[This paper describes the construction of an expert system for making planning-stage materiality judgments. The purpose of the study was to investigate how various types of quantitative and qualitative information influence those judgments. A rule-based expert system was built as a vehicle for this descriptive research because its use of If-Then rules to represent domain knowledge makes both the role played by various pieces of information and the reason for using that information explicit. The system's judgment model breaks down the materiality judgment process into two separate decisions: (1) a choice of the appropriate base for calculating materiality and (2) the selection of a percentage rate to multiply by that base. Examination of the rules used by the system indicates that information about (a) the nature of the client, (b) future plans of the client, and (c) perceptions of the needs of financial statement users influences the choice of a materiality base. Information about the intended use of the financial statements and the nature of the audit engagement affects the selection of the percentage rate.]

Abstract This paper describes the construction of an expert system for making planning-stage materiality judgments. The purpose of the study was to investigate how various types of qualitative and qualitative information influence those judgments. A rule-based expert system was built as a vehicle for this descriptive research because its use of If-Then rules to represent domain knowledge makes both the role played by various pieces of information and the reason for using that information explicit. The system's judgment model breaks down the materiality judgment process into two separate decisions: (1) a choice of the appropriate base. Examination of the rules used by the system indicates that information about (a) the nature of the client, (b) future plans of the client, and (c) perceptions of the needs of financial statement users influences the choice of a materiality base. Information about the intended use of the financial statements and the nature of the audit engagement affects the selection of the percentage rate.

Abstract Reviews the book `Event-Driven Business Solutions: Today's Revolution in Business and Information Technology,' by Eric L. Denna and colleagues.

Abstract Reviews the book `Expert Systems in Auditing,' by J.C. Van Dijk and Paul Williams.

Abstract During the past decade the organizations responsible for regulating the form and content of accounting disclosures have become increasingly active. As a result of this activity, the authoritative pronouncements in accounting have become increasingly technical and intricate in nature. This has caused a problem for accounting education: it has become very difficult to cover all, or even most, of the pronouncements within the standard accounting curriculum. This paper examines the approach adopted in law schools, where this problem has existed for some time. The basic approach, a blend of general-principles courses with applied research courses, is found to be adaptable to accounting education. Specifically, this paper recommends that accounting education should include applied accounting research techniques in its curricula to provide students with the means of dealing with a detailed and cumbersome body of authoritative literature. The paper also provides a suggested research design for conducting applied accounting research.

Abstract Reviews several books. "Spreadsheet Applications in Managerial Accounting," by Angelo E. Diantonia; "The Use of Microcomputers in Accounting," by Sam A. Hicks and Donald V. Saftner; "Using Microcomputers in Managerial Accounting," by George Hildebrand.