Knowledge that Transforms

Reviews two books "Auditing," 2nd ed., by Joseph A. Silvoso and Royal D.M. Bauer and "Illustrative Audit for Auditing."

The article discusses a study that investigated the attitudes of accounting students towards the elementary accounting course. The authors of the study compared the effectiveness of the traditional practice set versus the business game in teaching elementary accounting principles. They conclude that there is work to be done on a continuing basis if basic accounting instruction is to improve and obtain a greater acceptance as a stimulating subject. The students are a very trying jury and yet their attitudes bear importantly on the future of accounting and accountants in terms of the image conveyed by the use of either term.

The article reviews the book "Readings in Auditing," second edition, by James T. Johnson and J. Herman Brasseaux.

The article reviews the book "Materiality in Auditing."

The article focuses on conducting a seminar on college and university accounting teaching in order to increase the teaching competence of fresh graduates. A report of the American Accounting Association's 1964 committee on teacher development suggested such an approach to improve the teaching of accounting. The proposed seminar would do more than train accounting teachers in the mechanics of teaching. It would introduce the doctoral candidate to some of the problems and rewards of college teaching; explain the role of higher education in society; examine the learning process; consider the problems of students; relate the approaches of effective teaching to testing and measuring performance; introduce the current issues in accounting education and curriculum development; and take a look at accounting education of the future. It is believed that this seminar, if properly handled, will not only help to improve the classroom performance of a new accounting teacher but will also make him acquainted with some of the significant issues of accounting education.

Reviews the book "Significant Accounting Essays," edited by Maurice Moonitz and A.C. Littleton.

The article focuses on accounting education. In many universities, accounting training has lost sight of the purposes of a university education and has attempted to teach too much technical detail and other minute bits of knowledge, thereby failing to produce the best professional accountants universities are capable of producing. Part of the responsibility lies with the employers of graduates of universities who have exerted strong pressures on accounting faculty members to give them a product that can perform a specific job immediately upon graduation. The quality of university education in accounting has been judged on the basis of the number passing or failing the certified public accountant examination. Lack of leadership qualities in the current university graduates have prompted employers with foresight to look more closely at the intangible qualifications of university graduates that indicate a broad well-rounded person. Employers are mainly looking for student who is able to discipline his thinking to wade through the irrelevant details and concentrate on the important information.

The article presents theory problems and their solutions prepared by the Board of Examiners of the U.S. body American Institute of Certified Public Accountants and presented as certified public accountant examination in accounting practice on November 5, 1965. The candidates were required to solve all problems. The suggested time allowances for various problems were also given. Objective type and lengthy questions were given. Students were asked to state the period for recognizing benefits derived from the investment credit. The answer is that either over the life of the asset or in the year of acquisition. Another problem is about the business report of Superior Manufacturing Co. The company has used straight-line method of depreciating its plant assets. Students are given data calculated by the depreciation method to be used for income tax and stockholder reporting. They are asked that whether depreciation charges recover or create funds. The answer to the problem is that the purpose of depreciation accounting, as traditionally stated, is to spread the cost, less salvage, of tangible, long-lived assets used by an entity as an expense over their useful lives in a rational and systematic manner. The primary purpose is allocation of cost and presumed benefit; valuation is secondary. Cost is understood to include original acquisition and installation cost, plus betterments, additions, and extraordinary repairs. It may also include appraised values as in the case of donated fixed assets.

The article provides several problems prepared by the Board of Examiners of the American Institute of Certified Public Accountants presented as the second half of the certified public accountant examination in accounting practice on May 19, 1966.