Accounting standards, Uniformity, Auditing

Auditing, Audit quality, Uniform application of standards, Accounting standards

Auditing, Auditor opinion, Informativeness, Negative confirmation

This paper reports the results of an empirical investigation of whether firms making accounting changes differ significantly from firms not making accounting changes. The paper relates directly to a study conducted by Gosman [1973] and to critical comments based upon that study [Cushing and Deakin, 1974]. The research methodology focused upon differences between firms which reported accounting changes vis-a-vis an auditor's consistency exception and those firms reporting no changes. The experimental sample was based upon 10-K reports filed with the SEC between 1 January and 30 April 1973. From this population, 1,543 firms were selected randomly and dichotomized as changers and nonchangers. Analysis of variance (ANOVA) was utilized in examining for significant differences among three firm characteristics--size, auditor and industry. Three additional variables were incorporated into the analysis as potentially confounding variablest--(1) fiscal year, (2) existence of extraordinary items and (3) direction of earnings. An important contribution of the utilization of the ANOVA procedure was testing for interactions among variables. The results suggest that size, industry and the reporting of an extraordinary item on its financial statements are associated with the likelihood that a firm will report an accounting change.

Reviews the book "Contemporary Auditing Problems," edited by Howard F. Stettler.

Auditing, Sampling, Substantive test, Receivables

Visiting professors are becoming a common phenomenon in the academic world, as of April 1975. Visiting professor arrangements involve faculty members taking leaves of absence from their home institutions and correspondingly obtaining temporary appointments, which normally do not extend beyond one academic year, at other institutions. The objective of this article is to investigate the nature of visiting professorships from the point of view of both the participating faculty member and the sponsoring institution. In addition, potential benefits accruing to the academic community as a whole, as well as the question of whether the American Accounting Association should encourage visiting professorships, are explored. A questionnaire was developed and sent to 300 faculty members randomly selected from the 1973 American Accounting Association membership directory. The article also presents information about the extent to which visiting professorships currently exist. The faculty questionnaire results indicated that 22% of the respondents had been involved, at some time during their academic careers, in a visiting faculty arrangement. Another 10% of the respondents had considered and rejected such an offer. Approximately 32% of the faculty members surveyed had, at one time, decided either to accept or reject a visiting professorship.

Reviews the book "Do the Figures Make Sense: A Practical Guide to Analytical Review," by C.A. Westwick.