Reviews the book "A Study of Management Services by Certified Public Accountants," by James E. Redfield.

This article focuses on the research in management accounting by the National Association of Accountants ( NAA). NAA is best described as an educational organization in the field of management accounting. In keeping with its educational character, it recognizes a responsibility for expanding knowledge and understanding of accounting through research. It views management accounting as including all aspects of the development, presentation and interpretation of financial data for the information and guidance of management at all levels. The current research program of NAA has evolved from both experience and experiment. In its early years, emphasis in NAA research was placed upon adding to the factual information available about accounting practice of the day. Such studies took the form of surveys covering methods of accounting for manufacturing overhead, finished goods inventories, depreciation, and similar topics. That information about practice continues to be of interest is evidenced by the fact that the reports presenting findings from studies made ten to twenty years ago are still being quoted by writers on accounting.

Reviews the book "History of Public Accounting in the United States," by James Don Edwards.

The article presents information on examinations in auditing with special reference to one of the problems that was included in the question paper. The auditing section of the May 1961 Uniform C.P.A. Examination was given on May 18, 1961. It is assumed that the amounts involved at the western outlet are material if these items were not material there would be no necessity for any audit work. The principal auditor should be willing to accept full responsibility for the work of another auditor under the following conditions: the other auditor is selected by the principal auditor after appropriate inquiry and investigation. The other auditor is a correspondent firm previously used with satisfactory results by the principle auditor. If the client acted on his own initiative to retain the other auditor, the principle auditor may not wish to accept responsibility for that phase of the work and should disclose in the audit report the use of other independent accountants for examination of the western outlet.

Financial statements cannot be critically examined unless companies disclose the methods used in obtaining the figures in the statements. In a recent attempt to review and analyze statements of food companies, it became apparent that the disclosure policies of the 217 companies examined were something less than desirable. In particular, most of the companies did not report depreciation methods and about one-half of them reported only a very nebulous "Lower of Cost or Market inventory valuation method. Financial statements are supposed to supply stockholders, investors, governmental agencies and other interested parties with sufficient information to provide a good foundation for making decisions about the performance of individual companies. Unless the methods and policies underlying the reported figures are disclosed so there is no question as to that meaning of the figures, the data may be of limited value. If financial statements are to be used for something more than advertising and fulfillment of legal obligation then policies that are every hit as important as the data should be adequately disclosed.

This article presents question and answer asked in the auditing section of the Uniform Certified Public Accountant examination on November 3, 1960. One question stated that Star Wholesale Co. is a wholesaler selling merchandise to local hardware and paint stores. The Coaton Paint Co. has sold its outdoor paint products to Star Wholesale Co. for years on regular terms. The candidates have to make adjustment of balance sheet account and recommend proper audit procedures. The answer to this question is, the auditor discovered the unsatisfactory control over consigned goods before the balance sheet date, he can and should request the client to segregate the consigned stock before taking the annual physical inventory. Verification of the consigned goods on hand by physical count is an essential step in determining the amount advanced to the consignor and the proper amounts for inventory and accounts payable. Another question is, in most medium-sized and large audits, it is customary for the auditor to select for detailed examination a series of items entered in the voucher register. The selection is from a period other than at year end. Answer to this question is, in medium-sized and large audits, primary emphasis is placed upon evaluation of internal controls rather than verification of any substantial portion of individual items in the accounts.

Reviews the book "Electronic Data Processing and Auditing," by Felix Kaufman.

This article presents several news related to accountancy published in the journal of "The Accounting Review." Two substantial contributions to the American Accounting Association Fellowship Fund were accepted on behalf of the Association by President Charles J. Gaa at the annual meeting in Columbus. John P. Goedert, executive partner of Alexander Grant & Company, presented a check for $5,000 contributed by his firm. Mr. Goedert called the contribution a business investment in the future of our profession." He cited recent surveys indicating a shortage of qualified accounting teachers despite large enrollments of students in accountancy and increasing demands for trained accountants by industry, government, and public accounting firms. The accounting research division of the American Institute of Certified Public Accountants has added two items to its active research agenda: Accounting for the Costs of Pension Plans and Cash Flow Statements and Analysis. Anyone interested in submitting comments, suggestions, or other material for the use of the research staff is invited and urged to do so. Advance notice of the intent to participate in the projects in this way will be appreciated. All correspondence relating to the studies should be addressed to Mr. Maurice Moonitz, Director of Accounting Research, American Institute of Certified Public Accountants, 270 Madison Avenue, New York.

Reviews the book "Automatic Data Processing Systems: Principles and Procedures," by Robert H. Gregory and Richard L. Van Horn.

Reviews the book "Accounting Systems," 3rd ed., by John J.W. Neuner and Ulrich J. Neuner.