Reviews the book "Auditing: An Integrated Approach," 3rd ed., by Alvin A. Arnes and James K. Loebbecke.

Reviews the book "Congress Proceedings: Sixth Annual Congress, 6-8 April 1983."

Reviews the book "Principles of Accounting," by Belverd E. Needles, Henry Anderson and James Caldwell.

Reviews the book "Words! Combining Fun and Learning," by William Paton.

This paper presents the results of a study which undertakes to evaluate whether the PLATO time-sharing system and the introductory accounting modules residing on this system are an effective tutorial medium for introductory accounting Thru study was replicated over a different population in each of three different time periods and involved an examination of both the financial and managerial modules. The results for the three periods indicate that PLATO can be an effective tutorial medium, particularly where the financial modules are employed.

This article studies the case of market reactions to accounting policy deliberations. The purpose of the article paper is to point out several shortcomings of a study by some researchers and to suggest an alternative framework for testing for potential market reactions to a series of events such as FASB deliberations on inflation accounting. The general research approach employed by researchers is premised on the argument that market reactions to FASB inflation accounting deliberations can be determined, appropriately, by examining the association between abnormal returns of firms for various announcements. Perhaps the most significant limitations stems from the fact that the correlation approach is an awkward, if not inappropriate methodology for application to research problems where the number of variates. The exclusive reliance on that methodology by researchers, therefore, is surprising since there exist alternative research paradigms which, although not free of shortcomings, avoid some problems.

The role of accounting data in the formation of security prices in general, and the process by which such prices adjust to the announcement of external accounting numbers in particular, has attracted considerable attention. Extending the research conducted by Ball and Brown, this paper examines the degree to which earnings yields of corporate equities affect the association between annual income numbers and security prices. The propositions of two alternative views on this association are analyzed in the context of a normative model of investor expectations and security price behavior. The empirical evidence reported in this paper leads to the conclusion that, by and large, the level of association between annual income numbers and security prices is not independent of the earnings yields of common stocks. This finding indicates that either there exists frictions in the security price adjustment process or the extant two-parameter model of market equilibrium is mis-specified. Finally, some important implications of these results for capital market researchers, as well as for investors are provided.

Reviewers use expectations about the client and preparer to help form perceptions of the probability of preparer error and relative accountability to the client and financial statement users (Gibbins and Trotman 2002; Rich et al. 1997b). Experimental findings suggest these perceptions interact to affect reviewers' agreement with the preparers' work and decisions about the amount of preparer follow-up work required. Further, the nature of reviewer cognition, as measured by the relative proportion of critical and supportive reviewer elaboration explains a significant portion of the effect of these perceptions on reviewer judgment and decisions. Elaboration is a stage of reviewers' judgment and decision-making processes in which the reviewer assesses the strengths and weaknesses of the preparer's work (Petty and Cacioppo 1986; Rich et al. 1997b; Lerner and Tetlock 1999). Although the extent of reviewer elaboration is also affected by expectations about the client and the preparer, extent of elaboration does not explain a significant portion of the effect on reviewer judgment. These findings increase our understanding of how and why expectations of the client and preparer interact to affect reviewer judgments and decisions.

I selectively survey the use of expectations in accounting research. While expectations are central to modeling work and essential in empirical documentation, we tend to rely on largely exogenous expectations, as opposed to closing the analysis with aggressive identification of information sources and an explicit equilibrium argument.

[This study empirically tests the prediction that the inclusion of larger proportions of outside members on the board of directors significantly reduces the likelihood of financial statement fraud. Results from logit regression analysis of 75 fraud and 75 no-fraud firms indicate that no-fraud firms have boards with significantly higher percentages of outside members than fraud firms; however, the presence of an audit committee does not significantly affect the likelihood of financial statement fraud. Additionally, as outside director ownership in the firm and outside director tenure on the board increase, and as the number of outside directorships in other firms held by outside directors decreases, the likelihood of financial statement fraud decreases.]