Technology Has Decreased Auditor's Workload But Increased Their Needed Skillset

When someone in the general public hears the term auditing, they likely either don't know what it is or think
of the IRS auditing their tax return. However, there is an entire profession of auditing that lays behind the public eye. In general terms an audit is an "unbiased examination and evaluation of the financial statements of an organization."

Auditing Instills Public Confidence in the Stock Market

All publicly traded companies in the United States (listed on a stock exchange) are required to have an annual audit of their statements by an external auditor.The purpose of these audits of public companies grew out of the Great Depression. Due to the financial catastrophe of the times, the public lost confidence in the stock market and was reluctant to reenter it. Congress passed a law requiring audits of public companies called the Securities Act of 1933 in hopes of instilling confidence in what companies presented as their financial statements, and therefore drawing the public back into the stock market.

The goal of an auditor is to come to a conclusion on whether the company's "statements are presented fairly" and in accordance with all laws. They do this through a number of procedures. Some of the more important ones are speaking to management about how they do things, examining the internal controls in place, performing analytical procedures to detect variances in the numbers presented, and physically counting inventory on hand. Since they are independent, the auditors stick to these types of procedures and do not conduct any business on behalf of the company they are auditing.

Traditionally, one of the areas that auditors spent the most time on was the analytical procedures and other calculation based analysis of the figures of the company. To perform these checks, auditors often had to perform hundreds of calculations to say with reasonable certainty that  a single number on the financial statements is free from error.

Despite the introduction of calculators, many of these calculations still required a good deal of long hand math and many intermediate steps before the auditor can arrive at their final conclusion. Due to the large amount of human judgement and potential for human error, these calculations proved not only to be time consuming, but fairly risky as well.

Audit Analytics is an example of an audit software program

Technology Spurs Efficiency in the Auditing Profession

We all see the vast impact that expanding technology has had on our world including the vast number of Auditing is no different. In recent years numerous technologies have been introduced  in the accounting field including custom built computer programs that are built around the laws and regulations that touch the industry as well as the accounting firm's company specific guidelines.
functions our smartphones can perform.

These extremely powerful technologies have vastly changed the audit landscape. By easing the burden of the timely calculations and procedures on auditors, these technologies allow the auditors efforts to be spent in other areas of the engagement.

Dr. Gary Bulmash is a professor at the University of Maryland's Robert H. Smith School of Business. He is an expert in financial accounting and auditing. Beyond being a professor, Dr. Bulmash also currently serves as the Audit Committee Chair for a public company and is active with Certified Public Accountant (CPA) education. Dr. Bulmash discussed the impact that technology has had on the audit profession.

These computer based calculations save time in two major ways. First off, while the computer is working on the calculations that the auditor feed data in for, the auditor is obviously free to work on other sections of the audit. For example, the auditor can work on physically counting an inventory while other calculations are being done concurrently.

In addition, the computers save time with their computing power. The speed at which computers are able to calculate various tests and formulas far exceeds the speed an auditor would be able to replicate on the same tasks.

The accounting firm enjoys saving time on engagements this way because it means higher efficiency of their operations. Since accounting firms are in the service industry, they have to pay their employees based on how much time they will need to complete their operations. By introducing computers to do some of the calculation based functions, the firm will not have to pay as many employees to get the same amount of work done and therefore save money.

This saved money will help the firm in two major ways. The firm will increase profitability since they have lower salary expenses for their labor. The accounting firms will also be able to gain more clients by being more competitive and attractive with the fees the client will have to pay.

Error, Cost, and Understanding Issues can Result from Increased Technology in Auditing

This increased technology in the audit profession is not however,  void of drawbacks. Like most improvements in the business world, there are a number of new complications and issues that arise when you look at technology in the audit profession.

As mentioned before, computers have computing abilities and speed far beyond even the smartest of auditors. However, the computer is only as good as the information that is put into it.  This means that computer calculations are still prone to errors if the incorrect information is put into them. These errors also tend to be harder to find and correct since it just spits out an answer instead of going through a process that can be reviewed, as is done by hand.

While the technology adopted by many firms ends up saving them money, this may not be true if the company doesn't select the correct system or implement it correctly.  These systems, especially when they are custom tailored to an organization, are a very large up front cost for the firm that can be recovered if used correctly. However if a firm was to buy the incorrect program, for example, a small accounting firm buys a custom made program on the level of a global accounting firm, it could spell financial disaster between the upfront costs and the maintenance costs required.

Accounting Students Focus on Technology and Communication Skills to Prepare for a Career

Since the role of the auditing profession has changed, the education needed to succeed in the field has also changed. There has been an increased attention to technology based courses and technical components of existing courses in most college accounting degree programs. At the University of Maryland all accounting majors are required to take a class entitled "Accounting Information Systems" in order to graduate.

There is also an increased focus on communication skills for accounting majors. The increase of technology means that auditors will spend some of the time they save from calculations interacting with clients and relaying their findings. Now more than ever, it is critical to be able to effectively communicate an idea to the client. 

statements are presented fairly, in all material respects, in accordance with financial reporting framework - See more at: http://www.grfcpa.com/resources/publications/auditor-responsibilities/#sthash.9qnCYUoh.dpuf

statements are presented fairly, in all material respects, in accordance with financial reporting framework - See more at: http://www.grfcpa.com/resources/publications/auditor-responsibilities/#sthash.9qnCYUoh.dpuf

statements are presented fairly, in all material respects, in accordance with financial reporting framework - See more at: http://www.grfcpa.com/resources/publications/auditor-responsibilities/#sthash.9qnCYUoh.dpuf

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Technology Has Decreased Auditor's Workload But Increased Their Needed Skill Set

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What Is An Auditor? 
Explanation of what auditing is and what the job entails. Reference how it fits in within the accounting profession and the business world as a whole.
(Insert explanatory picture of auditor)

Traditional Auditor Role 
This section will be an explanation of what the traditional job of an auditor has been. Included here will be job responsibilities, skills required of the auditor, and the goals of the job.

Technologies Introduced in the Audit World 
This section will give a brief overview of some of the technologies that are now being used by auditors and what exactly these technologies do.
(Insert video clip #1)

Technologies Lead to Lighter Workload 
The technology discussed above has lightened the workload of auditors. I will discuss which traditional roles of the profession have been lightened or completely taken out of the auditors hands.

Technologies Require Auditors to Broaden Skill Set 
Here I will discuss how while the technology in the profession has lightened the workload for auditors; they now will need some new skills they wouldn't have years ago. This is mainly technological know how so they are able to easily work with the systems in place at their company.  

Technology and the Future of Auditing
 (Insert video clip 2)
 I will discuss some possible future ramifications of technology on the auditing field.

Audio Summary

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Guinness Uses Puffery in their Advertisements Claiming "Guinness is Good for You" but have Merit and Should be Allowed to do so

When most people think of beer, healthy decisions are probably about the furthest thing from their mind. They’re more likely to think about watching a football game with a platter of chicken wings than about the nutritional content of their fermented beverage.  Some beers claim to be the “world’s most refreshing light beer” (Coors Light) or “the king of beers” (Budwiser). With so many breweries competing for the same fridge space, the breweries must become imaginative with their advertising.

One beer advertisement that stood out to me was the classic Guinness catchphrase “Guinness is good for you.” By keeping in mind what Guinness was most likely trying to accomplish with this ad we can see that they achieved these goals. One factor is trying to stand out from the pack. Taking the route of their beer being healthier than others Guinness charts a path not normally taken by beer companies. That uniqueness makes people take notice of their product and remember it. This brand recognition is the main goal of all advertising and will likely lead to increased sales for the company.

However, if the only thing companies needed to do to gain customers and sales was to say unique things, we would be bombarded with ads claiming the outrageous. One of the main reasons this doesn’t happen is for the fact that there are a number of laws in place regulating advertising, especially in the realm of false factual claims. However, when we don’t deal with blatantly absurd statements is when we get into a grey area. What happens when companies advertisements are using statements that aren’t necessarily flat out lies but aren’t facts either?

In these cases we are dealing with what is called advertising “puffery.” This occurs when companies use subjective descriptions and phrases for the product rather than objective and testable measures. The idea is that the advertisers are using this language to exaggerate the products and their performance to something beyond what it truly is. By looking at Guinness’ catch phrase “Guinness is good for you” we see that the brewer is doing just that.

When reasonable people see this type of advertisement from Guinness, they will not take the claim seriously. No rational person will truly believe that drinking an alcoholic beverage will actually have positive health effects for them. The fact that people will not take this claim at face value is one of the pillars of the idea of puffery. You may ask if Guinness does not reasonably expect people to take their phrase in their advertisement at face value, why would they even publish it?

The answer lies in another thing you will likely do with the advertisement. As we have established, you won’t start to think that Guinness is some new health solution from this advertisement. However, you very likely could start to think about Guinness in a much more positive light than you did prior to seeing this advertisement. You may not think that the beverage is healthy per se for you but you will likely start to frame it as being better for you than another beer at your disposal may be. The more people start to think this way, the more likely they are to buy Guinness, and lots of it. This is obviously good news for the brewery.

However, you may start to wonder how Guinness could even think to say something as preposterous as“Guinness is good for you” in the first place. The answer lies in this grey area we have established above. There are actually a number of facts that lend at least slight merit to the claim that Guinness may in fact be good for you. They do so in a way that the beer may be better for you than other beers out there, not necessarily a healthy option when you consider the full spectrum of nutrition choices out there. A study performed by the University of Wisconsin found that the famous Irish Stout has a high amount of antioxidant qualities to it as well as a high iron content. Both of these facts lend merit to the beer being healthier for you than its peers. The same study concluded that drinking the beer can reduce your risk of heart attacks and lessen blot clots. Another argument for the fact that Guinness is good for you is that it is vegan friendly.

While these facts may be far from endorsing Guinness as a new super food, there is convincing evidence that the beer has some positive health effects as compared to its competitors. For this reason I believe Guinness should still be able to advertise like this. They are not making any truly false claims and have some actual evidence that there is at least minor merit to their statements. These statements are not harming anyone, and while it is still fair to consider them puffery since they are not completely honest at face value they do have merit and should therefore be allowed to continue.

Advances in Outdoor Technology Allow You to Bring Your Home Theater Outside

When it comes to home theater many people automatically think of a dark room in the basement that has a big screen, some surround sound, and some comfortable seating be it a Lazy-Boy or a sofa. However, one of the newest trends in home entertainment is taking quite the opposite approach to things. The trend is to take home theater outside.

We've all probably seen the speakers disguised as rocks that are pumping out some songs on the radio with a bit of static but this latest trend in home theater is taking this to a new level. Some of the popular sound options for outdoor theater include the Soundcast Melody speakers which project crystal clear sound 360degrees around, are weatherproof and are connected via Bluetooth so they are able to be put anywhere and moved at your convenience.

 Another option for audio is the Sonos Ray speakers which offer true surround sound quality and are small enough to be hidden around the yard in places such as potted plants. To complete the true surround sound experience you can even bury subwoofers in your gardens or yard to pump bass around while watching your favorite game or movie.

An outdoor subwoofer you can bury in your garden

While it's great to hear the action it's even more important to see it. One of the premier options in outdoor television is the SunBright TV. These televisions come in a variety of sizes including some that are the same size as what you would find in most home theaters. They also resemble real televisions, not projectors or some hybrid machine that is bulked up to survive outdoors.

Many people would cringe at the thought of leaving their TV, with all its electronic parts, outside during weather such as a rain or snow. SunBright, however, is on pace to change that thinking. Their TVs produce an extremely clear picture and aren't distinguishable from other TVs you may have now when it comes to design and functionality.

However, SunBright truly shines once weather is introduced. The screens are waterproof and are even demonstrated with steams of water running over them. They are completely safe to leave outside permanently no matter the weather.  This leads to many opportunities and placements once thought impossible. You can now have a big screen television mounted to your exterior wall, the side of your deck, or even built into your own outdoor kitchen/bar/entertainment area to create that perfect game day and party atmosphere no matter the weather.

However, if you're not completely comfortable with leaving your television completely exposed to the elements at all times but still would like to have a TV outdoors there is another option for you. Media Lift offers a product that takes your outdoor television that is already very durable and adds another level of protection to it.

Their retractable TV stands are made to hold your outdoor television (like one of the SunBright models). They are a sort of box/storage compartment that you connect your TV into. The stand make it so you can easily slide your TV out when you want to watch it and the stand holds it at a height easy to view at. The stands also come in a variety of colors and finishes so you can make sure it matches your outdoor entertainment space. You can get everything from a flat black colored stand to a stone patterned one to match your patio or outdoor kitchen.  

A Media Lift TV storage solution in action

All in all, the technology industry is moving in the direction of giving you extensive options to create your ultimate outdoor entertainment area. Whether it be a home theater with a big screen television and surround sound nestled in your back yard near the treeline or an outdoor kitchen and bar area complete with your gill, fully stocked fridge, TV to watch the game and a top of the line audio system for your favorite tracks, the technology is there for you to take your favorite entertainment room in the house and move it to the comfort of the great outdoors.

People Must Exercise Self Control With Media to Get Full Benifits

Psychology Today defines addiction as “a condition that results when a person ingests a substance (alcohol, cocaine, nicotine) or engages in an activity (gambling) that can be pleasurable but the continued use of which becomes compulsive and interferes with ordinary life responsibilities, such as work or relationships, or health.”  Based on this definition I believe it is fair to consider some people addicted to media. However, I think it should be noted that this addiction shouldn’t be viewed the same way as people are addicted to drugs or alcohol. That addiction results in a chemical dependency and a physical link with the behavior. The way some people are addicted to media is in much more of a mental way. Also, by no means am I saying many people are addicted to media. The group I am talking about are the select few that use it obsessively and let it run their lives. Some individuals, especially younger people now could definitely be considered compulsive users of media. Their excessive use can most definitely adversely affect their relationships and ability to interact with others around them. Some people are so locked into their media that they lose social skills and suffer in normal face to face interaction. While this thought process will, in my mind fit the definition of an addiction, I believe that the “addiction” to media is less so a physical or involuntary reaction to a stimulus (media) and more so a lack of exercise of self-control by those “addicted.” In other words, while it may technically fit the definition of an addiction, overuse of media is more of a choice in the hands of the user.

I will be the first to admit that I am a consumer of the new and ever evolving media including TV, the internet, and a cell phone. However, I am not as heavy of a media user as some others my age. I do have a Facebook but do not have any other social media like Instagram except for my newly established JOUR150 Twitter account.  I have a laptop that I use for work and entertainment but do not use it in class (except JOUR150) to keep myself more focused. In short, I am a fan of all the interesting new media but exercise self-control to make sure I accomplish the important objectives in my life such as school and job related activities. A few rules I would like to see is to not use your phone at restaurants/while eating. Maybe it’s because manners like this were instilled in me at a young age, but I find sitting at a table looking at your phone and not enjoying the company around you is rude. A basic rule I think would help if everyone followed is when interacting with another person or group of people leave your phone alone. In my eyes it gives the impression that you don’t care about your interaction with those people as much as the mystery person or social network on the phone.

                 

Devices used in the classroom can definitely help your education but it is important that you use them in the correct manner. For things such as taking notes quickly and clearly and having a lot of information at your fingertips, technology and media is great. It is just up to the user to make sure they use it in a way that benefits them instead of distracting them.

Walt Disney Company as an Oligopoly: They Own ABC, ESPN, A&E Among Others

Many people have heard of media giants like ESPN, ABC, and A&E but most may not realize that they are all owned by Walt Disney Company. Mass communication can be helped and harmed by oligopolies such as this. One way that the media can be helped is the interaction and benefit sharing between the different branches of the Company. Disney can use the various stations to meet the demands of the TV viewers. One example of how they do this is by airing various sporting events on ABC while using the production efficiencies and expertise of sports giant ESPN. This not only helps the station by saving them money through using resources wisely but it also helps the experience of the viewer as they get an experience with sports expertise when they may not expect it. Another pro to the oligopoly structure could be Disney's ability to reach niche groups of people that it may not have the resources to if they were a small media firm.

However, not all aspects of Disney being an oligopoly are good. One disadvantage is that if Disney wanted to share a bias or push an agenda they could make it seem very popular by sharing it throughout their outlets that people may not know are connected. There is also something to be said for mass media outlets being independent of each other. In this case, the outlets owned by Disney are obviously not independent. People would put more trust into the outlets if they were not all interrelated. The outlets may be able to operate in a way more beneficial to the public if they could pursue that as their goal rather than achieving the objectives of the parent company.   

Study Finds That People Who Use Social Media More Are Less Happy

I found an article about a study done at the University of Michigan regarding the link between social media use and feelings of happiness and loneliness. Without completely reciting how the study was done (this can be found in the article) the basic idea of the study was that the researchers would periodically survey the participants asking about their levels of happiness, loneliness and other feelings. They then tried to link the results of the survey to the person’s use of social media. They ended up finding that people with more social media use tended to be lonelier and less happy compared to those with less or no social media usage.

                This is a study of qualitative research. This is because the topic that the researchers are measuring (emotions) are measured through words and expressions, not numbers. This study is in the realm of the less mathematical side of things and involves more judgment on part of the participants and researchers since what’s being tested is in words, not hard data. This approach leads to some potential concerns with the study such as how accurate people can really portray their feelings and the uniformity of how they are portrayed between people.  There are also many other factors that can contribute to someone’s happiness that can’t be controlled for. Overall it seems as if the researchers did take some good steps and procedures to lend some credibility to the results but the basis of feelings being tested leads to these concerns.

 

http://www.dailymail.co.uk/news/article-2419419/All-lonely-Facebook-friends-Study-shows-social-media-makes-MORE-lonely-unhappy-LESS-sociable.html

The Link Between Violent Video Games and Real Life Violence

The link between violent video games and real life violence demonstrated by kids who play these games has been and continues to be a hotly debated topic in todays media. America has a fascination with gruesome acts of violence and therefore shows an interest in looking into what may cause them and how to prevent them in the future. Long before video games were even a medium for children to interact with the famous Bandura study mentioned in the book took place. The results of this study showed that kids exposed to violence and violent behavior were likely to imitate what they had seen. An interesting question that interactive media such as video games has raised is will this connection be stronger if the child is actively interacting with the violence as in video games rather than passively seeing it such as on television?

While there is no definitive yes or no answer to this question some evidence would suggest that the interaction with video games strengthens this link between seeing violence and acting violent. One of the basic principles of this argument is based on the nature of how the child is seeing the violence. While watching television that has violent themes, whether it be a news report on a murder or a violent act in a crime drama, the viewer does not have to be fully engaged in watching the act. Often while watching television people are distracted by other things such as the growing number of smartphones and other things going on around them. However, when playing video games kids tend to be “locked in” to the content since the way the game plays out is completely determined by the player. In short it can be argued that video games require more attention than television. Some people see this increased attention to the violent acts as a sign that the child will be even more likely to participate in violent acts of their own as compared to if they were passively watching television. I found an interesting article about the link between videogames and violence specifically in relation to the infamous Sandy Hook shooter. The article discusses the evidence that Lanza was obsessed with violent video games and other violence related things. They also discussed various ways that lawmakers were reacting to the news and what should be done.

http://www.nydailynews.com/news/national/crackdown-urged-violent-games-lanza-report-article-1.1292402

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This is a test post. Resubmitted after deletion during class once notified I should not have deleted it