An Evening to Remember

That particular Friday night after I finished my Accounting Class, I walked toward the parking lot to find my car, but instead I found something much more interesting then my lovely car. I saw someone holding a big knife, with red fluid dripping from it, standing in front of my car. I told myself, "This is just a hallucination, it can't be true." How I wish it wasn't true, but the truth was in front of my eyes. I knew that my eyes didn't lie to me. I couldn't run away now coz HE saw me already, so I walked slowly toward his direction while praying to God. When I got close enough to him to see his face, I realized that I know this guy, and he was the love of my life.

"What are you doing there honey? Picking me up from school? How sweet!" those are the words that come out from my trembling mouth.

He replied, "I missed you, so I thought that I should come and see you tonight."

"But... why are you standing there with a knife, sweet heart?"

"Oh... this knife? Coz I missed you so much and don't want to lose you, so I decided to make you mine forever."

"Ok, but what is the connection between making me yours and the knife? You couldn't be thinking about making me yours by killing me right?"

"Killing you? Oh sweety, You're so smart, that's why I love you"

I started to run as soon as I heard him saying that, but it seems like it's not fast enough coz he caught my arm. At that time, I was crying and starting to scream for help, but He kissed my hand and put one of his hand in my mouth to stop me from screaming for help. Then he hold my face and told me "Happy Halloween sweet heart, I guess I scared the hell out of you."

Believe me, I hated him at that time, I couldn't believe it, he was playing with me and scared me to death.

Then I heard someone calling me

"What? Where are you? Why are you calling me?"

I felt something cold on my face,
then I woke up to find my dog licking my face and I was taken back to reality.

Well, I guess that just a sweet nightmare, An evening to remember :)

Sciences politiques

Argghhhh.... I just finished my political science exam and that was hard. Uh... Can anyone tell me why do we have to study political science in college? (I know the answer, but please tell me the reason again, so I can bear with my class). The exam was soooooooooooooo hard, and I'm not joking. It is HARD. Uhhh, I can only hope that I'm good at guessing :)
But anyway, even if it's hard, the class was fun (when we were talking about the presidential nomination and campaign and all those "fun" stuff) hahahahaha. At least, I get to learn lots of new things like, what is a superdelegate? What happen with the social welfare in the US? what is dealignment and realignment? Jewish people are more likely to vote for Democrats (cool), high income people support Republican, and Republican (the Grand Old Party) is actually not the oldest party in America, since the oldest party is the Democrats. Not bad huh? Yup, those are some "facts" that I learn from my political science class. So, after all, it wasn't that bad (I'm sorry professor T., for saying earlier that your class is hard and that I don't like it. I actually love your class and your teaching)
I pretty much enjoy the class, but not the exams..... those are hard (seriously).....

Belle de prix sur les fleurs

A flower's fragrance declares to all the world that it is fertile,
available, and desirable, its sex organs oozing with nectar.
Its smell reminds us in vestigial ways of fertility, vigor, life-force,
all the optimism, expectancy, and passionate bloom of youth.
We inhale its ardent aroma and, no matter what our ages,
we feel young and nubile in a world aflame with desire.
- Diane Ackerman


In the hope of reaching the moon
men fail to see the flowers
that blossom at their feet.
- Albert Schweitzer


Silently a flower blooms,
In silence it falls away;
Yet here now, at this moment, at this place,
The world of the flower, the whole of
the world is blooming.
This is the talk of the flower, the truth
of the blossom:
The glory of eternal life is fully shining here.
- Zenkei Shibayama..


I'd rather have roses on my table than diamonds on my neck.
- Emma Goldman

Internal Control

Five Elements of Internal Control:

• Control Environment

A business’s control environment is the overall attitude of management and employees about the importance of control. Three factors that influence the control environment are:

- Management’s philosophy and operating style, because a management that over emphasizes operating goals and deviates from control policies may indirectly encourage employees to ignore controls.

- Business’s organizational structure, which is the framework for planning and controlling operations.

- Personnel policies, which involve the hiring, training, evaluation, compensation, promotion of employees, job descriptions, employee’s code of ethics, and conflict-of-interest policies are part of the personnel policies. Such policies can enhance the internal control environment if they provide reasonable assurance that only competent, honest employees are hired and retained.

• Risk Assessment

All companies face risks, such as changes in costumer requirements, competitive threats, regulatory changes, and employee violations of company policies and procedures. The management must be aware of these risks and take necessary actions to control them. Once risks are identified, they can be analyzed to estimate their significance, to assess their likelihood of occurring, and determine actions that will minimize them. Some examples are:

- Clear objectivities regarding operating, financial reporting, and law compliance functions

- An entity-wide review to assess and evaluate risks.

• Control Procedures

Control procedures are established to provide reasonable assurance that business goals will be achieved, including the prevention of fraud. Some control procedures that can be integrated throughout the accounting system are:

- Competent personnel, rotating duties, and mandatory vacations. The successful operation of accounting system requires procedures that ensure that people are able to perform duties to which they are assigned. Thus, it is necessary to have all accounting employees trained and supervised in performing their job.

- Separating responsibilities for related operations. This can be done to decrease the possibility of inefficiency, errors, and fraud by dividing responsibility for related operation to two or more people.

- Separating operations, custody of assets, and accounting. This can be done to decrease the possibility of having errors and fraud. Then, the accounting records cans serve as an independent check on the individuals who have custody of the assets and who engage in the business operations.

- Proofs and security measures. This should be done to safeguard asset and ensure reliable accounting data. Some examples of security measures are:

1. Immediately deposit all cash in a bank account.

2. Use cash registers to record sales.

3. Have employees bonded

4. Install security cameras or hire security guards.

• Monitoring

Monitoring can help locates weakness and improves control effectiveness. In this way, the internal control system can react dynamically, changing as conditions warrant. Some examples include:

- Regular receipt reports of problem in the internal controls (from external/internal auditors).

- Prompt follow-up on unusual variances from budget.

• Information and Communication

Information and communication are essential because they enable people to capture and share the information needed to conduct, manage, and control operations; also, to ensure compliance with reporting, legal, and regulatory requirements. The management can also use external information to assess events and conditions that impact decision making.

Sarbanes-Oxley act

Sarbanes-Oxley (SOX) became a law in July 2002. The law, enacted largely in response to the Enron and WorldCom scandals, has been described as the most sweeping and significant change in securities law since 1930s. Sarbanes-Oxley is a wide ranging, complex statues that amended the US securities law in significant ways. It established new law, made changes to existing laws, and affected the Securities and Exchange Commission rule making and stock market listing standard. Although SOX applies only to companies whose stock is traded on public exchanges, it has highlighted the need to assess the financial controls and reporting of all companies. The SOX purpose is to restore public confidence and trust in the financial statements of companies. Thus, SOX emphasizes the importance of effective internal control; it requires companies to maintain strong and effective internal controls over the recording of transactions and the preparing of financial statements.

The accounting profession was largely self-regulating prior to the adoption of SOX. This era ended when the SOX was enacted in July 2002. The first of these reforms is the creation of the PCAOB (Public Company Accounting Oversight Board). The PCAOB is a new federal oversight board that is charged with: (1) registering and disciplining accounting firms that prepare audit reports on public companies; (2) establishing audit and accounting standards; and (3) conducting inspections and investigations of registered accounting firms that audit public companies. Also, the lack of auditor independence is viewed as significant contributor to major corporate scandals. Thus, SOX clearly focuses on the issue about constraining potential auditor conflicts through measures intended to enhance auditor independence. This is accomplished by forbidding auditors of public firms from providing to their audit clients most non-audit consulting services. Accounting firms are permitted to provide tax services to audit clients; however, the audit committee of the company must approve the services in advance. This approval requirement is an important example of the increased importance, influence, and potential for liability that the audit committee has received because of SOX. Furthermore, SOX mandates the rotation of audit partners in charge of audit clients. Lead audit partners and audit partners who are responsible for review of the audit must be rotated off after five years. In addition, these partners are subject to a five-year time-out period. Other audit partners, not including lead or concurring partners, are subject to a seven-year rotation and a two-year time-out period. The SOX act also requires CEO's and CFO's to certify that the company's SEC filings are accurate. CEO's and CFO's must sign two separate certifications in their companies' periodic reports to the SEC.

Primary concerns and criticism about the SOX act are increased regulation, professional conflicts, increased compliance costs, corporate federalism, and lack of clarity. Some people argue that the new regulations are too strict or misdirected, and others propose amending the law for greater clarification of information and ease of the public obtaining such information. It is understood that the new regulations have resulted in increased expense, time, and liability of auditing companies. It is further believed that the loss of consulting fees will be offset by the increase in auditing fees. Also, another overriding concern identified is that of the loss of corporate autonomy and the rise of "federalization" of corporate law. With the enactment of Sarbanes-Oxley, the Federal government has stepped into many areas that were previously controlled in-house or traditionally regulated by state legislatures and state courts. The loss of corporate autonomy is perceived through limitations placed on officer and director appointments; requirements for proper corporate governance, including of codes of conduct for senior financial officers; board member qualifications; restrictions on executive compensation and loans and restrictions on audit and consulting services.

Besides complaint on SOX, there are also recommendations to improve the SOX act, especially section 404 (about financial risk assessment). Some of these recommendations are: (1) regulation should allow for different size companies to phase in their implementation of 404; (2) The financial statement audit and all internal control procedures should be integrated so that only one audit is performed with one audit opinion issued and one engagement letter agreed upon; (3) The PCAOB rule making process should be more transparent in a manner similar to the FASB's process; (4) Only significant financial statement assertions should receive a full annual review.

Superdelegates

Right now, America is busy with the campaign for president. Currently, the Democrats party is still having problem with determining the Democratic Presidential Nominee. Both Obama and Clinton are still fighting for the Democratic Presidential Nomination and because the nominee hasn't been settled till now, the Democrats nominee will be determine by the superdelegates.

What's a superdelegate?
Superdelegates are those Democratic Party leaders and elected officials who are automatically delegates to national convention. In order to win the democratic presidential nomination, a candidate must win not only the pledged delegates who are apportioned according to the results of the primaries or caucuses, but also enough number of superdelegates.

Who gets to be a superdelagate?
Every democratic member of the House and Senate, every democratic governor and members of the DNC (democratic national committee); also, former democratic president and vice president, former democratic House and Senate leaders, and former DNC chairs.

How do superdelegates decide which candidate to support?
Though they aren't bound by the results of primaries and caucuses, superdelegates often cast their vote to whomever they think will make the stronger presidential nominee in the general election.

When did the superdelegates concept first appear?
The Democrats first introduced superdelagets in 1984.