Sophocles’ Oedipus Rex (the King) and Seneca’s Oedipus Essay -- compar

Sophocles’ Oedipus Rex (the King) and Seneca’s Oedipus    Contrary to Sophocles’ Oedipus that was written to the Greeks, a peaceful and wise audience, Seneca’s Oedipus was written to the Romans, a militaristic and violent community.   Seneca successfully appeals to the elements of Roman literature; therefore, Edith Hamilton in The Roman Way calls him the â€Å"Father of sentimental drama.†Ã‚   Seneca wrote the play in around 50 AD about 480 years after Sophocles’ production.   The Roman audience responded to a melodramatic plot rather than the tragic theme of the former Oedipus.   Seneca, in rewriting the play Oedipus makes significant adjustments to suit the Roman audience, particularly plot and style changes. Melodrama in this sense (compared to tragedy) draws forth more of an emotional, pitiful reaction and any evidence of fear is removed; on the contrary, the emotion of pity is exaggerated and stressed.   The Greek wisdom and their capability to see beauty in all life created a desire for tragedy which draws forth reactions of both pity and fear; according to the Greeks, tragedy portrays mankind at his finest, standing tall among suffering and capable of heroism by overcoming evil.   Edith Hamilton in The Roman Way says, â€Å" . . . the unfamiliar and the extraordinary were on the whole repellent to them (the Greeks) and they detested every form of exaggeration.†Ã‚   She goes on to say, â€Å"Greek tragedy had no appeal as the Romans understood the words.†Ã‚   The Romans viewed life as cheap, almost worthless; therefore, to appeal to this audience, Seneca made fate seem merciless, while Sophocles suggested a tragic flaw, indicating the partial fault of the character. The plot of Sophocles’ and Seneca’s Oedipus are much the same.   Oedipus... ...d concentration on fate, Seneca appeals to the vicious Roman audience he writes to, as opposed to Sophocles’ pensive Greek audience.   The Roman audience desired more violent literature, and responded to the concept that fate and predestination were inescapable, while the Greek audience defined tragedy, including a tragic flaw of the character, as mankind at his best because the character becomes wise.   Seneca in rewriting the original Oedipus tragedy, removes any indication of fear, completely concentrating on the emotion of pity.   While Sophocles’ Oedipus can be called Greek tragedy, Seneca’s Oedipus exaggerates pity and disgust and must be classified as melodrama.   Instead of arousing pity and fear from the audience, Seneca uses plot and style changes and simply appeals to the emotion of pity to adhere to his Roman audience.               

America’s Commercial Airline Industry

1989 has been a year in which both aviation experts and spokesmen. For the flying public have expressed intensified concern over what they perceive to be a substantial deterioration in the safety of America†s passenger airline operations. In the first nine months of 1989 alone, there have been ten fatal air crashes involving large transport-category planes owned by U. S. based carriers (Ott p. 28). This compares disfavorably to the first nine of months of 1988, when but two such accidents took place, and in fact, it is the highest number of death-causing accidents for the American commercial aviation industry during the 1980s (Fotos p. ). This spate of airborne tragedies has prompted interested parties to ask a series of disturbing questions. Is it now safe to fly on American owned airlines, and, related to this, is it now riskier to board these planes than it was before industry deregulation took place in 1978? What, if any, specific factors have contributed to the perceived decline in the industry†s safety standards? Finally, what, if anything, can be done to enhance the airworthiness of U. S. passenger planes and to improve the safety performance of the crews who man them? In this paper, all three of these questions will be addressed, and, without advancing too far ahead, we discover that there simply are no definitive answers to any of them. As serious accidents among America†s air carriers have mounted in 1989, a â€Å"conventional wisdom† has supplied a plausible account of the historical roots of the present safety problem. In 1978, the Federal government de-regulated the U. S. airline industry. Faced with an increasingly competitive environment, individual carriers tried to hold down fares by making cost-related cuts in policies and procedures related to safety. Many have argued that, â€Å"increased competition may lead airlines to skimp on investments in safety,†(Bornstein and Zimmerman p. 913) by, for example, allowing aging planes to take to the skies following routine inspections rather than replacing them with new craft. But there is an overarching problem with this explanation: 1989†³s accidents apart, empirical data suggest that it is currently safer to fly on a plane operated by a major U. S. air carrier than it was ten years ago! In 1978, the odds of a large airliner†s becoming involved in fatal crash were one for every million aircraft departures; ten years later, that proportion has dropped to around one in every 2. 25 million departures (McConnel p. 207). On the whole, it is, in fact, comparatively safe to fly, and even with 1989 crash incidents added to the aggregated figures, flying is no more dangerous today than it was prior to deregulation. The Federal Aviation Administration, the National Transportation Safety Board and an array of independent air safety experts have all probed this year†s major airline accidents. Despite all of post hoc study, they have been unable to discern a common link among them, (Ott p. 28) with one major exception. The qualification at hand refers to dramatic increase in the volume of air traffic since de-regulation. According to NTSB member John Lauber, † ‘ if there is a trend in accidents, it is a trend set by the increasing volume of air transport operations rather than any fundamental deterioration in the margins of safety (Ott p. 28). At first glance, this argument is comforting: more flights in the air simply result in more accidents commensurate with higher traffic volumes, so that the impact of de-regulation has had only the broadest and most indirect influences upon the industry†s safety record. But to ascribe the recent rash of safety problems to the â€Å"neutral† effect of higher traffic volume in the wake of de-regulation and leave it at that overlooks several critical points. For example, to remain competitive, many airlines schedule flights in clusters for the convenience of their passengers. This, in turn, as Rudolf Kapustin (an independent industry- watcher) states, tends to increase risks among flight occurring at â€Å"peak times (Ott p. 28). † Far more worrisome, when accidents for smaller, commuter or regional airlines are factored in, we find that 16 percent of all airlines had safety records considerably worse than the norm, accounting for nearly 80 percent of all airborne accidents between 1977 and 1984 (Ott p. 30). These figures strongly indicate that policies and practices by the airlines themselves may have acted as variables that have had a role in recent accidents. There are two major factors that appear to have had a part in this year†s major carrier crashes, both of which can be related to cost cutting challenges upon the airlines unleashed by de-regulation. The first of these concerns the planes themselves. There is evidence to suggest that some U. S. airlines are operating a higher percentage of â€Å"high time† or â€Å"geriatric† aircraft than was previously the case. About 2,300 of the 8,000 odd commercial jets flown by major airline crews have passed twenty years of continuous service. Plainly, aging fleets have some immediate linkage to two recent air fatalities. In April, 1988 Aloha Airlines 737 experienced a structural collapse; a huge section of the upper fuselage peeled off; one flight attendant was killed and sixty-one passengers were injured. â€Å"The aircraft in question,† investigators found, had logged some 90,000 take-off/landing duty cycle, † the second highest number recorded by any jetliner operating in the free world. Eight months later, with the Aloha case still under study, a United Airlines 747 bound for Honolulu literally disintegrated in the air over the Pacific Ocean, resulting in nine deaths. This craft was another â€Å"veteran† plane, one that had a maintenance record suggesting increasing safety problems. Clearly, there is an economic motive behind airline operation of â€Å"geriatric† planes. A Boeing 737, for example, cost around $25 million at present, so that, † it is in the economic interest of an airline to prolong the life of its current fleet if it can do so at reasonable cost and without compromising safety. In the opinion of some critics, given the competitive pressures of a de-regulated market environment, some airlines are paying too much attention to this economic imperative, and, conversely, too little care to the maintenance of adequate safety standards. Most jet transport accidents are not the result of equipment failure; a full two-thirds can be attributed to human error. At present, all U. S. air carriers, major airlines and regionals alike, are facing a reduced pool of qualified pilots and flight personnel to staff their crews. De-regulation has meant a higher level of demand for a finite number of qualified crew members, and, at the same time, the number of potential crew members leaving the nation†s armed forces (the traditional mainstay of new hires for the airlines) has dropped sharply in recent years. As has been noted in a recent issue of Aviation Week & Space Technology: † the major airlines are reported to be drastically reducing the amount of flying time they require from applicants, â€Å"and while † there is no shortage of applicants (there is) a shortage of highly qualified ones (Pilot Turnover†¦ p. 91). Inexperienced pilots tend to make more mistakes than their veteran counterparts, so that the labor demand growth that has taken place with deregulation coupled with a reduced number of former armed forces pilots available may well be a factor undermining airline safety. Having stated that it is, in general, safe to board U. S. operated planes, yet another qualification must be made at this juncture. Smaller carriers, flying short routes and known as â€Å"commuter† airlines have much worse safety records than the major airlines. According to McConnell: In the past decade, commuter airlines have had 81 fatal accidents, Killing 384 people. In 1987 alone 35 accidents caused 58 deaths. And in the first two months of 1988, crashes killed 22. The Commuters† fatal accidents rate per 100,000 departures has averaged Seven times that of the major airlines (McConnel p. 206). These smaller carriers, like their major airlines counternumbers, are subject to FAA monitoring and regulation, and the results of FAA inquiries into the safety of the commuter lines has led the Agency to suspend or revoke commuter airline operating certificates on 58 occasions since 1981 for safety violations. The heart of the problem with the commuter airlines resides in the shrinking pool of qualified pilots available to them (Ott p. 28). Generally offering lower pay than the majors, the commuter lines have experienced a drain of talent as many of their most experienced pilots have left to take positions with the majors. In 1985, major U. S. carriers hired some 7,600n new pilots; the majority of them previously worked for commuter airlines (McConnel p. 209). At the same time, willingness of the majors to accept less qualified pilots from sources apart from the regionals has decreased the quality of regional hires yet another notch (Pilot Turnover†¦ p. 91). The trend toward less experienced crews in this segment of the industry is undeniable. † The pilots hired by U. S. regionals who had less than 2,000 hr. flight time rose 22. 3% of those hired in 1985 to 36. 2% in the first six months of 1989 (Ott p. 29). In addition to a declining level of experience in the cockpits of commuter aircraft, these pilots face demands that often exceed those placed upon pilots working for the majors. On some small carriers, pilots face several trips a day between under-equipped airfields, and in addition must plan routes, study weather, handle baggage and even fuel the plane. Fatigue can become a factor (McConnel p. 207). To fill spots, regionals have tried to lure flight instructors from flying schools into their ranks (Pilots Turnover†¦ p. 91). Unfortunately, by engaging in this practice, the regionals reduce the capacity of the nation†s flight schools to enlarge the pool of personnel available to all carriers. If a shortage of qualified crew members is identified as a factor that has some causal relation to a perceived decline in American air carrier safety, this effect is most acute at the level of the commuter/regional firms. The evidence regarding the effect of de-regulation upon safety for American airlines is mixed, inconclusive, but nevertheless broad enough. Common sense tells us that older planes and less experienced crews will have a negative impact upon safety, and, in the case of commuter lines, the latter has probably contributed to a performance record significantly below that of the major carriers. Given that a case can be made that identifiable variables are now eroding flight safety, the question naturally becomes: What can be done to remedy or, at least, ameliorate this situation? The FAA formed an Airworthiness Assurance Task Force shortly after the Aloha incident, and, in February, 1989, this body issued its recommendations. These proposals generally dealt with the tandem problems of aging fleets and inexperienced crews. Regarding the former, The Task Force noted that in several recent accidents, parts that had either been inspected and passed review or parts that were thought to have an â€Å"infinite† working life, broke down. The Airworthiness Assurance Task Force recommended to the FAA an $800 million program to upgrade older aircraft. The key provision would mandate the replacement of various parts and assemblies at specified time intervals, even if inspection detected no flaws. In other words, the industry would move to a plan of preventive replacement, rather than preventive maintenance. The plan would require repairs in about one of every five jetliners currently in service (Hoffer p115). The FAA itself has followed up on this recommendation: this year the agency mandated replacement of rivets on older 727s, and in the near future, the order will be extended to veteran 737s and 747s as well. The cost of all this promises to be high, amounting to an average of around $600,000 per plane. Still, conducted on a phased basis, it does not spell financial ruin for the majors, and given FAA powers, they have no choice but to comply. The FAA has also made recommendations regarding improvement of crew performance. It has, for example, suggested that airlines should â€Å"avoid pairing two pilots who may be qualified but inexperienced, either as pilot or in the particular aircraft type they would be flying (Ott p. 29). † The Agency has also urged that only experienced pilots be given control over aircraft during times of severe weather conditions. Both of these proposals have been accepted by the industry. Far more controversial, the FAA has also endorsed the idea of setting autonomous safety departments within each airline that would have absolute power to ground flights or personnel on the basis of safety. These departments would actively monitor pilot performance through retrospective examination of data contained in tapes on flight recorders (Fotos p. 31). Although the airlines see such a move as having safety-enhancing outcomes, the notion that control over scheduled flights will be ceded by line management to a safety procedures, has met with some resistance. At bottom, implementing the FAA†s suggestions will carry a step price tag in both financial and management labor terms, and taken together, may contribute to a second round of shakeouts, as weaker carriers will not be able to bear these costs and continue to be competitive.

Comparable Worth Compared to Equal Pay

Comparable worth is shorthand for equal pay for work of equal value or equal pay for work of comparable worth. The doctrine of comparable worth is an attempt to remedy the inequities of pay which result from a long history of sex-segregated jobs and different pay scales for female and male jobs. Market rates, in this view, reflect past discriminatory practices, and cannot be the only basis of deciding current pay equity. Comparable worth looks at the skills and responsibilities of different jobs and attempts to correlate compensation to those skills and responsibilities. Comparable worth systems seek to fairly compensate jobs held primarily by women or by men more equitably by comparing the educational and skill requirements, task activities, and responsibility in different jobs, and attempting to compensate each job in relation to such factors rather than by the traditional pay history of the jobs. Equal Pay vs. Comparable Worth The Equal Pay Act of 1973  and many court decisions on pay equity revolve around the requirement that  the work being compared be equal work.  This approach to equity assumes that there are men and women in the job category and that they should not be paid differently for doing the same work. What happens when jobs are distributed differently, where there are different jobs, some held traditionally by mostly men and some held traditionally by mostly women?  How does equal pay for equal work apply? The effect of the ghettos of male and female jobs is that often, the male jobs were traditionally compensated more highly in part because they were held by men, and the female jobs were compensated less well in part because they were held by women. The comparable value approach then moves to looking at the work itself: What skills are required? How much training and education? What level of responsibility is involved? Example Traditionally, the job of a licensed practical nurse has been held mostly by women, and the job of a licensed electrician mostly by men.  If the skills and responsibilities and required training levels are found to be relatively equal, then a compensation system involving both jobs would adjust compensation to bring the LPNs pay into line with the electricians pay. A common example in a large organization, like state employees, might be outdoor lawn maintenance compared to nursery school aides.  The former has traditionally been done more by men and the latter by women.  The level of responsibility and education required is higher for the nursery school aides, and lifting small children may be similar to lifting requirements for those maintaining the lawn who lift bags of soil and other materials. Yet traditionally, the nursery school aides were paid less than the lawn maintenance crew, probably because of the historical connections of the jobs with men (once assumed to be breadwinners) and women (once assumed to be earning pin money).  Is the responsibility for a lawn of more value than the responsibility for the education and welfare of small children? The Effect of Comparable Worth Adjustments By using more objective standards applied to otherwise-different jobs, the effect is usually to increase pay to the jobs where women dominate in numbers. Often, the effect is also to equalize pay across racial lines as well, where jobs had been distributed differently by race. In most actual implementations of comparable worth, the pay of the lower-paid group is adjusted upwards, and the pay of the higher-paid group is allowed to grow more slowly than it would have without the comparable worth system in place.  It is not common practice in such implementations for the higher-paid group to have their wages or salaries cut from current levels. Where Comparable Worth Is Used Most comparable worth agreements have been the result of labor union negotiations or other agreements  and are more likely to be in the public sector than the private sector. The approach lends itself better to large organizations, whether public or private and has little effect on such jobs as domestic workers, where few people work in each workplace. The union AFSCME (American Federation of State, County, and Municipal Employees) has been particularly active in winning comparable worth agreements. Opponents of comparable worth generally argue for the difficulty of judging true worth of a job, and for allowing the market forces to balance a variety of social values. Bibliography Linda M. Blum. Between Feminism and Labor: The Significance of the Comparable Worth Movement. 1991.Sara M. Evans, Barbara N. Nelson. Wage Justice: Comparable Worth and the Paradox of Technocratic Reform. 1989, 1991.Joan Acker. Doing Comparable Worth: Gender, Class, and Pay Equity. 1989, 1991.Helen Remick. Comparable Worth and Wage Discrimination. 1984, 1985.

The Articles Of Confederation Was Successful On Foreign...

Midterm #2: On the short term scale the Articles of Confederation was successful regarding Foreign policy and the Western Lands, but eventually the United States succumbed to economic collapse due to economic restriction placed on the central government deriving from the Articles of confederation lacking the ability to collect revenue. One area that the Articles of Confederation did well during the war and shortly after the war was opening the U.S. to the world as a nation that hated Great Britain. Through this hatred, the nation France came to the U.S. with the hope to help the Americans fight the British. France was the most vital partner to the U.S. before and after any direct French conflict in the Revolutionary War. The rebel Americans were sold weapons and given the funds to wage war on a higher level because of the financial support from the French. Without this economic and military intervention from France the American Revolution would have been stopped surely due to ill eq uipped colonists. Also when the war ended the government made sure to keep a â€Å"permanent† alliance with France. Since they were close to the French the newly founded United States of America had France play a large role during the Treaty of Paris ending the war and making the U.S. an official independent nation. This Franco-American alliance had been the Unites States main weapon directly after the war which arguably kept them safe out of any conflict immediately after the war. These strong tiesShow MoreRelatedThe Critical Period979 Words   |  4 PagesThe Critical Period In 1781 the Articles of Confederation became the government of United States of America, a fragile new nation. This new government was just enough to hold the Country together in that period of time. Although, the effectiveness of these Articles can be debated. 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Fate and Fortune in the Canterbury Tales - 2034 Words

Fate and Fortune in Chaucer’s Canterbury Tales The Canterbury Tales were written by Geoffrey Chaucer at the end of the 14th century. This masterpiece is one of the greatest classics of English Literature, it was and continues to be still very popular. Many manuscripts survived and it was the first work to be printed by William Caxton. It is a story about pilgrims travelling together, who tell stories on their journey to Canterbury, to pay tribute to Saint Thomas Becket. As it is a collection of tales, it varies in genre (there is beast fables, romances, fabliaux, saints’ lives†¦), subject, mood, length (some tales are 80-page long whereas some are much shorter), form (in verse –several verse-form are also found- or in prose). For this†¦show more content†¦Moreover, it is a common belief that to her, human kind is nothing, and Palamon apostrophes Fortune in The Knight’s Tale to say it: â€Å"o cruel goddess, that governe/ this world (†¦) What is mankind moore unto yow holde/ than is the hee p that rowketh in the folde? / For slain is man right as another beest / and dwelleth eek in prisoun and areest / And hath siknesse and greet adversitee / and ofte times gilteless, pardee† (1303-1312). Fortune cannot be trusted: â€Å"who may truste on Fortune any throwe?† (The Monk’s Tale, 2136), â€Å"For whan men trusteth hire, thane wol she faille† (The Monk’s Tale, 2765) because she is also changeable: she can favour one person one day, and turn her tail the day after. The Monk tells the story of Alexander in saying â€Å"Fortune him made the heir of hire honour† (2643) at the beginning, and stating at the end â€Å"Thy sis Fortune hath turned into aas / And yet for thee ne weep she nevere a teere† (2661-62). Her ceaseless change can be sumned up into one single sentence: â€Å"Fortune was first freen, and sitthe foo† (2723). With Fortune, you get what you ask for: in prison, Palamon asks to see Emily every day and Arcite to be freed. Palamon stays in prison, seeing Emily every day through the window fenced with iron bars, whereas Arcite is released from prison thanks to one ofShow MoreRelatedEssay on the Knights Tale1622 Words   |  7 PagesDiscuss Questions The Knights Tale. 1. Do you admire Palamon and Arcite for sacrificing everything, including their friendship, to pursue Emily? Or, like Theseus, do you think its sort of stupid? 2. Are Palamon and Arcite two different characters, or the same character in two different bodies? 3. Why is Emily the only character whose prayer to the gods is not granted. 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Chaucer devotes two pages to their argument onRead MoreThe Canterbury Tales, written by Chaucer, and Sir Gawain and the Green Knight, written by an1600 Words   |  7 PagesThe Canterbury Tales, written by Chaucer, and Sir Gawain and the Green Knight, written by an anonymous author, are both sophisticated fourteenth-century examples of medieval romance. Medieval romances captured the heart of their audiences as narratives and stories that featured a protagonist, often a knight, and dealt with religious allegories, chivalry, courtly love, and heroic epics. The concept of the knight emerged from the remnants of the Anglo-saxon literature and ideals and influence of theRead MoreCanterbury Tales Character Analysis1272 Words   |  6 PagesThe Canterbury Tales, penned by Geoffrey Chaucer gives its audiences insight on the corruption that exists to this day in humanity. As you read through the chapters Chaucer reveals the dark sides to supposedly respectable people such as the Summoner, along with people he favors like the Knight, the Wife of Bath, and women in general. His comical descriptions and stories that coincide with each character express his thoughts on real people in his society. My perception of the Summoner’s tale moralRead MoreThe Role Of Fate In Medieval Literature2182 Words   |  9 PagesTHE ROLE OF FATE IN THE DESIRES OF MEN IN MEDIEVAL LITERATURE Two of the most common themes found in many medieval literature are those of desire and fate. Sometimes these themes are explicitly explored by authors to illustrates their understanding or to make a point about them. Other times the authors make implicit, nuanced suggestions through the plot of their tales that allows the readers to discover their own understandings about two and to make connections between them. 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Even this might indicate that he doesn t regard the witches as the voice of the fate, but of chance, Macbeth eventually decides he would assist hischance by murdering Duncan(The Witches of Macbeth: Fate, Free Will, and the Influence of Evil.). With a simple gibberish from the weird sisters ,

Managing Profitable Customer Relationships Free Essays

Hardly Davidson has massive engines for motorbikes and has been known to have a friendly relationship with its customers. The company sponsors different motorbike events during which they are able to display modern bikes and their accessories. The brand name has a great reputation and has brought together riders and have welfare benefits for its members. We will write a custom essay sample on Managing Profitable Customer Relationships or any similar topic only for you Order Now The company has enhanced their rapport through regular communication through the internet. The riders have formed an international network attachment as well as local dealership to enhance their services. The company motivates its customers or riders by giving them pinstops which identify them with the company and so doing create pride of membership. Performance related programs on mileage for those enrolled leads to an advantage in terms of priority in accessing the best accessories for one’s bike. Harley company has been accepted in different countries and its members can rent and ride in countries such as Canada, Australia and the United States. The company has built a good reputation and has a great bond with its numerous customer needs. 1.   What are the key elements of Harley-Davidson’s efforts to build relationship with its customers? The key elements in Harley-Davidson are the involvement of customers in not being just customers but also being dealers. There is customer participation in events sponsored by the company. Membership creates a sense of belonging and enhances the attachment to the company while good communication through the internet connects the company to its customers. Presence of welfare schemes such as sponsorship to events and insurance services motivates the customers. 2.   Can you think of other companies that create such strong relationships with their customers? How do they do that? NASCAR which is the National Association for Stock Car Auto Racing has created a lasting customer relationship through a careful blend of live racing events, compelling web sites with information and entertainment, ensures ample security and organizes parties, cook outs and camps with family members. This creates a friendly environment that enriches the company-to-customer relationship. The Unilever company has created a good relationship through high standards of corporate behavior towards the employees, customers and the society. It is involved in community development activities and this extension of their services to the society attracts more customers. The company has also offered voluntary counseling and testing programs in support of the community. It has also set goals to evaluates the HIV/AIDS roadmap with strategic approaches to reaching out to its customers. A follow up plan for comprehensive care and treatment is organized so that customers are convinced that the company’s objective is to render them the service and the good gesture goes along way in maintaining a good relationship. Offering of medicines at subsidized rates has led to the growth of the company and the humanitarian activities have extended to the provision of health insurance covers. 3.   How else can Harley-Davidson build or deepen its relationships with its customers? Harley Davidson can deepen its relationship by offering medical checkups for the riders before and after an event, a welfare scheme for the member’s next of kin to participate   for future customers as well as training facilities for those aspiring to be good riders. Recommendation To enhance profitable customer relationships, it is important that there is customer involvement and participation in the activities of the company. A good rapport is enhanced through welfare schemes for members to cater for important services such as medical and insurance covers. Good communication between the two parties gives feedbacks and this helps the company in providing the best quality of service. Reference: Paul G.R. Up Close and Personal?: Customer relationship. Don Peppers, Martha Rogers. Managing Customer Relationship. Stanley A.B Customer Relationship Management    How to cite Managing Profitable Customer Relationships, Essay examples

AAER No. 3409 †SEC v. Tyco International Ltd free essay sample

In early 2006, a Commission filing over disclosures, accounting fraud and a FCPA injunctive action against Tyco was settled and led to the agreement of an overview of Tyco’s global organization. The investigation of the matter then led to the findings of the misconducts that Tyco is getting Charged for in this case. During the fiscal years 2006-2009, Tyco Inc. was found to be involved in several illicit payment schemes. The company filed misstated financial statements with the SEC, failed to place and maintain efficient internal controls, paid false commissions and payments through a third party, and violated anti-bribery provisions set by the FCPA. By using Tyco’s international business, illegal acts were easily hidden within the financial statements and the company was able to earn $10.5 million in profits by employees’ commissions and promises with third party contracts. Improper reporting of books and records was one of Tyco main issues. This was a violation of Section 13(b)(2)(A) of the Exchange Act. Misstated books and records were the results of the illegal actions by several regions of Tyco. The misconduct the company was involved in caused the records to be misstated. Both ADT Thailand and THC Saudi Arabia recorded expenses improperly and failed to apply policies that ensured correct record keeping. Between the two organizations, Tyco received $2,004,171 in illegal payments through their financial statements. Tyco’s failure to use and maintain internal controls contributed to several illicit payment schemes. TFC HK and Keystone- China did not follow Tyco’s control policies and was able to make payments of $ 246,000 to a third-party agent to insure sales with a Chinese petrochemical company. TFIS UK – Egypt also took advantage of the absence of internal controls. By using a former employee’s bank account, they filed entertainment expense to hide trips to the United Kingdom and the United States. The Egyptian agents also submitted inflated invoice to cover excess entertainment expenses. Without working internal controls in place, Tyco was able to benefit with $1,785,958 and violated Section 13(b)(2)(B) of the Exchange Act. Tyco was also found to the in violation of Section 30A(a) over anti-bribery provisions with third parties. To insure contacts, sales prices and project, bribes were made between several of Tyco’s companies and   government agents, board of directors, and site project teams. M/A-COM – Turkey, TTC China, TWW Germany, TFIS France, TFS Malaysis and THC Polska was all found to be involved with bribery and in total Tyco benefited with over $6 million in contracts acquired due to the bribes. Auditor’s Prevention of the AAER Richard P. Scalzo, a former PwC engagement partner, was responsible for the firms audits of Tyco International Ltd during the period under question. Foremost, the auditor should have considered the business risk associated with client continuance. In 2006, the Company was undergoing proceedings with the SEC for utilizing various improper accounting practices and a scheme involving transactions with no economic substance to overstate its reported financial results by at least one billion dollars. Taking such circumstances into assessment of engagement risk, the auditor should have discontinued services for the Company. Although auditing standards do not require auditors to identify all instances of fraud, they should provide reasonable assurance that all instances of material fraud are discovered. Likewise, an auditor should asses the probability of illegal acts and should maintain the same responsibility for such occurrences as for material misstatements. Scalzo failed to identify countless fraudulent misstatements as well as several illicit payment schemes. The Company violated anti-bribery payments through several transactions by the international subsidiaries. Though the illegal payments were hidden in transactions, many employees were aware of one of the incidents. Had the auditor performed efficient inquiry procedures, the illegal bribes could have emerged. Additionally, generally accepted auditing standards require the auditor to attain a full understanding of the internal controls system prior to beginning the auditing process. If these procedures had been performed thoroughly, the auditor should have noticed the Company’s failure to maintain sufficient internal controls. The Company did not have controls in place to provide reasonable assurance that the financial statements are reliable, that operations are effective and efficient, and that laws and regulations are followed. The company’s internal controls failed to detect inaccurate transactions, inflated invoices, a lack of commitment to third-party policies, and fake receipts and contracts. In realizing the inefficient controls, the auditor would have required a greater scope of substantive procedures. Furthermore, the control risk for all accounts should have increased, which would have resulted in more substantive procedures. Due to the lack of internal controls, inherent risks for accounts such as commission, entertainment reimbursements and expenses should have also been increased to increase the scope of tests performed. For the particular accounts that were misstated, the auditor failed to obtain sufficient and appropriate evidence with respect to existence of invoices and contracts and the valuation of invoices. The auditor should have increased procedures for testing the existence of invoices and contracts; efficient and thorough vouching would have revealed payments that lacked documentation from invoices or contracts. Similarly, the auditor should have increased procedures for testing the valuation of invoices, particularly for the pricing of products. In doing so, the auditor would have recognized inflated prices. Additionally, external confirmations would have confirmed that inaccurate transactions were recorded in accounts that did not reflect the ultimate recipients of the funds. Case Update Tyco agreed to a proposed final judgment for violating Sections 13(b)(2)(A), 13(b)(2)(B), and 30A(a) of the Securities of Exchange Act of 1934 and was ordered to pay disgorgement of $10,564,992, plus prejudgment interest of $2,566,517. This proposed settlement is subject to the approval of the District Court. Tyco also settled criminal charges on the matter by paying penalties in excess of $13 million to the Department of Justice. Tyco Voluntarily disclosed the conduct to the Commission. Tyco also took extensive remedial measures such as firing over 90 employees that were involved in the misconduct and making significant enhancements to its FCPA compliance program.