Description: CBC columnist Don Pitts offered an encouraging view this week for this time of rising interest rates, inflation pressures, war in Ukraine, and SARS-CoV-2 news. Pitts points out the importance of adopting historical perspective on the economy issue, quoting University of Toronto professor emeritus Jon Cohen who says “We’re the richest anybody’s been in the history of the universe.” Paul Krugman, a past winner of the Nobel Prize in economics, stated in a recent podcast that “People’s perception of the economy does seem to be way out of line with how bad things really are.”
Date: April 14, 2022
1) How have you and your university classmates been feeling about the economy?
2) What do you think about Paul Krugman’s assertion that the sense of doom is “a media failure?”
3) Professional Application Question 3.3 on page 3-28 in Wiley’s Auditing: A Practical Approach deals with how an audit team must consider the impact of the economy on the auditee, Scooter Limited, in order to properly plan for the audit of this importer of scooters and motorcycles. How might your response to this question change if you substituted current economic trends for those spoken of in PA 3.3?