You are the manager responsible for the audit of Aspersion, a limited liability company, which mainly provides national cargo services with a small fleet of aircraft. The draft accounts for the year ended 30 September 2001 show profit before taxation of Kshs2·7 million (2000 ñ Kshs2·2 million) and total assets of Kshs10·4 million (2000 ñ Kshs9·8 million). The following issues are outstanding and have been left for your attention:

(1) The sale of a cargo carrier to Abra, a private limited company, during the year resulted in a loss on disposal of Kshs400,000. The aircraft cost Kshs1·2 million when it was purchased in October 1992 and was being depreciated on a straight-line basis over 20 years. The minutes of the board meeting at which the sale was approved record that Aspersionís finance director, Iain Jolteon, has a 30% equity interest in Abra.                          

(2) As well as cargo carriers, Aspersion owns two light aircraft which were purchased in 1998 to provide business passenger flights to a small island under a three year service contract. It is now known that the contract will not be renewed when it expires at the end of March 2002. The aircraft, which cost Kshs450,000 each, are being depreciated over fifteen years.

(3) Deferred tax amounting to Kshs570,000 as at 30 September 2001 has been calculated relating to tangible non-current assets at a tax rate of 30% using the full provision method (IAS 12 ëIncome Taxesí).   On 1 December 2001, the government announced an increase in the corporate income tax rate to 34%. The directors are proposing to adjust the draft accounts for the further liability arising.                                                                 

Required:

For each of the above points:

(i) Comment on the matters that you should consider; and

(ii) State the audit evidence that you should expect to find, in undertaking your review of the audit working papers and financial statements of Aspersion.                   

Summary: CASE REVIEW ON COMMERCIAL COMPANIES A commercial company is a legal entity established under a contract by two or more persons each of whom undertakes to participate in an enterprise for profit, by contributing a share of the capital in the form of tangible or intangible property, services or labour, with a view to sharing any profit or loss resulting from the enterprise. Mr. Ahmed, Abdulrahman and Abdullah are Omani citizens, friends and graduate of MCBS. They are from royal families and they love playing computer game, soccer and golf. They joined the college in 1999 and graduated in 2002. After their graduation they travelled to the United Kingdom for greener pasture. Ahmed is married with three children, Abdulrahman with four children and Abdullah with six children. While in the UK, they support Manchester United Football Club and they always watch all their games. In 2010, they decided to come back home and start a company. After some preliminary discussion, they decided to register a Company Limited by shares with a share capital of one million Omani Riyal. In their contract, they were so confident that based on their experience and exposure, they are certainly going to make profit. They therefore agreed on a profit-sharing formula of fifty percent for Ahmed, thirty percent for Abdulrahman and twenty percent for Abdullah. Unfortunately, the business did not go as planned and they made huge loses of ten million Omani Riyal. Abdulrahman being the eldest has informed others that since he has four children and he is paying tuition for them in a private secondary school which is very expensive and couple with the fact that his wife is pregnant with set of triplets and they will need money to take care of their family expenses, he will not be able to contribute to the loss of the company. Ahmed and Abdullah have disagreed with him.

Question 1 a. Using FILAC method, raise and discuss one legal issue from the fact pattern. 25 Marks b. Would your answer in (a) be different if parties never agreed on the profit-sharing formula?

Fenwick, the internal auditor for Discount Department Stores, hated traveling but since he covered all 14 discount stores in his district, he was on the road constantly. This time he was in Grapevine, Texas. Located near the end of Dallas/ Fort Worth International Airport runways, the Grapevine’s store windows shook every few minutes as each jet lumbered into the air.

It was evening and the store was empty except for the piles of financial records surrounding him. The Grapevine operation had lost money for three straight years, had closed the previous month, and its remaining inventory had been divided among other locations. Fenwick's instructions were clear: Find out what went wrong? He was about to reach for his last steaming cup of coffee—filled to the brim— when a jolt from yet another jet, the loudest of the day, spilled his coffee. This, in turn soaked the bank slips on his desk.

Fenwick got up and spread the dozen or so deposit slips on the carpet to dry. He then cleared the rest of the mess and returned his attention to the stained papers on the floor. He stacked the slips one by one, glancing at them casually. After looking at just a few, he spotted a distinct abnormality.

Fenwick had been around the other stores enough to know that currency and other checks represented about half the money going into their bank accounts; credit card deposits made up the rest. However, the documents in his hands were a different mix—three quarters credit card, one quarter cash. Also, Fenwick spotted a refund of exactly $300 on one day’s tape and a refund of $400 on the next day’s tape (Wells, 2002).

Required: Discuss in detail at least three missing internal controls, the reasons why these controls are important, and a remedy to avoid future fraud in the case of Discount Department Stores.

Understanding Ethnocentrism and Cultural Relativism

Ethnocentrism is the tendency of people to put their own culture at the center, and to use their cultural standards to judge the behavior and beliefs of people of different cultures. People who are ethnocentric believe their cultural beliefs are morally correct and others are morally questionable. They often become so deeply engrossed in their culture that other cultures and the people in them become unimportant. To some degree all people are ethnocentric. It is a natural tendency for each of us to believe that our cultural beliefs are the best. However, ethnocentrism prevents us from becoming culturally competent and responsive to others who share differing cultural beliefs, traditions, practices, and affiliations.

The opposite of ethnocentrism is Cultural Relativism. Cultural relativism is the view that the behavior in one culture should not be judged by the standards of another. The goal of cultural relativism is to be objective and sensitive to diverse cultures without ignoring international standards of justice and morality (Kottak & Kozaitis, 2002). The key to eliminating ethnocentrism is to first acknowledge that one is ethnocentric. Becoming more culturally relative can be achieved by recognizing the attitudes and beliefs related to ethnocentrism and then working to dispel them.

Please answer the following questions and post your answers to Blackboard.

1. How does ethnocentrism develop?

2. Did you recognize your own ethnocentric beliefs and attitudes?

3. Do people within the same culture always share the same attitudes and beliefs? If yes, why? If no why not? • Is anyone culture really better than another?

4. Are there any dangers to ethnocentric attitudes in a world that is becoming more diverse? If yes, what are the dangers?

5. How can ethnocentric beliefs and attitudes become more culturally relative?

6. What are things you can do in your life today to become more culturally relative?

7. Do you think your family and friends might resist your becoming more culturally relative, if yes, why? If no, why not?

Solve problem (P4.2) from the textbook using the following data instead of the data given in the textbook. Solve only requirements under a, b and c. Show your assumptions and consequent calculations on how you catered for the fact that 1997 means first half of the year and 1997.5 means in the second half of the year; without such initial, your solution will not be considered as your own.   (Hint: you may use Excel or any software to conduct linear regression/linear curve fitting. Note also that ‘condition’ should be related to age and not the date).

Show the details of your ‘software’ analysis and calculations.

This is the book Q :

Appearing below is a series of roof inspection condition summaries, where 1 is excellent and 5 is poor. Note that an inspection 1997.5 occurred in the second six months of 1997, whereas 1997 occurred in the first six months of 1997. The roof was replaced in 1985. Answer the questions below. You might use software aids, such as EXCEL or MATLAB, for this problem.
65

a. Estimate an ordinary least squares regression deterioration model of the form: Condition = a + b(age) where age is the age of the roof in years. Report your parameter estimates, standard errors, t-statistics and R^2 values. Note that there is a gap in the data from 1985 to 1996! b. Suppose I have a comparable roof that is 12 years old. What would your regression model in (a) predict for its condition? What would it predict for age 18? At what age is condition expected to become 5? c. Plot the data and your regression line.

course: Infrastructure managment

• Check My Work

CH12

1. With double-digit annual percentage increases in the cost of health insurance, more and more workers are likely to lack health insurance coverage (USA Today, January 23, 2004). The following sample data provide a comparison of workers with and without health insurance coverage for small, medium, and large companies. For the purposes of this study, small companies are companies that have fewer than 100 employees. Medium companies have 100 to 999 employees, and large companies have 1000 or more employees. Sample data are reported for 50 employees of small companies, 75 employees of medium companies, and 100 employees of large companies.

1. Conduct a test of independence to determine whether employee health insurance coverage is independent of the size of the company. Use  = .05. Use Table 12.4.
   
   Compute the value of the  ² test statistic (to 2 decimals).
   
   
   The p value is ?
   
   
   
2. The USA Today article indicated employees of small companies are more likely to lack health insurance coverage. Calculate the percentages of employees without health insurance based on company size (to the nearest whole number).
   

   Small	%
   Medium	%
   Large	%

   SMALL ? , MEDIUM? LARGE ?

2.

During the first 13 weeks of the television season, the Saturday evening 8:00 P.M. to 9:00 P.M. audience proportions were recorded as ABC 30%, CBS 27%, NBC 25%, and independents 18%. A sample of 300 homes two weeks after a Saturday night schedule revision yielded the following viewing audience data: ABC 93 homes, CBS 63 homes, NBC 88 homes, and independents 56 homes. Test with  = .05 to determine whether the viewing audience proportions changed. Use Table 12.4.

Round your answers to two decimal places.

χ ² = ??

Your elder brother Kazim has been hired as CFO in Sohar Power Company SAOG. Sohar Power
company SAOG owns and operates the largest power generation and water desalination plant in
the Sultanate. Sohar Power is incorporated in 2004. Since then, the company has built and owns
the 585 MW electricity generation and 33 MIGD seawater desalination plant. Sohar Power has a
history of research and development in the field of power generation and water purification. It has
a long established policy for the treatment of expenditure on research and development, on which
it spends huge amount annually.
Recently, Kazim becomes aware that an investment of OMR 100,000 which was made last year
for research and development programme, has not been properly evaluated. Although in aggregate
OMR 1 million has been spent, but Kazim thinks that the criteria for the investment was not fair
and clear. The director for the research committee did not assess properly and the output of the
investment was poor. Kazim enquires Mr. Abid, the director of research committee to justify the
investment. Abid replies by saying that they will satisfy the auditors in any way.
However, the financial year end is only two months away and OMR 1 million in write-off at this
late stage in the financial year would cause Kazim and his team in difficulties. The company has
to finalize the year-end report. Kazim called the meeting of directors and discussed the issue.
During the meeting they have serious reservations on research committee. One of the directors
suggested that this amount will be considered as an asset and it will be presented on the financial
statement for this year and it would be write off in the next financial year.
a. In your opinion, what decisions will be taken by Kazim to satisfy the auditors and board of
directors of the company? How this transaction would be reflected on financial statement of Sohar
Power?
b. Abid, working on a high position in a company thinks that auditors can be satisfied in an
unethical manner. How could such an unethical behavior be a learning experience for the rest of
the employees? In your opinion, who is to be blamed for this incident in Sohar Power and why?

Statistics for Nursing Research 3rd edition Grove and Cipher

A randomized experimental study examined the impact of a special type of vocational rehabilitation on employment variables among spinal-cord injured veterans, in which post-treatment wages and hours worked were examined (Ottomanelli, Goetz, Suris, McGeough, Sinnott, Toscano, Barnett, Cipher, Lind, Dixon, Holmes, Kerrigan, & Thomas, 2012). Participants were randomized to receive supported employment or treatment as usual (“Control”). Supported employment refers to a type of specialized interdisciplinary vocational rehabilitation designed to help people with disabilities obtain and maintain community-based competitive employment in their chosen occupation (Bond, 2004).

A subset of simulated data from this study are presented in HW5.sav. The independent variable in this example is treatment group (Supported Employment Vocational Rehabilitation Versus Control), and the dependent variable was the amount of weekly wages earned post-treatment. The null hypothesis is “There is no difference between the treatment and control groups in post-treatment weekly wages earned among veterans with spinal cord injuries.”

1.Compute an independent samples t-test using “Group” as the independent variable and “Wages” as the dependent variable. List the numerator value. Hint: No hand calculations are required for Q1 and 2. The values are found in the output.

2.List the denominator value.

Data from excel:

column 1:

"ID"

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Column 2

"Group"

0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
1
1
1
1
1

"wages"

$75
$70
$125
$140
$200
$165
$149
$75
$150
$135
$200
$225
$157
$165
$330
$210
$330
$290
$250
$170

Your elder brother Kazim has been hired as CFO in Sohar Power Company SAOG. Sohar Power
company SAOG owns and operates the largest power generation and water desalination plant in
the Sultanate. Sohar Power is incorporated in 2004. Since then, the company has built and owns
the 585 MW electricity generation and 33 MIGD seawater desalination plant. Sohar Power has a
history of research and development in the field of power generation and water purification. It has
a long established policy for the treatment of expenditure on research and development, on which
it spends huge amount annually.
Recently, Kazim becomes aware that an investment of OMR 100,000 which was made last year
for research and development programme, has not been properly evaluated. Although in aggregate
OMR 1 million has been spent, but Kazim thinks that the criteria for the investment was not fair
and clear. The director for the research committee did not assess properly and the output of the
investment was poor. Kazim enquires Mr. Abid, the director of research committee to justify the
investment. Abid replies by saying that they will satisfy the auditors in any way.
However, the financial year end is only two months away and OMR 1 million in write-off at this
late stage in the financial year would cause Kazim and his team in difficulties. The company has
to finalize the year-end report. Kazim called the meeting of directors and discussed the issue.
During the meeting they have serious reservations on research committee. One of the directors
suggested that this amount will be considered as an asset and it will be presented on the financial
statement for this year and it would be write off in the next financial year.
a. In your opinion, what decisions will be taken by Kazim to satisfy the auditors and board of
directors of the company? How this transaction would be reflected on financial statement of Sohar
Power?
b. Abid, working on a high position in a company thinks that auditors can be satisfied in an
unethical manner. How could such an unethical behavior be a learning experience for the rest of
the employees? In your opinion, who is to be blamed for this incident in Sohar Power and why?