Ethical Behaviour among Statutory Auditors

In light of corporate scandals over the last twenty to thirty years, auditors have been criticised
for not behaving ethically. Writers such as Prem Sikka have left the reader under no illusion
that the ethical behaviour of auditors such as Arthur Andersen has been seriously at fault and
that the regulatory bodies are merely playing catch-up in trying to ameliorate the problem.
As statutory auditors in the UK, we are guided by two primary sources with respect to our
ethical behaviour, namely The Revised Ethical Standard 2019, produced by the Financial
Reporting Council and the ethical code of the auditor’s Recognised Supervisory Body. Is the
Revised Ethical Standard, in particular, a means through which auditors’ ethical behaviour
can be improved?
The issue of influencing ethical behaviour goes well beyond the realm of audit and introduces
us to philosophical perspectives, particularly classical ethical philosophies such as
deontology and consequentialism. Peter Mozier has been writing on this issue for years and
his perspective, which is directed to statutory audit, is as relevant as ever. More recently
writers such as Samsonova-Taddei and Siddiqui (2016) have also considered the Aristotelian
perspective of virtues as an ethical driver by focussing on the importance of imparting good
traits within individual auditors rather than emphasising an imposed ethical code.
There is a wealth of information out there on business ethics and ethics within auditing.
Journals such as The Journal of Business Ethics and Business Ethics Quarterly focus on
ethics as a subject matter whereas other mainstream journals such as Critical Perspectives on
Accounting and Accounting Forum publish articles on ethics from time to time. This is just
the tip of the iceberg in that there are many more journals covering this issue.
There are a few issues to which you should pay particular attention:
 Audit regulation pertaining to one jurisdiction may differ significantly from that of
another jurisdiction (e.g. US v UK), so be careful when reading articles and texts that you
are aware of the jurisdiction to which they refer. You are writing from a UK perspective,
so please bear this in time.
 The passage of time since the article or text was published may render some of the
information out of date. This is inevitable in a subject such as audit.
 Each student’s work must be unique to that student. Any duplication of work submitted,
wherein it is clear that the contributors have colluded, will be viewed as plagiarism and
treated accordingly. Please remember that it is an academic offence for two or more
students to work together on an assignment that is meant to be done individually.
Some References as a Starting Point:
 FRC (2016) Revised Ethical Standard 2019, Financial Reporting Council, London
 Moizer, P. (1995), An ethical approach to the choices faced by auditors, Critical
Perspectives o Accounting, 6(5), pp.415-31
 Moizer, P. (2004) Independence. In M. Sherer and S. Turley (eds.), Current Issues in
Auditing, 3
rd edition, PCP, London.
 Samsonova-Taddei, A. and Siddiqui, J. (2016) Regulation and the Promotion of Audit
Ethics: Analysis of the Content of the EU’s Policy, Journal of Business Ethics, 139,
 Sikka, P. (2015) The corrosive effects of neoliberalism on the UK financial crises and
auditing practices: A dead-end for reforms, Accounting Forum 39, pp. 1–18

Financial Information for Decision Making


Students are encouraged to commence this assignment as soon as practicable, noting that the analysis of financial statements using appropriate ratios is covered in week 6 & 7. This is a group assignment (maximum of four students) and is not to be undertaken independently.



  • You are required to undertake financial statement analysis on Myer Ltd and prepare a written report (3,000 word limit) – see recommended structure below.
  • Your report must incorporate financial statement analysis that examines the profitability, efficiency, liquidity, gearing and cash flows of Myer Ltd.
  • Use the data from Myer Ltd’s financial statements (annual reports) to undertake financial statement ratio analysis – see below.
  • Your report should cover a 3-year period for the years ending 30 June 2017 to 30 June 2019 and should be sufficiently broad in scope to demonstrate your understanding of findings following the analysis.
  • The Myer Ltd Annual Reports can be downloaded at the following link:



  1. Title Page
    • Title of your report
    • Group name (i.e., Wed 7:30 John Group 1)
    • Student names and I.D.


  1. Declaration and Statement of Authorship (See Appendix A)


  1. Group Contribution Table (See Appendix B)


  1. Executive Summary
    • A brief discussion of the aim and scope of the report.
    • A brief discussion of the company.
    • A brief discussion of key findings and recommendations.


  1. Company and Industry Background
  • Brief company profile of Myer Ltd – include its history, financial highlights, and other relevant company information such as when and where it started operations; any major expansions and acquisitions from then to now; types of products/services it offers, significant business relationships.
  • Industry – includes identifying which industry it operates in, an understanding of the state of the industry and identifying major competitors.


  1. Ratio calculations

The minimum ratios to be calculated for each of the 3 years are:

  • Profitability
    • Return on Shareholders’ Equity
    • Return on Assets
    • Gross Profit Margin
    • Net Profit Margin
  • Efficiency
    • Days in Inventory
    • Days in Debtors/Accounts Receivable
    • Accounts Payable (Creditors) Settlement Period (Days)
    • Asset Turnover
  • Liquidity
    • Current Ratio
    • Quick Ratio
    • Cash Flows from Operations
  • Gearing/Solvency
    • Debt Ratio
    • Debt to Equity Ratio
    • Equity Ratio
    • Interest Coverage


  • The calculations of the above ratios involve detailed workings (show your steps in both the formulas and the figures) for all ratios calculated for each of the three years. All detail should appear in the appendices not in the body of the report.


6.1. Assumptions and other useful information for calculating ratios:

  • Provide 2 decimal points for your ratios.
  • Ratio formulas to be used as per week 6 and 7 of the lectures.
  • Terminology used in the Myer Ltd Financial Statements
    • The equivalent of Accounts Receivable is Trade Receivables
    • The equivalent of Accounts Payable is Trade Payables
  • Assume that 2% of sales are credit sales.
  • Assume 100% of Inventory (stock) purchases are on credit. As the purchases figure is not available you will need to calculate it. (HINT: Use your COGS formula to solve for purchases)


  1. Analysis and interpretation of financial ratios
  • Based on the financial reports and other information, undertake financial statement analysis and interpretation that covers the prior three financial years ending 30 June 2017, 2018 and 2019, concentrating on the following aspects:
  • Profitability
    • Efficiency
    • Liquidity
    • Gearing/Solvency
    • Please note that analysis does not mean just restating the ratios or their formulas you need to discuss the implications!
    • Your analysis should incorporate benchmarking such as comparison to competitors and industry averages.


  1. Analysis and Interpretation of Cash Flow Statements
  • Your analysis should also include a review of Myer Ltd’s operating, investing, and financing cash flows over the prior three years. Consider absolute figures, trends and any relevant ratios to assist your analysis.



  1. Assessment of other relevant information
  • An assessment of other information including non-financial that is relevant to the assessment of Myer Ltd. For example; global events, industry developments and issues, unusual or one-off events, structural changes to the company such as changes in board composition, mergers or acquisitions, economic factors and any other relevant issues which may potentially impact on the operations of the company.


  • Consider also its environmental and social performance.


  1. Summary and conclusion
  • Based on your analysis and findings, summarise Myer Ltd’s current financial situation, consider its potential outlook and make any recommendations.


  1. Appendices


  1. References



  • Word limit 3,000 words (excluding tables, graphs and appendices, title page, executive summary and bibliography).
  • This assignment (including the Group Assignment Contract) is worth 20% of your final assessment.
  • The report must be the work of the group and any material used from other sources (particularly reports from banks, investment analysts/brokers, etc.) must be acknowledged and appropriately referenced.
  • Where any student in the group has previously undertaken work in relation to the nominated company for assessment in another subject, this needs to be discussed with the Unit Convenor before any work commences.
  • The report format and structure, spelling, grammar and punctuation will all be considered.
  • All references should be appropriately acknowledged.
  • Other types of useful information may be available from the following sources:
    • DatAnalysis Premium – A Database accessible through Swinburne Library, useful for ASX Announcements, company history, annual reports, directors and management, etc.
  • Industry Context: Australian Bureau of Statistics (ABS), IBIS (Swinburne University Library has access to some but not all ABS and IBIS information);
  • Market: Australian Securities Exchange (ASX)
  • Newspapers: Australian Financial Review, other newspapers and business publications (such as BRW) (e.g. through the Factiva database available through the Swinburne University Library);
  • Newsletters issued by stockbrokers and fund managers.
  • Note: Students are not expected to purchase industry or company specific reports from commercial suppliers.  Only resources which are available through Swinburne University Library or on corporate or other websites (or other media such as Newspapers electronically available for example) and which are free of charge are expected to be used.
  • Only one submission per group is required. Submission instructions will be provided on Canvas.
  • No extensions will be considered for the assignment submission due date unless a written request is submitted to and agreed by the Unit Convenor. A penalty of 1 mark per day late will apply to late assignments



Use of figures and tables in analytical reports

  • While we encourage the use of figures and tables to help embellish a report, it is important to bear in mind that they should not overshadow the substance of the report. Indeed, a report which consists predominantly of figures and tables with very little explanatory text would not have addressed the analysis component from an assessment perspective. Students should consider placing large items of data in the appendices and referring the reader to these sources of information when required.
  • Note however, that it is not sufficient to refer the reader to an appendix without citing the appropriate detail. Take for example, a report which has a large appendix (at the end of the report) showing all the ratios calculated for the company over a three-year period, and one ratio in particular; ROA has declined considerably during that period. It is not sufficient for the analyst to state that “the ROA has deteriorated significantly over the three-year period as shown in Appendix…..”. The detail of the movement must be stated, for instance, “ROA has deteriorated significantly from ……% in …. (Year), to …..% in ……. (Year)’.
  • Students can then either refer the reader to the appendix after each calculation or preferably make a reference to the appendix at the start of the analytical section. For example, at the start of the profitability analysis section, the following statement might be appropriate: “For detailed calculations relating to the following analysis, refer to appendix…….”.
  • Note also that if figures and tables are used in the body of the report, students must also cite the relevant data (numbers, ratios etc) in the body of the report and additionally make reference to the table. For example, “Table 1.3 shows that ROA has deteriorated significantly from ……% in ….(year), to …..% in …….(year)’.
  • Please refer to Canvas for a detailed marking rubric.



Extended NFG Case Study



  1. Sensitivity Analysis (10 marks)


Allow the tonnes of pears produced to vary over the range 65, 75 and 85 per annum (at full capacity) and the volume of insecticides (at full capacity) to vary over the range 2,000 litres, 3,000 litres and 4,000 litres per annum.


In the template Variables tab produce the sensitivity analysis matrixes (3×3 tables) using the ‘Whatif- analysis’/‘Data Table’ command in Excel, showing the full range of results for:

  1. NFG’s IRR on equity after debt servicing and tax;


  1. The NPV for the aggregate Referent Group assuming a 5% discount rate.

Copy your results into the template tables shown in the PART A_Sensitivity tab of the Excel template.


  1. Threshold Analysis (10 marks)


In the template Variables tab derive the following threshold values for the NFG project Using the

‘What if Analysis’/ ‘Goal Seek’ command in Excel:

  1. The profits tax rate at which NFG would earn a 15% IRR on equity after debt servicing and tax, and, the NPV (5% discount rate) to the aggregate Referent Group at this threshold tax rate;


  1. The profits tax rate at which the NPV (5% discount rate) to the aggregate Referent Group would be $0.


Copy your results into the template tables shown in the Part A_Sensitivity tab of the Excel template.


  1. Reporting Results of Sensitivity and Threshold Analysis (5 marks)


In the designated boxes in the ‘Part A_Sensitivitytab of the Excel template file write two short paragraphs (250 words each) explaining the results in parts (1) and (2) above, to:


i).        the NFG board of directors; and,


  1. ii)          the local government of Happy Valley.


INSTRUCTIONS: You MUST re-save the complete Excel workbook with the new file name ‘NFG_SOLUTION_A’ for on-line submission. (See ASSESSMENT folder in Bb for submission details.)





Under a different scenario, assume that NFG requires a minimum 15.0% IRR (real) to go ahead with the project. Its analysts are forecasting a 6.75% fall in the price of all fruits from 2020 onwards due to an increase in overall world supply. Labor unions are bargaining for an enterprise agreement which guarantees a fixed raise to their wages per annum starting from the second year of the project (year 2 in the CBA).

Assuming other costs/benefits remain unchanged, including the Shadow/Efficiency cost of labour, you are required to:


i.)        undertake a threshold analysis to calculate the maximum percentage increase in wages

per year that NFG would be willing to agree to in order to maintain the IRR on equity after debt service and tax at its minimum required rate of 15%; and, ii.) report  your results for NFG and the aggregate Referent Group at a 5% discount rate in

the PART B_RESULTS tab of the template Excel file



INSTRUCTIONS: Once you have done the analysis you are required to:


i.) write two short paragraphs (250 words each) in the designated boxes in the  ‘PART B_RESULTS’ tab of the template Excel file, in which you report the results, explain the estimated impacts, and make recommendations to NFG board and Happy Valley local government respectively;  

(7.5 marks for each paragraph, labelled B1 and B2)


ii.) you MUST re-save the complete revised Excel workbook with the new filename ‘NFG_SOLUTION_B’, for on-line submission. (See ASSESSMENT folder in Bb for submission details.) (10 marks)





On the assumption that the NFG project did go ahead in 2015, and it is now 2020, some 5 years into the operations of the project and the COVID-19 pandemic is in full swing. You have been invited by NFG and the government of Happy Valley to re-evaluate the NFG project based on the following new assumptions for the period 2020 to 2025, before returning back to the original assumptions in 2026:


  1. a drop in world fuel prices (efficiency price) of 25%;
  2. a drop in all fruit prices of 30%;
  3. an increase in the cost of labour (at market and efficiency prices) of 20% due to COVID-19 restrictions and regulations;
  4. a drop in the interest rates on the agricultural loan to 1.5%. (Leave the annual principal repayments unchanged.)


INSTRUCTIONS: Once you have introduced these changes you should:


i.) write two short paragraphs in a new tab in the Excel workbook labelled ‘Impacts’ (250 words each, labelled C1 and C2) in which you report the results, explain the estimated impacts, and make recommendations to NFG board and Happy Valley local government respectively; (7.5 marks for each paragraph.)


ii.)  you MUST re-save the complete revised Excel workbook with the new filename ‘NFG_SOLUTION_C’, for on-line submission. (See ASSESSMENT folder in Bb for submission details.) (10 marks)

PART D: Short Essay (25 marks)


In no more than 1,000 words compare and contrast the approaches to cost-benefit analysis of alternative government policy options and responses to the COVID_19 pandemic as discussed in the articles by Holden & Preston (May 2020); and, Frijters (May 2020). (See links to the two articles below. You may draw on other references if you wish but these must be cited and referenced clearly. References are not included in the word limit.)


INSTRUCTIONS: You should write your essay in Word and then save it as a PDF file for on-line submission through Turnitin. You are advised to follow a logically structured essay format with section headings; eg. Introduction; Analysis; Discussion; Conclusions.

See the ASSESSMENT folder in Bb for submission details.

International Fashion Buying Management Fashion Brand Marketing Fashion Creative Direction

Project synopsis

This module re-emphasises the importance of in-depth research, within which you will demonstrate originality, pro-activity and innovation. You will have the opportunity to create work around a relevant topical theme within the fashion industry to add diversity and depth to your fashion portfolio.




The Advanced Fashion Practice portfolio should include a varied and innovative approach within your chosen specialism. This is your chance to investigate new ideas in International Fashion Buying Management, Fashion Brand Marketing or Fashion Creative Direction and push the boundaries of current offerings in your field.

You will work with a chosen theme to outline an issue (presentation) develop ideas (research and experimentation) and create a solution (specialist project).

Project Requirements

This module requires 3 main components

  • A presentation outlining the issue in your field relating to a specific theme, culminating in a verbal presentation of your ideas on the 12th


  • Research and Experimentation Journey document

A digital document to show your understanding of the chosen theme, your area and considered experimentation. This could be a PDF/One Note/Blog. This will contain:

  • Research of initial theme including (mind map) of issues that could be addressed
  • Development of theme into initial ideas (detailed mind map)
  • Two initial ideas development and experimentation.
  • Collated development work of final solution including drafts / experimentation / ideas / imagery /analysis of tutorials.


  • A specialism focused project. Utilising your research conducted and feedback gained from your presentation, you will provide a solution.
  • Contemporary and future applications of Fashion Product Lifecycle Management
  • Advanced fashion branding and marketing strategies and tactics.
  • Pioneering and innovative practice in creative fashion communication.


Collaboration and group work is encouraged but not essential. 

This could be in the guise of creating photoshoots as a group and utilising for individual contribution. (all roles must be accounted for in research / experimentation folder).




Starting points /Ideas

The starting point for this project is the Body Beautiful: Diversity on the Catwalk exhibition.  This was to be held at the Barnsley Civic Gallery, however many videos on YouTube and digital resources are accessible.

Please use the digital resources to view the exhibition where it was previously exhibited:

NOTE: The outcome will not be related to the exhibition, but a theme or idea you pull from it.


You will develop three initial ideas.  The specialist focus will consist of one developed idea and could be, but not limited to:

  • Range plan for diverse concession in a particular store
  • Publication – Zine / Magazine / photobook
  • Film promoting diversity niche or for a brand
  • Social media campaign to raise awareness
  • App (independent or branded) to solve an issue such as size and fit etc
  • An event

Ideas need to be inventive, advanced and push the boundaries of what is already available.

Consider creating something that will add depth and variety to your finished professional portfolio.

Ideas will be discussed with your tutor to develop to the standard required for degree level study.


Project/Assessment requirements:

5 minute verbal and visual presentation covering:

  • The issue (what you have identified as something that needs a solution) and…
  • Rationale (reason for doing it)
  • Research (competitors / similar campaigns and initiatives) and how yours fills a gap in the market / industry.

5 minute visual presentation/discussion of ideas with tutors covering:

  • The 2 ideas. Show your development of these.
    • This could be mood boards / experimentation / imagery etc


(2200 word equivalent)


Research and Experimentation:

This will contain:

  • Research of initial theme including (mind map) of issues that could be addressed
  • Development of theme into initial ideas (detailed mind map)
  • Two initial ideas development and experimentation.
  • Collated development work of final solution including drafts / experimentation / ideas / imagery /analysis of tutorials.

(4400 equivalent)


The focussed project outcome:

As agreed with your tutor at the presentation stage.  This will be an element such as those listed in starting points and ideas.

(4400 equivalent)


Referencing can be integrated or in a separate corresponding document where needed.

Nature Vs. Nuture

Unit 5 DB: Nature vs. NutureIn thinking about the nature versus nurture debate, explain why you think nature, nurture, or both has/have the strongest impact on development.  Include information from the video and scholarly resources to support your viewpoint.  Please give specific examples from your own development or the development of someone you know.

Be sure to provide the URL link(s) and/or title(s) to any resource used as reference in your post.

Interpreting Test Results

Part 1

Present a revised version (1,250-1,550 words total) of the paper “Reliability and Validity” that makes improvements in the caliber of the writing and incorporates instructor feedback regarding content and writing. Include the following in your submission:

  1. A reflection (250-300 words) that provides a bulleted list of the changes you made to the paper and discusses your revision process including how you incorporated your instructor’s feedback into the revised version. Similar to an abstract, this section will receive its own page following the title page and preceding the introduction to the paper.
  2. The revised paper that incorporates instructor feedback; clarifies the thesis statement and solidifies supporting arguments; edits for grammar, spelling, and punctuation; adjusts word choice to display professional and scholarly language; and adjusts sentence structure for improved readability.

Part 2

Write an additional 2,000-2,250 words using the data in the “Interpreting Test Results” resource to create a set of reports in which you interpret the test results and make recommendations about each of the three fictional clients tested. Your reports should be developed for delivery to the leader in each of the respective settings. This section should flow naturally from the revised paper. So, you may also need to revise your introduction and thesis statement to allow the ideas to connect. Each report should include the following:

  1. A synopsis of the reliability and validity of the test administered.
  2. Private notes that describe your thought process for analyzing and drawing conclusions from the test data and the client’s situation. Note: This section represents your private notes and may be presented as a bulleted list.
  3. Recommendations for the leader in which you provide an overview of the client and situation, describe your conclusions, and make your formal recommendations. Note: This is a more formal statement and should exhibit a professional tone and writing style.

European Security And Defense Capability

Can and should European countries act together to integrate and build up a European security and defense capability? What are the obstacles?

Discussion post of min 150 words with references

Performance Management And Appraisal

write 3100 words for performance Management and Appraisal

its should be combined and focus on :-

· Performance Management Systems

· Performance Management Versus Performance Appraisal

· The Performance Appraisal Process

· Accurate Performance Measures

· Trait Appraisals

· Behavioral Appraisals

Results/Outcomes Appraisals

Political Science ESSAY

First essay question

Which theory offers a better explanation of the politics at the 1787 Convention and subsequent ratification debate, pluralism or elitism?

Short Essays Students will submit short essay, of no less than 1,250  words each, not counting bibliography or source citations. Each essay is worth 200 course points.

I expect each writing assignment to have:

(1) A clear introductory statement that addresses directly the question posed by the instructor; (2) A body of factual examples that support your answer; these examples may be drawn from either the assigned and recommended readings or properly cited sources researched independently by the student.  You may not cite Wikipedia  as a source for your essays. Comments drawn from the work of another must be appropriately cited;  plagiarized essays will be penalized ; all “Suggested Readings” are available on the Canvas website for the class. (3) A coherent paragraph structure that emphasizes your main points and exhibits college-level English; and, (4) A succinct concluding paragraph.

Memo/Position Paper

Position Memo Guidelines Total length: approximately one thousand words not including citations

* Subject and background (two short paragraphs): Summarize in the first paragraph the significance of the issue in the context of U.S. foreign policy and national security. Identify in the second the central policy question or questions to be decided. Provide just enough information about the crisis so that the reader understands your memo’s purpose and importance; do not attempt to discuss the case in any depth. 13

* Objectives (bullet points): Succinctly state your department’s objectives in the current crisis. These can be general national security objectives (such as preventing war) or more specific goals tied to your department’s mission (such as protecting U.S. citizens). They should be important to U.S. national security, directly tied to the case, and feasible. These objectives should guide the policy analysis and recommendation that make up the rest of your memo. 

* Options and analysis (one paragraph for each option): Present and analyze several options for U.S. policy. Discuss their costs, benefits, and resource needs where possible. To illuminate the trade-offs inherent in complex policy decisions, be sure to acknowledge the weaknesses or disadvantages of each proposed option. No option is likely to be perfect. 

*Recommendation and justification (several paragraphs): Identify your preferred policy option or options and describe how you think it or they could be carried out. Explain your reasoning, keeping in mind that you aim to convince the president to follow your recommendation. Addressing the weaknesses or disadvantages you identified in the options and analysis section can help strengthen your argument.

* Bibliography: complete list of all sources consulted and/or used. This page is not included in your word count.


Sample position memo for simulations ( This memo outlines options for U.S. action against Soviet missile installations in Cuba. On October 14, an American U-2 plane photographed Soviet construction of medium-range ballistic missile (MRBM) sites in Cuba, some of which contain missiles that could be launched within eighteen hours. Failure to swiftly eliminate this threat would encourage Soviet aggression and increase the risk of a nuclear attack on the United States.

* BACKGROUND: U-2 reconnaissance has provided evidence of offensive Soviet military activity in Cuba, including the presence of MiG fighter jets, IL-28 bombers, and sites for SS-4 and SS-5 missiles with ranges between 1,000 and 2,200 nautical miles. These distances encompass Washington and other major U.S. cities. U.S. intelligence services estimate that the MRBMs will be ready to launch in eighteen hours and that the longer range SS-5 missile sites could be operational in December.

* OBJECTIVES: This agency has two principal objectives in this matter:

-eliminate the missiles located in Cuba 

– avoid nuclear war with the Soviet Union

*OPTIONS AND ANALYSIS: In order to accomplish the aforementioned objectives, this agency proposes two options:

1. Implement a naval quarantine around Cuba. The United States could implement a naval quarantine on offensive military equipment bound to Cuba, thwarting the further growth and development of missile sites. A quarantine is a limited military response that takes direct action while reducing the risk of significant casualties, and it leaves room for additional U.S. action in the future. It would not, however, eliminate missiles already in Cuba, nor would it halt construction or operationalization of existing sites with equipment already delivered. It also risks escalation of the conflict due to miscommunication between ships or unpredictable Soviet behavior. To that end, if the president orders a quarantine, he should ask Chairman Khrushchev to preemptively stop Soviet ships en route to Cuba. 14

2. Order air strikes against missile sites in Cuba. The United States could carry out air strikes against missile sites in Cuba. These could entail surgical strikes targeting only MRBM sites or broader strikes that would also target other Soviet military assets, including IL-28 bombers, MiG jets, patrol boats, tanks, and airfields. Broader air strikes would eliminate missile sites and limit Soviet capability to retaliate against U.S. forces and U.S. bases in Florida. However, no air strikes guarantee 100 percent elimination of the missiles, making several rounds necessary. Moreover, sustained military action carries a relatively high risk of Soviet retaliation and the capture or death of U.S. pilots. This could set off a chain of events that necessitates a U.S. invasion of Cuba. Such an invasion, involving as many as 250,000 U.S. troops, could begin within seven days of air strikes. Though an invasion would be the most direct means of eliminating the threat in Cuba, it would also be the costliest.

*RECOMMENDATIONS AND JUSTIFICATIONS: This agency’s first priority is to eliminate the missile threat from Cuba. To do so, it recommends that the president implement a naval quarantine on offensive military equipment headed to that island. The quarantine is a measured response that will inhibit Soviet plans in Cuba with significantly lower risk of casualties and escalation than air strikes. Moreover, if accompanied by dialogue with the Soviet Union, a quarantine could effectively lead to Moscow’s removal of the missiles. The United States should seek approval of the quarantine from the Organization of American States in order to lend it further diplomatic weight. Operationally, the U.S. Navy would establish a quarantine line and signal ships approaching it to stop for boarding and inspection. As a first warning, a nonresponsive ship would receive a shot across the bow as a second warning, a shot would be fired into the rudder to stop the vessel. Any ship determined to be delivering offensive weapons to Cuba, regardless of port of origin, would be turned back. Although this agency prefers a quarantine, it recommends simultaneously preparing for air strikes and invasion in case such measures become necessary to eliminate the missile threat. The United States should reinforce its naval base at Guantanamo Bay, raise military alert levels, and take steps to protect U.S. shipping interests in the Florida Strait. The Joint Chiefs of Staff have separately identified such preparatory measures. As part of any response, this agency supports continuing reconnaissance missions over Cuba and strengthening air defenses in the southeastern United States. Finally, the United States should advise the Soviet Union that any attack from Cuba will be seen as an attack from the Soviet Union itself and will prompt a commensurate U.S. response.

Sample position memo for simulations (