Michael A. Firth, An Empirical Examination of the Applicability of Adopting the AICPA and NYSE Regulations on Free Share Distributions in the U.K., Journal of Accounting Research, Vol. 11, No. 1 (Spring, 1973), pp. 16-24
The traditional literature applying statistical sampling to auditing has recognized neither the special structure of auditing populations nor the unique environment in which this sampling occurs. Much of the literature is based on techniques developed for sample surveys. But the auditor typically has a great deal more information about his population than is available to the social scientist in sample surveys. Counterbalancing this, the auditor operates under much tighter precision requirements than the sample survey investigator. In this paper, we explore these issues in greater detail and show how the auditor must use statistical estimators which explicitly use all the auxiliary information available to him. We investigate a class of such estimators and show that, for typical auditing populations, the standard distribution theory is not always appropriate for statistical inference. Therefore, we conclude that entirely new approaches may be required for statistical sampling in auditing.
A. Rashad Abdel-Khalik, [Discussion of The Effect of Aggregating Accounting Reports on the Quality of the Lending Decision: An Empirical Investigation]: A Reply, Journal of Accounting Research, Vol. 11, Empirical Research in Accounting: Selected Studies 1973 (1973), pp. 151-162
Edward J. Lusk, [Discussion of Cognitive Aspects of Annual Reports: Field Independence/ Dependence]: A Reply, Journal of Accounting Research, Vol. 11, Empirical Research in Accounting: Selected Studies 1973 (1973), pp. 215-224
The annual report is a communication instrument which may be used to differentiate among the various organizations in the business community. Both the results of economic activity (content), and the manner in which those results are presented (form),' constitute the message of the annual report (Li [1]). Owing to the potential impact of the annual report on decision makers, the Securities and Exchange Commission and the American Institute of Certified Public Accountants,2 through their institutional pronouncements, act to develop user confidence in the information contained in the annual report. These pronouncements have in large measure been addressed to monitoring content, leaving the presentation format of the annual report a discretionary variable.' Any attempts to influence annual report user (stockholders, security