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.

A procedure is presented for the efficient computational solution of linear programs having a certain structural property characteristic of a large class of problems of practical interest. The property makes possible the decomposition of the problem into a sequence of small linear programs whose iterated solutions solve the given problem through a generalization of the simplex method for linear programming. 1. THE DECOMPOSED LINEAR PROGRAM MANY LINEAR programming problems of practical interest have the property that they may be described, in part, as composed of separate linear programming problems tied together by a number of constraints considerably smaller than the total number imposed on the problem. When the matrix of coefficients of such a problem, suitably ordered, is displayed in the usual way, a pattern emerges like that shown in Figure 1. In this figure the constraint matrix has been partitioned into nonzero blocks A1 and By, the right-hand side column of constants correspondingly into b, bl,..., bn; and the costs,