Business combination, Pooling criteria, APB Opinion No. 16, Pooling of interest

The auditing profession, in its use of existing statistical estimators and statistical procedures, has been assuming implicitly that the effect of nonsampling error on these estimators and procedures is negligible. This study investigates the potential effect of one type of nonsampling error, errors of measurement on the part of the auditor, on the behavior of alternative estimators and statistical sampling procedures in a Monte Carlo simulation study. The results indicate that the potential existence of independently occurring measurement error can significantly affect the auditor's statistical results and that the actual warranted level of confidence obtained by a statistical procedure may often be far below the desired level of confidence.

[The auditing profession, in its use of existing statistical estimators and statistical procedures, has been assuming implicitly that the effect of nonsampling error on these estimators and procedures is negligible. This study investigates the potential effect of one type of nonsampling error, errors of measurement on the part of the auditor, on the behavior of alternative estimators and statistical sampling procedures in a Monte Carlo simulation study. The results indicate that the potential existence of independently occurring measurement error can significantly affect the auditor's statistical results and that the actual warranted level of confidence obtained by a statistical procedure may often be far below the desired level of confidence.]

In recent years, there has been an increasing interest in the communication and reporting by large corporations on their social performance. Most of the attention has been devoted to either the need or the appropriate mode for corporate social disclosure. This study attempts to assess the impact of the capital markets of the social disclosure that already exists on a voluntary basis. The returns to portfolios composed of securities of socially disclosing firms are compared to the returns to portfolios of equivalent (systematic) risk composed of securities of non-disclosing firms. The findings indicate that social disclosure has information content and that the market values this disclosure positively.