluate whether there is substantial doubt about the client’s ability to continue as a going concern for a reasonable period of time, not to exceed one year beyond the date of the financial statements being audited (generally one year from balance sheet date).Ordinarily, information that would raise substantial doubt about the going concern assumption relates to the entity's inability to continue to meet its obligations as they become due without substantial dispositi on of assets outside the ordinary course of business, restructuring of debt, externally forced revisions of its operations, or similar actions. b. The auditor normally evaluates whether there is substantial doubt about the client’s ability to continue as a going concern based on the results of normal audit procedures performed in planning, in gathering evidence to support various audit objectives, and in completing the audit. . If the auditor concludes that substantial doubt exists, he or she should consider the need for the following disclosures: †¢ Pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. †¢ The possible effects of such conditions and events. †¢ Management's evaluation of the significance of those conditions and events and any mitigating factors. †¢ Possible discontinuance of operations. †¢ Management's plans (includin g relevant prospective financial information). n  3 †¢ Information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. d. If, after considering identified conditions and management's plans, the auditor concludes that substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time remains, the audit report is normally an unqualified audit opinion with an explanatory paragraph about the uncertainty (following the opinion paragraph) to reflect that conclusion.The auditor's conclusion about the entity's ability to continue as a going concern should be expressed through the use of the phrase â€Å"substantial doubt about its (the entity's) ability to continue as a going concern. † If the auditor concludes that the entity's disclosures with respect to the entity's ability to continue as a going concern are inadequate, a departure from generally accepted accounting pr inciples exists. This may result in either a qualified (except for) or an adverse opinion. 19-10.The technical review of the financial statements includes matters pertaining to the form and content of each of the basic statements as well as to required disclosures. Most CPA firms use separate checklists for SEC and non-SEC clients. The auditor who performs the initial review of the financial statements completes the checklists. The manager and partner in charge of the engagement (in the case of a publicly held client then review the checklists, a partner who was not a member of the audit team) reviews them again. 19-11. a. The opinion to be expressed is determined by the partner in charge of the engagement.The decision is made on the basis of the findings made by the audit team during the audit. b. Proposed adjustments and disclosures are discussed with the client and differences are resolved. Ordinarily, agreement is reached and an unqualified opinion can be expressed. 19-12. a. Th e primary reviewers and the nature of their reviews are: |Reviewer |Nature of Review | |Manager |Reviews working papers prepared by seniors and reviews some or all of the working | | |papers reviewed by seniors. |Partner in charge |Reviews working papers prepared by managers and reviews other working papers on a | |of engagement |selective basis. | b. The engagement partner's review of the working papers is designed to obtain assurance that †¢ The work done by subordinates has been accurate and thorough. †¢ The judgments exercised by subordinates were reasonable and appropriate in the circumstances. †¢ The audit engagement has been completed in accordance with the conditions and terms specified in the engagement letter. All significant accounting, auditing, and reporting questions raised during the audit have been properly resolved. †¢ The working papers support the auditor's opinion. †¢ Generally accepted auditing standards and the firm's quality control p olicies and procedures have been met. c. The second partner may be more objective than the partner on the engagement. Thus, the second partner review provides additional assurance that GAAS have been met. Second partner reviews are mandatory for SEC registrants. 19-13.The auditor's communications with the client at the conclusion of the audit involve the audit committee of the board of directors (or the board directly) and management. 19-14. a. Reportable conditions represent significant deficiencies in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. The magnitude of a reportable condition determines whether it is also a material weakness.A material weakness is defined as a reportable condition in which the design or operation of the specific internal control structure elements does not r educe to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned duties. b. A report issued on reportable conditions should: †¢ Indicate that the purpose of the audit is to report on the financial statements and not to provide assurance on the internal control structure. Include the definition of reportable conditions. †¢ Include the restriction on distribution (e. g. restricted to the audit committee, management, and others within the organization). In addition, the reportable conditions should be described in one or more separate paragraphs. 19-15. When the auditor separately identifies and describes material weaknesses in his or her report, two additional paragraphs are required. The first paragraph should contain a definition of the term material weakness and a description of the reportable conditions that are material weaknesses.The second additional paragraph should describe the limitations of the auditor's work, noting specifically that the auditor's consideration of the internal control structure would not necessarily disclose all matters considered to be material weaknesses. 19-16. a. The communication may be oral or written, and it may occur during or shortly after the audit. b. The communication with the audit committee may include such matters as †¢ Auditor's responsibilities under GAAS. †¢ Significant accounting policies. †¢ Management judgments and accounting estimates. †¢ Significant audit adjustments. Disagreements with management. †¢ Consultation with other accountants. †¢ Major issues discussed with management prior to retention. †¢ Difficulties in performing the audit. In addition, the auditor must communicate reportable conditions. 19-17. a. The purpose of a management letter is to provide management with recommendations for improving the efficiency and effectiveness of its operations. b. A management letter may include comments on †¢ Internal control matters that are not considered to be reportable conditions. †¢ Management of resources such as cash, inventories, and investments. Other value-added recommendations on how to improve organization performance. †¢ Tax related matters. 19-18. a. The auditor has no responsibility to make inquiry or to perform any auditing procedures on subsequent events occurring after field work but before issuance of the report. When a situation comes to the auditor's attention, he or she is required to evaluate the item and consider its effect on the report that is being issued. b. The auditor may use the event date as the date of the auditor's report provided all subsequent events review procedures are performed for the period between the original report date and the event date.Alternatively, the auditor may use dual dating in which the report contains two dates: (1) the original date of the report, and (2) a date that refers to the subsequent event that has occurred between the original date of the report and the date of its issuance. In this case, it is not necessary to extend performance of all subsequent events review procedures through the later date except as to the particular event giving rise to the dual dating. 19-19. a. The auditor has no responsibility for the postaudit discovery of facts existing at the date of the audit report.However, when the auditor becomes aware of such facts and the facts may have affected the report that was issued, he or she must ascertain the reliability of the information. b. When the client refuses to make the necessary disclosures, the auditor should notify each member of the board of directors of such refusal and take the following steps to prevent further reliance on the audit report: †¢ Notify the client that the audit report must no longer be associated with th e financial statements. Notify the regulatory agencies having jurisdiction over the client that the report should no longer be relied on. †¢ Notify (generally via the regulatory agency) each individual known to be relying on the statements that the report should no longer be relied on. 19-20. a. When the auditor has been able to make a satisfactory investigation and has determined that the information is reliable, he or she should describe the effects the subsequently acquired information would have had on the financial statements and the auditor's report. b.When the client has not cooperated and the auditor has been unable to make a satisfactory investigation, without disclosing the specific information, the auditor should (1) indicate the lack of cooperation and (2) state that if the information is true, the audit report should no longer be relied on. 19-21. a. The auditor has no responsibility to make any retrospective review of his or her work. However, when knowledge is ob tained of possible omitted procedures, the auditor should assess their importance to his or her ability to support the previously expressed opinion. b.The auditor may find that he or she (1) can support the opinion or (2) cannot support the opinion. In the latter case, the auditor should perform the omitted procedures and if necessary prevent further reliance on the report. |Objective Questions | |19-22. |1. b |2. a |3. c | | | |19-23. |1. a |2. b |3. b |4. c | | |19-24. |1. a |2. c |3. b | | | |Comprehensive Questions | 19-25. (Estimated time – 20 minutes) . The first type of subsequent events includes those events that provide additional evidence concerning conditions that existed at the balance sheet date and affect the estimates inherent in the process of preparing financial statements. This type of subsequent events requires that the financial statements be adjusted by any changes in estimates resulting from the use of such additional evidence. The second type of subsequ ent events consists of those events that provide evidence concerning conditions that did not exist at the balance sheet date but arose subsequent to that date.These events should not result in adjustment to the financial statements but may be such that disclosure is required to keep the financial statements from being misleading. b. The auditing procedures Green should consider performing to gather evidence concerning subsequent events include the following: †¢ Compare the latest available interim statements with the financial statements being audited. †¢ Ascertain whether the interim statements were prepared on the same basis as the audited financial statements. Inquire whether there was any significant change in the capital stock, long-term debt, or working capital to the date of inquiry. †¢ Inquire about the current status of items in the audited financial statements that were accounted for on the basis of tentative, preliminary, or inconclusive data. †¢ Inqui re about any unusual adjustments made since the balance sheet date. †¢ Read or inquire about the minutes of meetings of stockholders or the board of directors. †¢ Inquire of the client's legal counsel concerning litigation, claims, and assessments. Obtain a management representation letter, dated as of the date of Green's report, as to whether any subsequent events would require adjustment or disclosure. †¢ Make such additional inquiries or perform such additional procedures as Green considers necessary and appropriate. 19-26. (Estimated time – 30 minutes) a. 1. A subsequent events review is used to provide reasonable assurance that the auditor is aware of significant events that have a material effect on financial statements. These are events that have occurred after the date of the financial statements but before the issuance of the audit report. 2.If the subsequent event is one that provides additional evidence concerning conditions existing at the date of t he financial statements, then the financial statements must be adjusted. If the subsequent event is one that provides evidence concerning conditions that arose after the date of the financial statements, disclosure is required. b. 1. The auditor obtains written representations from the client as part of the evidence gathered to meet the third standard of field work. The purpose of these written representations by management is to †¢ Confirm oral representations given to the auditor. Impress on management that it has the primary responsibility for the financial statements. 2. The client representation letter may include statements concerning the following matters: †¢ Completeness and availability of the accounting records and minutes of meetings of shareholders, directors, and committees. †¢ Absence of unrecorded transactions and errors and irregularities in the financial statements. †¢ Existence of related party transactions or contingencies. †¢ Plans or int entions that may affect the carrying value of assets and liabilities. . 1. The purpose of the management letter is to communicate to management the auditor's recommendations regarding improvements in the efficiency and the effectiveness of matters that came to the auditor's attention during the audit. 2. Three major subjects that may be addressed in the management letter include the following. †¢ Internal control structure weaknesses that are considered immaterial. †¢ Improvements to the accounting and information system. †¢ Improvements to the internal controls related to achieving the objectives of the organization. 9-27. (Estimated time – 25 minutes) |Item No. | |Required Disclosure or | | |Audit Procedures |Entry and Reasons | |1. |Goods in-transit would be detected in the course of the |The receipt of the goods provides additional evidence with | | |auditor's review of the year-end cutoff of purchases.The |respect to conditions that existed at the date of the balance | | |auditor would examine receiving reports and purchase invoices|sheet and hence the financial statements should be adjusted to| | |to make certain that the liability to suppliers had been |take into account such additional information. | | |recorded for all goods included in inventory, and that all | | | |goods for which the client was liable at year end were | | | |recorded in inventory. | |2. |Settlements of litigation would be revealed by requesting |Settlements of litigation would require an adjustment of the | | |from the company's legal counsel a description and evaluation|financial statements since the events that gave rise to the | | |of any litigation, impending litigation, claims, and |litigation had taken place prior to the balance sheet date. | |contingent liabilities of which he or she has knowledge that | | | |existed at the date of the balance sheet being reported upon,| | | |together with a description and evaluation of any additional | | | |matters of a like nature which come to his or her attention | | | |up to the date the information is furnished.A review of cash| | | |disbursements for the period between the balance sheet date | | | |and completion of field work may also reveal evidence of the | | | |settlement. | | | | | | | | | | | | | | | | | | | | | | | | | |3. |The purchase would normally be Revealed in general |The purchase of a new business is not an event that provides | | |conversations with the client and would further be detected |evidence with respect to conditions existing at the balance | | |by reading the minutes of meetings of stockholders, |sheet date; hence, it does not require adjustments in the | | |directors, and appropriate committee.In addition, because |financial statements. However, such an event would normally be| | |the amount paid is likely to be unusually large in relation |of such importance that disclosures of it is required to keep | | |to other cash disbursements, a review of cash di sbursements |the financial statements from being misleading. If the | | |for the period between the balance sheet date and completion |acquisition is significant enough, it might be advisable to | | |of field work is likely to reveal such an extraordinary |supplement the historical statements with pro-forma statements| | |transaction.Moreover, because a purchase of a business |indicating the financial results if the two firms had been | | |usually requires a formal purchase agreement, the letter from|consolidated for the year ending December 31, 19XO. Otherwise,| | |the firm's legal counsel would probably have revealed the |disclosure in footnotes to the financial statements would be | | |purchase. |adequate. Occasionally, a situation of this type may have such| | | |a material impact on the entity that the auditor may wish to | | | |include in the audit report an explanatory paragraph directing| | | |the reader's attention to the event and its effect. | |4. Inventory losses attr ibutable to a flood would be brought to |Losses attributable to floods subsequent to the balance sheet | | |the auditor's attention through inquires and discussions with|date to not provide in formation with respect to conditions | | |corporate officers and executives. Moreover, the auditor |that existed at the balance sheet data; hence, adjustment in | | |would know the location of the plants and warehouses of |the financial statements is not required. However, because the| | |clients and upon becoming aware of any major floods in such a|losses are material, they should be revealed in footnotes to | | |location, he or she would investigate to determine if the |the financial statements. Occasionally, situation of this type| | |client's facilities had suffered any damage. may have such a material Impact on the entity that the auditor| | | |may wish to include in the audit report an explanatory | | | |paragraph directing the reader's attention to the event and | | | |its effect. | |5. |The sale of bonds or other securities would require a filing |Sales of bonds or capital stock are transactions of the type | | |with the SEC in which the auditor would presumably be |that do not provide information with espect to conditions | | |involved. In addition, the sale would be revealed by reading |that existed at the balance sheet date; hence, adjustment of | | |the minutes of directors and finance committee's meetings, by|the financial statements is not required. However, such sales | | |corresponding with the client's attorneys and by examining |may be of sufficient importance to require footnote | | |the cash receipts books in the period subsequent to the |disclosure. Occasionally, a situation of this type may have | | |balance sheet date for evidence of unusually large receipts. such a material impact on the entity that the auditor may wish| | | |to in the audit report an explanatory paragraph directing the | | | |reader's attention to the event and its effect. | 19-28. (Estimated time – 15 minutes) The substantive audit procedures that Young should apply when testing for loss contingencies relating to litigation, claims, and assessments include the following: †¢ Read minutes of meetings of stockholders, directors, and committees. †¢ Read contracts, loan agreements, leases, and other documents. †¢ Read correspondence with taxing and other governmental agencies. †¢ Read correspondence with insurance and bonding companies. Read confirmation replies information concerning guarantees. †¢ Discuss with management the entity's policies and procedures for identifying, valuating, and accounting for litigation, claims, and assessments. †¢ Obtain from management or the client's general counsel a description and evaluation of litigation, claims, and assessments. †¢ Obtain written assurance from management that the financial statements include all accruals †¢ and disclosures required by Statement on Financi al Accounting Standards No. 5. †¢ Examine documents in the client's possession concerning litigation, claims, and assessments, including correspondence from lawyers. Obtain an analysis of professional fee expenses and review supporting invoices for indications of contingencies. †¢ Request the client's management to prepare for transmittal a letter of inquiry to those lawyers consulted by the client concerning litigation, claims, and assessments. †¢ Compare the lawyer's response to the items in the letter of inquiry to the description and evaluation of litigation, claims, and assessments obtained from management. †¢ Determine that the financial statements include proper accruals and disclosures of the contingencies. 19-29. (Estimated time – 25 minutes) 1. Disagree. Generally letters silent on particular aspects of the request letter require follow-up.The auditor should contact the attorney and confirm that he or she intended the letter to completely respond to the request letter and was silent because there were no issues to discuss. Documentation of this confirmation should be included in the working papers. 2. Disagree. A useful evaluation is not always possible. For instance, it may include an element difficult to predict or to which the lawyer may not have paid sufficient attention to make an evaluation. If the matter involved constitutes a material or contingent liability, the auditor will likely conclude there is an uncertainty with effects on the financial statements that can't be determined, and he or she should consider the effects of that uncertainty on the audit report. 3. Disagree.The attorney's opinion is an example of a marginally acceptable opinion. If such an opinion is issued on litigation where loss would seriously impair the company's operations, the auditor must give a qualified opinion and possibly consider a disclaimer of opinion. 4. Disagree. In some cases, attorneys, auditors, and clients discuss matters involv ing litigation, and during such informal discussions some attorneys express their opinions as to the outcome of disputed matters. Such oral opinions should be expressed in writing by the attorney, and if they are not reduced to writing, the discussions generally should not be considered audit evidence. 5. Disagree.The law firm derives all or substantially all of its fees from the client. This is, in essence, analogous to in-house counsel. Evidence from in-house counsel may provide the auditor with the necessary corroboration in some cases. However, since the liability here is great, complete reliance on such evidence is not justified. 19-30. (Estimated time – 25 minutes) Other matters that Alderman's representation letter should specifically confirm that: †¢ The financial statements referred to above are fairly presented in conformity with generally accepted accounting principles. †¢ We have made available to you all— †¢ Financial records and related dat a. Minutes of the meetings of stockholders, directors, and committees of directors, or summaries of actions of recent meetings for which minutes have not yet been prepared. †¢ There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements. †¢ There has been no— †¢ Fraud involving management or employees who have significant roles in internal control. †¢ Fraud involving others that could have a material effect on the financial statements. †¢ Management believes that the effects of any uncorrected financial statement misstatements aggregated by the auditor during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The following have been properly recorded or disclosed in the financial statements: †¢ Related-party transactions, including sales, purchases, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties. †¢ Guarantees, whether written or oral, under which the company is contingently liable. †¢ Significant estimates and material concentrations known to management that are required to be disclosed in accordance with the AICPA's Statement of Position 94-6, Disclosure of Certain Significant Risks and Uncertainties. †¢ There are no other liabilities or gain or loss contingencies that are required to be accrued or disclosed by FASB Statement No. 5. †¢ The company has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral. The company has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. †¢ Debt securities that have been classified as held-to-maturity have been so classified due to t he company's intent to hold such securities, to maturity and the company's ability to do so. All other debt securities appropriately have been classified as available-for-sale or trading. †¢ Provision has been made to reduce excess or obsolete inventories to their estimated net realizable value. †¢ Capital stock reserved for options, warrants, conversions, or other requirements have been properly disclosed. 19-31. (Estimated time – 30 minutes) a.The use of overall analytical review at the final stages of an audit has two general advantages to the CPA: (1) a broad view is obtained of the date of the financial statements, and (2) the CPA's attention is focused on exceptions or variations in the data. A broad view of the data under audit is needed by the CPA to draw conclusions about the data as a whole. Merely looking at individual transactions may lead the auditor to overlook important variations in the underlying data. The application of analytical procedures to the final data to obtain this broad view requires a discerning analysis of the data, which results in overall conclusions upon which the CPA's audit satisfaction rests. The CPA is thus able to satisfy him or herself as to the reasonableness, validity, and consistency of the data in view of the surrounding circumstances.The focusing of the CPA's attention on exceptions or variations in the data results in a more efficient and economical audit because there is a reduction in the amount of detailed testing which would be required, in the absence of overall checks, to uncover these exceptions or variations. Furthermore, manipulations of accounts may be revealed because the double-entry bookkeeping system extends the effects of manipulations to additional accounts, which will then bear a changed relationship to other accounts. In addition, managerial problems and trouble spots will be highlighted for the CPA and may lead to the opportunity to be of additional service to the client. b.The ra tios that a CPA may compute during an audit as overall checks on balance sheet accounts and related nominal accounts may include the following: †¢ Accruals of individual expenses to related total expenses. †¢ Calculations of the entity’s operating cycle. †¢ Individual components of return on assets and return on equity. †¢ The impact of an entity’s financing and investing activities. †¢ The ability of cash flow from operations to service debt and dividends. †¢ Other measures of the entity’s liquidity and solvency. c. 1. The possible reasons for a decrease in the rate of inventory turnover include the following: †¢ Decline in sales. Increase in inventory quantities, intentional or unintentional. †¢ Incorrect computation of inventory because of errors in pricing, extensions, or taking of physical inventory. †¢ Inclusion in inventory of slow-moving or obsolete items. †¢ Erroneous cutoff of purchases. †¢ Erroneo us cutoff of sales under the perpetual inventory accounting method. †¢ Unrecorded purchases. †¢ Change in inventory valuation method. 2. The possible reasons for an increase in the number of days' sales in receivable include the following: †¢ Change in credit terms. †¢ Decreasing sales. †¢ Change in the sales mix of products with different sales terms. †¢ Change in mix of customers. †¢ Improper sales cutoff. Unrecorded sales. †¢ Lapping. †¢ Slower collections caused by tighter economic conditions or lowering of the quality of the receivables. 19-32. (Estimated time – 20 minutes) a. Reportable conditions are matters that come to an auditor's attention, which, in the auditor's judgment, should be communicated to the client's audit committee or its equivalent because they represent significant deficiencies in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, p rocess, summarize, and report financial data consistent with the assertions of management in the financial statements.Material weaknesses are reportable conditions in which the design or operation of specific internal control structure elements do not reduce, to a relatively low level, the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. b. An auditor is required to identify reportable conditions that come to the auditor's attention in the normal course of an audit, but is not obligated to search for reportable conditions. The auditor uses judgment as to which matters are reportable conditions. Provided the audit committee has acknowledged its understanding and consideration of such deficiencies and the associated risks, the auditor may decide certain matters do not need to be reported unless, because of changes in management or the audit committee, or because of the passage of time, it is appropriate to do so.Conditions noted by the auditor that are considered reportable should be reported, preferably in writing. If information is communicated orally, the auditor should document the communication. The report should state that the communication is intended solely for the information and use of the audit committee, management, and others within the organization. The auditor may identify and communicate separately those reportable conditions the auditor considers to be material weaknesses, but may not state that no reportable conditions were noted during the audit. Reportable conditions may be communicated during the course of the audit rather than after the audit is concluded. depending on the relative significance of the matters noted and -the urgency of corrective follow-up action. 19-33. (Estimated time – 30 minutes) |a. |Deficiency |Proper Wording | |1 . |In completing our audit |In planning and performing our audit | |2. |Its internal control environment |Its internal control structure | |3. |Not to express an opinion |Not to provide assurance | |4. The design and effectiveness |The internal control structure and its operation | | |of the system 0f internal control | | |5. |Under GAAS |Under standards | |6. |Potential weaknesses |Significant | |7. |To prepare financial |To record, process, summarize, and report financial data consistent| | |statements in conformity |with the assertions of management in the financial statements. | |8. For the audit committee |For the information and use of the audit committee, management, and| | |and others |others | b. A reportable condition may be of such magnitude as to be a material weakness. Thus, all material weaknesses are reportable conditions, but all reportable conditions are not material weaknesses. The two terms are defined as follows: †¢ Reportable conditions represent signific ant deficiencies in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. A material weakness is a reportable condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. c. Two additional paragraphs are required when the auditor refers to material weaknesses in the audit report. The first paragraph should include a definition of a material weakness and a description of reportable conditions that are material weaknesses.The second paragraph should describe the limitations of the au ditor's work; i. e. , that the work would not necessarily disclose all reportable conditions that are also material weaknesses. 19-34. (Estimated time – 20 minutes) a. Independent auditors use a management letter to call to management's attention matters that the auditor has noted during the course of the audit engagement but which did not fall within the scope of the opinion. The management letter provides an excellent vehicle for suggesting value-added services that can assist the business in improving organizational performance. A management letter is rendered as a constructive service to suggest improvements as well as point out deficiencies. b.Many types of information can be covered in a management letter. The major, broad areas which are presented and discussed in the management letter include: †¢ Suggestions for modifying and improving a client's internal controls. †¢ Recommendations for changes and improvements in accounting systems to better meet managemen t's information needs. †¢ Suggestions for improving the management of resources such as cash, inventories, and investments. †¢ Comments regarding tax related matters. A detailed example of a suggestion for improving business practices follows: We understand that your accounting system offers discounts to customers who purchase in significant volumes.The program that grants these volume discounts as it prices a sales invoice does so after important information on gross margins has been reported to department managers. While sales invoices and underlying accounting information is correct, it does not agree with management information that is provided to sales managers as they make pricing decisions. As soon as possible you need to change the program that calculates the sales discounts so that gross margins and other information used by sales management includes the volume discounts offered customers. (Answer updated from original ICMA answer. ) 19-35. (Estimated time  œ 30 minutes) a. 1. 1–subsequent event during the subsequent event period requiring adjustment. 2. 1–subsequent event during the subsequent event period requiring adjustment. 3. –subsequent event during the subsequent event period requiring disclosure. 4. 2–subsequent event during the subsequent event period requiring disclosure 5. 1–subsequent event during the subsequent event period requiring adjustment. 6. 4–subsequent event occurring after field work but before issuance of report. 7. 4–subsequent event occurring after field work but before issuance of report. 8. 5–postaudit discovery of facts existing at date of report. The date field work is completed is not specifically given. This answer is based on the customary practice of dating the audit report as of the end of field work (i. e. , February 26). b.For categories (1) and (2) the auditor has the responsibility for identifying and evaluating subsequent events up to the d ate of the auditor's report. In discharging this responsibility, the auditor should be alert for subsequent events in performing substantive tests, and also perform specific auditing procedures at or near the completion of field work. For categories (3) and (4), the auditor has no responsibility to make inquiry or to perform any auditing procedures during this time period to discover subsequent events. However, if knowledge of such an event comes to the auditor's attention, he or she should determine whether the event requires adjustment of or disclosure in the financial statements. For category (5), the auditor has no responsibility for their discovery.However, if the auditor becomes aware of such facts and the facts may have affected the report that was issued, the auditor is required to ascertain the reliability of the information. c. Information about the items would be obtained from the following: 1. Inquiry of management; client â€Å"rep† letter. 2. Review of bad debt write-offs in January. 3. Reading of minutes. 4. Observation of fire; newspaper account of fire; inquiry of management. 5. Inquiry of management; lawyer's letter; and client â€Å"rep† letter. 6. Reading of minutes. 7. Newspaper story on takeover; inquiry of management. 8. Inquiry of management; lawyer's letter; and client ‘rep† letter.If the client fails to make required disclosure, the auditor should notify each member of the board of directors of such refusal and take the following steps to prevent further reliance on the audit report and: †¢ Notify the client that the audit report must no longer be associated with the financial statements. †¢ Notify regulatory agencies having jurisdiction over the client that the report should no longer be relied on. †¢ Notify (generally via the regulatory agency) each individual known to be relying on the statements that the report should no longer be relied on. |Cases | 19-36. See separate file with answers to the comprehensive case related to the audit of Mt. Hood Furniture that is included with this chapter. NOTE: Several revisions were made to this problem to correct printing errors. The revised problem is posted on the student resources website. | 19-37. (Estimated time – 25 minutes) a. and b. 1. The state government's approval of a plan for the construction of an express highway would have come to the CPA's attention through inquiries of officers and key personnel, examination of the minutes of the meetings of the board of directors and stockholders, and reading local newspapers. The details of the item would not have to be disclosed as a separate footnote because all fixed assets of the corporation, including the right to the condemnation award, were to be sold as of March 1, 19X1. 2.It is improbable that the CPA would learn the source of the $25,000 unless it were revealed in a discussion with the president or his personal accountant, or unless the auditor prepared the pres ident's personal income tax return, in which case the interest charges would have led to his investigation of the use to which the funds were put. Setting out the loan in the balance sheet as a loan from an officer would be sufficient disclosure. The source from which the officer obtained the funds would not be disclosed because it is the officer's personal business and has no effect upon the corporation's financial statements. Indeed, disclosure of the funds' source might be construed as detrimental to the officer. 3. The additional liability for the ore shipment would have been revealed by CPA's scanning of January transactions. The CPA's regular xamination of 19XO transactions and related documents such as purchase contracts would have caused him or her to note the item for subsequent follow-up to determine the final liability. In addition, the client's letter of representation might have mentioned the potential liability. The item would not require separate disclosure by footnot e or otherwise and would be handled by adjusting the financial statement accounts payable by the amount of the additional charge, $9,064 4. The CPA might learn of the agreement to purchase the treasurer's stock ownership through inquiries of management and legal counsel, examination of the minutes of the meetings of the board of directors and stockholders, and subsequent reading of the agreement. The absence of the treasurer might also arouse the CPA's curiosity.The details of the agreement would be disclosed in a footnote because the use of company cash for the repurchase of stock and the change in the amount of stock held by stockholders might have a heavy impact on subsequent years' financial statements. Usually a management change, such as the treasurer's resignation, does not require disclosure in the financial statements. The details underlying the separation (personal disagreements and divorce) should not be disclosed because they are personal matters. 5. Through inquiries of management, review of financial statements for January, scanning of transactions, and observations, the CPA would learn of the reduced sales and of the strike.Disclosure would not be made in the financial statements of these conditions because such disclosure might create doubt as to the reasons therefore and misleading inference might be drawn. 6. The contract with Mammoth Industries would come to the CPA's attention through inquiries of management and legal counsel, reading the minutes of the meetings of the board of directors and stockholders, and examination of the contract. All important details of the contract should be disclosed in a footnote because of the great effect upon the corporation's future. The factors contributing to the entry into the contract need not be disclosed in the statements; while they might be of interest to readers, hey are by no means essential to make the statements not misleading. 19-38. (Estimated time – 25 minutes) The omissions, ambiguitie s, and inappropriate statements and terminology in Brown's letter are as follows: †¢ The action that Consolidated intends to take concerning each suit (for example, to contest the matter vigorously, to seek an out-of-court settlement, or to appeal an adverse decision) is omitted. †¢ A description of the progress of each case to date is omitted. †¢ An evaluation of the likelihood of an unfavorable outcome of each case is omitted. †¢ An estimate, if one can be made, of the amount or range of potential loss of each case is omitted. The various other pending or threatened litigation on which Young was consulted is not identified and included. †¢ The unasserted claims and assessments probable of assertion that have a reasonable possibility of an unfavorable outcome are not identified. †¢ Consolidated's understanding of Young's responsibility to advise Consolidated concerning the disclosure of unasserted possible claims or assessments is omitted. †¢ Mate riality (or the limits of materiality) is not addressed. †¢ The reference to a limitation on Young's response due to confidentiality is inappropriate. †¢ Young is not requested to identify the nature of and reasons for any limited response. Young is not requested to include matters that existed after December 31, 1992, up to the date of Young's response. †¢ The date by which Young's response is needed is not indicated. †¢ The reference to Young's response possibly being quoted or referred to in the financial statements is inappropriate. †¢ Vague terminology such as â€Å"slight† and â€Å"some chance† is included where â€Å"remote† and â€Å"possible† are more appropriate. †¢ There is no inquiry about any unpaid or unbilled charges, services, or disbursements. |Research Questions | For the reasons specified in the introduction to this manual, solutions are not provided for this category of questions.

Challenges of gay people serving in the military Research Paper

Challenges of gay people serving in the military - Research Paper Example The USAF has worked over the years in alliance with many countries, building strategic partnership for acquiring and maintaining â€Å"access to foreign territories for operational purposes† (Moroney et al, 2010, p.xiii). The USAF has revised their Mission Statement during 2005 to conform to the needs of the time, and its present mission is to â€Å"fly, fight and win... in air, space and cyberspace† (Our Mission, 2012a). In order to achieve the objectives of their mission, the members of the Air Force uphold the vision of â€Å"Global Vigilance, Reach and Power,† which spans into the concept of â€Å"three core competencies: developing Airmen, technology to war fighting and integrating operations† (Our Mission, 2012a). USAF is an organization of high ethical values, and they function within the framework of three values that comprise the concepts of â€Å"Integrity First, Service before Self and Excellence in All We Do† (Our Values, 2012b). ... hip and members of this organization, while discharging their responsibilities, have to consider the interests of different stakeholders including the national government, the citizens, other friendly countries, and the overall interests of the international community in making this world a better place for humans to dwell on. Therefore, all personnel who serve the Air Force have to imbibe in them a high sense of integrity, moral, ethics, and other values that the organization upholds. Similarly, leadership, being the most crucial element in determining the right direction for organizations to achieve their goals, the role of leaders in upholding the tenets of USAF, becomes paramount. Thus, when the organization manifests even a slightest indication of any perceived deviation from its projected image in the public eye, the leadership will have to bear the brunt of criticism. Unfortunately, despite their elite status and the high degree of performance, leaders of the organization have come under the flakes of disapproval on allegations of discrimination against gays and lesbians. In this context, the sexual orientation of a person is his or her absolute right and no force on the Earth has any reason to question its validity. Similarly, there is no acceptable justification for discriminating people on the basis of their sexual preferences. Humans, in spite of their claims of being sophisticated, nurture certain notions, deriving from established norms, and categorize peculiar behaviors that do not fall into their definition of accepted way of life as taboos. Thus, they consider gay and lesbian individuals as deviant and outcast them from the mainstream society. When the society upholds the value of human rights to all, without any regard to the attributes of ethnicity,

STATEGIC MARKETING PLANNING AND COMMUNICATION Essay

STATEGIC MARKETING PLANNING AND COMMUNICATION - Essay Example Environmental Analysis of Pfizer When looking at the challenges for Pfizer, it is important to look at the environment of the entire pharmaceutical industry. In the last few years, this industry has become as competitive as any other. Because of technological advances, the tighter controls that have been place on regulatory compliance and â€Å"volatile investor confidence† (Verbigena Consulting, n.d.) the pharmaceutical industry has become very competitive. There are many ways to understand how this has happened and its effect on specific companies in the industry. For this study this researcher has used the PEST (political, economic, social and technological) model. In this model, it is important to identify those issues that are a part of the environment that makes the pharmaceutical company meet the competition as well as meet the environment head on. In this way, they are able to analyse their competition to make sure that they are doing what is needed. Political analysis In looking at the pharmaceutical industry, it has become increasingly competitive because there has been an emphasis on healthcare all over the world. People are living longer and they have more access to alternative modalities of healthcare. Also, healthcare has become more expensive to the average consumer which as meant that there needs to be reform on all levels. Healthcare is not just an economic burden to an economy but it is also a social burden. This means that politics come into play when there needs to be reforms to promote social welfare (In the UK the National Healthcare Service debate over Medicare is one example). Economic Value The pharmaceutical industry is projected to increase in the future. Since 2003, there have been substantial increases because of â€Å"high value mergers and acquisitions† (Verbigena Consulting, p. 3.). Many analysts have projected that pharmaceutical stock would increase to 10.5% by 2010 which meant that sales would reach $500 billion. This is not unfathomable because our societies are ones that are dependant on drugs (both over the counter and prescription) for many ailments and to fight disease. Although a large majority of sales originate in the US, Japan and EU, 80% of sales are distributed over nine countries: â€Å"US, Japan, France, Germany, UK, Italy, Canada, Brazil and Spain† (Verbigena Consulting, p. 3). Sales are expected to increase as people age and healthcare is reformed. Social Value Everyone is concentrating on good health today. There are many articles across the Internet that tell people how to look better, how to lose weight, how to stop aging and more. Because of this, pharmaceutical companies have an area that is always growing. Global epidemics like AIDS or SARS have helped the pharmaceutical companies push for a cure and their search has created an opportunity in the media to follow their progress. This also means that the pharmaceutical companies have to keep good relations with the media, government and other organizations that can help them keep the world out that they are doing a good job. Technology Technology has improved over the years and science has been one of those improvements. The pharmaceutical companies have to keep up with the technological demands in all of the industries they participate within. Also, these companies have to spend more money on research and development so that their employees will become more innovative in producing their products. Legal The FDA and other legal

Look at a contemporary film and examine how it uses traditional Essay

Look at a contemporary film and examine how it uses traditional narrative structure to create and naturalize a certain myth - Essay Example Traditional narratives were passed from one generation to another through word of mouth that is orally. On the other hand, contemporary films are the modern films that are used to deliver given information on the receipt through televisions and DVD’s . Contemporary films include the multinational corporations film producers for instance Hollywood. With this, the essay examines how pulp fiction a postmodernist film uses linear traditional narrative structure to create and naturalize a certain myth. Traditional narrative structure consists of parts of a story and the order in which the reader unfolds the events in the story. As earlier stated the structure of the story consists of three parts, which clearly bring out the narrative. The structure of a traditional narrative depends on the genre of the story (Klapproth, 2004). For instance, in the digital narrative that is the contemporary film, the writer may decide to bring out a dramatic flashback first in the story before bring ing out the initial events of the story. Contemporary films incorporate traditional narratives and improve the disposal of their stories. ... The second part of the story, which is epitasis, sets things into motion it is also referred to as the catalyst stage because at this stage the agenda is revealed to the readers. In this story, the major characters undergo major changes as a result of what is happening in the story this is referred to as character development (Maan, 2010). The third stage is the resolution stage, in this stage the characters in the story confront the problem and coming together hence leading to the end of the story. Research shows that, there are two main types of traditional narrative structures, which defines a story. The two types of structures include linear and non-linear narrative structures. In non-linear structure, the story does not precede in a straight line or systematically for instance introducing flashback in the beginning of a story (Maan, 2010). On the other hand, linear narratives are sequential that means they run smoothly. In linear narrative, the story starts and ends with a contr ast hence bringing out the message to be passed to the receipt. In most cases, traditional narratives are organized in a chronological order. Recent research shows that, linear narratives consist of four sequences manipulation, competence, performance, and sanction. In the first stage manipulation, the contrast is established (Klapproth, 2004). With this information on the traditional narrative structure the essay analyses how pulp fiction film uses non-linear type narrative to break up chronological time and demonstrate traditional realms of art. In this film the writer shows how cultural and art is important in any given community. In this film, semiotic codes are used to show traditional narrative structures are used to naturalize a

Change Management Assignment Example | Topics and Well Written Essays - 2000 words

Change Management - Assignment Example For most cases, change in an organization is an emergent phenomenon and takes place at a slow pace. On the other hand, planned change is seen less commonly and requires a thorough analysis of the environment and development of strategies for improvement. Change management includes a range of activities ranging from communication and discussion to implementation and so the ideal change management process should take into account all these factors (Gustin, 2007). It is generally regarded as a strategic improvement for the organization and requires effective management to accomplish the desired results. Furthermore, upon this concept, this paper will describe the calm-waters and white-water rapids metaphors used for change management. It will focus on learning processes in the context of change management as well. The latter half of the paper will deal with force-field analysis and change management in the organizational culture. Calm-waters metaphor was popular amongst practitioners and academics for quite some time (Rao, 2012). Particularly till the late 1980s, it was a just delineation of the environment and circumstances the organization was observed. It can be likened to a big ship, which, on its usual course around the sea, faces an occasional storm (Robbins, DeCenzo, Bhattacharyya and Agarwal, 2008). The path traversed by the ship is not new to it, since it follows the same course every time it sets out on a journey. The interruption that it comes across with is temporary. Kurt Lewin’s 3-step change process is a comprehensive explanation of the metaphor. The three steps include unfreezing of the status quo, modification to the new state, and freezing the change again in order to make it permanent (Robbins and Coulter, 2007).

Allocating Merit Raises Situation Essay Example | Topics and Well Written Essays - 250 words

Allocating Merit Raises Situation - Essay Example He exceeds in his teaching because he has taught about 200 students per year. His research is superb because of the two books and over 30 articles that he has written. His service is measurable because of the $80,000 grant he received for the college. He receives 4.9% of $116,000, which is $5,700. Prof. Houseman has also done well in teaching and research, but his service to the university is average. He taught over 400 students per year and has written over 40 articles. Since joining the college 25 years ago, he has given over 30 presentations. He gets $3680, which is 4% of $92,000. Prof. Karas has far exceeded in teaching, won Teacher of the Year Award, and taught about 150 students per year. For four years, he published 12 articles, which is remarkable. However, his service to the college is average. His raise is $3,000, 3% of $100,000. Prof. Ricks far exceeds in his service to the college because of his active role in the community and charity boards. However, his teaching is average and has written only two articles in the last six years. He receives 2% of $135,000, which equals to $2,700. Prof. Franks exceeds in service because he has been at the University for 18 years. He has taught about 150 students per year, so he has met the teaching standards. Nevertheless, he has failed to write any articles during the last four years. He gets $1,350, 1.5% of

Strategic Plan on Toyota Essay Example | Topics and Well Written Essays - 750 words

Strategic Plan on Toyota - Essay Example The end of the first quarter of 2012 saw Toyota having 217 associated firms, as well as 511 subsidiaries all over the world. Moreover, while ranked 25th in the world, it is number nine in sales, number 74 in assets, and number 32 in terms of market value (Forbes.com LLC, 2012). Its range of automobile products includes commercial automobiles, which includes trucks, minivans, as well as passenger vehicles. Among its subsidiaries are Daihatsu, specializing in compact cars and min-cars, and Hino, which specializes in buses and trucks. Its main range of passenger cars includes subcompacts, compacts, luxury cars, sports vehicles, SUVs, mid-size vehicles, and recreational cars. In the US, it also has the luxury brand Lexus (Reuters, 2012). The latest stock performance figures give Toyota a market capitalization of $128.9 billion, and a share price of $81.41. This share price figure is down somewhat from year highs of about $88, but up from year lows of about $70. Its current P/E ratio of 17.66 is much higher than competition, the closest being Honda, which is trading at a P/E ratio of 15.44. It leads all automobile players in market capitalization, though it is behind the likes of Volkswagen and Honda in terms of margins and operating metrics. (Google, 2012). Snippets of the corporate strategy of Toyota can be gleaned from news relating to its planned reduction of product output in Japan, by 10 percent from 2012 levels, to around 3.1 million vehicles by 2014. This is to be done with no impact on the employment rolls in the country, with the projected output for 2012 being higher than that 2014 figure, at 3.6 million vehicles (Reuters, 2012b).This is coupled with news relating to planned capacity increases in some subsidiaries, particularly India, where production is slated to expand to 310,000 units per year, an increase of about 50 percent from current production levels. The focus is on sedans and hatchback vehicles

Quiz Review Questions Coursework Example | Topics and Well Written Essays - 500 words

Quiz Review Questions - Coursework Example 15, Rios indicate that the boys may embrace strategies such as going dumb, acting stupid or even being dummy smart as a strategy to discredit the system that punished and excluded them (Rios) 4. These are knowledge and ideas that people try to draw upon in their day-to-day life activities. Cultural capital ranges from ability to speak, ability to write effectively and even rule of etiquette among others. 5. These benefits of economy are gained from the preferential treatment and cooperation between a group of people and individuals. Social capital tends to share the main idea that networking has a significant value. 8. In the 21st century, people are living together despite the differences. According to Sandercock, people must understand their differences and how important it is to their politics and cooperative success in order to live together. Without such understanding, problems might arise. He also develops a multicultural perspective that embraces unity of culture of every individual that is inescapable of cultural diversity and which is part of the right to differences (Sandercock). 9. Therapy can be an effective statement in most cases. But to reap its benefits, it is important that the right strategies that incorporate emotional wellbeing to be utilized. Emotions help in diagnosing several health related problems including mental health conditions. Therefore, emotions play a huge role in dictating the types of therapy and when an individual should initiate the therapies. 10. City building- cities are always in constant change. This comes alongside with struggles. The struggles are developing to shape up and protect as well as improve places. People have roles to play in the city change since it affects everyday life. While the cities are changing, the professions in building do not act alone. The transformation recognizes that these professions are effective when they act in a transparent way of politics; in association with residents,

Define and discuss the relationship between language variation, Essay

Define and discuss the relationship between language variation, language attitudes and linguistic discrimination, drawing on specific examples from past research - Essay Example To this end the paper will examine the relationship between language variation, language attitudes and linguistic discrimination. In order to attain this end, the following objectives will be explored: Language variation is the â€Å"differences in systems of a language that result from historical, geographic, social and fundamental changes. This affects a dialect and divides up a language to sub-groups†1. Language variation therefore signifies the ways and systems through which people who speak the same language vary the way they speak and convey ideas and communication through a peculiar or specific approach to conveying their messages. Language variation therefore hinges on the fact that different people have different approaches and different processes of presenting their information and message and this varies from person to person. In throwing more light on the essence of language variation, Thomson identifies that â€Å"language is a historical entity. It is intended to communication ideas and concepts. Variations are persuasive and change with time†2. Thomson’s view of language variation has to do with the fact that language is meant to present ideas and concepts. And within time and space, these concepts and ideas might vary and change as per the changes and modifications in the society. Hence, there are different variations and different approaches and processes through which this communication is carried out and through which different people have and build different views on presenting their ideas and concepts. To add more explanations to this, it can be said that homogeneity in society and in perceptions in the human race is fiction3. This implies that language, which is a product of the wider society within which people lives is bound to be as heterogeneous as the society within which it is used. Therefore, linguistic variation allows linguistics to study about the different versions and different processes that influences and

Personal Space Essay Example for Free

Personal Space Essay I. Introduction An individuals self- concept is the core of his personality. One’s perception affects every aspect of human behavior: the person’s ability to learn, the capacity to grow and change. For every act an individual makes, he or she manifests what character he or she has. One certain person displays his own image through the conveyance of his behavior towards another. It is a mutual process wherein the receiver responds and takes action to the approach of the sender. Our thinking and behavior during interaction are always in anticipation of a response. This certain behavior that we use in order to attain interaction can be a positive or a negative one. At times, it can act as a defense and a way of concealing motives and thoughts. Human behavior is observed in the branch of Psychology to gain more knowledge that would contribute to an understanding of a certain culture based on the manipulation of the stimulus-response that would change human behavior despite of the underlying debate that behavior is hereditary or nurtured by the environment. It is also a range of behaviors displayed by humans influenced by several factors such as culture, attitude, emotions, values and ethics. The behavior of a human being depends on the potential and capacity of his or her physical, mental, emotional, and social activity during the phases of human life (Hickson III, M. Stacks, D., `1985). Living with the different factors that would generate the expression of manners of an individual, it basically acts as the foundation of molding the actual character of a certain person. In accordance to how people express their mental outlook, they respond and reciprocate towards the exposure of signals of the opposite sex, the perception to invasion of own psychological personal space, and the characteristics and levels of intimacy shared by both parties. Personal space is known to be the area surrounding a person which they consider as theirs (McConnell, J., 1985). It is their concealed spot wherein other people cannot penetrate and violate easily. Being able to value their personal space, they are able to set limits and certain zones on the ones they are interacting to (Eyserick, H. Eyserick, M., 1983). Human beings naturally bounce back to the encroachment of their personal space as Freudian would say. But once a person’s personal space has been penetrated by an outsider that understands the levels of comfort as of that of the receiver of message, there would be a certain allure of intimate bond between the two. Though intimacy has yet to be delved into to have the preciseness of its boundaries and levels as to observe the certain characteristics wherein spectators are able to classify their position when interacting with the person to whom they have invaded the private space. At par with the receiver of this invasion of space, he or she would be able to discuss and critically analyze the response to the means of how their own space has been occupied without having to suddenly jump into conclusion the actions being presented to them by the opposing party. Furthermore, through an interview, this paper will be the guided accordingly by the words of experts of the daily examples of private and intimate situations that would help foreshadow into reading the verbal and non-verbal signals each respondent would reciprocate in case to case basis. And to gauge whether or not this would be a case of violation or permitting one’s self to break down walls for others to penetrate into their personal space. The aim of this paper is to define, relate and categorize the development of a person’s perspective on privacy and intimacy when interacting to the same and/or the opposite sex. It would like to explore into the dynamics by which personal space would be determined by an internal or external influence upon it, and its connection to intimate situations. This is to widen the perspective of teenagers within the researcher’s age group when dealing with their social groups and be aware of the tell tale signs of positive and negative intrusion of privacy and display of intimacy towards others. II. Body Personal space â€Å"for me is the amount of space that you define for yourself by which you form of a barrier† (R. Tejeros, personal communication, February 13, 2012). This barrier of a person’s personal space is where an individual secludes himself or herself from external factors that may contribute to his or her reluctance to share the privacy that encloses a formed character (Gunsch, 2003). A character that has been influenced throughout its formation by numerous social groups that made this very individual self cautious to letting in strangers and known personalities alike to a realm that can make or break his or her disposition. Group dynamics is a study on personal and social space. These are standardized space perimeters wherein social clusters are able to reconcile the differentiation of personal space and its violation; also where social agents around us become an intimate, social, factor to everyday interaction. Though space may be standardized by norms, the interviewee has presented a notion that personal space is still very relative on most aspects. An individual defines it for him/herself and regardless of the standardization, and this is all based on the person’s ability to consent to the external factors or decline its persistence to enter the boundary line of this person’s space (R. Tejeros, personal communication, February 13, 2012). Furthermore, each person carries an invisible bubble around their bodies wherein the size depends on different factors such as personality, status and culture. This bubble is known to be considered as a person’s own personal, psychological space (McConnell, J., 1985). It is an approximate area surrounding an individual which should not be trespassed by an unsuspecting spectator for it creates an unsteady social relationship that when pierced by others becomes a violation of personal space. This private space, which role is to keep violation down, comes with the diversity of cultures who establish and upright barriers when interacting with other people. Raising these indomitable barriers are sort of their safety zones wherein people are unlikely to attack one another (Eyserick, H. Eyserick, M., 1983). With regards to the sex differences of personal space, the opposite sex would define personal space as a challenge. This would highly depend on the availability of the person’s willingness to interact to the opposite sex. Most especially in cases where in the male would pursue a female to interact with, if personal space would be regarded as barrier as said above, this would complicate the premises by which the sender of the message would like to address their message. For most cases, an aggression to entering the opposite sex’s personal space would be seen as a threat. A scenario that deals with a same sex penetration of personal space however would be put lightly as how Sir Tejeros (personal communication, February 13, 2012) said in his interview as â€Å"there should be a level of friendship or relationship first before you can get comfortable with a person within the same sex. And if you are in that level, the personal space is not a problem.† Based on this statement, the sexual orientation may be a high contributor to how other individuals would interact but regardless, a certain individual would still deal with others though with the factor that there should be a consequent relationship that should be established and the ability for both parties to gauge the comfort that they share to each other. Apart from the relationship that have been formed prior to create a state of sharing one’s personal space and privacy with each other, there are other factors that has been provided such as definition of the person’s character, personality, cultural background, race/color, age, gender and current status/authority (Berba R. Tejeros, personal communication, February 13, 2012). These factors contribute to both an easy relationship and appearance within the perimeters of the individual’s personal space though these may also be grounds for stereotyping and biases that may cause for an individual to also reluctantly open up to others. It was also stated through the course of interview that with the cultural setup here in the Philippines, these factors would be somewhat different from the ones where racial discrimination is rampant in western countries as well as first world countries. There may be discrimination but in the cultural setup in the Philippines, the social conflicts are quite subtle and are more distinctly seen if verbally exposed. Either way, these factors are not to be of constant basis for personal space is a subjective matter. Entering somebody’s personal space is an indication of familiarity and sometimes, intimacy. The receiver of the message creates a line that would not or should not be crossed by the sender in an actual confrontation to be able to have a decent and comfortable conversation. When this boundary is transpired, it causes uneasiness between the two people interacting. It is by human reflex that people react to certain responses. Reacting defensively when personal space is invaded is one way of assessing its significance to that certain individual. This reaction of the person aggressed varies according to how his or her space is invaded and whoever violated it. Whenever a person feels threatened by an outside force to enter his or her personal space, he or she will have a tendency to dislike the invader as a reaction and dismiss all opportunities (Lindgren, H.C. Byrne, D., 1971). Erikson’s theory of development states that intimacy would be attained through forming closely knit relationships which is basic to the growth of social interaction of early adulthood. (Davis, D. Clifton, A., 1995) Intimacy is known to be a token of familiarity and affection, a close relation or association with deep knowledge of a certain person, place or period of history. Most of the times, Intimacy is considered to be the act of being affectionate of the people involved in a certain relationship and convey their thoughts and emotions by means of physical contact. This way of expressing intimacy to the other party is most likely to be applicable for those people who are considered touchers and are more comfortable in using the non-verbal communication while interacting. Aside from expressing feelings and motives through physical contact, there are other factors that contribute to the building up of close relationship of the people involved. Being intimate can also be observed when people involved in a relationship are attached in a way that they spend most of their times with each other, shares common similarities and interests, can communicate easily and has a personal connection that other people wouldn’t easily comprehend unless informed. Being intimate with another party depends on the built relationship of the people involved. It varies according to what and how intimacy is being expressed whether emotional, spiritual, intellectual or sexual (Berba, personal communication, February 16, 2012). There is a favored level of interpersonal intimacy, discrepancies from this stage and where it can possibly remunerate between the two people interacting. (Eyserick H., Eyserick M., 1983) As we all move through in getting to know someone deeper, we develop intimacy with them which is one of the factors that makes the relationship more profound. Building up a closer connection with that someone, certain levels of intimacy are exposed. For starters, people begin to see and judge if it is safe to connect with that individual in the stage of safe communication. In this phase, there are no feelings, personal vulnerability and opinions involved. This is the kind of interaction we have with people we don’t know that well and shares minimal intimacy. In level two, which is where we start sharing other people’s thoughts, beliefs and opinions, we are beginning to reveal more of ourselves and already build have a small foundation. In this stage, disagreements of opinions shared reveal inflexibility and intolerance already and becomes the basis whether they are to continue to the next stage or not. Continuing to the next phase, we start taking small risks and begin to share our own thoughts, opinions, and beliefs. If we begin to feel vulnerable, we can change our minds and switch opinions to avoid conflicts. In the next level, we now start revealing our feelings and personal experiences; our own joys and pains, our achievements and failures and some of our likes and dislikes. This stage is more vulnerable than the earlier ones because in here, us being unable to change how we feel about something, we can now accept and receive judgments. The next phase of intimacy will be the highest level; our needs, emotions and desires are being emphasized. This is the stage where we are known at the deepest core of our character and requires a great amount of trust in order to maintain the relationship built by the people i nvolved. (Wilson, 2011) Entering a social relationship, verbal and non-verbal communications are expected. Verbal communication is the communication that uses words, either written or spoken. It also refers to the use of sounds and language to relay a message. It serves as a vehicle for expressing desires, ideas, and concepts and is vital to the process of learning and teaching. This verbal communication varies according to the personality and mental outlook of a certain person. Non-verbal communication, on the other hand, is usually understood as the process of communication by means of sending and receiving messages which are not in the form of words. It is a natural, unconscious language that broadcasts the emotions and intentions of a certain individual by means of gestures, facial expressions and body language (Hickson III, M. Stacks, D., 1985). These non-verbal signals are separated into two kinds: the touchers and non-touchers. People who are considered touchers are usually the individuals who are not good in expressing themselves in words and prefer to convey their messages through the use of physical contact. Non-touchers on the other hand are the ones who articulate their messages through non-verbal signals but do not require the use of physical contact; they express their messages using body language such as facial expressions (Eyserick, H. Eyserick, M., 1983). Through the interview conducted, Psychology professors, Ms. Berba and Sir Tejeros (personal communication, 2012), have exclaimed that in their field of study, they are more aware to theses identifiers that both trigger violation of personal space and cues on intimacy. They have provided examples that both can be observable from day to day cases and widely applicable to the target market of this paper. Examples of signals that trigger violation of personal space would be sitting very close to another person or the positioning of body parts that obstruct the balance of the space that the individual and the other people share in a pubic place. A particular example that is observable within the male domination would be the violation of space inside the comfort rooms. Based on the narration of Sir Tejeros, he stated that â€Å"There’s this unspoken rule, which you might find interesting. In male comfort rooms, when there is someone occupying a certain urinal, you do not go directly to the ones beside it. So kunwari there are 3 urinals. There is someone doing his business here. And then there’s 2 and 3, you do not go here beside him. You jump one urinal because that’s the person’s personal space. Seriously, that happens all the time. If you were a guy you would have noticed that. If someone would go near that, the other guy doing his business would look angry or hostile towards the other person. Kasi personal space niya yun, eh. Kasi like when you do your business in a comfort room, it’s something intimate and personal to you. So when someone goes way to near your area, â€Å"K† parang ganun.† Another violation of personal space that Ms. Berba stated is the sudden outburst of emotion through verbal and non-verbal communication. That when a particular individual is very angry and frustrated, they are not aware and conscious of their actions because of the aggression and adrenaline that courses through their being thus having an impulsive instinct to enter the personal space of their offender and violating their personal space. Though there may be positive violations of personal space as well, and the emotion that stirs up this violation would be of surprise. And example would be when a bearer of good news delivers the message and the receiver becomes intimately grateful to the bearer and crosses the line of the sender’s personal space. This would still be a violation of personal space because the receiver was not able to respect the personal space of the bearer however this is another response that was done instinctively because of positive feedback to the message re layed. III. Conclusion The interrelation between privacy and intimacy is the link of relationship that people have between each other. It is through a bond that they have, that they allow walls of privacy to be brought down and there is permission to be intimate with the other being. There are several factors that would contribute to this such as personality, cultural background, age, gender and status. Though these may contribute to a healthy interaction, these factors may also be causes for violation of personal space. The differentiation between people whose social groups mingle with each other may produce friction if not properly addressed by the social norms that surround them. It is best that personal space of an individual is respected before advancing to a more relaxed state. However, personal space does not necessarily go hand in hand with intimacy and vice versa. It does contribute to one another as we have theorized beforehand, though we have been disproven that if personal space is not violated, this may be called intimate. Through research work and interviews conducted, we have distinguished personal space as a person’s personal, psychological space. (McConnell, J., 1985) meanwhile intimacy is a token of familiarity and affection. Both are subject to change and have signals that would identify if an individual’s personal space is violated or a person is being intimate with another. To further elaborate on the levels of intimacy that would distinguish the state of relationship wherein two individuals are involved, these levels contribute to how someone who is in the process of determining his or her position in the relationship and be able to pacify his or her intentions as to not cross the boundaries of the social norms. Apart from the levels, there are kinds of intimacy which are spiritual, emotional, intellectual, and sexual that would be the basis for a good foundation of a relationship. Signals that trigger intimacy and violation of personal space would be verbal and non-verbal communication. Verbal signals are on prose and non-prose means. On the other hand, non-verbal communication has touchers and non-touchers. They indicate stimuli-response contact and verify whether the process of communication is socially acceptable. These may not be necessary for all intimate partners though are highly observable throughout the society. Equipped with credible sources, this paper has given an array of responses that is useful for daily relations most especially for the target audience who are teenage adolescents who are undergoing inter and intra personal development. Expression of the mental and emotional outlook would be beneficial to build up the decision-making skills of a person. It also promotes awareness to the different kinds of scenarios that they would be dealing with in the future.