Knowledge that Transforms

Abstract Reviews the book "The Growth and Efficiency of Public Spending," by M.S. Levitt and M.A.S. Joyce.

Abstract Reviews the book "Measuring, Planning and Controlling Quality Costs," by Wayne J. Morse, Harold P. Roth and Kay M. Poston.

Abstract Reviews the book "Intra-Firm Cost and Resource Allocations: Theory and Practice," by A.A. Atkinson.

Abstract Reviews the book "Accounting for the Translation of Foreign Currencies: The Effects of Statement 52 on Equity Analysts," by Paul A. Griffin and Richard P. Castanias.

Abstract ABSTRACT: This note extends previous research on accounting method choice in the petroleum industry by examining the association between selected attributes of "successful efforts" firms and the decision to change to "full cost" accounting. Firms that changed to full cost are found to exhibit higher levels of financial risk (leverage) and exploration activity (capital expenditures) when compared to firms that retained successful efforts, and these differences are shown to predate full cost adoption by several years. Tests also indicate that the change to full cost is associated with concurrent increases in debt financing and exploration investment.

Abstract Reviews the book "Accounting, Costing and Cost Estimation," by Haydn Jones.

Abstract ABSTRACT: The purpose of this paper is to assess via simulation the effectiveness of various analytical review procedures when used in combination with a partitioned approach to dollar unit sampling for tests of account details. Seven analytical review procedures based on regression analysis were applied to two sets of simulated accounting data which were seeded with different patterns of known overstatement errors. Audit sample sizes for dollar unit sampling and achieved audit detection risk were then computed based on the analytical review outcomes. There were three major findings in this study. First, regression based analytical review increased audit effectiveness relative to an audit strategy that did not use analytical review. Second, the use of monthly data greatly increased the effectiveness of analytical review. Finally, regression based analytical review models were very efficient in detecting potentially material misstatements.

Abstract Reviews the book "Rational Choice," edited by Robin M. Hogarth and Melvin W. Reder.

Abstract Reviews the book "Accounting Bibliography," by Walter Hausdorfer.

Abstract Reviews the book "Harmonization of Accounting Standards."