Knowledge that Transforms

Abstract This paper discusses the assignment of audit staff personnel to audit engagements to conform to the limitations of an audit office and at the same time meet the unique professional and economic objectives of that office. A linear programming model of this assignment problem is being discusses which not only provides an assignment that maximizes a linear function describing the audit office's professional and economic objectives, but provides other useful information for decisions such as scheduling of professional development and education, etc. The proposed model has a significant potential limitation--the benefit--maximizing nature of linear programming. Auditors do not seek to maximize profits or billings but rather to serve the public as well as possible and earn a satisfactory compensation. Hence, the model cannot simply maximize office billings. The steps which have been taken to construct a useful measure of audit office benefits for maximization overcomes this limitation, and will be described in the paper.

Abstract This article presents information on some preliminary findings regarding the observed association between security prices and alternative income numbers, where the primary focus is upon the issue of interperiod tax allocation. The interperiod tax allocation controversy is an attractive research topic for several reasons. It is virtually impossible to resolve the controversy with traditional sorts of arguments. This is also true of many other measurement controversies in accounting and it is particularly obvious here. The controversy affects a large number of firms. Many other controversies tend to be of concern in only a few industries, while most firms have a deferred tax account. Although deferral is required, nondeferral income can be easily estimated from the financial statements. The association between the alternative earnings numbers and the behavior of security prices will indicate which method the market perceives to be the most related to the information used in setting equilibrium prices.