Should Children Be Allowed Essay Example for Free

Should Children Be Allowed Essay Should children be allowed to use mobile phones at school I believe that mobile phones should be allowed to be used at school at either before school, after school and during the luch breaks. Children should not use mobile phones in the classroom as that is the time and place to learn not to go on your phone. At luch time and recess children should be allowed to use their mobile phones because thay should be able to enjoy their break and eat their food happily and freely. I agree that mobile phones should not be used in the classroom, because if children were using their mobile phones in the classroom where they should be learning, their attention from their school work could drift off, therefore they would not know what to do in their studies leading to them failing their subjects and not succeeding at school. Also the teacher would get inturrupted by the phones noises causing her not to be able to concentrate on teaching the little amount of people who are not using their phones and trying to learn But I also think that children should be allowed to use their mobile phones during their luch breaks, before and after school as they are supposed to be resting and enjoying those times of the day as those are the only times they are allowed to rest during school hours, so they should spend that time efficiently by enjoying their time however they desire. I honesly do not see any reasons why children are not allowed to use their phones during these times unless they do not violate any other school rules whilst doing so. This being said I agree and disagree on the the statement â€Å"childlren should be allowed to use mobile phones at school. I agree by saying that they should be used during their lunch breaks, before and after school and I disagree by saying that they should not be used in the classroom, the place top learn.

The Meanings Of A Racist Word English Language Essay

The Meanings Of A Racist Word English Language Essay In the essay The Meanings of the Word, Gloria Naylor discusses the essence of the word nigger and how it can mean many different things to different people in an endless list of situations. Depending on the individuals race, social status, gender, and age Naylor outlines how a word such as nigger can have different meanings within ones own environment. Naylor discusses how one word can go from having a positive to a negative effect merely due to how it is spoken and by whom. Naylor shares a personal experience with her readers as she describes the very first time she really heard the word nigger. A young white boy in her third grade class spit in her face. Naylor states, I didnt know what a nigger was, but I knew that whatever it meant, it was something he shouldnt have called me. (Naylor 109) Naylor writes about her own personal experiences clearly showing she is prejudice about how and when the word is acceptable. Even though her experiences are powerful, they can also be seen as a limited view of the subject. Her readers can only understand the situation through her eyes and her experiences. Naylor is trying to educate her readers by sharing her personal experiences. I think she wants her readers to sit and think about the words they use, how others may use them, and how those words affect others around them. Naylor wants her readers to understand how deeply she was affected by a young boy but also by how she didnt really think about the word nigger until the moment is was used in a hurtful manner towards her. Her main objective is to make her readers think about the words they choose to use and hear and how the context of these words is embedded in can change the meaning of them. To be a part of Naylors target audience one must have had experience with language and how people use it. She is targeting those who have heard or used the word nigger before. Naylor wants her readers to take on her experience and be empathetic towards her feelings. She does not do this in a pathetic way, as Naylor seeks no pity from anyone. She outlines in detail her experience and wants her readers to understand her views and how they came to be. Naylor assumes the role of a teacher in her writing. She assumes a person of a young girl experiencing a new way of understanding a word. Naylor wants her readers to understand how important the context in which one word is used, so she writes about her own personal experience, of which she is the sole authority. Naylor assumes a straight forward tone in her writing. She does not demand or point her fingers at any one group of people. She simply relays her experience in such a way that you cant help but to think about what it must have bee n like for her as a young girl experiencing a new meaning of a word in such a racial way. She does not take on a superior or subordinate tone; rather it is like she is having a conversation with her readers as her peers. I find this very powerful because she achieves what she wants is a very subtle manner. Naylor does not lecture or blame anyone; she is simply sharing her experiences. The introduction of The Meanings of a Word, is a frame for the rest of the writing to fill. Naylor discusses how language is the subject of her writing, and although the written word is what has kept her going throughout her life she still feels that the written word is inferior to the spoken word. Her arguments in the introduction of her writing are clear and easily understood. She is portraying just how powerful she feels the spoken word can be. Naylor states, Dialogue achieves its power in the dynamics of a fleeting moment of sight, sound, smell and touch. (Naylor 108) This helps the readers understand the power of a spoken word such as nigger. Naylors position is that words either written or spoken do not take on meaning until a consensus assigns one. Naylor states, Words themselves are innocuous; it is the consensus that gives them true power. (Naylor 109) As a writer Naylor feels that the spoken word has a greater impact than the written word by stating, à ¢Ã¢â€š ¬Ã‚ ¦much of the frustration experienced by novelists in the awareness that whatever we manage to capture in even the most transcendent passages falls far short of the richness of life. (Naylor 108) She introduces her readers to just how powerful the spoken word can be which is what the rest of the piece emphasizes. Naylor uses chronological organization in writing The Meanings of a Word. She starts with a childhood experience and then transitions into how her thoughts on the word nigger evolved into what they are today. In her conclusion Naylor sums her point of view up nicely. She wants to bring awareness to how words can take on different meanings depending on how, when and by whom they are used. She gives an example of how one word can take on an entirely new meaning and the fact that one may not really hear a word or take notice of it until it takes on that new meaning by stating, There must have been dozens of times that the word nigger was spoken in front of me before I reached third grade. But I didnt hear it until it was said by a small pair of lips that had already learned it could be a way to humiliate me. (Naylor 111) Naylor creates a conversational atmosphere where she puts her ideas together nicely in chronological order. She seems to develop a smooth relationship between her ideas in this way. Naylor uses personal experiences as her evidence. She uses conversational a tone that goes together nicely with the readers. My reason for saying this is because Naylor draws her readers in and t hey can easily understand and accept her experiences. Naylor uses her experiences to serve as an example and to offer credibility. The readers are drawn in by her experiences as a young girl, and her evolution of understanding. Naylor makes her readers think about what it would be like to really hear a word for the very first time, to look back and realize you had heard the word many times in a different context. The language used by Naylor is commonly used. She does not use big words that people do not understand or have to search for in the dictionary. She writes in a low style that is effective for her argument. This use of language brings to mind a seemingly friendly relationship with her readers, like she is sitting down with you sipping on a cup of tea discussing how context can change your understanding of a word. She is sharing a vital part of her life and experiences with the readers in order to make you aware and understand her argument.

Tax on Negative Externality

Tax on Negative Externality In the free market nowadays, allocating the scarce of resource and allow the market to forces supply and demand to set prices is the very view of the government. Therefore, protect property right, maintain the value of the currency had become the role of the government. Improvements in allocative, dynamic efficiency and productive are often deliver by the competitive markets. The erosions for policy intervention are mainly to correct for market failure, attain a more equitable distribution of income and wealth to enhance the achievement of the economy. There are many methods the intervention can take place. For example are the laws on minimum age for buying cigarettes and alcohol. The government appointed utility regulators who may levied taxation on certain goods. Per-unit tax can be defined as a fixed amount for each unit of good and service sold. Per-unit taxes are often imposed on specific goods, services or markets such as non-alcoholic beverages, gasoline, alcohol and cigarettes for particular reasons. An ordinary reason is to advocate the allocation effect. This means that the government discourage the production, consumption or exchange of the specific merchandise. Non-alcoholic beverages, gasoline, alcohol and cigarettes are also known as excise tax. Excise tax can be deliberate as an indirect form of taxation. This is because the government indirectly apply the tax to the consumer. This tax is normally passed on the consumer as the normal cost of doing business. For example, if a bottle of wine costs $10. It may have a specific excise tax imposed onto it which is $2. This additional cost of the wine would be levied onto the consumer, making the market price to be at $12 for per bottle of wine. Government imposed a tax onto it is because alcohol is bad for our health. Therefore, a tax levied onto it may reduce the consumption of some consumer. Taxes are kind of a significant sources of revenue for government. On the other hand, taxes would decrease the supply curve and demand curve in the market because sellers obtain less revenue for their product and buyers would need to pay a higher price for the goods they want. Occasionally, government will try to reduce the burden of the tax for sellers and buyers due to a high exes for sellers or buyers if the government set the tax for only one of them. For example, the federal government does with the payroll tax. The government require both of the labors and firms to pay half of the taxes. The rationale behind why governments would want to impose a per-unit tax on buyer or seller of certain goods. Firstly, let’s say about excise taxation. Excise is a taxation which is enforced to a narrow base of goods and services which are seen to have harm associated with their expenditure, such as tobacco, alcohol, fuel, motor vehicles, and in some other countries to wider the range of products. For example soft drinks, coffee and tea. Government use such goods taxes to achieve multiple objectives. And also excise tax are used by government to generate revenues. For the most common example, tobacco, government impose three types of tax on tobacco. One of the types is excise tax. While government enforce a wide diversity of taxes on tobacco products, it is the unique taxes to tobacco products called tobacco excise taxes that straight away effects the comparative prices of tobacco products. Therefore, it has an extreme control on tobacco use. As evidence, governments using a higher tobacco taxes as a means to discourage its use after it has assembled about the health and economic consequences. Historically the elementary objective of tobacco taxes has been revenue generation. Furthermore, non-alcoholic beverage is also one of the common example for governments would want to impose taxes on this goods such as sugar-sweetened beverage (SSB). The rate of the sugar-sweetened beverage among adults and children are constantly increasing in United States. Take more sugar-sweetened beverage could cause heart disease, diabetes, obesity and also dental decay. To raise the obesity prevention and to reduce the ingestion of sugar-sweetened beverage in United States, the American Public Health Association should have to support the government and federal in impose an excise tax on sugar-sweetened beverage and it would raise the price of all the sugar-sweetened beverage in the States. After a research, it shown that sugar-sweetened beverage are price elastic. It is probable that if government raise the beverage price by 10% would decrease the intake of sugar-sweetened beverage by 10% as well. However, reduce in intaking of sugar-sweetened beverage, tobacco, alcohol and others unhealthy products is likely only if the consumer aware of the prices increases before they pay. So government are preferred able to impose excise tax than a sales tax. An excise tax are impose on the beverage manufacturing which will straight away pass the cost to customers so that they would aware of the price increases. Excise taxes is a kind of taxes on particular products only. This elastic demand pushed the tax burden on the sellers instead of buyers. Nevertheless, there are some goods which demand is inelastic because there are no good that is close substitutes, such as alcohol and tobacco. In conclusion of excise tax, the tax burden for his few goods falls more on the buyers than the sellers. Elasticity is a measure of responsiveness of quantity demanded or quantity supplied to a change in one of its determinants. Price elasticity of Demand is a measure of responsiveness of quantity demanded towards changes in price. Many products are subject to taxes. For example, goods such as tobacco, alcohol, and fuel. Here we see the consequences of indirect taxes on costs and the significant of price elasticity of demand in that determines the effects of a tax on price and quantity. Tax increases the costs of a business causing the supply curve to shift left or decreases. The distance between the original supply curve and the after tax supply curve shows the per unit tax. With an indirect tax, the supplier can pass on some or all of the tax to the consumer by increasing the price of the good. This depends on the elasticity of demand and supply and it is known as shifting the burden of the tax and In the diagram on the left, the demand curve shows that the price is elastic. This makes the producer bear more of the tax burden. When the demand is elastic, the effect of tax is to raise the price however there will be a big reduction in equilibrium quantity. The quantity decreases from Q1 to Q2 as shown in the diagram in the left. In the diagram on the right, the demand curve shows that the price is inelastic. Price elastic demand is more than one in most parts of the demand curve. The producer is then able to pass on most of the tax to the consumer by increasing the price without losing too much sales because when a good is inelastic, the consumer still has to buy although the price increases. This is shown in the diagram on the right when price increases by a lot, the quantity demanded only decreases by a little. Price elasticity of Demand, in combination with Price elasticity of Supply, can be used to find the incidence or burden of a per-unit tax is falling or to foresee where it will fall if the tax is levied. For example, when demand is perfectly inelastic, that means that consumers need the good and that the good is a necessity, so the quantity demanded remains consistent. Suppliers usually will increase the price by the full amount of the tax, and then the consumer will bare the full amount of tax. But when demand is perfectly elastic, that means there are other substitutes for the consumer or they can buy it cheaper somewhere else, this causes consumers to stop buying the good or service in question completely. Therefore, firms cannot pass the tax at all by raising prices, so they will have to pay for the tax themselves. In conclusion, many products are subject to taxes. With an indirect tax, the supplier can shift the burden of the tax to the consumer by increasing the price of the good. When the price is elastic the producer will bear more of the tax burden. When the price is inelastic. Price elastic demand is more than one in most parts of the demand curve. The producer can pass on most of the tax to the consumer by increasing the price without losing too much sales because when a good is inelastic, the consumer still has to buy although the price increases. We now know that price elasticity of demand can be used to find the incidence or burden of a per-unit tax is falling or to predict where it will fall if there is tax. There are different kind of tax charge is different country but there do have some similar benefit. As we should know, no one lives in isolation, tax benefit to everyone do not matter to the size of income. In Malaysia, more than 20 million car and citizen and benefit the travel on a public highway as some of the tax collected was use for road built, local road fund, maintained and more. Beside public used by citizen, New Mexico government provide education by using tax collected. Children in New Mexico benefit more than 47% which attend public school. The cause of government in New Mexico by giving such amount of tax on education is because it benefit the country in the future with more educated person. Besides that, student which attend college and university in New Mexico benefit 17% of the tax collected to help decreasing unemployment in the future by providing college graduates qualify for a job or even a better job. Children in Malaysia do have the same benefit on attend public school with free charge of education. Besides that, many people pay insurance or security for safety on their own as safety is very important to everyone. Therefore, citizen in New Mexico had an advantage by benefit another 7% of the tax collected provided fund police and other law-enforcement units. Some health support come from the text collected as the government in New Mexico gave 20% of the tax collected to help families through work of the Department of Health and human Service. Therefore, citizen have more than the benefit to build up a better future for the country as finally, 40% share of the gross receipts taxes collected by the state and distributed to local and country governments. Tax increase reduces the quantity trade and some of the gains from trade. While taxes increasing, price of buyer increase and the price to the seller falls cause the consumer surplus and producer surplus (profit) falls. Besides that, in the supply and demand theory, per unit tax does not matter much because buyer cares only the total price paid which is the amounts of supplier gets plus tax and the sellers cares more of the net to supplier which is price of buyer paid minus tax. Furthermore, tax reduce the quantity traded and some of the gains from trade. While the price of buyer rises causes the consumer surplus falls and the price of the seller falls causes the producer surplus (profit) falls. But then the losses captured in the form of the tax can be exchange were there no tax while the unit of those units is given by demand, and the marginal cost of the units is given by the supple. These lost gains from trade are known as a deadweight loss. Because of the tax interference in the market is the buyers values minus the sellers costs of units that cannot be trade in economic. Loss to society were represents to show the important of deadweight loss. In the sense can be view as an opportunity cost of taxation, money collect from people to obtain a dollar tax revenue actually costs society more than a dollar. The costs of the raising tax revenues include the money raise, tax collectors and government agencies to administer tax collection and deadweight loss are the example of direct cost of collection which create the incentive effect of taxes and decrease the gain of trade. The concept of effective need to be discussed in the situation of what the tax is trying to accomplish in terms of government policy. For example, in the situation of non-alcoholic beverages, it can be expected that objectives of a discriminatory tax on this products would be to raise revenue or externalize perceived harm from consumption, or both. The term of discriminatory taxation, such as excise on non-alcoholic beverages, most of it in sweetened drinks has been subject of much debate in recent years. Taxes on such products have been imposed or expel, and in certain countries are being considered. As discriminatory taxation, an excise impose on sweetened soft drinks may raise tax revenues from this single category of products. It may also operate to change the consumptions of the product through the consequential growth in its price. Secondly, government impose three types of tax on tobacco. One of the types is excise tax. It is a good source of revenue and the dominant opinion is that people who smoke should be responsible for paying the costs that their use imposes on society. Human being need not tobacco for survival. The reason government levied excise tax on tobacco because it can raise the revenue for government and control smoker from buying cigarettes. Higher taxes are useful in reducing the use in tobacco among the youth and lower’s income groups. However, it has an extreme control on tobacco use. As evidence, governments have increasingly using a higher tobacco taxes as a means to discourage its use. A per unit tax often imposed taxes on a specific markets or goods. There are few types of taxes in economies. The most common per unit tax is excise tax which are usually imposed on those goods and services that seen to be have harmful associate. As the example above, tobacco and sugar-sweetened beverage are encourage to levy excise taxation. Furthermore, the price elasticity of demand measure a responsiveness of quantity demanded to change in price of the good. That means, when the prices are elastic, the more burden would goes to producer and also when the prices are inelastic, consumer will bear more of the burden. Moreover, there are few benefits such as citizen can enjoy education by using tax collected in Mexico. New Mexico government provide some collected tax to help families. Other than benefits there is also some drawbacks of per unit tax which are tax could reduce the quantity traded and there will be a deadweight loss occur. Lastly, the theory signified that the excise ta xation structure will have an important consequences on government to accomplish multiple objectives.

The Catcher In The Rye :: essays research papers

Some may say that the main character of J.D. Salinger’s novel The Catcher in the Rye, Holden Caulfield, is merely the average teenager, although he seems to think about sex and women quite a lot for his age of sixteen. This point can be easily argued in many ways, one example being the time Holden called a perfect stranger, Faith Cavendish, to get together at an unruly time of night. Another example of the main character’s perversion is when he hired a prostitute named Sunny, and never actually accomplished anything. One last example could be Caulfield’s overall impression and cockiness when it comes to sex and women. In conclusion Holden Caulfield is engrossed in sexual thought. The protagonist’s fixation with members of the opposite sex can first be argued when he phone’s a girl who’s number he received from a guy he meet once at a party; he said that the girl was â€Å"not exactly a whore or anything but didn’t mind doing it once in a while†. After Holden had spent a good amount of time trying to persuade her to meet him, because he was â€Å"feeling pretty horny†, the girl, Faith Cavendish, finally got him to register the answer of no into his brain. At this point Faith asked the main character if he would like to meet for drinks the next day, but he declined, because the next day he may not be feeling horny anymore. Obviously, the main character was so determined to do something sexy that night he turned down a friendly invitation, which proves that Holden Caulfield is fascinated by sex and women. Over all because the protagonist called an unknown woman for sex, then refused her proposal for a get together the ne xt day; Holden is obviously fixated with both sex and women. Second, another example of Holden’s perversion is when he hires a prostitute named Sunny from the elevator man at his hotel. Although some may say that calling a stranger in the middle of the night, like Holden did with Faith, is normal, but hiring a prostitute when one is sixteen years old is far from average. After the prostitute, Sunny, arrived in Holden’s room and had stripped off her dress Holden lied to her saying that he had an injured â€Å"clavichord† so that he could back out of doing the deed, instead of admitting that he didn’t want to; this caused vexation from both Sunny and the elevator man (Sunny’s pimp), Maurice, and resulted in Holden getting beat up by Maurice because he didn’t pay the full price.

The Narrative of the Life of Fredrick Douglass Essay -- Narrative Fred

The Narrative of the Life of Fredrick Douglass Metal clanks against metal as the chains rub on old scars issuing in another day of toil in the heat with head-down and blood streaming as each new lash is inflicted. This is usually the picture envisioned when one thinks of slavery. While often this is an accurate depiction, there are also many other forms of slavery. The Webster’s Dictionary describes slavery as, â€Å"submission to a dominating influence.† Everyone has influences that shape who they are and what they do, but a problem arises when a person’s entire life is spent abiding under a certain, destructive influence. Often this is done willingly and a sort of addiction occurs in maintaining the hold the authority has in one’s life. It gives the person identity; all they need to do is live under the power they have created for themselves and make up the rules as they go along. Yet in doing this, they rob themselves of true freedom in knowing right from wrong and choosing the right. In fac t, in this regard Fredrick Douglass is one of the freest men in his narrative. In the life story of Fredrick Douglass we not only see an African American man struggling against the oppression of slavery, but also many white masters struggling against their enslavement to reputation, power and religion. First we see what it is to be a slave to reputation. Throughout the Narrative of the Life of Fredrick Douglass it is obvious that what others think matters a great deal to the slave holders. Although this may not make sense since they still do atrocious things to their slaves, there is a certain persona they want to convey to others. Mr. Covey was a harsh, cruel man, and everyone knew and respected him for being such. C... ...nd his white masters as free, but that can only be true if using one definition of freedom. Although seemingly free these white men also struggle under oppression. It is not forced upon, conversely they willingly and purposefully lock on the chains of slavery which dominate their lives. They conform their lives to something that gives them a sense of meaning and identity, using their freedom to choose slavery. Meanwhile, Douglass is free to live an entirely different lifestyle. Perhaps one of the most powerful quotes in his narrative is when Douglass states that â€Å"I prefer to be true to myself, even at the hazard of incurring the ridicule of others, rather than to be false, and incur my own abhorrence (28).† He is not willfully bound under the dominion of anything; he is free to be himself and thus know real right from wrong. In this he shows his true freedom.

How to have a relationship Essay

A relationship is a way of connecting. The connection could be between people or objects. Listening to my grandmother talk about relationships helped me understand how things have completely changed over times. My grandmother stated that relationships where more valued back then and people stayed together for all the right reasons. She informed me that when you loved someone you loved them like no other. When it came to marriage they lasted longer than they do now. Having a relationship with someone was the thing to do. At one time relationships actually had meaning people were with each other because they loved them. This showed me the commitment part of relationships, when people actually stayed faithful to the person they were with. Nowadays men and woman say I love you just for the fun of it. But be honest everyone you know or knew either ant’s a relationship, has a relationship or has played a role in one either as the main lover or the sideline. Relationships are complicated, complex commitments that we take seriously or play around with like a rag doll. Serious relationships start from the mind knowing what it is that you want how you want it and how you’re going to get it is the first step in committing to a relationship. Yes commitment can be very hard to do. Especially when were accustomed to doing things our own way; without having to answer to someone else. Understanding the person you are trying to commit to is a good way to start a serious relationship. It is important to gather as much information as possible and take as much time as needed to ensure that you know the person that you are in a relationship with. Taking the steps and looking at past relationships can help you understand if the relationship might be what you are looking for in life. It is true that no matter how long you have known a person you may never truly know who that person really is. It is also important to know what we want before committing ourselves in. Whether that relationship is a marriage or just a boyfriend/ girlfriend committing to someone should begin with feelings being involved. Relationships become complicated when you have disagreements, other people etc. I feel that it takes two to make a relationship work and if both parties are not commented then it will never work. It’s like the eighty-twenty rule which explains that one person is giving there all and all and the other person only gives what is necessary at that time. How can a relationship work if both parties are not on the same level and are not committed to each other? Complicating in relationships come from problems that we cause ourselves, from not committing or giving our all to the relationship. As for myself I’ve had a few relationships in my day. Some good ones and then some that I would give anything to take back and wish that I had never committed myself to. Not saying that you would have the same outcome as I did but just make sure that the love is real. If we go into a relationship knowing that we are not there for a long time then it makes the relationship less complicated. In these type situations just make sure that you inform the person with how you feel before going into the relationship. It is important to have a clean understanding of what each party wants. Having false feelings in a relationship can be the most hurtful thing when you actually find out so therefore try to avoid coming into these situations. Communication is a huge part of a serious successful relationship. Communicating with your partner is a very good stress reliever and understanding method. Having communication builds trust and loyalty, which are two other things that are very important in a relationship. When a person is in a relationship they expect their partner to be understanding, have good listening skills and be there when they need you. Sometimes it’s just best to sit back and listen to what the other person had to say. You never know what you might learn about your partner if you just listen. Always remember to keep the lines of communication open throughout the relationship. For me, I think that one of my biggest downfalls in previous relationships is the lack of communication between my partner and me. I also have problems with my partner not being able to support himself and maybe even helping me every now and then, don’t get me wrong I’m not asking him to take care of me in no means what so ever but help every now and then would be good. As I did research on the topic of relationships, I learned that there are several steps that can be taken to have a successful relationship. First it is important to ensure that you trust your partner. Does your partner’s communication lift you just to bring you right back down? How do you and your partner deal with conflict in your relationship? Do you have compatible financial values? When you are thinking about starting a new relationship think about some of these questions. They might help you to understand the relationship better and if that’s what you really want. Maintaining a trusting and lasting relationship is going to require some work on both sides and especially in these times. As long as there is trust and communication between both parties then there is a good chance that the relationship will work. I plan to take my time and know the person that I intend to be in a serious relationship with. I don’t want to hurt anyone and I definitely don’t want to be hurt. I look forward to finding love one day that is meaningful and lasting but until then I will continue to inform my partner how I feel and what I am looking for in the beginning. I will ensure the line of communication stays open.

History of Auditing

| | |The History of Auditing | |A detailed overview | | | | | | | | Auditing has a rich history within the United States. There have always been various rudimentary forms of auditing when the first businesses were started; however the focus of this paper will be on auditing standards within the twentieth century. To look beyond that departs from what would typically be termed as â€Å"modern accountancy† and its relevant roots.Author Bruce Marshall helps describes why this historic perspective is so important of our field: â€Å"Accountancy is a recognized profession like those of law and medicine. †¦ In fact it might not be too much to say that it is regarded as the most important of all the professions. Indeed it is the cornerstone upon which the whole industry of our Empire is built. †[1] Establishing a Need for Auditing In one of the earliest forms of organized auditing, the American Institute of Certified Public Accountants issued a series of pamphlets to the accounting profession in 1917.The pamphlets were designed to guide financial statement analysis and auditing in general, offering more transparency to the emerging corporations that were springing up around the country. Strong motivation for this release came from the Federal Trade Commission and the Federal Reserve Board, stemming from a panic in the previous decade that had sent chills through the investment community. Both entities wanted to offer a stabilizing force to help guide the United States’ corporate growth.An early accounting journal discusses the pamphlets: â€Å"The memorandum is of such importance that it has been reprinted in full in this issue of The Journal of Accountancy and we are confident it will appeal to all readers. To the members of the institute it will serve as a guide in all their audits for credit purposes, and they will understand that the burden of proof will be upon them if they omit any of the procedure laid down in the memorandum. [ 2] The pamphlets were an adequate start, yet lacked the authority to be the final solution for stability. Federal Trade Commission Chairman W. E. Humphrey delivered a well timed statement on the progress the FTC had made, but also addressed some of the limitations: â€Å"I am constrained to believe that the business of this country, and particularly big business, is more and more forced to the conclusion that honesty is not only the best policy, but that it pays the highest dividends.I feel that there has been a tremendous improvement in the conduct of the business of the country over the last few years, but the time has not come, and I regret to say that it seems far off, when the strong arm of the government will not be needed to protect the public from greed, monopoly, fraud, and unfair practices. †[3] Humphrey however, could not foresee how right he actually was. After an especially lucrative decade for investors in the roaring twenties, one of the most devastating financ ial crises struck the United States in 1929 as the NY stock exchange came tumbling down.Corruption and greed were rampant among most major companies, whom often distorted how risky their operations actually were. Margin borrowing by investors allowed huge amounts of debt to be taken on without proper risk mitigation. Investors, knowing no better, had dumped small fortunes into the market. The fragile infrastructure of the system couldn’t handle the load and eventually caved in. Those companies that would survive the crash needed standardization and change in order for the investors’ faith to be restored.The Federal Trade Commission stepped in to fill this need. The first official document: â€Å"Verification of Financial Statements,† which was solely dedicated to provide guidance for audit, was released the same year as the crash. This document dove further than the previous decades’ pamphlets did, focusing in on small and medium sized companies, as well as the general need for the customized auditing tailored to each different companies, based on need. In response to the extreme amounts of personal wealth destroyed during the tock market crash in 1929 and the ensuing depression, Congress was forced to take even more action. The suggested guidelines outlined by the FTC were just not enough to ensure a stable economy. The regulation of business and the accounting firms is commonly recognized to have been born just after the Securities and Exchange Commission (SEC) was established in the mid 1930s. Despite public investment being in an advanced stage at the time, corporate regulation was practically unheard of. The SEC was a product of both the Securities Act and the Securities Exchange Act.William Raymond offers insight on the initial operations of the SEC and how the investor took advantage: â€Å"There are probably thousands of investors throughout the country who are at a loss to understand what value is all the data gathered by the Securities and Exchange Commission, which is headquartered in Washington and no convenient way for the investor to visit and secure the valuable data themselves. To these investors, the commission offers a very adequate mailing service, through which various actions by the commission, decisions and other matters may be obtained simply by requesting the placing of their names on the mailing list. [4] Even from the beginning, serious debates raged in Washington about whether it was constitutional for the government to be involved in public corporations, much less private ones. Without regulation, there was fear another collapse was unavoidable. Establishing standards for preparing and auditing financial statements was decided to be the bare minimum that was essential to steer clear of any future turmoil. The authority to set the rules and oversight for what would become â€Å"auditors† was given to the SEC. Auditors themselves were allowed to set their own standards, but fi nal say was still in the hands of the SEC.It is important to distinguish between accounting standards and auditing standards. Although related, auditing is but a piece of accounting. Nevertheless, to truly understand the history of auditing, one must note the progression of accountancy as well. Regulating Auditing Procedures In recognition of the expertise and resources of the accounting profession, the SEC has traditionally looked to the standard setting bodies from the private sector to provide a foundation for improving accounting principles and reporting standards.The private sector offered a baseline set of guidelines, which the SEC built off of. From 1938 and 1959, the Committee on Accounting Procedure (CAP) issued 51 Accounting Research Bulletins. The ARBs formed the basis of what is probably the single biggest resource to accountants today. GAAP, or the generally accepted accounting principles, is the foundation of all modern accounting. By 1959, CAP had been replaced by ano ther entity, the Accounting Principles Board (APB). The APB was responsible for 31 new general accounting standards from 1959-1973.This transition would mark the beginning of a plethora of different organizations over the years which would guide the practice. To improve the quality of audits in the 1960’s, the bigger companies added a new technique. Peer review, as it was called, required firms to confirm the accuracy of one another. It was so effective; the AICPA eventually added it as a requirement in 1977 for any member of the CPA division (within the AICPA). Firms were not required to join this division, but those who did agreed to a peer review as part of the guidelines.Eventually the peer review was deemed mandatory for all firms, membership or not, as part of the complete overhaul to the self control systems in 1989. The restructuring enacted change in the AICPA’s bylaws that required all members who practice must belong to a special group within the parent orga nization called the SEC Practice Section. The Practice Section had numerous guidelines for membership. The most notable included provisions that each member must engage in a peer review with another firm of comparable size.The point of the provision was to offer further reassurance to investors that operating accountants had adequate control mechanisms, regarding the integrity of GAAP and GAAS. While peer review is not a complete test, the idea is that a sampling of a firm’s work represents an adequate representation of the entire operation. Auditing every piece of work in a firm would be a completely unreasonable request, thus sampling method would have to suffice. Any findings from the peer reviews were available for viewing by the general public.Each firm is issued a report that contains the audit results and sometimes even comments on how the firm might improve its reporting procedures. Occasionally, a reader might even find the resulting changes made and any comments the audited firm has made regarding the issue. This open communication was a significant step forward towards complete transparency. William Kinney comments on what is important to the users: â€Å"Internal controls are also important to investors, the government, and ociety as a whole since they may affect long-term confidence in corporate accountability, and in the corporate form of organization. †[5] Despite this transparency, the increasingly complex business environment was proving to be too much to handle for one part time regulating committee, even with peer reviews. In order to solve this issue, an independent organization was necessary to help cater to the interests of investors, accountants and creditors. A full time committee eventually ended up relieving the AICPA of its duties.FASB, or Financial Accounting Standards Board, was officially created in 1972. FASB’s primary responsibility surrounds setting ground rules in all non governmental entities. These groun d rules covered anything from revenue recognition  and all other broad topics, to specific topics such as dividends. Marshall Armstrong writes in detail about its purpose: â€Å"The objective of the qualitative standards is to provide guidance in determining the substance of a transaction or event, regardless of its form, and a moral and ethical basis for its fair presentation in financial reports. [6] These standards are officially recognized by the SEC as the authoritative standard. Even with the establishment of FASB, the AICPA still existed to a limited extent. Through the means of the Accounting Standards Executive Committee, the AICPA works to collaborate with FASB on common objectives. Membership practices in FASB are intended to keep a level of independence but still effectively operate with the private sector in mind. It operates under the auspices of the Financial Accounting Foundation (FAF), which consists of sixteen trustees, twelve of whom are elected by representati ves of FAF’s sponsoring organizations — the AICPA, the American Accounting Association; the Financial Executive Institute; the Securities Industry Association; the National Association of State Auditors, Controllers and Treasurers; the Institute of Management Accountants; and the Government Finance Officers Association. The other four at-large members are appointed by the FAF itself.The FAF, in turn, appoints the members of the FASB and its advisory council. It is also responsible for funding the FASB. †[7] The first specific auditing standards were issued way back in 1939. The American Institute of Accountants authorized the appointment of a standing committee to advise on auditing procedure. By 1941, the AIA had released a several statements with the purpose to guide the individual auditor. Most notably was the â€Å"Statements on Auditing Procedure†, which offered a baseline for how auditors should responsibly approach individual audits, while using pro per judgment.These â€Å"SAP† s would be the first of 54 future statements issued up until 1970. The SEC required all auditors to swear upon their work, that it followed these generally accepted auditing standards. To help with compliance of this requirement, the SEC released the â€Å"Generally Accepted Auditing Standards—Their Significance and Scope. † Within ten years, the committee combined twenty-four of the pronouncements into one single body which would be referenced often during the process of internal control.Other notable consolidation efforts included the 1962 release of the â€Å"Statement of Auditing Procedure No. 33† which combined many of the standards trickled out between 1949 and 1963. This baseline document was turned into a single presentation, being coded in the process by 1972. The 1972 revision was held under the title: â€Å"Statement on Auditing Standards† or SAS. With the combination and official first uniform document, the committee officially changed its name to the Auditing Standard Executive Committee (AudSEC).In the next six years, AudSEC released 23 total SASes as a guideline for auditors. The AICPA continued to conduct numerous studies through committees on how to operate most effectively as a tool to the accounting profession. By 1978, the Auditing Standards Board (ASB) was the newest incarnation of an organized body charged with setting standards for the profession. An AudSEC’s successor, the ASB operated as 15 members with the responsibility to make relevant public statements, without having to obtain clearance first from the AICPA.Furthermore the ASB would set ground rules for how an auditor performs his assessment in regards to whether financial statement presentation conforms to the generally accepted accounting principles. Before setting new standards, the ASB will carefully gather all relevant opinions, including those of the Chief Accountant of the SEC as well as various other w ell known and respected individuals in the profession. The ASB replaced all previous senior technical committees in regards to the GAAS. The Public Oversight Board (POB) was created in 1977, which further helped to push transparency in the industry.The POB is a watch group entity responsible for oversight of the processes of the SECPS. The POB is an independent organization, which despite being funded by the SECPS, controls its own membership. If a firm has more than thirty SEC audit clients, then the POB will engage in reviews of the firm. The reviews can also take place in firms with less than thirty SEC audit clients, but the frequency of them is far fewer. Furthermore, the SEC will periodically inspect a sample of the peer reviews and even compile an annual public report that details its operations for the year. Auditing in Modern TimesOver seventy years after the stock market crash of 1929, again the Unites States would be struck by the uncertainty of the public corporation. Th e collapse of Enron revealed fraudulent accounting practices by the energy company itself and its accounting firm Arthur Anderson. By creating special purpose entities, Enron and Arthur Andersen effectively hid massive amounts of Enron debt, making the company appear much more profitable than it actually was. The house of cards built by Enron eventually collapsed leaving the SEC to sift through the rubble to discover what had actually happened. Also complicit were Arthur Andersen and lead Partner David Duncan. Duncan earned $700,000 annually to manage this account, plus part of Andersen's partnership profit pool. To appease Enron, he apparently did not require many large audit adjustments for several years, and often signed off on financial statements that were, by any reasonable standards, unclear and misleading. This shoddy work and attempts to eliminate key evidence led to Andersen's felony conviction and demise – apparently ignoring its founder's key slogan of thinking st raight and talking straight. [8] In response to the Enron collapse as well as the other companies which went down in its wake, the SEC was forced to up the ante, so to speak, with public transparency and accountability. In 2002, the Sarbanes-Oxley Act was put into place, which drastically altered the structure of GAAP. Through the Sarbanes-Oxley Act, the Public Company Accounting Oversight Board (PCAOB) and the Securities Exchange Commission (SEC) were given the final say over all auditing standards. Registration was required with the PCAOB for CPAs and CPA firms who worked with public companies.Once registered, members must adhere to all standards, principles, rules, and interpretations set forth by the PCAOB. Further restructuring surfaced in 2004 as the PCAOB was set as the authority on public companies (as it pertains to GAAS), while the ASP oversaw private companies. Chuck Landes, a VP with the AICPA, speaks to the changes in an interview with the Ohio Society of CPAs: â€Å"A uditing standards have changed and now call for more attention to the audit itself. Auditing is a serious business and it needs to be taken seriously. You can't be a part-time auditor.I see firms making intelligent decisions about being in the audit business and committing the necessary resources around the audit function. In our new risk assessment standards, having an understanding of the industry is essential. †[9] The unfortunate trend with auditing standards is that a tragic event usually occurs for the foundation to adjust. It is a great system to catch and fix problems, but as the time passes, the scale of the instigating event becomes larger and larger. As long as there are men and women with greed, there will be a need for auditing.Armstrong, Marshall. 1973. FASB will develop broad qualitative standards. The CPA Journal (pre-1986)  43,  no. 000010,  (October  1):  844 Bateman & Co. A History of Accounting & Auditing Standards. February 2002. http://www. bate manhouston. com/newsStds. htm Humphrey W E. 1928. A Friend of Honest Business. Nation's Business (pre-1986),  June  5,  31. Kinney, William R. , Jr. ,  Maher, Michael W. ,  and  Wright, David W. 1990. Assertions-Based Standards for Integrated Internal Control. Accounting Horizons  4,  no. 4,  (December  1) Lasch, Erin. 2002. Chuck Landes is Rewriting Audit History.Catalyst 48-50 Marshall, Bruce. 1958. The Bank Audit. Edinburgh: Houghton Mifflin. Alan Reinstein,  Stephen R. Moehrle,  and  Jennifer Reynolds-Moehrle. â€Å"Crime and punishment in the marketplace  :Accountants and business executives repeating history. †Ã‚  Managerial Auditing Journal  21,  no. 4  (May  1,  2006):  420-435. Raymond, William T. (1935,  July  29). SEC Keeps Investors Informed. Barron's (1921-1942), pg. 8 Richardson, AP. â€Å"The Federal Reserve Board and audits. †Ã‚  Journal of Accountancy (pre-1986) 23,  no. 000006  (June  1,  1917):  4 52. ———————– 1] Marshall, Bruce. 1958. The Bank Audit. Edinburgh: Houghton Mifflin. [2] Richardson, AP. â€Å"The Federal Reserve Board and audits. †Ã‚  Journal of Accountancy (pre-1986) 23,  no. 000006  (June  1,  1917):  452. [3] Humphrey W E. 1928. A Friend of Honest Business. Nation's Business (pre-1986),  June  5,  31. [4] Raymond, William T. (1935,  July  29). SEC Keeps Investors Informed. Barron's (1921-1942), pg. 8 [5] Kinney, William R. , Jr. ,  Maher, Michael W. ,  and  Wright, David W. 1990. Assertions-Based Standards for Integrated Internal Control. Accounting Horizons  4,  no. ,  (December  1) [6] Armstrong, Marshall. 1973. FASB will develop broad qualitative standards. The CPA Journal (pre-1986)  43,  no. 000010,  (October  1):  844 [7] Bateman & Co. A History of Accounting & Auditing Standards. February 2002. http://www. batemanhouston. com/newsStds. htm [8] Alan Reinstein,  Stephen R. Moehrle,  and  Jennifer Reynolds-Moehrle. â€Å"Crime and punishment in the marketplace  :Accountants and business executives repeating history. †Ã‚  Managerial Auditing Journal  21,  no. 4  (May  1,  2006):  420-435. [9] Lasch, Erin. 2002. Chuck Landes is Rewriting Audit History. Catalyst 48-50