Monday, January 27, 2020

Auditor Ethical Standards and Auditing Strategies

Auditor Ethical Standards and Auditing Strategies Discuss the ethical standards required of auditors. The Auditing Practices Board (APB) has issued new standards governing the ethical conduct of auditors which commenced on 15 December, 2004 (Cosserat, 2004). The following lists the new Ethical Standards: Integrity, Objectivity and independence These new ethical standards also include the fact that client’s must also facilitate policies new standards is that auditors of a control environment appoint an ethics partner. This position entails the review of the firm’s procedures and policies which regard to compliance and as such it provides the associated guidance for partners. The new Standards recognize that for smaller audit firms it might not be practical for an ethics partner to be designated. The new Ethical Standards are a result of a number of international developments represented by either international organizations and or countries that have helped to bring about the changes to Standards. These are represented by the following: The United States legislation termed the Sarbanes-Oxley Act which lays down the independence requirements for auditors. In particular it addresses audit firms that audit SEC registrants or participant in significant parts of the foregoing. A report that is titled ‘Rebuilding Public Confidence in Financial Reporting’, which is an international perspective that was developed as a result of the commissioning by the IFAC of an independent group to address the preceding, and As a result of the publishing of the ‘Principles of Auditor Independence’ which was put forth by the International Organization of Securities Commissions. The new Standards are what are termed ‘principles-based’ as opposed to ‘rules-based’. The preceding means that there are clear requirements as well as prohibitions. The key underpinning of this change provides for stricter compliance with the ‘spirit of intention’ and thus prevent the possibility of either a firm or person attempting to evade or avoid conformity with the rule. The effect of the foregoing helps to ensure compliance with ethical standards in that ‘intention’ covers a broader ethical parameter. In effect, one could avoid or evade breaking a rule, however the intent through either actions or the change in former action(s) could point to the definitive attempt to do so. This broader interpretation widens the scope of ethics and requires auditors to conduct their actions accordingly throughout the process. In a speech delivered by Douglas Carmichael at the AICPA National Conference on 12 December, 2003 (Carmichael, 2003) he sets forth the examples of ‘alleged’ audit failures of National Student Marketing in 1969, Penn Central in 1970 and Equity Funding in 1973 as instances whereby principle based auditing might have forestalled the problems. The foregoing is true of Enron’s collapse in 2001 and indicates that the broader scope or ethics afforded auditors under the principle based methodology provides better rules and guidance from which auditors can act. Financial, business, employment and personal relationships This segment of the new Standards addressed the varied relationships that can and do exist between clients and audit firms and their staff. This limits the nature of relationships and threats to the objectivity and independence of audits and prohibits those which the APB believes that no effective safeguards can be introduced. Long association with the audit engagement Associations of long duration poses potential threats, in particular with regard to those represented by publicly listed companies. Thus, the new Standards set forth the rotation of audit firm partners to introduce objectivity as well as independence. The new Standards sets that term as five (5) years as the continuous period limit as well as a break period of five (5) years for the rotation. Fees, economic dependence, remuneration and evaluation policies, litigation, gifts and hospitality. One important, and highly debated point is the requirement that no single client shall account for more than ten percent (10%) of an audit company’s annual fee. This figure is fifteen percent (15%) for non-publicly listed firms. Non-audit services provided to audit clients This segment of the new Standards identifies the general approach to non-audit services and applies general principles to various specific non-audit aspects such as: Internal audit services Accounting services Information technology services Valuation services Recruitment and remuneration services Corporate services, and Tax services Explain what is meant by the term Risk Based Auditing  and the advantages that accrue to the auditor in  utilizing a risk based Risk based auditing entails the providing of â€Å"†¦ independent assurances on the management of risks, and forming an opinion †¦ which sound controls have been implemented †¦ maintained to mitigate those significant risks †¦. Management has agreed upon† (Association of Chartered Accountants, 2002). Risk based auditing addressed some important aspects and questions which controls-based auditing does not answer. The benefit of risk based auditing is that it provides a basis for the auditor to have an examination of the business process and its risks. The foregoing provides a context for the results. Risk based auditing changes the manner in which internal auditors think as well as converse regarding control and risk. The auditor anticipates change and examines the manner in which management deals or is dealing with risks (McNamee et al, 1999) An advantage of risk based auditing is that the auditor is typically looking at control activities that were designed at some previous point to deal with aspects which may have long since been forgotten. In other words the internal auditor might be examining activities which might or might not be relevant in terms of current risks. Said controls could actually be extraneous as a result of monitoring aspects which are either no longer important or in existence. Another aspect is that essential controls could very possibly be overlooked as in a sense they do not exist yet due to changes in the business process. A good number of internal auditors have implemented the utilization of control self-assessment (CSA) as a means to address some of the concerns of management in capturing the state of the business process with regard to risk and control. It is important to note that control models both limit and define CSA so as a result these applications usually start with controls to the right and to the left of the internal audit. The limit of CSA is in its ability to explore the future. Risked based auditing has internal auditors anticipating change. As opposed to the old approach of focusing upon history, the reports generated by auditors address the present as well as the company’s preparedness level with respect to dealing with the future. The advantage is that internal audits complete the circle with respect to assurance of control regarding present operation plans and provide input to risk assessment with regard to the strategic plan. As a result, management places a higher degree of value on risk based internal audits than those of the traditional controls based type. The failure of the United States based Enron during 2001 has been a major factor adding to the impetus for improved financial reporting and auditing /Crossert, 200). The essential elements of today’s financial reporting systems are business viability along with profitability assessments (Bell et al, 1997). The foregoing is accomplished by key audit steps, auditing procedures concern ing strategy analysis, key indicators that are required as well as necessary to effectively monitor performance and risk assessment. Enron’s collapse has brought about standards that strengthen the responsibility of auditors in detecting fraud. The preceding requires evaluation of the effectiveness of an entities first management in preventing such misstatements as a result of fraud or other means. It also calls more attention to irregularities of a minor nature and thus appreciate their significance as the multiplicity of such small irregularities can be significant. Describe three (separate) codes of legislation under which statutory auditors may be required to make a report to the regulator in the event of non-compliance on the part of  a client with the law and provide examples where an auditor would be required to issue a report The Criminal Justice Act (Irish Statute Book, 20053) under Section 59 â€Å"Reporting of Offences† sets forth legislation whereby auditors may be required to issue a report to the regulator as a result of non-compliance by a client with statutes of the law. It describes under â€Å"relevant person† (Irish Statute Book, 20053) â€Å"(a) who audits the accounts of a firm†¦Ã¢â‚¬  Under the Act, an auditor is required to issue a report for the following: â€Å"(2) Where the accounts of a firm, or as the case may be any information or document mentioned in subsection (1)(b), indicate that – an offence under this Act (other than sections 8, 12 to 15, 49(1) and 52(8) may have been committed by the firm concerned, or such an offense may have been committed in relation to its affairs by a partner in the firm or, in the case of a corporate or unincorporated body, by a director, manager, secretary or other employee thereof, or by the self-employed individual concerned, the relevant person (which in this instance includes the auditor as described above), shall, notwithstanding any professional obligations of privilege or confidentiality, report that fact to a member of the Garda Siochana.† The instances referred to by the preceding are described as â€Å" (2) For the purposes of this Act a person deceives if he or she –â€Å" are as follows (Irish Statute Book, 20053): â€Å" 1. (a) creates or reinforces a false impression, including a false impression as to law, value or intention or other state of mind, (b) prevents another person from acquiring information which would affect that person’s judgment of a transaction, or (c) fails to correct a false impressions which the deceiver previously created or reinforced or which the deceiver knows to be influencing another to whom he or she stands in a fiduciary or confidential relationship â€Å" An example of the preceding shall be addressed under section (a). This refers to an instance whereby either contracts, or real property value of a corporations assets are miss-stated. Such can be accomplished through the utilization of a qualified or recognized third party or in collusion whereby said third party conducting said valuation is unaware of the addition of material miss-statements that inflate the value or price under said instances. A contract, for example, could be altered as to the agreed upon terms, payment, and thus said inflated price affects the outcome of an audit whereby the firm’s value of income is thereby heightened. The same type of back office procedure could also relate to an appraisal of real property such as plant, real estate or equipment whereby either its price, terms of sale or existence has been altered. These types of misconduct are the sustentative underpinnings. The foregoing broad examples represent the activities which resulted in the United States affecting such companies as WorldCom and Global Crossing. The miss-statement of various financial reporting areas caused the valuations of these companies to be inflated thus increasing the stock price before subsequent investigations uncovered the miss-statement errors. The bankruptcy proceedings and drop in stock price affected millions of shareholders and caused significant financial loss. Bibliography Association of Chartered Accountants. 2002. Definition of Risk Based Auditing. http://www.accaglobal.com/technical/responses/archive/650602 Bell, , T., Mars, F., Solomon, I. Thomas, H. 1997. Auditing Organizations Through a Strategic Systems Lens: The KPMG Business Measurement Process. KPMG Peat Marwick LLP, Illinois, Carmichael, Douglas. 2003. Professionalism is Primary. Speech delivered before AICPA National Conference 12, December, 2003, Washington D.C. Cosserat, Graham. 2000. Modern Auditing. John Wiley Sons. ISBN: 0470863226 Irish Statute Book. 2003. Criminal Justice (Theft and Fraud Offenses) Act. www.irishstatutebook.ie McNamee, David, Selim, Georges. 1999. The next step in risk management – risk-based auditing. Internal Auditor, published by The Institute of Internal Auditors, Altamonte Springs, Florida, The United States

Sunday, January 19, 2020

Super Leadership and Creativity Potential :: Business, Super Leadership Approach

Research Objectives The body of the literature on management and leadership primarily concentrate on the vibrant nature of the common organization. This paper augments the abundantly available literature on leadership studies for organizations. The minor intentions of this paper is to generate an forward motion that will induce other academics and scholars to focus on the topic of leadership at a much wider level having more comprehensive objectives in mind. The main focus would be to explore the link between super leadership behavior and creative potential through idea generation for an innovative and creative culture within organization. Research Questions The research questions in this case are presented as follows: 1. What is the relationship between super leadership and creativity potential? 2. How super leadership provoke an employee to perform at its best level? REVIEW OF LITERATURE Why to shift from traditional leadership to Super-Leadership? Super-leadership, sometimes also called as â€Å"Self-Leadership†, may be defined as the strategy to lead others is hidden in by leading oneself (Manz & Sims, 2001). The main difference between traditional leadership management concept and Super-Leadership is the main focus on followers rather than leader itself, and especially the belief of improving follower’s capacity to lead who are effective self-leaders. Therefore, concisely, super-leadership is the way of leading others to lead themselves. As argued (Sims & Manz, 1996), for super leadership behavior to be implemented, a leader has to adopt 10 most significant shifts from traditional approach of leadership in order to move towards super leadership approach are as follows:- 1. The leader helps out the team members/group to switch from external observation to self-observation. 2. The focus is on moving from designated goals to goals that are self developed. 3. Organic control is exercised by team/group members’ i.e. external reinforcement for task performance changes in to internal reinforcement with an addition of external reinforcement for self-leadership behaviors. 4. Leadership prefer to motivation techniques not only based on external compensation but also based on the natural rewards associated with work. 5. The leader shifts the group to focus on self criticism rather than external criticism from the organization, which often creates bad impact upon team/group members. 6. There is a move from external problem solving towards self-problem solving techniques. 7. There is a shift from external job assignments to self-job assignments. 8. Leadership moves from external planning to self planning and from external task design to self-design of tasks at step eight. 9. Any problem or issue arises should be treated as an opportunity instead of threat by the group/team members.

Saturday, January 11, 2020

Impact of Baby Boomers on Today’s Workforce

Baby boomers are those born between 1945 to 1964, the boom of the US population. Data from the Department of Labor BLS, in 1998 indicate that there were 77 million baby boomers and this represented 37% of the country’s population. As of 2008, baby boomers make up 40% of US workforce. This percentage is expected to increase dramatically in the next decade and baby boomers will make up majority of the employees in many companies. (Department of Labor, 2008) Companies are now at a dilemma on the effects of this population boom of older workers. Human Resource Departments are torn between decisions to retain or terminate their services. At one hand, older workers have the experiences and technical expertise; many are valued employees. Retiring or terminating them may mean significant loss to many companies. On the other hand, many older employees have not kept pace with modern technologies; their skills have become obsolete. Older employees also are more expensive considering higher salary rates, pension and other benefits. An article from ABC by John Strossel and Frank Mastropolo, â€Å"Fired for Being Too Old: Unfair or Good for Business? † (2008) presented various age discrimination cases filed against companies. Like many, disc jockeys of 99. 7 KY Max Floyd and Tanna Guthrie were fired from work and without any warning. Though they were told that the company was changing formats, they knew that they were fired for being too old and they felt hurt and betrayed. Why couldn't they keep us? We've been there, been loyal with the company, and they didn't change the music a lot† (Strossel & Mastropolo, 2008, p. 1). They sought protection of the law for age discrimination and filed million-dollar lawsuit against the company. Sympathy may be given to baby boomers that end up being replaced with young, fresh talents. But in the competitive industry, businesses have to survive and be able to replac e their aging employees when needed.

Friday, January 3, 2020

How to Write a Limerick

You might need to write a limerick for an assignment, or you may want to learn the art just for fun or to impress a friend. Limericks are fun  Ã¢â‚¬â€Ã‚  they usually have a bit of a twist and a perhaps a silly element. And best of all, they can be a great way to express how clever and creative you can be! The Elements of a Limerick A limerick contains five lines. In this mini-poem, the first, second, and fifth lines rhyme, and the third and fourth lines rhyme. Here is an example: There once was a student named Dwight,Who slept only three hours a night.He dozed in the classroomAnd snoozed in the bathroom,So Dwight’s college options are slight. There is also a certain rhythm to a limerick that makes it unique. The meter, or the number of beats (stressed syllables) per lines, is 3,3,2,2,3. For example, in the second line, the three stressed points are slept, three, and night. The syllabification is (usually) 8,8,5,5,8, but there is some variation in this. In the limerick above, there are actually 6 syllables in the third and fourth lines. How to Write Your Own Limerick To write your own limerick, begin with a person and/or a place. Make sure that one or both of them are easy to rhyme. For your first try, start with â€Å"there once was† and finish the first line with five more syllables. Example: There once was a boy from Cancun. Now think of a feature or an event and write a line that ends in a word that rhymes with Cancun, such as: Whose eyes were as round as the moon. Next, skip to the fifth line, which will be the final line that includes the twist or punch line. What are some of your rhyming word choices? There are many. BalloonRaccoonSpoonmaroon Try to think up something funny or clever to say and write a line that will end with one of your rhyming words. (You will find that the two short lines in the middle are easy to come up with. You can work on those last.) Here is one possible result: There once was a boy from Cancun,Whose eyes were as round as the moon.That wasn’t so bad,But the nose that he hadWas as long and as flat as a spoon. Have fun!

Thursday, December 26, 2019

What You Need to Know About the Crusades

The medieval Crusade was a holy war. For a conflict to be officially considered a Crusade, it had to be sanctioned by the pope and conducted against groups seen as enemies of Christendom. Initially, only those expeditions to the Holy Land (Jerusalem and associated territory) were considered Crusades. More recently, historians have also recognized campaigns against heretics, pagans, and Muslims in Europe as Crusades. How the Crusades Began For centuries, Jerusalem had been governed by Muslims, but they tolerated Christian pilgrims because they helped the economy. Then, in the 1070s, Turks (who were also Muslim) conquered these holy lands and mistreated Christians before realizing how useful their goodwill (and money) could be. The Turks also threatened the Byzantine Empire. Emperor Alexius asked the pope for assistance, and Urban II, seeing a way to harness the violent energy of Christian knights, made a speech calling for them to take back Jerusalem. Thousands responded, resulting in the First Crusade. When the Crusades Began and Ended Urban II made his speech calling for Crusade at the Council of Clermont in November, 1095. This is seen as the start of the Crusades. However, the reconquista of Spain, an important precursor to crusading activity, had been going on for centuries. Traditionally, the fall of Acre in 1291 marks the end of the Crusades, but some historians extend them to 1798, when Napoleon expelled the Knights Hospitaller from Malta. Crusader Motivations There were as many different reasons for crusading as there were crusaders, but the single most common reason was piety. To crusade was to go on pilgrimage, a holy journey of personal salvation. Whether that also meant giving up virtually everything and willingly facing death for God, bending to peer or family pressure, indulging bloodlust without guilt, or seeking adventure or gold or personal glory depended entirely on who was doing the crusading. Who Went on Crusade People from all walks of life, from peasants and laborers to kings and queens, answered the call. Even the King of Germany, Frederick I Barbarossa, went on multiple Crusades. Women were encouraged to give money and stay out of the way, but some went on crusade anyway. When nobles crusaded, they often brought huge retinues, whose members may not necessarily have wanted to go along. At one time, scholars theorized that younger sons more frequently went crusading in search of estates of their own; however, crusading was an expensive business, and recent research indicates it was lords and elder sons who were more likely to crusade. The Number of Crusades Historians have numbered eight expeditions to the Holy Land, though some lump the 7th and 8th together for a total of seven crusades. However, there was a steady stream of armies from Europe to the Holy Land, so it is nearly impossible to distinguish separate campaigns. In addition, some crusades have been named, including the Albigensian Crusade, the Baltic (or Northern) Crusades, the Peoples Crusade, and the Reconquista. Crusader Territory Upon the success of the First Crusade, the Europeans set up a king of Jerusalem and established what is known as the Crusader States. Also called outremer (French for across the sea), the Kingdom of Jerusalem controlled Antioch and Edessa, and it was divided into two territories since these places were so far-flung. When ambitious Venetian merchants convinced warriors of the Fourth Crusade to capture Constantinople in 1204, the resulting government was referred to as the Latin Empire, to distinguish it from the Greek, or Byzantine, empire they had claimed. Crusading Orders Two important military orders were established in the early 12th century: the Knights Hospitaller and the Knights Templar. Both were monastic orders whose members took vows of chastity and poverty, yet they were also militarily trained. Their primary purpose was to protect and aid pilgrims to the Holy Land. Both orders did very well financially, particularly the Templars, who were notoriously arrested and disbanded by Philip IV of France in 1307. The Hospitallers outlasted the Crusades and continue, in a much-altered form, to this day. Other orders were established later, including the Teutonic Knights. Impact of the Crusades Some historians -- particularly Crusades scholars -- consider the Crusades the single most important series of events in the Middle Ages. The significant changes in the structure of European society that took place in the 12th and 13th centuries were long considered the direct result of Europes participation in the Crusades. This view no longer holds as strongly as it once did. Historians have recognized many other contributing factors in this complex time. Yet there is no doubt the Crusades contributed greatly to changes in Europe. The effort of raising armies and providing supplies for Crusaders stimulated the economy; trade benefited, as well, especially once the Crusader States were established. Interaction between the East and West affected European culture in areas of art and architecture, literature, mathematics, science and education. And Urbans vision of directing the energies of warring knights outward succeeded in reducing war within Europe. Having a common foe and common objective, even for those who didnt participate in the Crusade, fostered a view of Christendom as a united entity. This has been a very basic introduction to the Crusades. For a better understanding of this extremely complex and greatly-misunderstood topic, please explore our Crusades Resources or read one of the Crusades Books recommended by your Guide.

Wednesday, December 18, 2019

Essay on August Wilsons Fences - 961 Words

August Wilson’s Fences was centered on the life of Troy Maxson, an African American man full of bitterness towards the world because of the cards he was dealt in life amidst the 1950’s. In the play Troy was raised by an unloving and abusive father, when he wanted to become a Major League Baseball player he was rejected because of his race. Troy even served time in prison because he was impoverished and needed money so he robbed a bank and ended up killing a man. Troy’s life was anything but easy. In the play Troy and his son Cory were told to build a fence around their home by Rose. It is common knowledge that fences are used in one of two ways: to keep things outside or to keep things inside. In the same way that fences are used to keep†¦show more content†¦In the play when Cory and Troy fight, Troy kicks Cory out of the house saying, â€Å"Cory: Tell Mama Ill be back for my things. Troy: Theyll be on the other side of that fence. (Henderson) It is in this particular passage that Troy uses the fence physically to represent the dividing line between Cory and him, but more specifically the emotional barrier he’s put between him and his family. Troy grew up with an abusive father which makes his complete emotional disregard towards his family logical. If the man that raised you taught you keep your emotional guard up even with your family, you would probably treat your family the same way that Troy treated his; with complete emotional neglect and disregard. The fence working as barrier could also symbolize Troy trying to protect himself from feeling too deeply towards things which could end up disappointing him or already have. For instance, when Troy became passionate about becoming a Major League Baseball player he suffered extreme disappointment when he was rejected because of his race. It was this life lesson that reinforced Troy’s upbringing of emotional disregard towards things he could grow to either want, lov e, or feel passionate about like his family and friends. Troy’s philosophy in building the fence was that if you don’t grow an emotional attachment to something then it cannot hurt you, and he stayed by philosophy till his death. The fence also became symbolic of the barrier Troy wanted toShow MoreRelatedEssay on August Wilsons: Fences2481 Words   |  10 PagesAugust Wilson’s: â€Å"Fences† In â€Å"Fences†, August Wilson tells the story of an ex-negro league baseball hero, Troy Maxon. Troy is a bitter man, withering away in his own hatred for the way things â€Å"are†, as well as his inability to see the world has changed. 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Troys hurtful actions and words make it nearly impossible for him to sustain healthy relationships with not onlyRead More Religion in August Wilsons Fences Essay examples814 Words   |  4 PagesIn August Wilsons play, Fences, the character, Troy Maxson, is by no definition a religious man. He has created his own religion through his own philosophies, especially baseball. Sandra G. Shannons critical analysis, The Good Christians Come and Gone: The Shifting Role of Christianity in August Wilson Plays, gives analogies for the way Troy deals with h is own spirituality. It is agreeable that Troy, like other Wilson characters, deals with religion in his own way. Shannon assertsRead MoreAnalysis of August Wilsons Short Story Fences2029 Words   |  8 Pageswhat it means, other than life is hard (Calvert, n.d.) In so many ways Fences is such an ordinary story that its power comes from the ways in which ordinary people hear and view it. There is no doubt but that the metaphor of the fence prevails, working its way across work, family, friendship and the emotional pain of living a life literally dependent on garbage for survival. This is what Wilson wrote about in his Fences of the 1950s. In retrospect, however, it doesnt take a lot to put some of

Tuesday, December 10, 2019

Of Mice and Men is a novel Essay Example For Students

Of Mice and Men is a novel Essay Of Mice and Men is a novel written in 1937 by an author called John Steinbeck, a rising novelist after other successes as Tortilla Flat and Dubious Battle. The focus of these books as well as Of Mice and Men is of the migrant workers. Of Mice and Men is set during the height of the great depression where unemployment and widespread droughts had forced thousands of workers on to the road in search of work, moving from ranch to ranch harvesting the crops and moving on again. This is the exact situation that two of the novels main characters are in, Lennie and George. Despite there being so many, the migrant workers share similar characteristics. As the name might suggest, migrant workers migrated around the country in search of work on ranches. When all of this work had been done and all of the crop planted and harvested, they would move on. Workers would get work by going into employment offices and getting a little slip. We know this when George said They give us work cards. Moving around a lot meant that the migrant workers could not hold down friendships. Leading them to become selfish and self-centered. But George and Lennies situation is different. They have developed a strong relationship over time, with George being the brains and Lennie the braun, with them both looking out for each other. This is well displayed when Lennie said; But not us! An why? Because I got you to look after me, and you got me to look after you. Their friendship contrasts with the average migrant worker, as the boss of the Ranch suspects George is using Lennie. Say, what you sellin? Arguably the best example of a lack of friendship was when Candy said to George. A guy on a ranch dont never listen nor dont ast no questions. Reflecting the isolated loneliness they all feel. With finding friends being such a hard task, it should come as no surprise that permanent women were a rarity. It was socially accepted that because migrant workers were constantly on the move and could not settle down, they would contact women via brothels or cat houses as they were more commonly known. The migrant workers can do what they want to and move on, without any responsibilities or ties. They would prefer to have real girlfriends but they cant as they are victims of their circumstances. The brothels to them were home substitutes where they could interact socially as you would in a house, sit, talk and generally relax. The migrant workers were so desperate for a home substitute because they are always constantly on the move. This meant that the migrant workers had no real sense of home or family and no contact with them. We know this when George says Guys like use, that work on ranches are the loneliest guys in the world. They got no family. They got no place.