Carroway Clothing Limited Essay Example for Free

Carroway Clothing Limited Essay Carroway Clothing Limited (CCL) is a Canadian-controlled private corporation (CCPC) that was incorporated 10 years ago. CCL follows accounting standards for private enterprises (ASPE). It is owned by two brothers, Chip and Charles Carroway, who started the company after identifying an opportunity to design and manufacture clothing with innovative fabric. The Carroway brothers have run the business together and have an equal stake in its equity. You are Rose Reddick, a recently graduated CGA assigned as team leader to complete the March 31, 20X3, financial statement audit of CCL. This is the second year that your firm has done CCL’s audit. The audit planning was completed in early March by Blake Mouton, another CGA in your firm, but he has recently announced he is resigning from the firm. Due to scheduling conflicts and an unusually busy season, he will be unable to continue with the remainder of the audit before he leaves, and you have been asked to take over leadership of the audit team. It is now late April, and the team under Blake’s supervision has completed about two-thirds of the audit field work. The audit is scheduled to be completed by May 15, and realizing that you have a limited amount of time to complete your work on this audit, you immediately begin your review of the work done to date and the available client background information. Client background The Carroway brothers started manufacturing athletic wear, utilizing new techniques in fabric treatments to increase the durability of the fabric. CCL’s range of products includes clothing lines for women and men. The products are, primarily athletic wear, but three years ago they added a line of soil-resistant work clothing. Tax losses have occurred in the early years, but sales have grown each year since the company was started. As sales increased, Chip hired a team of design specialists to create new clothing items with innovative features. This team was hired three years ago to begin the research and development required to bring new products to market. Chip also hired a marketing manager with a degree in fine arts to design the tags attached to each piece of clothing and develop the marketing programs. At the same time, specialized software was implemented to produce tags for the products. Because there are specific requirements for content and format of the tags, the production manager is the only individual with authorized access to the software. In July 20X2, CCL signed a contract to produce a line of athletic wear for Sports Shop, a small chain of sporting goods stores. The line of athletic wear features the chain’s logo and trademark colours. CCL ships product to these stores using a company truck. The contract specifies that Sports Shop is to pay for each shipment within 30 days of signed receipt of delivery. Recently, Sports Shop has disputed some of the amounts owing to CCL, maintaining that there is no proof of receipt of the shipment. When Chip questioned the CCL driver, the driver admitted that when he was running late with his deliveries, he simply dropped the shipment at the store counter and did not wait for the store manager’s signature. Chip has not provided an allowance for these receivables since the delivery was made even though there is no signature. In fact, CCL has never recorded an allowance in any fiscal year and has not had any issues with uncollectible accounts. The research and early stages of development of CCL’s products were financed by a combination of capital invested by the brothers, bank financing, and a government grant (see financial statements, Exhibit 1). Scientific Research  and Experimental Development (SRED) credits were received in 20X1 and 20X2 and have been reported as government grants for accounting purposes. The sales volume of the soil-resistant clothing is now great enough to assure the lenders and any potential investors that these products are commercially viable. In fact, based on the 20X1/X2 results, they expect the current product line to become a significant commercial success. The cost of developing this product line, called Walton Work Wear has been deferred and is being amortized (straight-line) at the rate of 10% per year starting in 20X2 (see Deferred Development Schedule, Exhibit 2). Original research costs for the Walton Work Wear products were expensed when incurred, net of grants and SRED credits. The prior-year audit file shows that this treatment of SRED credits is consistent with CCL’s reporting of all taxes (payable and recoverable), which have been accounted for on a current basis without regard to recognition of the future tax effects of any current transactions. During the past year, the brothers have turned their attention to a moisture management and odourreduction feature for the athletics tops. They are confident that within two years their current research will lead to a product line that keeps the sweat away from the skin and minimizes the impact of perspiration on the clothing. The preliminary prototype works effectively for the first several minutes, but the protection barrier degrades quickly and more work is required. This product line will be called Carroway Cool Top and is currently in the research stage only. The deferred development costs for this product line are $975,000. In order to finance completion of the new research and development of the Carroway Cool Top products, Chip Carroway expects to obtain a long-term bank loan for CCL. He is aware that this long-term bank loan will include a more stringent debt to equity covenant than the existing line of credit. He is also interested in the option of going public and issuing new shares to raise funds for future growth. However, Chip is concerned about the implications of losing some control over CCL so he is leaning towards remaining a CCPC. CCL’s chief financial officer, Jack Lawson, was the original office manager  and bookkeeper when CCL was first established, and although he has no professional accounting credentials, he does have a degree in business administration with a major in finance. He is responsible for the preparation of financial reports and is involved in all of the financing discussions. Jack has always been employed by companies which are private and he has no experience in the requirements of going public, so Chip will require additional information from you in order to be able to make an informed decision between the financing options available. CCL has grown rapidly over the last three years, after implementing its research and development activities. During 20X1, the implementation of the research and development department resulted in the hiring of many new employees in research and development, production, and administration. CCL would like to provide an incentive plan to these new employees, but is not in a position to provide a cash bonus. Therefore, CCL is considering a limited issue of stock options to its employees. The stock options would entitle an employee to acquire equity shares of CCL at $50 per share at any time starting six months after the date of their issue. Some employees are uncertain about the impact of the issue of stock options on their taxable income and are considering disposing of them immediately upon acquisition. Chip has recently been notified about a pending lawsuit and provided Blake with some preliminary details when he was at the office in March. Six months ago, the production process of one of the fabric treatments resulted in an accidental but illegal leak of chemicals into the environment. The local environmental agency objected to such a release of chemicals, and when their objections were ignored they filed a lawsuit against CCL, alleging that CCL was negligent in the release of the chemicals and in violation of environmental regulations. Chip is not concerned about this lawsuit since he notes that the amount of chemicals that leaked from CCL equipment was not significant, but he would like to know whether there are any other risks associated with this issue and how they should be dealt with. Review of audit findings to date The audit-planning file indicates that Blake assessed the inherent risk associated with this audit as low. The reasons for this assessment include the fact that this is the second year of the engagement and no audit or financial reporting problems have been uncovered in the past audit. Blake included a note that the design of the clothing tags is now being handled jointly with the marketing manager, who had persuaded the production manager to give her access to the specialized software while he was away from the office on vacation. During this time, the marketing manager redesigned the tags to include more marketing elements and minimized the font size of the list of additives used in the fabric treatment so that there was more room to describe the innovative features of the clothing. The newly designed tags have been on product for the past two months, and CCL has recently heard some feedback from concerned customers that the information about the additives is difficult to read. These customers have allergies to certain chemicals, so it is imperative they are aware of the chemicals used in the treatment of these fabrics. Another important factor influencing the risk assessment is that, in spite of operating losses in the past, CCL has never had serious cash flow problems, due to Jack’s careful business planning and the good relationship CCL has with its lender. CCL is experiencing growth in profits, indicating that the investment in the research and development department is paying off. The draft financial statements show positive net income and strong revenue, with a portion of this revenue being generated by the Walton Work Wear line of products in 20X3 (see Exhibit 1). Although no misstatements or errors have been documented in the work completed so far, you are not sure if this is because conclusions have not yet been drawn on most sections of the audit file. In addition to evaluating all of the evidence gathered so far, the following audit work still needs to be completed: review of the accounts in Exhibit 2; team leader review of all work done by subordinates; completion of the audit work on unrecorded liabilities, subsequent events, and contingencies; and review of the draft  tax returns. Once all of these steps have been completed and approval of the statements is received from the client, the schedule of unadjusted errors and final review of the financial statements must be completed. The file will then be ready for a final partner review before release of the audit report. You see from the files that Blake has used traditional sampling to sample small amounts of data for the audit and you are not comfortable basing your conclusions on the work done because with the increase in sales this year and the research and development activities, there is a large amount of data to audit. You are considering an appropriate alternative, such as generalized audit software. Upon examining the file, you realize that a number of financial reporting and potential tax issues have arisen this year that were not present in prior years. These issues and other new information have not been adequately addressed in the current-year audit plan. You believe that the client should be informed of your concerns regarding the current year’s issues as well as the implications of the financing options.

Psychiatrist interviewing Heathcliff :: English Literature

Psychiatrist interviewing Heathcliff Psychiatrist: Hello, my name is Dr. Patel from the university of Bombay. I am here with a man whom has been to my surgery plenty of times to ask for advice and help, his name is Heathcliff. He is here to talk about his revenge on the people of Wuthering Heights and Thrushcross Grange. So lets ask him how all this began and turned out. Hello Heathcliff, how can I help you? Heathcliff: I feel like I need to take revenge on some people that have treated me wrongly in the past. How could I refrain from doing this? Psychiatrist: Well, before I can make a judgment why don't you tell me a bit more about yourself. Heathcliff: Well, this all goes back to my childhood. I was found wondering the streets of Liverpool by a man named Mr. Earnshaw. Mr. Earnshaw already had two children by the names of Hindley and Catherine. During my time with the Earnshaw's, their son, Hindley, didn't treat me like one of the family. Hindley treated me as a slave because his father thought more of me than he did his other children. Obviously jealously was brought out of Hindley because of this. Hindley only began to treat me like this after his father had passed away because he inherited Wuthering Heights. Psychiatrist: I see, is this man Hindley the only person you feel you have to have revenge on. Heathcliff: No, there is another man by the name of Edgar Linton. The main reason I feel I need to bring revenge on this man is because he married the woman I loved. Psychiatrist: Yes, can you explain yourself a bit better about the subject? Heathcliff: During my time with the Earnshaw's I began to fall in love with their daughter, Catherine. I had loved her for a long time until one day I over-heard Catherine telling someone that she cannot marry me on account of my poor social standing. After this I left Withering Heights only to discover that she had married Edgar Linton just because he was an heir of a wealthy neighbouring family. Psychiatrist: OK, what else do you know about Edgar Linton? Heathcliff: I know that he was an heir to an estate called Thrushcross Grange. Psychiatrist: During your absence from Wuthering Heights what happened? Heathcliff: Whilst I was away from Wuthering Heights I decided that I should try to earn some money to keep me going, so I constantly read the employment page of every newspaper in England. Eventually I found an advertisement for a job as a courier, so I accepted it. I had arrived at work only to find it was a drugs courier's job.

Condoms vs Abstinence for Public School Children Essay

Rush Limbaugh’s article, â€Å"Condoms: The New Diploma,† berates the common practice of distributing condoms to school children. The iconic conservative talk show host, who is blessed with â€Å"talent on loan from God,† uses forceful, colloquial arguments and analogies to warn against the messages and possible dire consequences that public school condom distribution can impart on America’s children. He confidently and stridently argues that condom distribution in the schools is a dangerous, immoral policy that tends to minimize or ignore the many possible negative effects of sex. Whether a school-age child wears a condom or not, Limbaugh states that the child is potentially exposing himself and his partner to AIDS, other sexually transmitted diseases, and pregnancy. Rush’s arguments are sound and persuasive but some of his analogies are far-fetched and extreme, and his righteous tone and attitude may be annoying to those who disagree with him. Limbaugh passionately states his arguments using simple words, messages and analogies. His central premise, that â€Å"abstinence works every time it is tried,† is an irrefutable fact. That is, when a person engages in sexual abstinence she is certain to avoid the negative possible consequences of sex which include pregnancy and sexually transmitted diseases including the deadly AIDS virus. On the other hand, Limbaugh minimizes the fact that many school children are going to engage in sexual activities regardless of what they are taught and regardless of whether they have easy access to condoms. Limbaugh attacks what he sees as the absurd policy of using public tax dollars to purchase and distribute condoms in public schools. To demonstrate that absurdity, he uses some extreme analogies that are far-fetched and absurd themselves. These plain-spoken, simplistic analogies include providing â€Å"safe, untainted drugs every morning in home room,† and â€Å"packs of low-tar cigarettes to the students for their after-sex smoke. † He goes farther to the extreme as he advocates that public schools should â€Å"convert study halls to Safe Sex Centers,† and that these schools should also â€Å"put disease-free hookers† in these centers. These suggestions are obviously facetious, but Mr. Limbaugh employs them to harshly illuminate and expose what he sees as the wrong-headed, immoral, dangerous policy of condom distribution within schools. He thinks that condom distribution serves to condone and legitimize sexual activity among minors just as providing free illicit drugs to children would legitimize that dangerous, immoral activity. Limbaugh hammers home his point simply and starkly when he asks, â€Å"Would you knowingly have sex with anyone who has AIDS with only a condom to protect you from getting the disease? † He believes the policy of public school condom distribution, funded by taxpayers like him, promotes and legitimizes that possibly deadly scenario for young, careless children who do not care about or comprehend the long-term consequences of their casual sexual activity. But, he fails to point out that these same careless children will be more at risk of contracting AIDS or getting pregnant if they do not use a condom during sexual intercourse. His absolute views and arguments are persuasive, but his presentation is unbalanced and he might be seen by some readers as pompous and arrogant. Whether you love him or hate him, Rush Limbaugh confidently and unapologetically conveys his conservative, moral opinions on the dangers of public school condom distribution programs. He believes that this policy is â€Å"symptomatic of the larger moral decline in our societal values,† and that â€Å"free condom distribution in public schools can be a matter of life and death. † Despite some of his extreme and ridiculous analogies, Rush persuasively and emotionally advocates that sexual abstinence is the right policy for school children and that condom distribution is simply wrong and immoral.

Nursing - Critically Reflective Account of a Leadership Issue Free Essay Example, 2750 words

It should allow professionals to come together and collaborate, creating a sense of connectedness. Networks will be incorporated across organizations and institutions, and employees will need to work more flexibly to meet patients needs. There is no doubt that an open environment promotes connectivity among staff. Thus, leaders must be delegated to different levels of staff so that all the needs of the healthcare organization and its patients are met. (Andersen 2006, 129-136)In various cases, some nurses may not think of themselves as leaders since they equate leadership with authority or with specific job titles rather than as a way of thinking and behaving. Any assumption that everyone with a leader in their job title is a leader should be challenged because it implies that those who do not have such titles are not leaders and have no responsibility to lead. Leadership is not just granted to individuals. It is not about responding passively to events. Leadership is about making po ssibilities that were impossible before. Any nurse can prove that he or she has the ability to become a leader. He or she can be a leader by taking responsibility for their leadership action, instead of waiting for others to do so, and by envisioning change and making it happen. We will write a custom essay sample on Nursing - Critically Reflective Account of a Leadership Issue or any topic specifically for you Only $17.96 $11.86/page The work delegated to these leaders entails instructing the medical staff in the policies and procedures of patient care