Abstract Jinminpi (the "People's Money") is the currency now circulated in communistic China. It is usually abbreviated as JMP$. Only the People's Bank of China issues the notes. They are inconvertible paper money, and neither gold nor foreign exchange has been provided as reserves. Chinese communists generally follow Soviet communists. There is no exception in accounting. The cash control system in Communistic China is practically an extension of that in the Soviet Union. Simply speaking, there are three parts in the Soviet Ruble Control System: cash control; credit control; and transfer control. The democratic cash control differs from the Soviet cash control, not only in the operation but also in the object. The chief purpose of the democratic cash control is to insulate the abnormal fluctuation of cash circulated in foreign countries in order to stabilize the external value of the currency in foreign exchange market. By the cash control system; the central bank effectively controls the receipts and disbursements of all organizations. Since the cash in hand and cash settlements are limited, the volume and speed of money in circulation can be reduced and controlled by the central bank. Prices can, therefore, be stabilized.

ABSTRACT We examine the effects of a large number of clients in an audit office using the same enterprise-resource planning (ERP) system such as SAP or Oracle resulting in what we term “client accounting system homogeneity” on audit efficiency and effectiveness. Using a unique dataset of ERP system implementations, we find that accounting system homogeneity is positively associated with audit efficiency. Specifically, we find lower (higher) audit fees for clients using an ERP system from a vendor used by a higher (lower) proportion of clients in that office. We further document that accounting system homogeneity is associated with improved audit effectiveness as proxied by two accruals-based measures, incorrect internal control weakness reporting, and restatements. Our findings are reflective of a new form of knowledge spillover from repeated experiences auditing clients using similar accounting systems, resulting in audits that are not only less expensive but also of higher quality. Data Availability: Contact the authors.