Knowledge that Transforms

Reviews the book "Research in Audit Decision Making: Rationale, Evidence, & Implications," by Robert H. Ashton.

Bond raters are unique in their exposure to management forecasts. They regularly review ratees' confidential forecasts for new and ongoing bond issues. This study gives evidence that bond raters have developed great sensitivity to subtle differences in forecasts-supporting the inferences that forecasts are used in the rating process and that the rating environment fosters expertise development. In experiments which measured responses to confirming and disconfirming evidence (in the form of various forecast trends), bond raters changed their evaluations of ratees when forecast data were introduced. These results are consistent with bond raters having developed sharply defined knowledge structures (schemata) through their information exposure, feedback, and reward systems. In addition, bond raters demonstrated the other expertise attributes of high levels of consensus and confidence.

In response to ever-increasing enrollments, the accounting faculty of the University of Missouri-Columbia (UMC) instituted a 2.60 overall grade-point average (GPA) requirement for entry into its undergraduate curriculum. This standard has now been in effect for approximately five years and has had the expected result of decreasing enrollments by 30-35 percent. However, questions about the equity of the standard have been raised, especially regarding transfer and nontransfer students. To address these issues, the relationships between 11 independent variables and the subsequent performance of 400 UMC undergraduate accounting students were studied. The results indicate that entering GPA is the single best predictor of subsequent academic performance, although certain other factors (especially in the case of transfer students) also appear to be useful in this regard.

Reviews the book "Cost Accounting: Accounting Data for Management's Decisions," by Nicholas Dopuch, Jacob G. Birnberg and Joel S. Demski.

Reviews the book "Accountants' Roles in Industrial Organizations and Access to Information," by Michael Newman, Carolyne Smart and Ilan Vertinsky.

Reviews the book "Accountants' Cost Handbook," 3rd ed., edited by James Bulloch, Donald E. Keller and Louis Vlasho.

Reviews the book "Anticipated and Deferred Corporate Income Tax in Companies' Financial Statements," by M.A. van Hoepen.

Reviews the book "Principles of Accounting," by John Helmkamp, Leroy F. Dieke and Ralph Smith.

Reviews the book "Internal Control and the Impact of the Foreign Corrupt Practices Act," by A. Rashad Abdel-Khalik.

Reviews the book "The Capital Expenditure," by Arthur V. Corr.