The High Price of Education Essay -- Argumentative Persuasive Essays

The High Price of Education Once again, students at State University will pay more in tuition during the 2005-2006 academic year, by a 4.5 percent increase. The State Board of Regents was presented with a proposed 5.2 percent increase at its September 23-24 meeting in Capital City, but decided this month that a 4.5 percent increase in tuition was more reasonable. Even with the additional services that could be made available by the tuition hike, the students should not have to pay this increase. According to the memorandum, the tuition proceeds at State University will go toward student financial aid, inflation, library acquisitions and services, learning communities, the four-year graduation plan, study-abroad programs, graduate assistantships and computing and information technology. The extra funds acquired from the raise in tuition are meant to improve the quality of education, however, the proposed increase impedes State University's commitment of affordability and access for its students. As a tuition-paying freshman at State University, this raise will directly effect my already currently suffering bank account and me. I applaud the board for its efforts to improve the quality of higher education for students, and for seeking to help State University in its goal to become the best institution in the nation. Although I don't approve of a 4.5 percent tuition hike for students to increase the funding of various programs at the university, or as a means to help achieve State University's goal. Each time the tuition goes up, it makes it harder for aspiring college-bound students to come to school here. What kind of impact will a higher tuition have on students? If the cost of living plus tuition pushes students to w... ...this increase are not tuition-paying students, but administrators overseeing the institutions from a distance. This raise may have no effect on their bank account, or may even provide the funds for their salary increases. If we as students don't agree with these allocations, we need to speak out and let our views be known. Our opinions will be considered, but only if we take them to someone other than our roommates, such as the Board members themselves. A few years ago, the Regents actually changed the tuition rate during the process due to student feedback, so we shouldn't assume the decision is out of our hands. It may seem as though our bills each September and January are much lower in comparison to other universities, however, we can't just sit back and accept tuition increases that come our way. After all, it is our money and financial future that is at stake.

In the Name of Allah, the Most Beneficient and the Most Merciful

|Ans. 1 |(a) |Quality Control Issues: | | | | |While assigning the audit work to Mr. Manzoor Nazar, the firm ignored the threat which existed due to his earlier | | | | |intention to join WL as an employee. | | | | |Mr. Manzoor also failed to update the firm about this matter, due to which firm could not ascertain the self-interest | | | | |threat to independence and objectivity of the engagement partner. | | | |Engagement partner did not ensure the engagement reviewer had been appointed. As a result, significant matters arising | | | | |during the audit could not be discussed or resolved. | | | | |No consultation was undertaken on impairment loss issue, which was contentious and material. | | | | |It appears that engagement partner resolved the difference of opinion between the team member and the job in charge by | | | | |imposing his decision without satisfying the team member.No avenue was available to the team member to assert his | | | | |opinion. | | | | | | | | | |The followi ng Risk Factors do not seem to have been considered: | | | | |Change in Board of Directors and significant change in Management. | | | | |Valuation of plant and machinery was being done by an employee who may have been an expert but his independence was | | | | |questionable. | | | |Sudden change of assessment in the valuation creates doubts on the reliability of the work done. | | | | |Informing stock exchanges about impairment loss, uncertainty on fair value of plant and machinery, issue of right | | | | |shares at declined market price and acquisition of right shares by directors and their associates point to an apparent | | | | |motive of the Board of directors to accumulate WL’s shares at low price. | | | | | | |` | |Deficiencies in Audit Approach: | | | | |In view of the management’s perceived motive of presenting poor financial position to affect the market price, the | | | | |representation by the management as regards impairment of plant and machinery is not a reliable evidence. | | | |Opinion of the internal expert seems to have been influenced by the directors and the management. Thus, it should not | | | | |have been considered as appropriate evidence. | | | | |Due consideration was not given to the auditor’s previous knowledge and evidences that were already available in | | | | |previous year’s working paper files. | | | |Audit opinion on a significant matter was formed without corroborating other evidences. | | | | | | | | | |Recommendation: | | | | |An independent valuation expert be appointed to form an opinion on valuation of plant and machinery. | | | | | | | | |If independent valuation supports the opinion of the internal expert, | | | | |ascertain whether or not valuation done in previous year was erroneous. | | | |In case of error in previous years, comparative financial statements be amended after completion of valuation exercise. | | | | | | | | | |In case valuation exercise cannot be completed, the aud it report should contain an emphasis of matter paragraph on | | | | |significant uncertainty. | | | | | | | | |If independent valuation does not support the opinion of the internal expert, the auditor should | | | | |Re-assess the risk of fraudulent misstatement by management and those charged with governance. | | | |Consider whether misstatement due to fraud involves higher management and those charged with governance, in which case | | | | |the firm may consider withdrawal from the engagement. | | |Ans. 2 |As soon as we come to know about the above stated facts, we should immediately contact the client and inform them that unless | | | |the auditors have signed their report on the financial statements, such financial statements will remain and be deemed | | | |unaudited. | | | | | | |SECP should be informed about the situation | | | | | | | |Legal opinion should be taken. | | | | | | | |The auditor may take necessary steps to inform the shareholders either immediately or in the AGM about the possible impact on | | | |the financial statements. | | | | | | | | | |Ans. 3 |(i) |Evidence of subsequent recovery of long outstanding debt will be evaluated. | | | | |If the evidence of recovery is sufficient and appropriate, the financial statements will be revised and issued to the | | | | |shareholders along with a fresh auditors’ report. | | | |In case of disagreement with the management on this issue, the auditor will issue a qualified opinion; and will also | | | | |take necessary actions to prevent reliance on the previous report. | | | | |If the evidence is not sufficient or appropriate, the management will be asked to change the director’s report. | | | | | | | | |(ii) |Reason for decline in sales is a matter of opinion and will have no impact on audit. | | | | | | | |(iii) |The figure presented on graph may be due to typographical mistake, correction of which should be communicated to the | | | | |users. In case of disagreement with the ma nagement an emphasis of matter paragraph will have to be included in the | | | | |audit report. However, if the figure is correct on the graph, the error in previous period will have to be rectified | | | | |retrospectively.In case of disagreement opinion will be appropriately qualified. | | | | | | | | |(iv) |The matter of acquisition of a sick unit will be discussed with the management, as it is a material misstatement of | | | | |fact (although not affecting the financial statements).In case of disagreement, auditor will seek legal opinion. | | | | | | | | | | | | |Ans. |The implications of the various issues referred to in the question, on the auditor report, are discussed hereunder: | | | |(i) |Failure to observe stock count: | | | | |Ordinarily the auditor is not required to perform the procedure of observation for obtaining evidence in a review | | | | |engagement. | | | | |Analytical procedure will be sufficient in this case. | | | |There will be no implication on audito r’s review report. | | | | | | | | |(ii) |Exposure to significant exchange rate risk: | | | | |Auditor is not supposed to give any assurance on the adequacy of the management’s risk management activities. | | | |Auditor is responsible to assess whether the derivatives, as discussed, have been accounted for and presented | | | | |according to the requirement of the International Financial Reporting Standards. | | | | |However, if open position casts a significant threat to the viability of the company’s business, the auditor may draw | | | | |the attention of the reader of conclusion report by adding an emphasis of matter paragraph in the report. | | | | | | | | | | | | |(iii) |Sale of one of the company’s set-up to an associated undertaking: | | | | |The information about the sale of the business segment to a related party is necessary for understanding the changes | | | | |in financial position. Therefore, an explanatory note should be included in t he condensed financial statements. | | | |Ordinarily the auditor is not required to corroborate the evidence provided by the management. | | | | |In case management refuses to disclose this information, suitable modification will be considered. | | | | | | | | |(iv) |Discontinuation of the practice of using Age Analysis for bad debts estimation: | | | | |Apparently, bad debt provision is following the historical trend. The auditor is required to persue inquiry and | | | | |analytically review procedures in a review engagement. | | | | | | | | |If the results of such procedures are satisfactory, then no further procedures are required. Accordingly age analysis | | | | |for estimating bad debts is not mandatory in this situation. | | | | | | | | | |There will be no implication on audit report. | | | | | | | | |(v) |Failure to carry out review of subsequent events: | | | | |In a review engagement auditor is not responsible to review subsequent events. | | | |Management is inquired about the procedure it has followed to identify subsequent adjusting event. | | | | | | | | | |There will be no implication on audit report. | | | | | | | | | | |Ans. 5 |Audit procedure to verify Provision for sales return: | | | |Apparently, the provision made by the company has no plausible basis. | | |The actual returns during the year are Rs. 130 million as against the total sales of Rs. 650 million. If the sales and sales | | | |returns are made evenly throughout the year, a plain application of return percentage suggests that the provision should be | | | |nearly Rs. 32. 5 million. | | | |In the above circumstances the auditor should obtain an understanding of the entity’s assumptions on which estimate is based. | | | |If the basis is considered inappropriate, the auditor should make a revised estimate either on his own or by using expert | | | |opinion.The estimate should be based on: | | | |industry practice and trend of sales return; | | | |comparison of industry an d company’s terms of sale; | | | |Trend of sales return in the company i. e. sales return with-in first 15 days; between 16 to 30 days; between 31 – 45 and so on. | | | |Own estimate prepared on the above assumptions will be compared with management’s estimates. If the difference is material, the| | | |management will be asked to explain. | | | |Subsequent sales returns up to the date of authorization will also provide an evidence about the reasonableness or otherwise of| | | |the management’s estimate. | | | | | | | | | | |Ans. 6 |(a) |Verbal confirmation from Local Government as regards the resolution of dispute on capital adequacy and price | | | | |computation of cement, will not be considered as appropriate/sufficient audit evidence. | | | | |Refusal of written confirmation is a scope limitation and unless other appropriate evidence is available the report | | | | |will need to be modified. | | | |Management’s intention to use the auditorâ⠂¬â„¢s report for the purpose of dealing with the local government is beyond the| | | | |scope of the engagement. Therefore, the auditor’s report should specify the agreed intended use thereof. | | | | |Interpretations given in Regulation JKL, 1961 were used to form the opinion on compliance relating to minimum | | | | |inventory level and price computation. Therefore, the Regulation should also be referred to in the report for better | | | | |understanding of the assurance. | | | | |Not renewing performance guarantee is a clear non-compliance which needs to be reported as qualification. | | | |Decision to keep the inventory with distributors could not be considered as a non-compliance because these are | | | | |covered under binding contracts and the purpose of the arrangement is also mentioned in the contract. | | | | | | | | |(b) |We have audited Cement Limited’s compliance with certain covenants of cement supply agreement No. XYZ/2004 dated | | | | |November 03, 20 04 read with Local Regulation JKL 1961, executed between the company and the Local Government. The | | | | |purpose of the report is to fulfill the condition attached to an application to be filed with the Provincial | | | | |Government to obtain a cement supply contract. | | | | | | | | |We conducted our audit in accordance with International Standards on Auditing-800 â€Å"The Independent Auditor’s Report | | | | |on Special Purpose Audit Engagement† applicable to compliance auditing. | | | | | | | | | |The Standard requires that we plan and perform the audit to obtain reasonable assurance as to whether Cement Limited | | | | |has complied with the agreement referred to in preceding paragraph. An audit ncludes examining appropriate evidence | | | | |on a test basis. We believe that our audit provides a reasonable basis for our opinion . We report that: | | | | | | | | | |We could not directly confirm, from the Local Government, the status of non-compliance of capita l adequacy and price | | | | |computation of ‘quick-set cement’. | | | | |The company failed to maintain a performance guarantee with a scheduled bank, which is a violation of the agreement. | | | | | | | | |In our opinion, except for the effect on the overall compliance, if any, as might have been determined, had we been | | | | |able to obtain the confirmation from the Local Government in respect of capital adequacy and price computation of | | | | |quick-set cement and the non-compliance stated in paragraph (b) above, as of December 31, 2007, the Company was, in | | | | |all material respects, in compliance with the covenants of price computation, minimum inventory level and other | | | | |matters related to financial reporting of the agreement referred to in the preceding paragraphs. | | | | | | | | |AUDITOR | | | | |Date | | | | |Address | | | | | | | | |C |Views of the management on job time: | | | | |It is true that auditors have already reviewed the subjec t agreement during the audit of the financial statements. | | | |However, the review was different in nature as discussed below: | | | | | | | | | | | | | | | | | | | |Materiality was set on the basis of certain values of |Materiality was set on the basis of principles agreed at | | | | |financial statements. |the time of engagement. | | | | | | | | | | |During the audit only those clauses of the agreement would|In the given engagement the auditors were required to | | | | |have been studied which could impact the revenue and |obtain assurance about the management’s claim of | | | | |expenditure and risk of loss. compliance with all the clauses which may or may not have | | | | | |significant financial impact on the company. | | | | | | | | | | |The agreement was among one of the very |Since only this agreement was the subject of the auditor’s| | | | |large number of documents that could have required |report, it required far extensive examination. | | | | |aud itors’ attention.Hence only a general review of the | | | | | |same was required. | | | | | | | | | | | |Due to these differences the nature and extent of examination of agreement was much larger in this engagement than in| | | | |audit. Accordingly, considerable time was required to complete the engagement. | | | | | | | | |(d) |Appointment of Mr.Sharif | | | | |Since Mr. Sharif was also the engagement partner on the audit of Cement Ltd. , his appointment for this assignment may| | | | |result in self review threat. | | | | | | | | | | | | |Ans. 7 |(a) |The matters which should be considered while accepting the assignment and assigning the job to Mr.Umer are as | | | | |follows: | | | | | | | | | |Acceptance of engagement: | | | | |Client acceptance consideration, such as, integrity of management, expertise available in firm etc will be given. | | | | |Whether the assumptions being used are clearly realistic. | | | | |Whether the time limit prescribed by the Board of Directors is sufficient. | | | | |Whether the projected financial statements and auditor’s report will be appropriate for the intended use. | | | | |Although the firm is legally allowed to accept the assignment, adequate safeguards should be considered n view of | | | | |the fact that one of the partners wife had financial interest in the entity and close family relations with the CFO | | | | |of the company. | | | | |There should be an agreement with the management that abridged projections must contain a caution for shareholders | | | | |that for better understanding complete set of prospective financial statements be referred. | | | | |Firm should also consider whether it will be able to carry out the engagement with due professional competence even | | | | |if Mr. Umer is unable to be the engagement partner. | | | | | | | | |Assigning the job to Mr. Umer: | | | | |Since the wife of Mr. Umer has financial interest in the company as a shareholder, Mr. Umer is not | | | | |expected to carry out the assignment with the level of objectivity required for the engagement. Therefore, he should | | | | |not be appointed as engagement partner. | | | | | | | | | | | | | | | | | |(b) |We have examined the projection of XYZ Business Segment of Fiber Limited in accordance with the International | | | | |Standard on Assurance Engagements applicable to the examination of prospective financial information. Management is | | | | |responsible for the projections including the assumptions set out in Note X on which it is based. | | | | | | | | |This projection has been prepared for assuring the viability of the segment referred to in preceding paragraph. As | | | | |the segment is in development phase the projection has been prepared using a set of assumptions that include | | | | |hypothetical assumptions about future events and management’s action that are not necessarily expected to occur. | | | | |Consequently, the users are cautioned that the project ion may not be appropriate for purposes other than those | | | | |described above. | | | | | | | | |Based on our examination of the evidence supporting the assumptions, nothing has come to our attention which causes | | | | |us to believe that these assumptions do not provide a reasonable basis for the projection. Further, in our opinion | | | | |the projection is properly prepared on the basis of the assumptions and is presented in accordance with the | | | | |International Financial Reporting Standards. | | | | | | | | |Even if the events anticipated under the hypothetical assumptions described above occur, actual results are still | | | | |likely to be different from the projection since other anticipated events frequently do not occur as expected and the| | | | |variation may be material. | | | | | | | | |(c) |The historical financial statements provide the auditors with | | | | |the knowledge of company’s business and trends and relation that would exist among the elem ents of financial | | | | |statements; and | | | | |a yardstick for considering management’s assumptions. | | | | | | | | |The auditors also uses historical financial statements to assess whether the prospective financial statements have | | | | |been prepared on the basis consistent with them. | | | | | | | | | | | | |Ans. |(i) |Judgmental Sampling | | | | |Advantages | | | | |Disadvantages | | | | | | | | | |As the approach is being used for many years so its well understood and refined by experience. | | | | |The auditor can bring his judgment and experience into play. | | | | |No special knowledge of statistics is required. | | | | |Time saved form non deployment of statistical methods may be spent on carrying out further audit procedures on | | | | |different areas. | | | |Saving of extra resources such as computer soft wares. | | | | |Selecting samples with large amounts facilitates greater coverage. | | | | |It is not based on any scientific technique. | | | | |N o quantitative results are obtained. | | | | |Personal bias in the selection of sample is unavoidable. | | | | |There is no real logic behind the selection of the sample or its size | | | | |The conclusion reached is usually vague. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |(ii) |Statistical Sampling | | | | |Advantages | | | | |Disadvantages | | | | | | | | | |It is based on scientific techniques | | | | |Special software is available to help efficient execution | | | | |The method is impartial and can be defended easily | | | | |It provides precise mathematical statements about probabilities of being correct | | | | |The method is efficient as the same level of confidence can be achieved with a relatively smaller sample.Overlarge | | | | |sample size are not taken | | | | |The system in different audit firms tend to become standardized | | | | |It can be used by staff at all levels | | | | |It lacks flexibility | | | | |Often several a ttributes of transactions or documents are tested at the same time | | | | |Lacks human judgement and more reliance is placed on statistical conclusion | | | | |As the technique is not always understood, false conclusions may also be drawn. | | | | | | | | | | | | | | | | |Ans. 9 |(a) |The following issues are significant in respect of the donation of Rs. 15 million: | | | | | | | | | |Donations represent 25% of the total selling and administration expenses. | | | | |Such a huge amount of donation by a company which has already incurred a loss casts serious doubts about the motive | | | | |behind such donation. | | | | | | | | |Audit procedures to address the issue may involve the following: | | | | |Obtain information about the charitable institution i. e. its name, nature, registration and reputation. | | | | |Scrutinize possibility of any relationship between the two organizations, their directors/trustees and their spouses | | | | |and relatives etc. | | | | |Verify mode o f payment i. e. cash, bearer cheque, crossed cheque etc. | | | | |Verify approval and authorization. | | | | |Assess the relevance of the donation to the nature of business of the company. | | | | | | | |(b) |Since appropriate business consideration does not seem to be involved, mere approval by the Board would not confirm | | | | |that the expenditure has been incurred for the purpose of the company’s business. | | | | | | | | | |If the auditor is unable to satisfy himself on the above issue he will have to qualify the report by: | | | | |stating the brief facts of the case. | | | | |using the â€Å"except for† type of qualification, while certifying that the business has been conducted in accordance | | | | |with the objects of the company. | | (THE END)

Marriage is a Committment to Your Spouse - 740 Words

â€Å"Love is a decision, it is a judgment, it is a promise. If love were only a feeling, there would be no basis for the promise to love each other forever. A feeling comes and it may go.â€Å"―Erich Fromm. With love and promises comes a life changing situation- marriage. So at what age is it appropriate to marry? Teenage marriage has become a subject that many people have disagreed on over the last few decades. Some say that teenagers are not mature enough to marry, while others argue that if a teenager truly loves someone they should get married. If love is a promise, are teenagers prepared to make a commitment to marry someone else? Even though teenage marriage should be discouraged, the marriage can be successful if the couple puts Jesus first. Marriage is a commitment to your spouse. It is an obligation and a promise that you will keep for a lifetime no matter how difficult it may be (Ayer 16). Matthew 19:6 says, What therefore God has joined together let not man sep arate. For this reason, marriage is far more than a human social contract; it is a divine covenant. Marriage is a permanent commitment; it is entered into by the husband and the wife before God as a witness. Because it is ultimately God who joins the couple together, the husband and the wife vow to each other till death do us part† (Kostenberger 5). This view of marriage has changed over the years- husband’s and wife’s roles, the reasons for marriage, and the amount of marriages and