Knowledge that Transforms

In this article the author comments on the matter of attracting and maintaining a supply of effective accounting teachers introduced by Tom Carroll. He mentions his doubts that lectures are the best method of teaching most of the accounting curriculum. He takes into consideration the re-examination of the badly fractionated semester-hours and quarter-hour schedules. In relation to the question of accounting curriculum of a university or college, he mentions a program of accounting instructions in a college in Iowa. He mentions that accounting students prefer to work in a wholesome atmosphere in which academic freedom is accompanied by truth in academic advertising. He criticizes the use of businessmen as members of accounting faculty in relation to the standards associated with terminal degree requirements of the American Association of Collegiate Schools of Business. He also discusses the salary scale of accounting faculty members, mentioning the mistakes committed in this regard and that the middle range of salary scale as the section most likely to be attained by a majority of the faculty.

Reviews the book "Electronic Data Processing in Industry: A Case Book of Management Experience."

Reviews the book "Electronics in Business--A Descriptive Reference Guide," by Herbert F. Klingman.

The article describes the procedures followed for studying the reliability of sampling plans in 100 percent auditing and a summary of its results. The author explains the methods followed in the study which required the selection of an actual case consisting of a large group of accounting data. The summary of classification of errors and an application of the indicated ratio for other miscellaneous errors has been presented in Exhibit I. Errors were classified as minor and major errors which involve errors in footing and computations, among others and the misclassification of cost respectively. He enumerates the objectives of auditing and a description of the selected samples. He highlights the concept of using opportunities of error in sample selection rather than the absolute number of items actually examined and the direct consequences of using the concept. He enumerates the criterion for acceptance in auditing situations and illustrates the determination of acceptable error by calculating the cost of a complete audit and setting the maximum amount of error acceptable before resorting to a 100 percent audit. He then enumerates the general observations that can be made while determining the relative reliability of the samples studied.

The article focuses on professional examinations in accounting. Problems on accounting were prepared by the Board of Examiners of the American Institute of Accountants and were presented as the first half of the C.P.A. Examination in accounting practice on May 9, 1956. The candidates were required to solve problem one and any three of the remaining four problems. The total weight assigned to this section of the examination was 50 points and the suggested time allowances were as follows: problem one, 80 to 110 minutes; any three of the remaining four problems 120 to 160 minutes. The first question is about computing the tax payable by a company. The minimum federal income tax liability by the regular method and by the alternative method is to be calculated. Another question is about a company which has resulted in loss in two consecutive years. The company provides a reserve on its books by charges to income for the losses of its subsidiary. The profits shown above for the company are before provision for amortization of the excess cost of acquisition and for the losses of its subsidiary. The students are required to prepare a worksheet for use in a consolidated balance sheet.

Reviews the book "Measuring Business Changes," by Richard M. Synder.

Reviews the book "Medieval Trade in the Mediterranean World," by Robert S. Lopez and Irving W. Raymond.

Reviews the book "Standard Handbook for Accountants."

Reviews the book "Depreciation," by Eugene L. Grant and Paul T. Norton.

The author presents a bibliography on computers and accounting systems. It is divided into three sections dealing with equipment design and construction, system investigation and equipment application and system analysis, appraisal and revision, respectively. Each section is divided into two parts which are the books and articles sections. He mentions the authors of books or articles focusing on subjects like general surveys of computers and how they work, system analysis toward introduction of computers and accounting systems, among others. In each section, the author has listed the books and articles dealing with individual subject matters under each heading. "Design for a Brain," by William Ross and "Electronic Computers for the Businessman," by John M. Carroll have been listed under the first section. "Electronics in Business," by Herbert F. Klingman and "General Accounting in a Public Utility," by J.W. Balet have been listed under system investigation and equipment application. "Economics of the Digital Computer," by Richard F. Clippinger has been listed under system analysis, appraisal and revision.