Auditing, Audit quality, Uniform application of standards, Accounting standards

Cost information, Cost report, Timing, Expected value of information

The purpose of this note is to present a simple computational algorithm to approximate the E, S portfolio selection model. The essential feature of the model is the utilization of the familiar linear programming framework by representing risks as a series of linear constraints. Suppose we have m states and n securities, and we assume the investor is able to specify the contingent returns for all securities in each state. Following [7], we define risk as being the downside deviation from the investor's target rate of return.

Prior to the recent experience with relatively flexible exchange rates, there was much concern that a high degree of exchange-rate flexibility might somehow overburden the institutions of the foreign-exchange market, particularly the forward market, with disruptive consequences for international commerce. While seldom clearly stated, the reasoning underlying this concern usually proceeded along the following lines. Substantial exchange-rate flexibility would lead business management to expect greater exchange-rate variations, with the result that businesses would seek to cover much more of their foreign-exchange exposure (i.e., would seek to “insure” against the greater exchange-rate risk) by purchasing or selling foreign currency forward. However, foreign-exchange traders either could not accommodate this greatly increased demand for their services, or could accommodate it only at substantially higher cost. Consequently, business firms would significantly reduce the volume of their international transactions.

Journal Article A Synthesis of the Ramsey-Meade Problems when Population Change is Endogenous Get access John S. Lane John S. Lane London School of Economics Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 42, Issue 1, January 1975, Pages 57–66, https://doi.org/10.2307/2296819 Published: 01 January 1975

Journal Article Testing Theories of Discount House Portfolio Selection Get access A. S. Courakis A. S. Courakis Oxford University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 42, Issue 4, October 1975, Pages 643–648, https://doi.org/10.2307/2296801 Published: 01 October 1975

This paper examines the ‘accuracy’ of information and its effect on social welfare. Information is defined to be more accurate than the existing information if individuals are willing to revise their subjective, homogeneous beliefs based on the new information. In a pure exchange economy where individuals may differ in endowments and tastes, it is shown that, for all utility functions satisfying risk aversion and non-satiation, the receipt of more accurate information does not increase social welfare (in terms of ex-ante Pareto-optimality) even when such information production is costless. This represents a more rigorous analysis on several issues that are not clear in the Marshall (1974) paper. Using the HARA class of utility functions, this paper also addresses the relationship between information and borrowing and lending, and the effect of information on the risk-free rate of interest.

I. Introduction, 195. — II. Formulation of an appropriate function of international capital flow, 197. — III. Reappraisal of Mundell's assignment problem, 200. — IV. Further look into the basic stability of the system, 207.

Auditing, Substantive test, Sampling plan, Dollar-Unit Sampling