The Spiral Life Cycle Model Information Technology Essay

The Spiral Life Cycle Model Information Technology Essay A spiral model is nothing but a system development life cycle model used in software development project management. Unlike the waterfall model which adopts a more linear approach, the spiral model combines elements of both design and prototyping in stages in an effort The concept and ideology of a spiral life cycle model came into existence in the mid 1980s and was introduced by an American software engineer, Barry Boehm. He penned down his thoughts on the model in his article A Spiral Model of Software Development and Enhancement. Though, this model was not the first model to discuss iterative development; the spiral model proved to be an evident influence on introducing two other software development methodologies, the Model Based Architecture and Software Engineering (MBASE) and Extreme Programming. http://www.docstoc.com/docs/23272870/A-Presentation-On-Using-the-WinWin-Spiral-Model-A Youtube: http://www.youtube.com/watch?v=vj_pqDpLJQ0 spiral iterative development Spiral model The spiral model is a software development process combining elements of both design and prototyping-in-stages, in an effort to combine advantages of top-down and bottom-up concepts. Also known as the spiral lifecycle model (or spiral development), it is a systems development method (SDM) used in information technology (IT). This model of development combines the features of the prototyping model and the waterfall model. The spiral model is intended for large, expensive and complicated projects. History The spiral model was defined by Barry Boehm in his 1986 article A Spiral Model of Software Development and Enhancement[1]. This model was not the first model to discuss iterative development. As originally envisioned, the iterations were typically 6 months to 2 years long. Each phase starts with a design goal and ends with the client (who may be internal) reviewing the progress thus far. Analysis and engineering efforts are applied at each phase of the project, with an eye toward the end goal of the project. Steps The steps in the spiral model iteration can be generalized as follows: The system requirements are defined in as much detail as possible. This usually involves interviewing a number of users representing all the external or internal users and other aspects of the existing system. A preliminary design is created for the new system. This phase is the most important part of Spiral Model. In this phase all possible (and available) alternatives, which can help in developing a cost effective project are analyzed and strategies to use them are decided. This phase has been added specially in order to identify and resolve all the possible risks in the project development. If risks indicate any kind of uncertainty in requirements, prototyping may be used to proceed with the available data and find out possible solution in order to deal with the potential changes in the requirements. A first prototype of the new system is constructed from the preliminary design. This is usually a scaled-down system, and represents an approximation of the characteristics of the final product. A second prototype is evolved by a fourfold procedure: evaluating the first prototype in terms of its strengths, weaknesses, and risks; defining the requirements of the second prototype; planning and designing the second prototype; Constructing and testing the second prototype. Applications The spiral model is mostly used in large projects. For smaller projects, the concept of agile software development is becoming a viable alternative. The US military had adopted the spiral model for its Future Combat Systems program. The FCS project was canceled after six years (2003-2009), it had a two year iteration (spiral). The FCS should have resulted in three consecutive prototypes (one prototype per spiral-every two years). It was canceled in May 2009. The spiral model thus may suit small (up to $3 million) software applications and not a complicated ($3 billion) distributed, interoperable, system of systems. Also it is reasonable to use the spiral model in projects where business goals are unstable but the architecture must be realized well enough to provide high loading and stress ability. For example, the Spiral Architecture Driven Development is the spiral based SDLC which shows the possible way how to reduce a risk of non-effective architecture with the help of spiral model in conjunction with the best practices from other models. Spiral Model History The spiral model was defined by Barry Boehm in his 1988 article A Spiral Model of Software Development and Enhancement. This model was not the first model to discuss iterative development, but it was the first model to explain why the iteration matters. As originally envisioned, the iterations were typically 6 months to 2 years long. Each phase starts with a design goal and ends with the client (who may be internal) reviewing the progress thus far. Analysis and engineering efforts are applied at each phase of the project, with an eye toward the end goal of the project. The Spiral Model The spiral model, also known as the spiral lifecycle model, is a systems development method (SDM) used in information technology (IT). This model of development combines the features of the prototyping model and the waterfall model. Thespiral model is intended for large, expensive, and complicated projects. The steps in the spiral model can be generalized as follows: The new system requirements are defined in as much detail as possible. This usually involves interviewing a number of users representing all the external or internal users and other aspects of the existing system. A preliminary design is created for the new system. A first prototype of the new system is constructed from the preliminary design. This is usually a scaled-down system, and represents an approximation of the characteristics of the final product. A second prototype is evolved by a fourfold procedure: (1) evaluating the first prototype in terms of its strengths, weaknesses, and risks; (2) defining the requirements of the second prototype; (3) planning and designing the second prototype; (4) constructing and testing the second prototype. At the customers option, the entire project can be aborted if the risk is deemed too great. Risk factors might involve development cost overruns, operating-cost miscalculation, or any other factor that could, in thecustomers judgment, result in a less-than-satisfactory final product. The existing prototype is evaluated in the same manner as was the previous prototype, and, if necessary, another prototype is developed from it according to the fourfold procedure outlined above. The preceding steps are iterated until the customer is satisfied that the refined prototype represents the final product desired. The final system is constructed, based on the refined prototype. The final system is thoroughly evaluated and tested. Routine maintenance is carried out on a continuing basis to prevent large-scale failures and to minimize downtime. Applications For a typical shrink-wrap application, the spiral model might mean that you have a rough-cut of user elements (without the polished / pretty graphics) as an operable application, add features in phases, and, at some point, add the final graphics. The spiral model is used most often in large projects. For smaller projects, the concept of agile software development is becoming a viable alternative. The US military has adopted the spiral model for its Future Combat Systems program. Advantages and Disadvantages Advantages Estimates (i.e. budget, schedule, etc.) become more realistic as work progresses, because important issues are discovered earlier. It is more able to cope with the (nearly inevitable) changes that software development generally entails. Software engineers (who can get restless with protracted design processes) can get their hands in and start working on a project earlier. Disadvantages Highly customized limiting re-usability Applied differently for each application Risk of not meeting budget or schedule Risk of not meeting budget or schedule Spiral Model The spiral model is the most generic of the models. Most life cycle models can be derived as special cases of the spiral model. The spiral uses a risk management approach to software development. Some advantages of the spiral model are: defers elaboration of low risk software elements incorporates prototyping as a risk reduction strategy gives an early focus to reusable software accommodates life-cycle evolution, growth, and requirement changes incorporates software quality objectives into the product focus on early error detection and design flaws sets completion criteria for each project activity to answer the question: How much is enough? uses identical approaches for development and maintenance can be used for hardware-software system development

Starbucks Planning

One thing that all managers do is plan. The planning they do may be extensive or it may be limited. It might be for the next week or month or it might be for the next couple of years. It might cover a work group or it might cover an entire division. No matter what type or extent of planning a manager does, the important thing is that planning takes place. Without planning, there would be nothing for managers to organize, lead, or control. Based on the numerous accomplishments that Starbucks has achieved through the efforts of its employees, managers, no doubt, have done their planning. Company Goals As of April 2006, Starbucks had 11,377 stores in 37 countries. During the 30 weeks that ended April 30, the company opened 755 new stores in the United States and 381 new stores overseas. However, that's a far cry from where the company wants and intends to be someday. CEO Jim Donald says Starbucks' long-term goal is 15,000 U. S. stores and 30,000 stores globally. For 2006, the company's goal is to open approximately 1,800 new stores globally and to reach about $7. 6 billion in revenues. Goals for the next 3 to 5 years include attaining total net revenue growth of 20 percent and earnings per share growth between 20 to 25 percent. In addition to its financial and other growth goals, Starbucks has an even â€Å"glitzier† goal. It wants to have a hand in helping define society’s pop culture menu. Although this goal takes Starbucks beyond its coffee roots, it seems to fit well with the unconventional approach to business that Howard Schultz has followed from the beginning. Company Strategies Starbucks has been called the most dynamic retail brand conceived over the last 2 decades. It has been able to rise above the commodity nature of its product and become a global brand leader by reinventing the coffee experience. Millions of times each week, a customer receives a drink from a Starbucks barista. It’s a reflection of the success that Howard Schultz has had in creating something that never really existed in the United States—cafe life. And in so doing, he created a cultural phenomenon. Starbucks is changing what we eat and drink. It’s altering where we work and play. It’s shaping how we spend time and money. No one is more surprised by this cultural impact than Howard Schultz. He says, â€Å"It amazes all of us how we've become part of popular culture. Our customers have given us permission to extend the experience. † Starbucks has found a way to appeal to practically every customer demographic as its customers cover a broad base. It’s not just the affluent or the urban professionals and it's not just the intellectuals or the creative types who frequent Starbucks. You'll find soccer moms, construction workers, bank tellers, and clerical assistants at Starbucks. And despite the high price of its products, customers pay it because they think it's worth it. What they get for that price is some of the finest coffee available commercially, custom preparation, and, of course, that Starbucks ambiance——the music, the comfy chairs, the aromas, the hissing steam from the espresso machine—all invoking that warm feeling of community and connection that Schultz experienced on his first business trip to Italy and knew instinctively could work elsewhere. There's no hiding the fact that Starbucks’ broad strategy is to grow into a global empire. Howard Schultz says, â€Å"We are in the second inning of a 9-inning game. We are just beginning to tap into all sorts of new markets, new customers, and new products. But any growth that Starbucks pursues is done so with great care and planning. CEO Jim Donald says that all company growth is governed by whether quality can be maintained. If there is any uncertainty about quality, a new strategy won’t fly, no matter how good it might seem. Starbucks has designed its growth strategies to exploit the customer connections it has so carefully nurtured and the brand equity it has so masterfully built. And company executives have taken the company in new directions even while continuing to grow store numbers and locations and increasing same—store sales. As the world’s number-one specialty coffee retailer, Starbucks sells coffee drinks, food items, coffee beans, and coffee—related accessories and equipment. In addition, Starbucks sells whole bean coffees through a specialty sales group and grocery stores. Starbucks has grown beyond coffee into related businesses such as coffee—flavored ice cream and ready-to-drink coffee beverages. These Starbucks branded products have been developed with other companies. For instance, its Frappuccino and DoubleShot coffee drinks were developed with Pepsi-Cola. Its Starbucks Ice Cream was developed with Dreyer's. In early 2006, Starbucks launched its ready-to-drink coffee drink, Starbucks Iced Coffee, through a joint venture with Pepsi-Cola. The company extended its success at brand extensions to selected global markets when it launched a fresh Starbucks-branded premium ready-to-drink chilled coffee called Starbucks Discoveries in convenience stores in Taiwan and Japan. This product was enthusiastically embraced by customers immediately. In addition, Starbucks markets a selection of premium tea products since its acquisition of Tazo, LLC. Starbucks has also pursued other strategic initiatives to enhance its core business. For instance, in November 2001, the company launched the Starbucks prepaid card. Since that time, more than 77 million prepaid cards have been activated and loaded with more than $1 billion. The director of Starbucks global card services says, â€Å"We've been pleasantly surprised by the card business, by how fast it's grown in percentage of tender, and how people use the card. It offers so many opportunities to grow from there. It's one of our fastest-growing channels. Industry experts say that part of the reason for its success is its dual use–as gift cards and for customer loyalty. Also important to its success, however; is the fact that the company has made it easy to purchase, reload, and use. The company is on the leading edge in finding innovative ways to get the prepaid cards into potential customers' hands such as parent—student cards, gift-card malls, and business gifts and i ncentives. Having conquered the coffee business, one of the company’s most interesting brand extensions has been music. Selling music at Starbucks began when a store manager made tapes for his store. These tapes proved to be so popular that the company began licensing music compilation CDs for sale. Initially, Howard Schultz had to be persuaded about this product and recalls, â€Å"I began to understand that our customers looked to Starbucks as kind of editor. It was like . . . we trust you. Help us choose. † And it you think about it, music has always been part of the cafe or coffeehouse experience. In addition to selling its private—label CDs, the company launched the HearMusic Cafe in Santa Monica, California, in March 2004. At these stores, customers burn their own compilation CDs. After sampling selections, if they choose to buy, customers can walk up to a music â€Å"bar† and order a custom CD with any variation of songs and have it delivered to their table when it’s completed. Based on the success Starbucks has had with music, it decided to selectively link the Starbucks brand with certain kinds of movies, the first being Akeelah and the Bee. The president of Starbucks Entertainment division says, â€Å"Movies are a very important part of our entertainment strategy. The thought was to start with music, build some success, establish credibility, and then move into films. Eventually, the company wants to be a destination not just for java but also for music, movies, books, and more. Not everything that Starbucks touches turns to gold. One of its big flops was a magazine called Joe launched by the company and Time. It lasted three issues before being called off. A carbonated coffee beverage product called Mazagran, developed with Pepsi—Col a, never made it to market. Too, Starbucks decided to close its Torrefazione Italia cafes when they didn't meet the goals set for them. What about the core industry Starbucks is in? How is it doing? The hot drinks market continues to sizzle. It's forecasted to increase 10. 9 percent between now and 2010. In addition, the 2006 National Coffee Drinking Trends report of the National Coffee Association of the United States says that coffee tied soft drinks in daily market penetration for the first time since 1990. And Starbucks wants to remain at the forefront of the industry. Some 24 percent of Starbucks customers visit 16 times per month—a number that no other fast—food chain even comes close to. There's no doubt that Howard Schultz has built and continues to build Starbucks to be big. Growth has been funded through cash flow, not by selling stock or by using debt financing. Some of the new ideas to be implemented include an aggressive roll-out of drive-through windows, which now number more than 1,000 U. S. locations and 35 Canadian sites; a co-branded Web site between Yahoo! and Starbucks where online daters can arrange to meet and drink free coffee; a partnership between Starbucks and Kellogg that created a hot breakfast product; and two new banana-based blended drinks. Discussion Questions 1. Starbucks has some pretty specific goals it wants to achieve. Given this, do you think managers would be more likely to make rational decisions, bounded rationality decisions, or intuitive decisions? Explain. 2. Give examples of decisions that Starbucks managers might make under conditions of certainty. Under conditions of risk. Under conditions of uncertainty. 3. Make a list of Starbucks’ goals. Describe what type of goal each is. Then, describe how that stated goal might affect, how the following employees do their jobs: (a) a part-time store employee-—a barista—in Omaha; (b) a quality assurance technician at the company's roasting plant in Carson City, Nevada; (c) a regional sales manager; (d) the senior vice president of new markets; and (e) the CEO. . Discuss the types of growth strategies that Starbucks has used. Be specific. 5. Evaluate the growth strategies Starbucks is using. What do you think it will take for these strategies to be successful? 6. What competitive advantage(s) do you think Starbucks has? What will it have to do to maintain that (those) competitive advantage(s)? 7. Do you think the Starbucks brand can become too saturated ·Ã¢â‚¬â€t hat is, extended to too many different products? Why or why not? 8. What companies might be good benchmarks for Starbucks? Why? What companies might want to benchmark Starbucks? Why? 9. Describe how the following Starbucks managers might use forecasting, budgeting, and scheduling (be specific): (a) a retail store manager; (b) a regional marketing manager; (c) the manager of global trends; and (d) the CEO. 10. Describe Howard Schultz as a strategic leader. 11. Is Starbucks â€Å"living† its mission? Explain. (You can find the company mission on its Web site, www. starbucks. com or in the continuing case found at the end of Part 2. 12. Do a brief SWOT analysis of Starbucks.

Ibm Risk Analysis

Relative Size in the Industry IBM is part of the technology sectors in the diversified computer systems industry (IBM: Summary for International Business Machines- Yahoo! Finance). The market cap is 254 billion with IBM making up 218. 6 billion. IBM is the largest company relative to the diversified computer systems industry. In a less specific industry of computers IBM only trails Microsoft Corporation by 12 billion dollars (â€Å"International Business Machines Corp. â€Å").Because of IBM’s large size relative to its industry the relative size does not pose a large business risk to IBM because they can leverage their large market share, capabilities, and achieve economies of scales. Acceptable audit risk is affected by the relative size of IBM in the industry it operates. IBM is a large global corporation and thus there are a very large number of financial statement users. The large number of financial statement users causes the auditors to set acceptable audit risk at a lower number and thus lowering planned detection risk and increasing the amount of evidence that must be accumulated.Major Competitors IBM’s major competitors in the diversified computer systems industry are Hewlett Packard Company Common, Teradata Corporation, Cray Inc. , and Silicon Graphics International (IBM: Summary for International Business Machines- Yahoo! Finance). These competitors do not pose a large risk to IBM because they have much smaller market-shares than IBM Hewlett Packard Company Common IBM’s closest competitor only has a market capitalization of 24. 4 billion and the next closes which is Teradata Corporation only has a market cap of 10. billion (IBM: Summary for International Business Machines- Yahoo! Finance). In the computer industry IBM’s major competitors are Microsoft, Apple, Oracle, Cisco Systems, and Intel Corporation (â€Å"International Business Machines Corp. â€Å") IBM due to operating in over 170 different countries in multipl e different industry segments and competitors vary by segment from large international enterprises to smaller narrowly focused entities and thus IBM recognizes 100s of competitors (International Business Machines Corporation 2011).Intense competition regardless of IBM being a leader in almost all segments however does increase risks for IBM such as price competition which lowers gross margin ratios, losing market share, and obsolescence of current products. IBM’s major competitors by business segment are discussed in the next section. Major Products & Competition by Product IBM’s major business segments are Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing.Global Technology Services includes strategic Information Technology outsourcing services to transform clients existing infrastructures, global process services which includes process platforms and business process outsourcing, integrated technology services which are a project based portfolio of services to optimize IT which is built around key assets and patented software to drive efficiency, flexibility, productivity, and reduce costs, and the GTS services delivery which is responsibly or delivery of IBM technology worldwide. International Business Machines Corporation 2011) Global Business Services provides consulting and system integration which bring value to the customer by improving strategy and transformation, application innovation services, enterprise application, and business analytics and optimization. Global Business Services also includes application management services which provide assistance in application development, management, maintenance and support for software and custom and legacy applications. International Business Machines Corporation 2011) IBM faces major competition in the global services segments global technology services and global business services from the broad based competitors Accenture, Computer S ciences Corporation, Fujitsu and Hewlett-Packard Company. IBM also competes with India-based service providers, public accounting firms providing consulting services, and companies that focus on local market and niche service areas. International Business Machines Corporation 2011) IBMs software segment includes the sale of middleware software which enables clients to integrate systems, processes, and applications across a standard software platform. Operating systems are the software engines that run computers. Two thirds of the revenue from software is from annuity based recurring license charges and ongoing subscription and support.One third of the revenue comes from one time charge arrangements where customers pay up front for a license which is typically from one year of subscription and support but they can purchase subscriptions and support after the first year. Software offerings include information management software, trivoli software, lotus software, rational software, se curity systems software and operating systems. This segment is in a highly competitive market and the companies main competitors are CA. Inc. , Microsoft Corporation and Oracle Corporation. International Business Machines Corporation 2011) The IBM systems System Z, Power Systems, and System X range from general purpose and integrated systems designed and optimized for specific business, public, and scientific computing needs and form the foundation for IBM’s integrated offerings. Storage includes data storage products and solutions to help clients retain and manage complex volumes or rapidly growing digital information. They address vitally important issues such as security, compliance, storage optimization, and retention and archiving, availability, etc.Retail store solutions include Point-of Sales and self-service systems and include hardware, software and services. Lastly microelectronics include semiconductor design and manufacturing primarily for use in IBM systems. In s ystems and technology IBM’s major competitors are Cisco, Dell, HP, Oracle, and EMC Corporation. (International Business Machines Corporation 2011) Global Financing facilitates customers acquisition of IBM systems, software and services and includes client financing, commercial financing, and remanufacturing and remarketing.Client financing includes lease and loan financing to end users and internal clients with terms between 1 and 7 years. Internal financing supports long term client service contracts in the Global Services department and Global financing also factors a portion of the company’s accounts receivable. Commercial financing includes short term inventory and accounts receivable financing to dealers and remarketers of IT products. Remanufacturing and Remarketing includes equipment which is returned at the conclusion of a lease contract which is they sold or leased to another client internally or externally.The company competes with Cisco HP and non-captive fi nancing entities of companies like General Electric and banks and financial institutions and in remarketing the company competes with local and regional brokers and original manufacturers. (International Business Machines Corporation 2011) The nature of IBM’s products and the intense competition in all its business segments causes many risks on the audit as a whole and the audit of specific accounts.The overall audit risks because there are many inherent risks associated with intensely competitive environments which can cause products to become obsolete, loss in market share and lowering gross margin, and the inherent risks associated with financing. One particular account that is affected by this is inventory which should be checked for realizable value and possible obsolescence. The software and services that are provided to customers are highly complicated and are bundled together and thus sales and accounts receivable should be checked for proper classification and timing .Global financing poses many risks to IBM because of its exposure to the risk of economic downturns and the tightening of credit spreads and also there is a risk that the clients they provide financing for will not be able to meet contractual obligations and or default on payments. With global financing the auditors must make sure that leasing arrangements are properly accounted for and that the appropriate presentation and disclosures are included in the notes to the financial statements.For leases the audit objectives of classification, accuracy, and realizable value are of particular importance. Major Customers No clients represent more than 10% of the company’s revenue so lack of major customers reduces risk. (International Business Machines Corporation 2011). Having major customers could be risky because losing the major customer could have a large impact on sales; also having major customers could allow those customers to have bargaining power over IBM.IBM while it does not have any major customers it is overly dependent on the geographic region of the Americas for revenue. In 2011 the Americas were the source of 43. 1% of the total geographic revenue. (â€Å"International Business Machines Corporation- Financial and Strategic Analysis Review. â€Å") This over dependence on the Americas could cause substantial business risk due to the economic downturn in the Americas and if conditions were to become adverse and or demand were to decline this could hurt the business. â€Å"International Business Machines Corporation- Financial and Strategic Analysis Review. â€Å") Locations IBM operates in over 170 different countries and one of its major strategies is to expand into emerging markets. IBM’s major markets are Canada, France, Germany, Italy, Japan, the United States, the UK, the Bahamas, Belgium, the Caribbean, Cyprus, Denmark, Finland, Greece, Iceland, Ireland, Israel, Malta, the Netherlands, Norway, Portugal, Spain, Sweden and Switzer land (International Business Machines Corporation 2011).The emerging markets that IBM is focusing on which have higher market growth rates than the global average are countries in Southeast Asia, Eastern Europe, the Middle East and Latin America (International Business Machines Corporation 2011). This causes substantial risk for the company because each country is going to have different laws to which IBM must comply with or face possible law suits.The fluctuations in different currencies can cause a lot of risk to IBM because the value of revenue in certain countries could decrease substantially and they also must value the different currencies in US dollars for the financial statements. Other risks for companies that operate internationally include acquiring export licenses, laws and business practices that favor local businesses, trade restrictions, duties and tariffs, and the risk of not accounting for taxes correctly in the multiple jurisdictions that the company operates in.IB M operating in over 170 companies and is looking to expand into other emerging markets causes a substantial amount of risk for the company and should be considered when conducting the audit. First it affects the audit as a whole because the inherent risk and therefore risk of material misstatement is increased because of IBM’s international operations. Specific accounts and or assertions that are affected by this risk would be sales. Sales should be checked to make sure that the values are accurate and that the appropriate currency conversion rates were applied when changing foreign currency to US dollars.Another balance related audit objective would be accuracy and classification related to taxes payable and tax expense because tax laws are highly complex and the company would owe taxes to multiple local, state, and federal jurisdictions due to global operations. Another audit objective that should be checked would be that all necessary disclosures regarding law suits and ot her contingencies related to foreign operations are present in the notes to the financial statements and thus satisfy the completeness audit objective and the accuracy and valuation objectives in the presentation and disclosure-related udit objectives. Impact of Technology on Business Operations IBM is part of the technology sector and thus the impact of technology on the business operations of IBM is huge. In IBM’s business of being a computer and software manufacturer and service provider the pace of technological change is extremely rapid. IBM in order to be competitive with other major companies in the industry must be a leader in innovation and constantly be developing new products and capabilities to be competitive with other companies also trying to provide similar services in the same sector.Due to the rapid change in technology IBM must invest heavily in research and development which it does with annual expenses of approximately 6. 258 billion dollars, 5. 99 billion was for scientific research and application of scientific advances for new and improved products, their uses, and also services and their applications and the other 267 million was for product engineering (International Business Machines Corporation 2011).This investment in research and development is necessary but still has inherent risks because if competitors are able to come out with similar products to IBM’s products before IBM then they could lose a substantial amount of market share also the research and development process itself is a long and risky process because it may or may not result in a marketable product with sufficient consumer demand. Rapid technological change also has the inherent risks of causing IBM’s inventory to become out- dated and thus obsolete.Rapid technological change also affects the business operations of IBM because IBM will have a lot of intellectual property as a part of their assets on the balance sheet. In 2011 alone IBM was award ed 6,180 patents and in the last 19 years IBM has been awarded 47,000 patents and been the leader in receiving patents (â€Å"International Business Machines Corporation- Financial and Strategic Analysis Review. â€Å") There is a risk that IBM won’t value these intangible items properly and thus cause misstatements in the financial statements.Rapid technological change has the overall effect on the audit of increasing the amount of inherent risk in such accounts as intangible assets, and also research and development expenses. Specifically the audit of intangible assets will be affected because the auditor must pay specific attention to the valuation and allocation assertion and make sure that the intangible assets are valued at the correct amounts and that any necessary adjustments to the value of the intangible assets is made. Another balance related objective they should make sure the client satisfies is rights and obligations.The auditor should make sure that the clien t has the right to this intellectual property which can be satisfied by checking the related patents. The other account that must receive special attention is research and development. The auditor needs to make sure that all research and development is being expensed and is not capitalized and thus the classification of transactions related to research and development are properly classified as expenses and that related product expenses are only capitalized once the product has hit the market. Special Accounting PracticesIBM is affected by special accounting principles for revenue recognition. Revenue recognition for software vendors can be extremely complex and one of the complexities for software vendors is for multiple-deliverable revenue arrangements. Software vendors are able to account for individual products and services that are bundled together as a package separately if they can make a best estimate of each items fair value selling price. Companies must come up with vendor specific objective evidence (VSOE) of the fair value in order to account for them separately.If VSOE exists for undelivered items but not for delivered items the company uses the residual method but if VSOE of fair value doesn’t exist for the undelivered items then revenue cannot be recognized until VSOE of fair value does exist or all items have been delivered. Other issues that complicate revenue recognition for software companies such as IBM are whether or not new products are more than minimally different from existing products or whether it is just an upgrade.If an arrangement does include the right to an upgrade it must be determined whether the right is specified and whether VSOE of fair value can be determined or if it is unspecified and just included in PCS. Lastly if the company makes price concessions those must be analyzed to see whether they are stand-alone concessions or whether they expect to make similar price concessions to other customers because this could have a large effect on the realizable value of accounts receivable and the appropriate numbers to report in sales. (Triplett & Miller)The complexity of multiple deliverable revenue arrangements has a large impact on the audit. First and foremost the complexity of these accounting rules causes a large increase in the inherent risk. Specific audit objectives which are affected by these risks would be the realizable value of accounts receivable, the accuracy of sales, and the timing of revenue recognition in the sales cycle. If the company commonly makes price concessions then the realizable value of accounts receivable could be over-valued unless the company makes reasonable estimates of this and recognizes it with the original sales.Sales could be over or under valued if the VSOE of fair value is not accurate and the auditors must check that there is substantial evidence to support the prices the vendors come up with. Lastly the timing of sales could be greatly affected by these acc ounting principles because if VSOE of fair value cannot be established then revenue recognition must be delayed until all items in the arrangement are delivered. Works Cited â€Å"Diversified Computer Systems Overview: Industry Center – Yahoo!Finance. †Ã‚  Diversified Computer Systems Overview: Industry Center – Yahoo! Finance. Yahoo, 2012. Web. 30 Nov. 2012. . â€Å"FASB Accounting Standards Update Number 2011-02. †Ã‚  FASB. org. Financial Accounting Standards Board of the Financial Accounting Foundation, Apr. 2011. Web. 30 Nov. 2012. . â€Å"IBM: Summary for International Business Machines- Yahoo! Finance. †Ã‚  Yahoo! Finance. Yahoo, 2012. Web. 0 Nov. 2012. http://finance. yahoo. com/q? s=IBM â€Å"International Business Machines Corp. †Ã‚  International Business Machines Corp. : NYSE:IBM Quotes & News – Google Finance. Google, 2012. Web. 30 Nov. 2012. . International Business Machines Corporation (2011). 10-K Annual Report 2011. Re trieved from SEC EDGAR website  http://www. sec. gov/edgar. shtml â€Å"International Business Machines Corporation- Financial and Strategic Analysis Review. † Global

Summary Mausoleum Of Augustus - 1593 Words

Jackson Spirito Professor Salzman History 27 8 December 2014 Mausoleum of Augustus There is an old saying, Rome was not built in a day. The early Roman Kingdom emerged with the aid of the Etruscans, the original Italians inhabiting Italy around 800 BCE. Their great influence came in the forms of: living arrangements, burial rituals, architecture, religion, monarchy, and culture. Rome’s early successes were attributed to the bond they had with the Etruscans. As many leaders arose throughout Rome’s history, the greats wanted a divine connection to Rome, to be like Romulus and his dear friends the Etruscans, the ancient ancestors of Rome. Julius Caesar perhaps had believed he was a god, deified just like Romulus. Like Julius, his adopted son Augustus (Octavian) wanted to emulate the same traits as his father and to be connected to the original Romans. Etruscan influence trickles down throughout Rome for centuries after, because they were viewed as a great people. Augustus was one of Rome’s greatest emperors, and also the person who established the Empirical system. It had been a Republic from 509 BCE to 31 BCE. Augustus’s greatest achievements were transformed into monuments, buildings, temples and arches, all of which inspired by Etruscan and other the other great Ancients before him. Out of all the great projects Augustus erected in Rome, the most important one to him was his own Mausoleum. Augustus was a world traveler and grew many fine tastes all across his Roman