please do paraphrases for the following questions and answers. Note: the accounting terms must be the same and the meaning.

1. The Improper payments made by the APC occurred during the time frame that Andrea Jung served as Avon’s CEO. Was she “responsible” for those payments even if she was unaware of them? Why or why not?

In a sense, Andrea Jung as CEO should be held responsible for those payments even if she was “unaware” of them. Both of Jung’s parents were born and raised in China, and I am sure Jung is very aware of the culture and how they do business in that country. As stated, she is a smart woman, especially when it comes to marketing and international business. Going into this market penetration strategy for China, she was well aware that Avon is a direct selling business and in 1998 the Chinese government had outlawed the “direct selling” of merchandise. It seems as if her bias and personal ties to the Chinese culture got in the way of her ethics. She knew that this market was not going to be successful for Avon since they ban what their whole company is based upon, yet she decided to go forth with the strategy. In the case study, it states Jung was willing and convinced to do anything to maximize their sales in China, even if it means to regain direct selling in the country. Jung created a “Direct Selling Task Force” for Avon Products China (APC), which she became very attached to. Jung became personally involved in Avon’s goal of convincing the Chinese government to lift its ban on direct selling. She even travelled to China to personally meet with high-ranking Chinese government officials to discuss the issue with them. So while she says she had no clue, Jung definitely was aware of the cultural ways and how bribes were a norm. She was very involved and therefore knew what was going on. We believe she is responsible, as her actions speak volumes.

2. Identify the role and responsibilities that an internal audit staff typically assumes in a company’s internal control system.

An internal audit staff assumes some very important roles and responsibilities. They can be found in audit section 322. The section lists the responsibilities of “providing analyses, evaluations, assurances, recommendations, and other information to the entity’s management and board of directors.” One important responsibility the section discusses is the monitoring of an entity’s controls. Watching a business’s controls take place is one of the most reliable ways to confirm that they are working properly. This will also give the auditor a better understanding of the internal controls and how they work. They will then review the effectiveness and efficiency of the internal control system. If the system is not effective they can make recommendations on how to improve the internal controls. One very important responsibility that would have gone a long way in the Avon case is to make sure the company is complying with all relevant laws and regulations. It is up to the internal auditor to make sure the company is not breaking any laws.

3. The IMA Statement of Ethical Professional Practice identifies four ethical standards, three of which are competence, confidentiality, and integrity (see “Ethics Center” on IMA website). Relying on those three ethical standards, evaluate the conduct of Avon’s internal audit staff during the company’s initial investigation of the questionable payments made by APC.

The first ethical standard the IMA identifies is competence. The IMA defines this as maintaining professional leadership and expertise, performing duties in accordance with relevant laws, and providing accurate decision support information. There were some instances where Avon failed to meet the competence standard. Part of the competence standard states that the internal auditor must provide decision support information and recommendations. During the investigation the case does state that remedial measures were discussed and recommended, but they were never implemented. It should have been on the internal auditors to give detailed recommendations. The case also mentions that they failed to devote adequate funding, staffing and resources to Avon China. This is a huge lack of competence and shows poor professional leadership.

The next ethical standard the IMA lists is Confidentiality. The IMA defines this as keeping information confidential except when disclosure is required, informing all relevant parties appropriate use of confidential information, and not using confidential information in an unethical or illegal way. The internal auditors at multiple times discovered that their was questionable payments occurring. These payments continued and the internal auditors new that they were continuing. The were instructed to keep this information and not inform the required parties. The CEO at the time Andrea Jung did not end up hearing about this until a year later.

The third ethical standard mentioned is integrity. The IMA defines integrity as mitigating conflicts of interests, communicating with business associates to avoid conflicts of interest, refraining from conduct that would be unethical or discredit the profession, and contribute a positive ethical culture. One problem found in this case involving the integrity of the internal auditors was their response to the legal staff. The internal auditors should have known that the legal staff was trying to cover up the questionable payments that were occurring. This can easily fall under supporting an activity that could discredit their profession. They blindly followed the legal department’s conclusion that the FCPA is not under the scope of internal audit.

4. Do you agree with Avon’s corporate legal staff that the potential FCPA violations were a legal issue and not and internal audit issue? Explain

We do not agree with Avon’s legal staff when they say that this is a strictly legal issue. Although it is a legal issue because Avon’s actions violated the FCPA, it is also a internal audit issue because the internal audit team should have recognized that this money was being paid out. In a sense, this all stemmed from the internal audit team disregarding notices and warnings that there was potential FCPA violations happening in their Chinese subsidiaries. If they reported it right away, it would have not only been the right thing to do, but also could have mitigated the risks of it becoming a large legal issue. The internal audit team is responsible for flagging and reporting such issues, not sweeping it under the rug until it blows up into a large scandal.

5. The COSO internal control framework identifies five components of an entity’s internal control. Which, if any, of those five components of Avon’s internal control were flawed? Explain. If there were multiple flaws in Avon’s internal control, identify which one you believe was most serious and defend your choice.

– Information & Communication: This area of Avon’s internal control was flawed because after uncovering that they payments were in fact being made to Chinese government officials in 2005, Avon’s global internal audit staff thought about offering training to employees regarding the provisions of the FCPA, but it was never implemented due to budgetary limitations. Thus, Avon knew what was going on and they never took measures to inform their employees that their practices might be acceptable in their home country, however working for a U.S. Company, those bribes were not allowed.

– Monitoring: In December 2006, Avon’s global internal audit staff completed some follow-up work regarding this matter and discovered that the same questionable activity was still taking place. There was no monitoring or evaluations that the deficiencies within the internal control were changed to legal practices.

– Control environment: A major feature of this component is demonstrating a commitment to integrity and ethical values. This is this most serious flaw in Avon’s internal control because this encompasses all of the above internal control flaws. Avon discovered that there were illegal bribes being paid to Chinese government officials, thought about informing their employees that is was unacceptable but then chose not to, and finally was surprised when the bribes continued for another year. Nowhere in this situation was integrity expressed as they let their employees continue illegal practices they had no clue violated FCPA. Ethics were also completely disregarded after the company willingly allowed for the bribes to continue after discovering they were happening on two separate occasions.

1. The PCAOB’s Interim Standards identify auditor’s responsibilities when addressing the possibility that fraud has materially impacted a public company’s financial statements. Identify in bullet format the key instances in which the L&H auditors apparently failed to comply with these responsibilities during the 2005 and 2006 Locate plus Audits.

” The L&H auditors failed to conduct professional skepticism when they received the allegations of fraudulent transactions between their client and Omni Data. In the report by the SEC, they stated that the auditors had failed to adequately test the revenue from Omni Data, failed to obtain competent evidence that backed their opinion, and failed to assess the risk of material misstatements of these allegations (Knapp, 2010). When the auditors sent letters of confirmations they received an undeliverable notice. Later, they received the confirmation letter signed with no exceptions. They also were not a part of an online database that logs all the companies in that area where Omni Data was allegedly from. This should have prompted a more scrutinized audit test but instead they used confirmation letters and letter of representations from management as sufficient evidence to validate the transactions.

” The auditors also did not perform substantive testing on the large number of receivables. The auditors tested revenue from other channel partners by comparing amounts billed and recognized revenue to usage logs. If the company who had paid the royalties had not had any usage it would be a red flag. However, these tests were not performed to Omni Data which accounted for 75 percent of the company’s receivables. Even the fraud risk assessment form was left blank in the 2005 audit.

” L&H partners audit partners, Wood and Howley, had received allegations from a former board member and although these allegations were brought to the company’s audit committee, the concern about the company’s management team committing fraud was not. Communication between the audit managers and the audit engagement group and to the client is vital to conducting an audit because it can result in the discovery of misstatements or fraud (Bobek, Daugherty, & Radtke, 2012).

2. What is the purpose of predecessor-successor auditor communications? Which party, the predecessor or successor auditor, has the responsibility for initiating those communications? Briefly summarize the information that a successor auditor should obtain from the predecessor auditor.

The purpose of predecessor-successor auditor communications is to ensure that the prospective auditors receive all the relevant information before accepting the audit client. This will help them determine the risk level of a client, will help them determine whether they can conduct the audit, and help them determine whether they are willing to take on the risk (V.P., 2016). It also assists the prospective auditors in the planning process of the audit. Because it is helpful for the successor, they are the ones that should initiate contact with the predecessor. However, the successor must ask the audit client for permission.

The successor audit firm should request to know the reason that the predecessor is no longer the prospective client’s auditor. In the case of LocatePlus, their predecessor auditors resigned because they were too high risk. In the resignation letter, the predecessor audit firm had concerns about the timeliness of information they received and the reliability of the management representations. When the predecessor auditors sat with the successor auditors they mentioned that it was difficult attaining the information required of the client’s management team. They also emphasized that management was contradictory in the facts they gave and provided items like unsigned contracts to them as audit evidence. Thus, the successor audit firm should also gather information that may put into question managements integrity, any disagreements with management over accounting practices, and any communication that involves fraud or internal control issues (V.P., 2016).

3. What are the primary responsibilities of a “concurring partner” under current U.S. auditing standards?

The concurring partner reviews the judgements made by the engagement team and is responsible for approving the judgement. They conduct another level of analysis to make sure the audit and the conclusions followed GAAP and auditing standards. The concurrent partners review the quality of the audit and thus must be competent, independent, and must practice objectivity (PCAOB, n.d.). The concurring partner must evaluate the judgments including the substantive testing to high risk transaction and account balances, review audit differences, and evaluate the judgements made on the materiality of identified misstatements (PCAOB, n,d). They are also responsible for reviewing the opinion and evaluating the engagements team’s independence and engagement strategy. Concurring partners should also ensure that no matters of concern have remained unresolved.

4. What is the nature and purpose of a “letter of representations”? Comment on the quality or strength of the audit evidence yielded by a letter of representations?

Under Auditing standard 2805, The letter of representations is a requirement of the independent auditor to obtain a written representation from their client’s management (PCAOB, n.d.). This is necessary to make management teams accountable for the audit evidence and documentation that they present to their auditors when they are testing the reliability of the information on the financial statements. These statements can be written or oral. This letter does not substitute the audit testing that auditors must conduct to have a reasonable, basis for their opinion. In fact, when these representation letters reflect that management believes that there is a low likelihood or no knowledge of fraud, an auditor can be motivated to find contradicting evidences to the views and to perform professional due care (Harding & Trotman, 2017). It is the duty of an auditor to trust their client so that they do not offend them but to verify everything that is claimed. Thus, an auditor must perform professional skepticism. The written letter of representation usually just confirms representations about data on the financial statement given to the auditors. It assures that management acknowledges that the financial statements are represented fairly in accordance to GAAP and that the information presented to the auditors is true. It prevents from being a misunderstanding between the auditors and the company.

In the case of LocatePlus, the auditors were accused by the SEC of highly unreasonable conduct. They were accused of not adequately performing tests on Omni Data’s relationship to LocatePlus. Because there were allegations against the transactions from someone who was involved with their client before and their predecessor audit firm has warned them about their concerned of this customer, the auditors were requires to performs professional skepticism with high scrutiny. This would have meant to further test the revenue just as they had other revenue streams instead of allowing a confirmation letter from Omni Data and a letter of representation by LocatePlus’s management team to serve as sufficient document evidence. Unfortunately, the management team had been the people that created the fictitious company to inflate operating revenue. In the book of Romans, it states “For such persons do not serve our Lord Christ, but their own appetites, and by smooth talk and flattery they deceive the hearts of the naive” (Romans 16:18). The management teams of LocatePlus did just that, created a company and even generated cash transfers to deceive the auditors. When L&H partners became their auditors, they lied about the legitimacy of the company and knowingly gave the auditors fictitious contracts and letters of confirmations. They also signed the letters of representations claiming that they had no knowledge of Fraud. By doing so, they went against the teaching of the Lord and served their money hungry appetite

 

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Each Quotation has to have at least 500 word as an sort essay in a different pages.

• Explain the origins of the Civil War, beginning with the Missouri Compromise and ending with the opening of hostilities. What were the significant events that led to disunion? What events do you see as decisive? Did secession mean war? Be as specific and detailed as possible.

• Explain the transition of the United States to a world power from 1870s through approximately 1902. What were the key events that made the United States a World Power? How did the United States enter the “Age of Empire?” How did the United States expand its influence internationally during this time? Was there any resistance at home to the ideas of imperialism?

 

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GRADING RUBRIC MUST BE FOLLOWED

MUST USE REFERENCES WITHIN PAST 5 YEARS and PEER SCHOLASTIC JOURNALS AND REFERENCES MUST BE USED TO BACK UP FINDINGS

Conduct a five-part organizational analysis of a health care organization in Florida. There is a 5 page limit for this assessment; provide as much detail and information as possible in a direct and concise way.

Questions to Consider:

• What are the most critical qualities an excellent leader in health care should have?
• How do effective leaders motivate teams to achieve organizational targets?
• How do different leadership styles impact organizational success?
• How familiar are you with different organizational structures?
• What challenges do finite financial resources create for leaders?

Required Deliverables

Parts 1–3 of this five part assessment will guide the recommendations you make in Part 4, and help determine what form of leadership is needed in Part 5.

• Part 1: SWOT (Strengths, Weaknesses, Opportunities, Threats) or PEST (Political, Economic, Socio-cultural, Technological) Analysis Table.
• Part 2: Brief Organizational Assessment Narrative and Organizational Scorecard Table.
• Part 3: Brief Gap Analysis Narrative and Gap Analysis Table.
• Part 4: Executive Briefing Report.
• Part 5: Brief Leadership Implications Narrative.

Preparation

Before you create and submit your Deliverables, select a familiar health care organization to use in each assessment in this course. Choose the organization where you currently work, an organization where you have previously worked, or an organization where you might like to work in the future.

Directions

Conduct an organizational analysis for your selected organization. Incorporate each of the following parts and be sure you carefully read the requirements for each.

Part 1: Environmental Assessment

Conduct a brief environmental analysis using a tool such as SWOT or PEST and summarize your findings in table format. You may choose to do both a SWOT and a PEST (or other) analysis, but you are only required to do one. Include impact from the Affordable Care Act in your analysis.

Part 2: Organizational Assessment

Create a table based on your internal analysis of the organization’s mission, vision, values, culture, and strategic direction. Then, write a brief narrative in which you explain the organization’s mission, vision, values, and culture, as well as the current strategic direction.

• Apply a framework such as the organizational, or balanced, scorecard to measure performance relative to the strategy. Indicate if the strategy fits the external environment.
• You may use any table format you wish, but be sure you include 1–2 priority performance indicators, internal benchmarks or targets (be sure you include financial and quality targets), and the four categories.

Note: Part 2 is comprised of your brief narrative and the organizational scorecard in table format.

Part 3: Gap Identification

Select 1–2 priority performance indicators within each of the four major categories: business operations, finance, customer satisfaction, and organizational learning and growth.

• Identify the performance measurements and internal benchmarks or targets for each of the priority performance indicators. Be sure you include financial and quality targets. Use a table similar to the organizational scorecard to identify the gaps between desired and actual performance. Be sure you integrate the strategic direction and scorecard into your gap identification.
• Conduct a gap analysis of actual to benchmark or target outcomes. Refer to and integrate the organizational strategic direction and scorecard. Briefly explain any additional gaps you identified between stated organizational values and actual culture.

Note: Part 3 is comprised of your gap identification table and a brief narrative.

Part 4: Leadership Recommendation

Write an executive briefing report in which you clearly and concisely outline evidence-based recommendations to close the identified gaps and better align with organizational strategy and targets.

• Include within your recommendations the resources that will be needed, such as human, financial, technical, and so on. Be sure that you reference your resources to support your recommendations. Keep in mind that this is an executive briefing report; you want to be thorough while still being concise.
• Reference a minimum of five resources in this assessment. Look for professional, scholarly research articles on improving performance in health care organizations, how the Affordable Care Act is affecting health care organizations, and other related topics to use in guiding the recommendations you will make to close the gaps you have identified.

Part 5: Leadership Implications

Write a brief narrative in which you explain the role of the organization’s leader with regard to shaping strategic direction, aligning organizational values and culture, and managing change. What are the critical success competencies needed to achieve desired organizational outcomes? Cite your resources to support your statements.

Resources:

Accountable Care Organizations

• McWilliams, J. M., Chernew, M. E., Landon, B. E., & Schwartz, A. L. (2015). Performance differences in year 1 of pioneer accountable care organizations. The New England Journal of Medicine, 372(20), 1927–1936.
  • This article examines the differences in Medicare spending between ACOs and non-ACOs after one year.

• McWilliams, J. M., Hatfield, L. A., Chernew, M. E., Landon, B. E., & Schwartz, A. L. (2016). Early performance of accountable care organizations in Medicare. The New England Journal of Medicine, 374(24), 2357–2366.

SHOW LESS

Gap Analysis

• Beauvais, A. M., Kazer, M. W., Aronson, B., Conlon, S. E., Forte, P., Fries, K. S., . . . Sundean, L. J. (2017). After the gap analysis: Education and practice changes to prepare nurses of the future. Nursing Education Perspectives, 38(5), 250–254.

Organizational Analysis and Improvement

• Höög, E., Lysholm, J., Garvare, R., Weinehall, L., & Nyström, M. E. (2016). Quality improvement in large healthcare organizations. Journal of Health Organization and Management, 30(1), 133–153.

Leadership

These chapters in this text help to describe leadership theory and leadership styles along with competencies associated with health care quality.

• Ledlow, G. R., & Coppola, M. N. (2014). Leadership for health professionals: Theories, skills, and applications (2nd ed.). Burlington, MA: Jones & Bartlett Learning. Available from the bookstore.

These chapters in the Rubino text define leadership behaviors and help promote the importance of cultural competence.

• Rubino, L. G., Esparza, S. J., & Chassiakos, Y. S. R. (2014). New leadership for today’s health care professionals: Concepts and cases. Burlington, MA: Jones & Bartlett Learning. Available from the bookstore.

• Core, A. (2014). Teams-Success under stress. Journal for Quality and Participation, 37(3), 30–33.

• Cowan, L. D. (2014). E-Leadership: Leading in a virtual environment – Guiding principles for nurse leaders. Nursing Economics, 32(6), 312–319, 322.

Health Care Finance

• Healthcare Financial Management Association. (2018). Retrieved from http://www.hfma.org

• Neprash, H. T., Wallace, J., Chernew, M. E., McWilliams, J. M. (2015). Measuring prices in health care markets using commercial claims data. Health Services Research, 50(6), 2037–2047.

 

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The Conscious Plate

The next time you sit down to eat a meal, take a minute and ask yourself, “How did this food

arrive in front of me? Where did each ingredient in this meal come from? What journey did it

take before landing on my plate? And how many human hands were involved in delivering this

meal to me?

In today’s fast-paced culture, food is often considered an object, disassociated from its source of

origin. We think of meat as plastic wrapped bundles, available in different colors and flavors

from the rear aisle of the grocery store. But we rarely consider the animal – a chicken, cow, pig –

when putting our selection in the cart. We have forgotten that fruits and vegetables have seasons,

and we expect – even demand – access to strawberries in the winter, lemons in the summer,

grapes in the spring.

Every item in the grocery store has a history that tells the story of how that product made it to the

shelf, from cultivation on a farm or production in a factory, to packaging, and eventually

distribution of the product to its final destination. In each detail, it is clear we must consider the

fact that food is more than a commodity, a product to be consumed. Our choice of what and how

we consume results in a broad range of ecological, moral, and political consequences of which

we may be partially or completely unaware.

In West Africa, where 40% of the world’s cocoa is produced, child trafficking for agricultural

labor is a serious issue. In 2005, the chocolate industry voluntarily agreed to end forced child

labor practices, and yet children continue to work in hazardous conditions each day in this region

in order to produce cocoa to be exported to markets in developed countries. Next time you eat a

chocolate bar, consider the possibility that a child may be part of the story of the cocoa that melts

in your mouth.

In California, workers at a microwave-popcorn factory have developed a form of fixed

obstructive lung disease, also known as “popcorn worker’s lung.” Academic studies have shown

a link between this disease and diacetyl, a chemical used in artificial butter flavoring, but no

federal laws regulate the chemical’s use at this time.

Hormones in dairy products and meats have been linked to early puberty (puberty at age seven is

no longer considered unusual these days); food additives can cause hyperactivity in children; and

many pesticides used to grow conventional produce have been classified as carcinogens and

associated with high rates of blood and lymphatic cancers, cancers of the lip, stomach, lung,

brain, and prostrates, as well as melanoma and other skin cancers. Our fish supply is loaded with

mercury, our lettuce with perchlorate – a rocket fuel, and our milk with steroids and antibiotics.

We live in a land of plenty, and yet we rarely consider the context of that plenty, or the

responsibility that goes with it. Our culture and lifestyle have transformed our agrarian heritage

into a system of agricultural industry. The production and commodification of food has become

big business. Nutrition, health, safety, sustainability, and the moral and ethical questions related

to food are often ignored in favor of the larger picture: profit.

In this research paper, you will select a topic related to the politics, socio economics, and cultural

heritage of food and explore it in depth in six to eight pages. In your research paper, you will be

required to:



Define the topic you will be writing about and specifically present your argument



Describe in detail the issues related to your topic



Note the debate that exists around your topic, presenting both sides of the conflict



Present a convincing argument on your position and support it with reliable resources

It is highly recommended that your topic be generated from the required textbook,

Food Matters

,

and/or from the recommended books.

Research Paper Length

• 2,500 words/6-8 pages

Number of outside sources required

You must use a minimum of five sources in your research paper, and no more than ten sources

total.

These sources can be:

• Books

• Articles from magazines, newspapers, and journals

• Reports from databases

• Reputable web sites

• Documentaries

And remember – you must correctly cite all sources used. Counter arguments and rebuttals must

also be cited correctly in MLA 8.

Format Style

You are required to submit your research paper in MLA 8 format, which means in-text citations

must be used in the body of your paper, and a Works Cited list must appear at the end of your

paper.

 

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