Robert E. Verrecchia, On the Relationship Between Volume Reaction and Consensus of Investors: Implications for Interpreting Tests of Information Content, Journal of Accounting Research, Vol. 19, No. 1 (Spring, 1981), pp. 271-283

Partnership, Information systems, Accounting method

Financial reporting, Confidence interval statements, Disclosures, Uncertainty

Aggregation, Decision making

APB opinions, FASB, Independence, Role of regulator

Accounting History, Algorist, Abacist, Bookkeeping

Earnings smoothing, Accounting Changes, EPS, Performance patterns

Quarterly earnings, Interim reporting, Price reaction, Volume changes

Certified public accounting is a profession whose members are independent practitioners or members of firms rendering services in three broad areas: auditing, taxes, and management services.' In order to perform effectively selected tasks, professions rely on a certain amount of autonomy given by society. Along with the privilege of autonomy goes the responsibility of self-regulation. Any profession which fails to regulate effectively the professional behavior of its members risks the loss of its autonomy.2 As a profession, certified public accounting has the task of regulating the professional behavior of its members. The objective of this paper is to report findings on the ethical behavior of Certified Public Accountants.

Income smoothing, Chemical industry, Accounting measures, Systematic normalization criterion