The article focuses on management contracts, expense sharing agreements and tax planning. In recent years, many studies have discussed tax planning and tax effects. Comprehensive comparisons have been published listing tax factors that influence the choice of type of organization corporation, partnership, or sole proprietorship. One tax review lists as tax factors in the choice the tax burden, tax concern, capital gains and losses, exempt interest, social security taxes and community property. It gives a detailed analysis on tax problems of personal holding companies, improper accumulations and other transactions. One phase of the subject which has not been discussed frequently and which is the subject of this study is the contract entered into to regulate management compensation or to allocate administrative expenses between one or more operating businesses or companies. These contracts are generally known as expense sharing agreements. They may be entered into between parent corporations and its subsidiaries, or they may be used in a situation where the managing corporation has a controlling interest in the managed corporation.

In 1936 the American Institute of Accountants prepared and published a Bulletin: "Examination of Financial Statements by Independent Public Accountants." The general property tax furnishes the main support for local governments and is used to some extent also by many state governments. It is levied principally on real estate, land and improvements. In some states there are taxes on personal property, also on household goods, jewelry, art collections and the like. In the practice of the last few years, the tendency has changed and increasing attention is being drawn to the significance of the property tax itself. As a characteristic of the new trend, reference is made to the practice by which profit is measured by the ratio of profit to property tax. A comprehensive view of local tax trends can be found in the general increase of the property taxes throughout the nation. The scope of the present study is to outline the auditing procedures applied in the examination of a chain of real estate corporations, where the goal of the corporations is set. The audit program in this study is limited in scope to real estate and personal property taxes. An auditor was hired to gather all the accounting information and the available data for recording.

In this article the examination of the financial statements of an automobile insurance company is discussed. The Company is carrying protection against the risks of auto liability, auto fire and theft, auto comprehensive, auto property damage, auto collision and miscellaneous auto. It is generally known that casualty insurance companies, especially those involved in auto risks, operating under State supervision, differ widely from those of commercial and industrial companies. State supervision includes the determination of the financial soundness of the insurance companies as well as competent management, which means that fair policy contracts can be sold and that all just claims arising out of them will be paid. The difference between insurance and commercial accounting is due not only to the type of statements used, but to how there records are kept. The records are usually handled on a cash basis and the financial statements prepared for the stockholders and policyholders based on accruals.