Tuesday, December 31, 2019

Surveillance and Repression in 1984 - 1317 Words

Surveillance and repression could be used in the most brutal and hostile situations against society, which is what the totalitarian leadership of Big Brother stated against society in the novel Nineteen Eighty-Four by George Orwell. Society in the novel had to face surveillance and repression from a day to day basis, they were being watched at all times with no privacy even in their own home. Such surveillance and repression is what Winston Smith one of the main characters in the novel had to go through. Winston Smith a 39 year old and member of the society is completely against Big Brother and his party. Smith beliefs in the existence of a secret brother hood who is plotting the takedown of Big Brother, which he wants to join. Smith is not the only one going against the party’s ideal beliefs, his lover Julia is also against the party. The party makes it almost impossible for society to revolt against them. Smith, however manages to somewhat revolt against the party by committ ing a variety of crimes. The crimes range from keeping a secret diary where he writes how much hatred he has for big brother. The act of having an affair with Julia and commits taught crime that is severely punished in society. Smith and Julia’s belief of the secret brotherhood leads them into trusting O’Brien, a high ranking member of the totalitarian party. O’Brien however betrays them by lying to them about the secret brotherhood and gets them arrested by the taught police. Smith andShow MoreRelatedThe Impact Of Technology On The Repression Of The Id1946 Words   |  8 PagesSadakat Chowdhury Utopia/Dystopia S. Park-Primiano Critical Reflection 3: The Role of Technology in the Repression of the Id It is appallingly obvious that technology has made virtually all facets of reality more efficient and easier to access than it has ever been before. With the gamut of conveniences that it allows, technology has become seamlessly integrated into the social infrastructure at almost every level. There is hardly an arena in which technology is not used. While the technologicalRead MoreModern Society In George Orwells Dystopian Novel 19841333 Words   |  6 PagesIn his dystopian novel â€Å"1984,† George Orwell imagines a world of evil, a place where the authentic individual is repressed of any basic rights. Fearful of this, he skilfully portrays the character, Winston Smith, to embody what life might be in a futuristic society, reduced of meaning, thought, and individuality. It is under these same values that German psychologist, Eric Fromm, hints Orwell’s work to be a warning. An eccentric reservoir for readers to understand the dangers and repercussions ofRead MoreThe Novel 1984 by George Orwell Essay944 Words   |  4 Pages 1984, Orwell’s last and perhaps greatest work, deals with drastically heavy themes that still terrify his audience after 65 years. George Orwell’s story exemplifies excessive power, repression, surveillance, and manipulation in his strange, troubling dystopia full of alarming secrets that point the finger at totalitarian governments and mankind as a whole. What is even more disquieting is that 1984, previously considered science fiction, has in so many ways become a recognizable reality. OrwellRead MoreOppression and Dehumanization in George Orwells 1984 Essay1621 Words   |  7 Pages2012 Oppression and Dehumanization of Society in George Orwell’s 1984: The Manipulation of Technology, Language, Media and History George Orwell uses his novel 1984 to convey that human beings, as a species, are extremely susceptible to dehumanization and oppression in society. Orwell demonstrates how a government’s manipulation of technology, language, media, and history can oppress and degrade its citizens. In 1984 the political manipulation of technology oppresses the people ofRead MoreLiterary Context Of Dystopian Literature1746 Words   |  7 PagesZamyatin’s We, published in 1920 or even Aldous Huxley’s Brave New World, published in 1932. However, it is in George Orwell’s 1984 that a truly horrific dystopian world is portrayed. Full of torture, misery, fear and repression, Orwell manages to manipulate and distort the idea of utopia and instead creates a place in which humans have no control over their own lives. The part of 1984, which is so compelling and interesting, is the fact that the people are living in a dystopian world without even knowingRead MoreTotalitarianism Today s World : Totalitarianism Essay2017 Words   |  9 Pageshistory of mankind is that some people are to give orders and others are to obey. This with itself is considered a gamble knowing that the direction of that society’s governance is highly dependent to its ruler or its ruling party. In George Orwell’s 1984, he presents the consequences of totalitarianism to warn present and future generations of submitting to complete dictatorship. With the Party’s masterful display of historical manipulation, the citizens of Oceania were deprived of freedom, privacyRead MoreThe Agency s Post Revolution Influence Over Romanian Society1139 Words   |  5 Pages The impact of the Securitate’s legacy on Romanian society continues to be substantial to this day. The reason for this lies in its functions, which were fundamentally pervasive and intrusive, involving countless informants and the widespread surveillance of society against dissent or perceived threats to the regime. Because of its politically preservative function, the Securitate’s reputation has become inseparable from Ceausescu’s regime. But in order for the impact of this security service toRead MoreHow Power Is Excercised in George Orwellls 1984 Essay2264 Words   |  10 Pageshis personnel vendetta against totalitarian regimes and in particular the Stalinist brand of communism. In his novel, 1984, Orwell has produced a brilliant social critique on totalitarianism and a future dystopia, that has made the world pause and think about our past, present and future, as the situation of 1984 always remains menacingly possible. The story is set in a futuristic 198 4 London, where a common man Winston Smith has turned against the totalitarian government. Orwell has portrayed the conceptsRead MoreIntroduction. 1984 Is One Of OrwellS Most Famous Masterpieces,1267 Words   |  6 PagesIntroduction 1984 is one of Orwell s most famous masterpieces, and it is a work of opposition to totalitarianism. As a political allegory, 1984 is also Orwell’s last work, which is with his greatest efforts. On the basis of his own experience, Orwell combines reality and 1984 closely, in order to give people a sense of reality. In the book, the description of anti Utopia reflects Orwell s concern about the political trend of the whole human society. His political thinking is summed up in this bookRead More Government Surveillance vs Privacy Essay1526 Words   |  7 Pages Hightower employs a metaphor to put into context that the drones are merely â€Å"Orwellian Gnats† that the government is putting into our skies without answering any of the public’s questions about them. The metaphor is referring to the Orwell novel 1984 which describes a dystopia in which the government has become out of control and used technology and brain-washing to control a massive amount of people. This metaphor gives the reader the context for viewing these drones. Instead of seeing them merely

Monday, December 23, 2019

An Equally Faulted Inequality Essay - 2469 Words

An Equally Faulted Inequality With the signing of the Declaration of Independence in 1776 came more than solely the independence stated in the â€Å"legal† document. The Declaration brought about a component of equality unanticipated by any signer or drafter that would soon shape the future and the mindset of many citizens. This sensation of equality spread rapidly through the country and could be seen in different time periods throughout American history where a group of people realized the government’s failure to behave in such a way that reflects the words of the Declaration of Independence, â€Å"†¦that all men are created equal†¦Ã¢â‚¬ . Though no longer a thriving feeling today due to our own natural human ability to dissolve equality in our quest for it, this sensation, while it lasted, significantly benefitted the greater good of society. How can one say that the sensation of equality had a negative impact on a country? Is this feeling one that could in fact do more harm than good? One’s perception of its affect depends solely on one’s place in America. The beneficiary of the feeling of equality would be those who were not comfortable with their position in the country. By â€Å"not comfortable†, I refer to those who were forced to be content with their place in the social hierarchy. I compare these citizens to a child who was told never to go outside because of the dangerous tasks that the outside world entailed. They, as a child, could not handle the dangers and stress and complicationsShow MoreRelatedThe Moral Foundation Theory ( Mft )2221 Words   |  9 Pagesobserved in theory are the libertarians, conservatives, and progressives. According to research by Iyer et al. (2012, p.42367) libertarians use fairness and liberty foundations only in their reasoning. Conservatives apply all the six fo undations equally, while progressives in their argument use the care and impartiality. Through moral foundation theory, different cultures construct institutions, narratives, and virtues that shape their reasoning and distinctive moralities present globally whichRead MoreCritical Legal Studies Essay3437 Words   |  14 Pagesrebelled against accepted legal theories of the day and urged more attention to the social context of the law. Rejecting formalism the Realists argued that a set of precepts applied ‘objectively’ to a given set of facts could result in a variety of equally plausible outcomes†¦and that precedent could be manipulated to justify any decision at all.† Realists attempted to fix this problem by attempting to make law more scientific; advocating a shift towards experts and away from biased judges. CLS rejectsRead MorePhilippines and Vietnam Economy5126 Words   |  21 Pagescomposition in terms of the contribution to GNP and in terms of occupational diversification. Share of agriculture in GNP declined only marginally, from 25 percent in 1985 to 22 percent in 1995. Inflation was high and real wages declined. Income inequality continued to be high, the Gini coefficient being 0.53. As a result, the poverty ratio did not decline to any substantial extent: from 52 percent of the total number of households in 1971 to 45 percent in 1991. There was an increase in the absoluteRead MoreFlowers for Algernon6322 Words   |  26 Pagessmart. | On pg. 36, why does the author tell us that Charlie thinks, â€Å"maybe white mice are smarter than other mice?† | This line indicates that he is aware that there are differing levels of intelligence. (Students may also reflect upon racial inequality hinted at by the â€Å"white† mice terminology – refer to time period of 1965 – historically relevant). | Is Charlie a good candidate for the experiment? | The doctors are looking for a subject that has a low I.Q., but is willing to work. On pageRead MoreDeveloping Management Skills404131 Words   |  1617 Pages Reason #1: It focuses attention on what effective managers actually â€Å"do. † In an influential article, Henry Mintzberg (1975) argued that management education had almost nothing to say about what managers actually do from day to day. He further faulted management textbooks for introducing students to the leading theories about management while ignoring what is known about effective management practice. Sympathetic to Mintzberg’s critique, we set out to identify the defining competencies of effectiveRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pagesperformance, deal with problems directly, communicate with workers frequently, and follow clear policies and procedures consistently. In particular, management professionals note that clarity and consistency can help ensure all employees are treated equally regardless of age. Questions 1. What changes in employment relationships are likely to occur as the population ages? 2. Do you think increasing age diversity will create new challenges for managers? What types of challenges do you expect will be most

Sunday, December 15, 2019

Performance Appraisal a Critical Review Free Essays

PERFORMANCE APPRAISAL: A CRITICAL REVIEW Abstract: Performance appraisal is used in many organizations in order to assess the performance of their employees. But there are some issues and problems that are associated with performance appraisal can have negative impacts on the performance of employees and can make it useless. These issues and problems are: absence of objective criteria, gender issues, rater’s bias, social and ethnic issues. We will write a custom essay sample on Performance Appraisal: a Critical Review or any similar topic only for you Order Now And there are empirical research evidences that are very much consistent with the problems and issues I identified before. But performance appraisal should not be abandoned due to the problems mentioned above. Its can prove very effective if used by trained appraisers in a constructive manner using objective criteria against which the performance of the appraisee to be checked. It not only reviews the performance of an employee but also helps to identify training and development needs of the appraise. Introduction: In organizations, there are some formal and informal methods of performance assessment, and performance appraisal is one of the most widely used formal methods of the assessment of performance. Performance appraisal is also a valuable tool of performance management in organizations as CIPD describes that:†Performance appraisal is an important part of performance management. In itself it is not performance management, but it is one of the range of tools that can be used to manage performance† (CIPD, 2008). CIPD (2008) describes that performance appraisal essentially provides an opportunity to the appraisees and appraiser to review and discuss, in a constructive manner, the performance of the appraisee and possible reasons and determinants of his or her bad performance in a one on one meeting. It also provides an opportunity to them to identify and set objectives regarding training and development for the future and to reach an agreement about the possible actions required getting those objectives and the support the individual or appraisee expects from the manager. If performance appraisal is conducted in a sensitive and constructive manner, then it can establish a positive relationship between the individuals and the line managers. Aims and objectives of performance appraisal: There are some clear aims and objectives for conducting performance appraisal in organizations, and these objectives are listed and described below: 1. One purpose of conducting a performance appraisal is to exercise organizational control 2. The main purpose of a performance appraisal system is to review the performance of individuals over a period of time 3. Performance appraisal is also aimed at finding out that the appraisee is productive or not. 4. One purpose of performance appraisal is to review the actual performance of an employee against the set objectives or desired standards. 5. Another important objective of conducting a performance appraisal is to find training and development needs of the appraisee. 6. One purpose is to identify the type of support the appraisee expects from the management in order to meet those training and development needs. Key elements of performance appraisal: CIPD (2008) has described following five key elements of performance appraisal: 1. Measurement – individual’s performance is assessed against agreed standards and objectives. 2. Feedback – the individual or appraisee is provided information on his performance and progress after the performance has been assessed. . Positive reinforcement – the appraiser recognises the good performance and make constructive criticism about the aspects of performance where there is a need of improvement. 4. Exchange of views – there is a dialogue between the appraiser and the appraisee about the outcomes of the assessment, and how appraisees can improve their per formance, the support they need from their managers to achieve this and their aspirations for their future career. 5. Agreement – an agreement is reached by all parties about what needs to be done to improve performance and issues are overcome. Problems with performance appraisal: Having described the definition, objectives, and the key elements of performance appraisal, we move on to problems or dilemmas with performance appraisal. Performance appraisal is considered a way or tool of motivation and enhancing morale and it is also assumed that appraisal will lead to an improvement in performance or performance will decrease without appraisal. (Grint, 1995). But it can also lead to negative effects on performance and motivation and leaves the apprsisee with negative feelings such as inferiority, bitterness, depression and some other negative feelings (Ridly, 1995). On the part of the appraiser, there are some dilemmas and difficulties that the appraiser faces in the course of performance appraisal process. One of these is the subjectivity of the appraiser that cannot be completely avoided in spite of efforts. Another important dilemma faced by the appraiser is to play both the roles of a judge and a facilitator at the same time as Fiona Wilson (2002) and many other including McGregor (1957), and Fletcher and Williams (1985) have described this problem. One of the aims of performance appraisal is to identify training and development needs of the employees. In order to do so, the appraiser is assumed to judge the gaps between the desired performance and the actual performance by assessing the performance of the employee against a set of objective standards, this not always possible to have objective criteria available, as Fiona Wilson (2002) describes that: â€Å"If staff development is the aim then the temptation is to search for inadequacies in the appraisee’s performance. In order to act as judge the appraiser needs criteria with which to judge, yet the subjective evaluation and trait oriented criteria for evaluating performance have been recognised as a central problem. Objective criteria against which to assess staff are difficult to achieve and are going to be judgmental to some degree. Counseling does not usually involve making any judgments but allows the person to reflect on performance and make their own judgments†. There is an increase in the use of 360-degree feedback in organizations as Bruce and Ira Kay have noted that:† The use of 360-degree feedback has grown dramatically in recent years. According to HR consulting firm William M. Mercer, 40 percent of companies used 360-degree feedback in 1995; b 2000, this figure jumped to 65 percent† (Bruce Ira, 2002). But there are also some serious issues associated with 360 degree feedback and it is assumed that it can have some negative effects on performance and can hurt the appraise as Bruce and Ira Kay (2002) have quoted Watson Wyatt’s human capital index study which found that the use of 360-degree feedback is associated with a decrease in shareholder value. Bruce and Ira also quoted the other findings of Watson Wyatt’s HCI study and described that:†Watson Wyatt’s 2001 HCI report revealed that companies using 360-degree feedback have lower market value. According to the study, companies that use peer review have a market value that is 4. 9 percent lower than similarly situated companies that don’t use peer review. Likewise, companies that allow employees to evaluate their managers are valued 5. 7 percent lower than similar firms that don’t† (Bruce Ira, 2002). Ghorpade (Ghorpade quoted in Bruce Ira, 2002), a professor of management at San Diego State University, reported that only one-third studies out of 600 feedback studies found improvement in performance and one-third found a decrease in performance and rest of them found no effects. Bruce and Ira (2002) have also identified some other issues and problems with 360-feedback such as: lack of training, and the costs of 360-degree feedback. Arvey and Murphy(1998) have described the issues around the costs of measures of performance as well: â€Å"A discussion of the relative costs of alternative performance measures was provided by Stone et al (1996). As an alternative to a more expensive â€Å"hands-on† performance measure, a low-cost, readily available measure of performance was developed for Air Force specialty jobs using an existing data base that rank-ordered individuals. More research is needed to explore the relative advantages of low-fidelity and low-cost performance measures. Conceivably the relative value of such instruments might be better than more highly specific, high-fidelity instruments if relatively molar decisions are being made about individuals (e. g. promote versus not-promote, high versus low performance)† Subjective and objective Evaluation: The main problem and issue associated with performance appraisal may be the subjective evaluation and absence of objective criteria against which the performance of the individual is to be assessed. Subjective evaluation may result in devastating effects on the performance of the individual or the appraisee. As Longenecker et al. (1987) have noted that the appraisers sometimes intentionally distort and manipulate appraisal for political purposes. Subjective measures of performance sometime lead to biasness on the part of the rater and result in negative effects on performance. But Arvey and Murphy (1998) have reviewed a research conducted by Bommer et al in 1995, and described that Bommer et al assessed the relationships between relatively objective and subjective measures of employee performance. He used meta-analytic techniques to summarize the relationships for over 50 independent samples, and found that the two measures were significantly related. Bias on the part of line manager or the appraiser or rater can result in negative effects on performance. Arvey Murphy (1998) write that many studies have focused on the potential biases of supervisors that occour as a result of their likings and disliking about their subordinates. But recent studies show that affective influences on ratings may not represent rating biases. Vera et al (quoted in Arvey Murphy, 1998) presented evidence that supports this argument. Arvey and Murphy (1998) quoted a study in their paper conducted by Schrader and Steiner in 1996, and described that: â€Å"They hypothesized that ratings in which employees are evaluated against clear and specific objective standards will differ from those in which such objective criteria are not specified and the standards are ambiguous. Results supported this proposition. However, ratings made when using internal, relative, or multiple standards of comparison were not terribly different from those made under the more objective conditions both in terms of mean differences and supervisor-self agreement. Thus, a conclusion that employee standards that involve objective and specific standards against which to evaluate individuals are the one â€Å"best† method seems premature given the results of this study† Ethnic, Social and Gender Issues: There are some gender, and social issues in terms of bias and subjectivity related to performance appraisals. Societal stereotypes may cause the appraisers to be biased against women and minorities. In 1996, Woehr Roch (quoted in Arvey Murphy, 1998) studied the effects of prior evaluations that were different in terms of performance and ratee gender on subsequent evaluations and on recall of a male or female of average performance. Results suggested that both the performance level and the gender of the target ratee’s prior evaluation affected the subsequent rating. Relatively low performance for the prior target influenced subsequent evaluations differentially for male and female target ratees and males were given higher evaluations than females. Another study conducted by Ford et al (quoted in Arvey and Murphy, 1998) conducted a meta-analysis across 53 studies, and found that that blacks receive slightly lower performance scores than whites on both subjective and objective measures of performance. Arvey and Murphy reviewed a study conducted by Kraiger and Ford in 1985, and wrote that: â€Å"Kraiger Ford (1985) conducted a meta-analysis of 74 studies across field and laboratory settings and concluded that an interaction effect existed: White raters rate white ratees higher than black ratees, whereas black raters evaluated black ratees higher than white ratees. Moderator effects were found also for group composition and research setting: Effect sizes increased as the proportion of blacks in the group decreased, and field studies generated larger effect sizes than laboratory studies. †(1998). These are the problems and issues that make a person think if the performance appraisal should be abandoned or not. In my opinion, performance appraisal should not be abandoned because of the problems and issues associated with it, if it is used carefully in an objective and constructive manner, it can prove a useful tool in motivating, developing and enhancing the performance of an employee. Bruce and Ira have also tried to answer this question: â€Å"Despite these drawbacks, there are good reasons not to give up on 360-degree feedback. The process still holds the potential to deepen employees’ understanding of their own performance. And, it may be able to help companies create value by better aligning job performance with business strategy. The question is this: Can 360-degree feedback be implemented in such a way that it achieves these benefits without negatively affecting the bottom line? Based on our analysis–and conversations with clients– we believe the following steps may help companies transform 360-degree feedback into a value creator, not destroyer. Implement 360-degree feedback for the right reasons. â€Å"The first thing you need to ask is why you’re doing it,† says Paul Rumely, a New York-based executive coach, If you can’t articulate a strong business case for a 360-degree feedback program, it should not be introduced† (Bruce Ira, 2002). Training can be very useful in enhancing the effectiveness of performance appraisal systems and can equip the raters with essential knowledge and skills to cope with the problems and issues associated with performance appraisals in work settings. Bruce and Ira suggest that: â€Å"Train people in giving and receiving feedback. Companies that implement 360-degree feedback without first checking and developing managers’ feedback skills risk serious damage to teamwork and morale. Providing constructive feedback takes instruction, training and practice. †(Bruce Ira, 2002). They also write that: â€Å"While training individuals to give and receive feedback may temporarily increase the expense associated with 360-degree feedback programs, the gains will outweigh the higher costs as the feedback delivered to participants becomes more focused, targeting the behaviors most closely associated with value creation and destruction. Ultimately, the goal should be to create a culture in which individuals feel comfortable giving and receiving feedback–both positive and negative–on a real–time basis, rather than waiting for an annual review† (Bruce Ira, 2002). Assessment of performance of employees is essential to the process of performance management in organizations, and a performance appraisal not only assess or review the performance of an employee but also identify training and development needs of the employee, and is an important need of organizations. As Fiona Wilson has also stressed: â€Å"Given these difficulties identified in the literature, it may be tempting to abandon any hope of finding fair assessment of performance. Yet, there is still a need for control, accountability, assessment and staff development in organizations. Bias is difficult to overcome but can an individual give feedback on performance without that feedback being construed as negative and can staff be developed? One way to achieve this is to design an appraisal scheme where the emphasis is on development, to use a ‘safe’ approach, which recognises achievements and supports professional development and avoids the issue of accuracy and rating of performance† (Fiona Wilson, 2002). How to cite Performance Appraisal: a Critical Review, Papers

Saturday, December 7, 2019

Analysis Of Lehman Brothers Collapse And Key Audit †Free Samples

Question: Discuss about the Analysis Of Lehman Brothers Collapse And Key Audit Matters As Per Asa 701. Answer: Introduction In this report, the collapse of the Lehman Brothers has been detailed. The collapse faced by the company has led to the emergence and immediate application of the Auditing standard 701 on communicating the key audit matters in the independent audit report. At first the historical background of the company Lehman Brothers has been given and for the last how many years the company is into banking business and how they have made profit. Thereafter the collapse occurred in the year of two thousand and eight will be detailed along with the reasons why the same has happened. Thereafter the reasons will be cited as to why the auditors have not given the qualified opinion in their audit report while authenticating the financial statements of the company. Then the auditing standard number 701 issued by the Auditing standard board in United States will be discussed and how the collapse had led to the emergence and application of this auditing standard. It has also detailed the key audit matte rs that the auditor must have mentioned while auditing the books of accountings compiled in the form of financial statements of the company. At the last, the report has been ended up with the appropriate conclusion and the adequate recommendation. The main aim of the report is to identify the key audit matters that would have been reported in Lehman Brothers audit report before happening of the historical event and what key matters are required to be mentioned as per the new and relevant auditing standard. With this aim the report has been prepared and the date has been collected from the reliable sources. Lehman Brothers Historical Background In the year of eighteen thousand and forty four, Mr Henry Lehman was settled in United States of America and he there opens a general store which is engaged in the business of selling the dry goods to the customers. Customers are mainly the cotton farmers. The name of the company was H Lehman. After the arrival of the brothers of Henry Lehman, the name of company was changed to Lehman Brothers. In the year of eighteen hundred and fifty, cotton has been considered as the most important crop in the United States of America and keeping this in view the three brothers have started to have raw cotton in lieu of the items purchased from their general store. Thus, in this way they have started the second business operation of trading in cotton. With the passage of time the company has engaged itself in the purchase and selling of commodities as the brokerage company and opened its first office in Liberty Street, United States where there is the home of factoring agents and commissioning age nts. After the civil war that has happened in the year 1862, the company has merged with another company and has started financing for reconstruction of the affected parts of the country. Thereafter the company has converted its business operation from trading in commodities to the investment banking including the areas of underwriting the issue of shares and debentures and financing the big and huge projects of the different companies across the world. Almost twenty six thousands were employed by the company across the World. The company has financed many projects including the Chicago railroad project, the north western railroad project, Pennsylvania railroad project, etc. The company has been the way of having funds from various big companies like the company has financed the Paramount pictures and Century fox in year of 1930s and has been the helping hand for developing the circuits for more than 700 theatres (HBS, 2014). The companys profit since its inception has been ever gro wing and increasing at the increased rate. Reasons for Collapse With this background, certain conditions were there and circumstances have happened which have led to the collapse of company on the day of fifteen of year of two thousand and eight is of big concern. The reasons for the collapse are given below: No Buyer The major cause of the collapse of the Lehman Brothers is non availability of the buyer at the time before the company has filed for bankruptcy. If the company would have found the buyer then the situation of filing the bankruptcy protection would not have arisen. In the case of other companies like Merrill Lynch and Bear Sterns, etc who have faced the same financial crisis but have not applied for the bankruptcy protection as they have got the buyers at an early stage (Azadinamin, 2013). Massive Accounting Fraud The Company has used the accounting treatment which has led to the total transformation of financial statements. The company has used the technique which is named by Repo 105. The term repo is referred to as the Repurchase agreement. By this technique the company sells its short term securities in lieu of cash to the counterparty for short duration and via agreement the company will repurchase the securities so converted in cash after the completion of duration. In case the company fails to repurchase the same then the counterparty can get it exchanged from other the market. The company records the transaction so entered as sales and receives the amount in cash. Through the amount so received in cash, the company goes on paying its liabilities and thus managing their profitability and liquidity ratios and major balance sheet ratios (Johnson, 2012). The company has been engaged in this practice for the last eight years before the date of collapse and has been successful in writing off $50 billion liabilities out of the balance sheet (Maux and Morin, 2011). As per the American accounting standards, the securities so given shall be shown as the loan in the books of accounts and when the same is repurchased the amount shall be set off from the loan. But the company is showing the transaction as sales in the books of accounts which are the clear cut violation of American Accounting standard. Though Repo 105 is permissible by the American accounting standards but the way the company has followed is not permissible (Chadha, 2016). In this way, the company has created the blunder mistakes in the books of account and has done window dressing through violation of the standards. Risk of Credit Default Swaps Lehman brothers was actively involved in this market. The company has massively engaged in the business of granting loans for the sub prime property areas. Subprime areas are considered as the inferior area and banks usually charged higher rate of interest on the amount of loan sanctioned and granted. Due to increase in the demand for the property the probability and chances of having the defaults in payment of loans have become higher which in turn have led the wave of failure of companies and various securitization vehicles in the market (Dutta, 2010). Government Restriction for Purchase by Barclay Lehman Brothers would also have not filed the bankruptcy protection had the Government would have allowed the acquisition of Lehman Brothers by Barclays. Government has totally restricted the acquisition following which the company was forced to file the bankruptcy protection application (Farndale, 2008). Independent Auditors Report Meaning and Why it is Issued The audit report is the report issued by the auditor of the company which states that the financial statements so prepared by the company from the books of accounts are reliable and relevant and represents the true and fair view of the financial health of the organization. Financial health includes the financial position of the company as well as the financial performance of the company. The independent word has been used simultaneously with the Auditors report. It is because the auditor has to be impartial and free from any bias and his each and every opinion that he forms on the financial statements of the company after full and complete verification shall be objective and shall not be under any pressure or any form of self interest or any other factor. The opinion so formed may be qualified, adverse, disclaimer or unqualified. The audit of books of accounts of the company is required by the corporation act of the respective country in which the company is operating. The independent auditors report is important and mandatory for all the companies and to be annexed with the financial statements of the company and shall form part of the annual report of the company. The independent auditors report helps the users of the financial statements including the stakeholders of the company to know the depths of the company in terms of its functioning, its performance and more importantly how much wealth the shareholder will earn by investing in the company. Without the independent auditors report no person can judge whether the company is operating within the limits of the applicable laws or not. For instance, in case of banking company whether the company is following the guidelines of Federal Reserve Bank and other similar regulatory authorities. Reasons for Unqualified Opinion The auditors of the company Ernst and Young have closed their eyes and signed the financial statements of the company in misbelieve that the Repo 105 that company is applying is accurate and in accordance with the American accounting standard. But in actual the auditors are very well aware of the fact that the company is in the technique of getting the books of accounts window dressed in such a manner that the liabilities of the companies are totally set off (Chatterjee, 2015, Mc 2010 and Inman, 2014). It has also been detailed that the managers of the company, in their financial statements, have not mentioned about these type of transaction in their notes to the accounts and the same fact has not been qualified by the auditor in his auditors report and also not made the stakeholders of the company aware of the fact that the financial statements of the company does not represent the true and fair view (Coenen, 2010). The major reason for issuing unqualified opinion is that the company has given $150 million as fees to the audit firm for auditing the books of accounts for the last eight years starting from the year 2000. The amount of fees is less than one percent of the revenue of the company earned globally (Goldstien, 2014). Therefore, the audit firm has the financial interest on the basis of which fraud has been committed. Meaning and Purpose The new auditing standard is effective from the 1st of January 2016 and will apply for the financial reporting periods ending in or after 15th of December 2016. The Standard is concerned with defining the responsibilities of the auditor while issuing the audit report to their clients. As per the new standard the auditor has to disclose the key audit matters in its audit report. In the standard it is mentioned as what will be the key audit matters and what key audit matters the auditor will report in his auditor report (AASB, 2015). The main purpose of the standard is to provide the users of the financial statements with sufficient and appropriate information through which they will be able to make corrective action with proper decision. Key Audit Matters Specified in the Auditing Standard As per the new auditing standard, key audit matters are those matters which are considered to be most important and significant to be mentioned in the audit report. The key audit matters are selected from the matters with those charged with governance. In identifying the key audit matters the auditor needs to apply his professional knowledge and judgment. The standards has specified that the auditor shall take into account the following while determining whether the matters observed during the audit are required to be disclosed as key audit matters: Areas which are defined as high risky areas or areas having the significant risks. These are to be determined in accordance with the Auditing Standard 315 on risks control systems. Areas where it is probable that the management of the company might have used unethical practices like wrong estimation of useful lives of an asset or impairment of an asset or booking of advance revenue or deferment of revenue, etc. The effect that the matters will have on the financial statements of the company if reported and how the users of the financial statements will deal with such disclosures. Thus, the responsibility of the auditor has been increased with the introduction of the new accounting standard and he has to apply his professional judgment with due care. Key Audit Matters that Auditor would have Disclosed As per the new auditing standard, the auditor shall disclose the key audit matters that he has observed while performing the audit of the company. Had this new accounting standard made applicable from the year of 2000 or in between anytime ranging from the year 2000 to 2008, the collapse of Lehman Brothers would not have occurred and the history in the banking industry of United States would not have created. If the auditing standard would have made applicable in those earlier then the auditor shall have disclosed the following key audit matters: The companys cash flow position has been deteriorating from the last three years resulting in total decrease of cash and cash equivalents amounting to $167 million. If this fact would have been disclosed then the collapse would not have occurred. The company cash flow also depicts that the company is paying dividend to its shareholders every year and the payment is mainly from the long term funds which the company keeps on borrowing on daily basis. Thirdly, being aware of the fact that the company is in the process of window dressing of the financial statements by wrongly applying the Repo 105 process, the auditor would have disclosed that the transactions will result the bad position in the future as the same or even worst position will happen when they will go for repurchasing the securities. Thus, as per auditing standard 570, the effect on going concern assumption for the preparation of financial statements shall also be mentioned (Masytoh, 2010). Conclusion And Recommendation Lehman Brothers, renowned company has collapse suddenly due to the accounting fraud that the company has been doing for the last eight years. 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