Scenario:

Your town identifies G-A-Y men at risk of HIV infection and forms a committee to help them. You are a member of this committee.

Answer the following questions – in the order given.

1. Why is this group at risk in the US? Give statistics and research to support your answer.
2. What arguments might the townspeople put up against providing assistance to this group? Give counter arguments to explain why it is a good idea to help them.
3. What are the key HIV prevention messages your committee would give to the identified group and how might you deliver them? [I.e. how would you get the messages to this community in a way they can trust, understand and relate to?] Try to find examples of other programs that have been successful with this group.
4. Is there anything you could do now as a university student to help HIV prevention in the group you have identified as at risk?

CT7.2 Ermler & Trump is a wholesaler of small appliances and parts. Ermler & Trump is operated by two owners, Jack Ermler and Andrea Trump. In addition, the company has one employee, a repair specialist, who is on a fixed salary. Revenues are earned through the sale of appliances to retailers (approximately 75% of total revenues), appliance parts to do-it-yourselfers (10%), and the repair of appliances brought to the store (15%). Appliance sales are made on both a credit and cash basis. Customers are billed on prenumbered sales invoices. Credit terms are always net/30 days. All parts sales and repair work are cash only.

Merchandise is purchased on account from the manufacturers of both the appliances and the parts. Practically all suppliers offer cash discounts for prompt payments, and it is company policy to take all discounts. Most cash payments are made by check. Checks are most frequently issued to suppliers, to trucking companies for freight on merchandise purchases, and to newspapers, radio, and TV stations for advertising. All advertising bills are paid as received. Jack and Andrea each make a monthly drawing in cash for personal living expenses. The salaried repairman is paid twice monthly. Ermler & Trump currently has a manual accounting system.

Instructions

With the class divided into groups, answer the following.

a. Identify the special journals that Ermler & Trump should have in its manual accounting system. List the column headings appropriate for each of the special journals.

b. What control and subsidiary accounts should be included in Ermler & Trump's manual accounting system? Why?

Company A and Company B are both wholly owned subsidiaries of Parent, Inc. Parent has no other operations, balance sheet items or income statement items other than its ownership of Company 1 (located in China) and Company 2 (located in US). Company 2 periodically sells goods to Company 1 for resale to end customers. Such goods are sold at the same pricing terms that Company 2 sells to all other customers. Prior to January 1, 2018, there had never been any inventory sales from Company 1 to Company 2 or from Company 2 to Company 1. The following is data for each company for 2018 and 2019:

Company 1 Company 2

     Year ended 12/31/18

Sales to all customers $300 million $150 million

Costs of sales $150 million $100 million

All other non production expenses $ 60 million $ 40 million

Pre tax income $ 90 million $ 10 million

Inventory purchased from Company 1 held

By Company 2 at end of year NONE

Inventory purchased from Company 2 held

By Company 1 at end of year $15 million

    Year ended 12/31/19

Sales to all customers $280 million $160 million

Costs of sales $140 million $120 million

All other non production expenses $ 60 million $ 30 million

Pretax income $ 80 million $ 10 million

Inventory purchased from Company 1 held

By Company 2 at end of year NONE

Inventory purchased from Company 2 held

By Company 1 at end of year $16 million

What would consolidated pretax income be for Parent for 2018 and 2019

Company A and Company B are both wholly owned subsidiaries of Parent, Inc. Parent has no other operations, balance sheet items or income statement items other than its ownership of Company 1 (located in China) and Company 2 (located in US). Company 2 periodically sells goods to Company 1 for resale to end customers. Such goods are sold at the same pricing terms that Company 2 sells to all other customers. Prior to January 1, 2018, there had never been any inventory sales from Company 1 to Company 2 or from Company 2 to Company 1. The following is data for each company for 2018 and 2019:

Company 1 Company 2

     Year ended 12/31/18

Sales to all customers $300 million $150 million

Costs of sales $150 million $100 million

All other non production expenses $ 60 million $ 40 million

Pre tax income $ 90 million $ 10 million

Inventory purchased from Company 1 held

By Company 2 at end of year NONE

Inventory purchased from Company 2 held

By Company 1 at end of year $15 million

    Year ended 12/31/19

Sales to all customers $280 million $160 million

Costs of sales $140 million $120 million

All other non production expenses $ 60 million $ 30 million

Pretax income $ 80 million $ 10 million

Inventory purchased from Company 1 held

By Company 2 at end of year NONE

Inventory purchased from Company 2 held

By Company 1 at end of year $16 million

What would consolidated pretax income be for Parent for 2018 and 2019

Founded in April 1996, Antheus Tecnologia develops and distributes Automated Fingerprint Identification Systems (AFIS), automated fingerprinting, and other systems such as iris recognition devices. Antheus Tecnologia also claims that it is the first Brazilian company to be certified by the US Federal Bureau of Investigation (FBI) and develops biometric solutions for domestic and overseas clients. In March 2020, the security research team at SafetyDetectives discovered a significant data leak in addition to other security flaws (such as lack of password protection) relating to fingerprint data on an Antheus log server in Brazil. The research team discovered almost 2.3 million data points in total and estimated that 76,000 unique fingerprints were found on the database. Approximately 16 gigabytes of data were found on the Elasticsearch server including highly sensitive information related to identification and biometric details. The Antheus server investigated by the security team is an identity server, which means it gives users access to the system or the ability to register as a new user. It also had fingerprint information in at least two “indices” from a total of 91. The Antheus server stored server and API access logs but also contained fingerprint data comprising of Ridge Bifurcation and Ridge ending – essential components for identifying and verifying fingerprints. In addition to fingerprint information, there were also instances of biometric data vulnerabilities, such as face recognition data being accessible and retrievable from the database. In parallel to the biometric data breach, Antheus Tecnologia also had another related vulnerability which was noticed during the investigation. The company provides services to a national Civil Identification System in Brazil used to issue driving licenses although the access portal used for on-boarding new users was also not secure because of the lack of password protection. Furthermore, user data, administrator login information, several employee email addresses and phone numbers were also found. According to the SafetyDetectives research team, the practice of allowing access to server data in such a way is rather unusual. This methodology generally leaves the server MN502 - Overview of Network Security - Final Assessment Trimester 2, 2020 Page 8 of 15 exposed, but this could have been done purposefully. If so, it’s a rather strange option to take when it comes to ensuring security. SafetyDetectives security team found two indices, potentially referring to two different companies using the Antheus server to store personal information including fingerprint data. Moreover, the investigation team found data logs relating to precise fingerprint scans that could be reconstructed from the index numbers stored on the Antheus server. Moreover, it could be possible to recreate (or reverse-engineer) a biometric image map for a particular fingerprint from strings of data found on the server. According to the research finding of the SafetyDetectives security team, nefarious users can access the Antheus server and after extracting the available data, could use the data stream of ones and zeros to recreate the full biometric image of someone’s fingerprint.

For each of the following, evaluate if it is a good argument. Provide reasons for why or why not.

16. Tax. Jane is doing an income tax return. There are two different methods of determining some revenues. If method A is used her taxable income will be $50,000. If method B is used, her taxable income will be $56,000. Jane thinks that she better chooses method A.

17. Taxi driver. King is a taxi driver working for a yellow cab company in a developing country. Mostly, the drivers take cash and receipts are not issued. Only King knows how much revenue is generated from fares. King’s wage is 30% of the reported fare revenue. Whatever revenue he reports, he has to turn in that amount to the company first. To maximize his wages, King believes that he wants to over-report the fare revenue to the company.        

18. Saved money? We were looking for a three bedroom house. We were three people. Our budget was $ $240,000 ($80,000 per bedroom). We actually paid $220,000 for a three bedroom house. Soon after, one of us left for another state, and one bedroom is empty.   We saved $20,000, and it is good news for us.

QUESTION

Enron was an American energy company based in Houston, Texas. Enron scandal which was revealed in 2001 has resulted in the dissolution of the Arthur Andersen. Arthur Andersen was one of the Big 5 audit firm at that time. Enron was seen as the biggest audit failure.

World.com was an American telecommunications company. It was the second largest long distance phone company in the US. In 2002 WorldCom submitted the largest bankruptcy filing in the US history. The WorldCom scandal cost 30 000 employees their jobs and cost investors $180 billion. Arthur Andersen was WorldCom's auditor during the five financial quarters in question.

Required:

a)Provide detail explanation of the factors that have affected the incidence of lawsuits against CPA in recent years .                                                                                                                                                                          

b) The Enron and WorldCom bankruptcy was due to accounting fraud. Provide a background research on these two companies and describe the nature of accounting fraud that was committed by the two companies.                     

c) What are the business risks faced by these two companies, and how did those risks increase the likelihood of material misstatements in their financial statements?                                                    

d) A perceived lack of integrity caused irreparable damage to Arthur Andersen. How can you apply the principles learned in this case personally? How are CPA firms different from other professionals?                                                                                                                                                                                                                    

Case Study on Managing an Investment Portfolio

As a recently hired CFA financial analyst for Horizon Investments you have been asked to make portfolio recommendation and setup an investment policy statement for three clients of the firm.

1) John Lambert has recently received his MBA and currently works for Oracle. He is 26 and recently married. He and hid wife have saved nearly $100,000 for a down payment on a home. He contributes 10% of his salary to a 401K and Oracle provides a 10% match.   The investments are made in mutual funds run by Fidelity Investment. The 401K offered by Oracle has access to all of the funds offered by Fidelity. John Lambert needs to have a detailed investment plan set up for his 401K including the name of the funds and percentage of portfolio to be invested in the funds.

2) Elizabeth Yeo, aged 60, is managing director of USX and plans to retire in one year. Yeo will receive a lump sum severance payment of $500,000 from the company and plans to close out her company 401K which is entirely invested in USX stock where she has currently about 35,00 shares. Yeo is widowed and has a son who is married and who has a high-level position at an investment bank. Yeo maintains a money market fund currently value at $1.1 million and earns about 1.2% annually. She has a home, zero mortgage, currently valued at about $1 million and plans to continue living there. She also plans to begin to collect social security at the age of 62. Her living expenses, including maintaining the home, are about $80,000 a year. Her living expenses are expected to grow at an annual rate of 3 percent throughout her retirement period, which is expected to be 25 years given her family’s mortality history. You are requested to prepare an investment policy statement for Yeo and make some investment recommendations.    

3) Christopher Maclin, aged 40 is a supervisor at Barnett Co. and earns an annual salary of $100,000. Louise Maclin, aged 38, stays home to care for their newborn twins. She recently inherited $1.3 million (after taxes) in cash from her father’s estate. In addition, the Maclins have $20,000 in cash and $150,000 in Barnett common stock. They are unhappy about portfolio volatility and do not want to suffer a loss of more than 12% in one year. They recently purchased a new home. They need sufficient funds to fund their children’s college education and Christopher plans to retirement at age 65. Christopher is not very knowledgeable about finance but read that small cap and emerging market stocks provide the highest return over the long run. He plans to invest 50% of the inherited money in a small cap fund and the other in an emerging market fund. His wife is concerned about the decision. She requested Horizon review her husband’s decision and, if needed, provide an alternative investment strategy.

Congratulations! You have graduated Chamberlain University and have been working as a nurse for one year. On your next shift, you are tasked with taking care of a 75-year-old woman who is suffering from dementia. She is under your care and has been recently diagnosed with depression and generalized anxiety disorder. Her family comes to visit her often and expresses to you that they are worried about her overall health and have been overly stressed making sure she gets the proper care she needs. The family has also stated that they believe the recent hospitalization is contributing to her stress.

Answer the following questions based on the scenario described above:

• Discuss two to three major theories or concepts that you have learned throughout the course and apply them to the case. Creativity in application is encouraged!
• As a future nurse, how will having an understanding of psychological principles help you in the workplace, with patients and co-workers?