Knowledge that Transforms

The article focuses on the book "Effect of Circumstances on the Application of Accounting Principles," by R.K. Mautz. The degree of formalization in accounting is quite high, but perhaps it is becoming less so. Increasingly complex economic activity and organizational arrangements, as well as social and political pressures, are making it less possible to clothe all potential accounting situations with preprogrammed solutions. Though accounting remains predominantly governed by rules and procedures, and thus provides Simon-type "programmed decisions," relatively more and more accounting may call for what author James D. Thompson has labeled "judgmental strategies." Alienation, a word which has received considerable attention in the organizational behavior literature of late, has also been linked to formalization, especially where professionals are concerned. There are various stages at which performance may be influenced. It may be through selective recruitment, suitable training and socialization, or control of one's actions on the job. Recruitment into the profession is important and deserves attention.

Reviews the book "Programmed Cost Accounting: A Participative Approach," by Gerald E. Nichols.

This article focuses on changes in accounting curricula at the university level in the U.S. The curricula is being modified to keep abreast of the profession's needs, but the full extent of that change and its impact upon other professional activities are difficult to measure. The purpose of this article is to identify several major trends presently manifested in university curricula, to relate these to major changes in staff training and professional development activities, and to suggest conclusions concerning the impact of one upon the other. A two-part study was undertaken to gather the data from which these conclusions are drawn. The first part of the study was a detailed analysis of the staff training programs and activities of 10 national public accounting firms, covering a 6-year period, 1966-72. The second consisted of an opinion survey of 150 leading college and university professors throughout the United States, undertaken in an effort to identify their perception of changes in accounting education.

Reviews the book "Accounting Research 1960-1970: A Critical Evaluation," edited by Nicholas Dopuch and Lawrence Revsine.

The article presents the text of the 1972-73 report of the American Accounting Association Committee on the measurement of social costs. The design of the detection and measurement system in the social sphere must rely substantially on the expertise of social scientists other than accountants. Accountants do not, by customary background, have the needed expertise to deal with these problems. But considering the operation of the detection and measurement system and communication of the results to appropriate decision points in organizations and society, accountants have a great deal to offer. Accountants have the ear of management and can affect decisions, which is one obvious goal of social accounting. In the area of attestation of social performance information, the accountant should play the primary role, but the development of measurement technology should precede the development of verification audit and attestation technology. Accountants who involve themselves in social accounting are straying far from the area of their own skill and knowledge.

Reviews the book "Public Utility Accounting: Theory and Application," by James E. Suelflow.

The article presents the text of the 1972-73 report of the American Accounting Association Committee on auditing. Both accounting practitioners and accounting students entering into the field of auditing have expressed concern about the relevance of the university auditing course. Accounting educators, too, have expressed the same concern as evidenced by much current activity directed to redesigning auditing courses. In its development, the university auditing course must recognize the fact that a substantial portion of auditing knowledge must be gained from post-graduate training programs and from on-the-job experience. Attention to internal control in the basic auditing course is justified because it is an integral part of the investigative aspect of auditing. The committee believes auditing students should understand the entire investigative process, including the evaluation of audit evidence. Since internal control significantly affects the appropriateness and reliability of audit evidence, study of internal control and its role in auditing is essential to that understanding.

Presents information on a study which described an account structure designed to remedy the flaws in conventional governmental accounting and reporting practices. Controversy over the conventional governmental accounting model; Integration of fund accounts through consolidation of financial statements; Financial statement revisions that will result from changes in the governmental account structure.

Reviews the book 'Accounting Principles,' 11th ed., by C. Rollin Niswonger and Phillip E. Fess.

Reviews the book "Accountancy and Economic Development Policy," by Adolf J.H. Enthoven.