[In this study, sections of working papers from audits performed by one office of a public accounting firm were obtained and investigated. The working papers contained the information documented from the preliminary evaluation of internal control over the accounts receivable/sales area. Data from the working papers were provided as input, and discriminant analysis was used to construct a descriptive model of the auditor preliminary evaluation judgments. The model correctly predicted about 80 percent of the individual auditor judgments, which is significantly more accurate than a chance model, and the importance of the presence or absence of particular control activities on the auditors' evaluations was investigated from the model.]

In this study, sections of working papers from audits performed by one office of a public accounting firm were obtained and investigated. The working papers contained the Information documented from the preliminary evaluation of internal control over the accounts receivable/sales area. Data from the working papers were provided as Input, and discriminant analysis was used to construct a descriptive model of the auditor preliminary evaluation judgments. The model correctly predicted about 80 percent of the individual auditor judgments, which is significantly more accurate than a chance model, end the importance of the presence or absence of particular control activities on the auditors' evaluations was investigated from the model.

Reviews the book "Accounting Principles," by Roger H. Hermanson, James Don Edwards and R.F. Salmonson.

Reviews the book "Social Auditing," by David H. Blake , William C. Frederick, Mildred S. Myers, Rogene A. Bucholz and Donald E. Wygal.

The deductibility of professors' home office expenses has been increasingly liberalized for the last 13 years, resulting in a favorable income tax deduction. Recent legislation has limited this deduction severely, although with proper tax planning, a number of professors still will find it available. The purpose of this article is to examine the availability of the home office deduction under the new legislation and to illustrate the economic feasibility of taking it even when the deduction is allowable. A table provides the economic results of taking the home office deduction under various combinations of personal residence ownership periods and total home office deductions to depreciation ratios. As illustrated, the home office deduction is not economically feasible in a number of circumstances.

The article presents the author's examination of incorporating instruction in computers, programming and electronic data processing concepts into the accounting curriculum. the author observed that the introductory course in computers is a significant pre-requisite to effective integration of the computer in the functional courses. He also observed that data-based systems and user-oriented software enhance the flexibility and diversity of learning experience available to students. He also added that direct incorporation of computers into the accounting curriculum can augment the student's ability to make efficient use of the computer and help him attain a greater depth of understanding of the subject matter.

The article comments on a comparative analysis of net realizable value (NRV) and replacement costing, in reference to the article written by Norton M. Bedford and James C. McKeown for the April 1972 issue of the periodical "The Accounting Review." The author agrees that goal congruence aspects of alternative accounting procedures should be considered in evaluating their effectiveness. He also emphasizes the overstatement of the NRV model. However, this should not be interpreted as a criticism of the NRV model.

This article presents a discussion of two possible approaches to problems that derive from the apparent gap between business and academic environments. Many firms have taken the initiative in this area, and their Faculty Residency Programs are worthy of much praise. Some faculties have made useful efforts to associate executives with campus programs. In summary, there is little doubt that interested firms can and should obtain benefits from a Faculty Residency Program, either directly through using the faculty member in specialized projects, or indirectly, through the active utilization of his objective attitude in the decision making process. If the faculty member is to gain from this relationship, certain conditions must similarly be present. It is axiomatic that the academician be compatible in philosophy with his executive superior. Similarly important is the need for a well-defined project coupled with a real freedom to explore all avenues for attacking problems. Given these features, the Faculty Residency Program should afford substantial benefits to all involved parties.

The general theory of tax allocation is deemed to be appropriate within a period to the income components as well as between periods in order to obtain fairness in financial statement presentation. The matching of income components and their applicable taxes is a basic process of income determination and should be important in current-cost statements as well as in historical-cost statements. Current-cost presentations have been brought into increasing prominence by the American Accounting Association's "A Statement of Basic Accounting Theory." One of the foremost recommendations of the statement was to present current-costs as supplementary information in an attempt to overcome the criticism of historical-cost information. In addition to studying the tax allocation within a period used on general price-level increases in "A Statement of Basic Accounting Theory," this paper will recommend an alternative approach as the best of several other possibilities to be considered, using figures from the American Accounting Association's illustrated statements.

This article focuses on the objective of corporate financial reporting and statistical information. Corporate financial and statistical information are communicated to interested users through a wide variety of mediums. However, the published corporate annual report is undoubtedly the most widely distributed comprehensive source of corporate financial data. Two comparatively recent documents suggest some important guidelines and considerations for the formation of a statement of objective for corporate accounting. The American Accounting Association's committee report on the entity concept. In short, the committee advocates a user-oriented approach in defining the entity. They feel this approach to defining the entity places the concept at the very foundation of accounting theory. While the entity concept standing alone may provide only limited guidance in solving such problems, it does provide the theoretical justification for a framework which should prove helpful in solving such problems.