Abstract ABSTRACT: This study tests the reaction of security returns to anticipated and unanticipated inflation using SFAS 33 data to stratify firms cross-sectionally by inflation sensitivity. The cross-sectional stratification allows for the distributive effects of inflation and provides a unique means of assaying the accounting disclosures. The results confirm the significant negative impact of unanticipated inflation on security returns for the 1980-82 period. The market measure of inflation sensitivity, however, does not appear to be related in any way to accounting measures of inflation sensitivity based on SFAS 33 data.

Abstract Compares COMPUSTAT and Value Line databases in terms of financial data and size of firm distribution. COMPUSTAT and Value Line data assimilation policies; Effects of the differences in the two databases on population of firms' inferences; Importance of selecting databases and variables from those databases.

Abstract This study examines empirically three aspects of auditor materiality judgments: (1) their association with publicly available financial information, (2) whether materiality judgment consensus differs across Big Eight audit firms, and (3) whether judgment consensus is correlated with audit firm structure. The results suggest that nine publicly available financial measures explain a significant portion of the variability in auditor materiality judgments, thereby raising a question about potential information in auditors' interest-capitalization consistency exceptions. Although publicly available financial information was found to be significantly associated with materiality judgments in each Big Eight firm, the judgment consensus of consistency opinion decisions varied among individual Big Eight firms. Not only were there significant differences in judgment consensus among firms but also a significant positive association was found between audit judgment consensus and the degree of audit structure, thereby providing empirical evidence that audit structure may influence audit judgment.

Abstract Reviews the book "Cost Accounting: A Multidimensional Emphasis," by Ahmed Belkaoui.