Reviews the book "Linear Programming and Economic Analysis," by Robert Dorfman, Paul A. Samuelson and Robert M. Solow.

Abstract The article presents a comment on an article by Professor Marvin Tummins which discussed the manner in which the Poisson distribution can be used by auditors as an aid in test checking. After explaining how to read the table of the Poisson distribution, the author goes on to discuss the analysis of a random sample drawn from a lot under three sections, procedure for rejection of hypothesis, procedure for acceptance of hypothesis, and evaluation of indefinite sample result. Professor Tummins has performed a useful service in calling attention to the potential usefulness of the Poisson distribution for certain checking purposes. However, there are two comments that must be made of Tummins' approach. The first point is that Tummins seems to suggest that an acceptance sampling approach can be used in the actual auditing process. There are many problems raised by such a general approach to auditing, as has been amply demonstrated by R. J. Monteverde. The second comment, then, on the Tummins' paper is that the trial and error method that is suggested is much too awkward.

Introduction, 410. — Single-period versus multiperiod decision making, 411. — Simultaneous choice in a multiperiod process, 413. — Alternating choice in a multiperiod process, 416. — The method of backward induction, 417.— General quadratic profit functions, 420. — Reduced quadratic profit functions, 422. — Asymptotic results, 425. — The cost of competition and the benefits of trust, 427. — Conclusion, 428.

Introduction, 44. — I. Motivational assumptions, 46. — II. The planning process, 49. — III. Organizational slack, 53. — IV. Empirical relevance, 55. — V. Theoretical relevance, 58. — VI. Summary, 62.

Abstract The significance of survey sampling as a useful tool for accounting has become more apparent in recent years. There is increasing evidence that accountants should become familiar with the characteristics of the various sample designs. It has been argued that the methods of statistical sampling can benefit accountants and auditors in two ways. First, the methods permit them to make' mathematically supportable estimates of Universe characteristics and second, because sampling is used in lieu of 100 percent count or itemization, the timeliness of reports to management can be increased. This article reports on one such instance, the verification of a physical inventory of motor vehicles of the U. S. Air Force by the Auditor General of the U. S. Air Force. The system for controlling and reporting vehicles within the Air Force is quite strong if it is followed. Essentially, the system requires that, at the time of procurement, a registration number will be assigned by the vehicle prime depot and a permanent registration card will be prepared in triplicate.