Showing papers on "Audit published in 1981"

Are auditors' judgments sufficiently regressive?

Abstract: In the course of an audit engagement, audit practitioners must make numerous judgments and express an opinion on the basis of information and test results that are never perfectly diagnostic with respect to the underlying economic state of the client. The ability of auditors to for- mulate these judgments appropriately is crucial, since they may be held liable at common law or under the federal securities laws should the audited financial statements prove to be materially in error. Thus, the ability of auditors to process information in audit-related tasks has recently become the subject of research (e.g., Ashton [1974], Gibbins [1977], Joyce [1976], Joyce and Biddle [1981], Moriarity and Barron [1976; 1979], Uecker and Kinney [1977]). In many audit situations, the auditor obtains an item of evidence and must determine the extent to which his (her) opinions about the relative likelihood of two or more hypotheses should be revised. If, for example, the collectibility of a large past-due receivable is at issue, the report of a reliable, independent credit agency stating that the customer is solvent but sometimes tardy in paying bills will probably cause the auditor's opinions concerning the relative likelihood of collection versus noncollec- tion to change.

The Impact of Group Processing on Selected Audit Disclosure Decisions

Abstract: The area of accounting uncertainties seems to pose a significant problem for both accountants and auditors. Probably the most noteworthy recognition of the problems of reporting on uncertainties and attesting to such reporting appears in The Commission on Auditors' Responsibilities: Report, Conclusions, and Recommendations (CAR Report) (Commission on Auditors' Responsibilities [1978, sec. 3]). Generally, the report cites a number of lawsuits successful against auditors and proposes that auditors not be required to modify their opinions when material uncertainties or contingencies exist and are adequately disclosed in the statements. Following the CAR Report, the Auditing Standards Executive Committee (AudSEC) of the American Institute of Certified Public Accountants (AICPA) proposed and then withdrew a Statement on Auditing Standards (SAS) consistent with the CAR recommendation (AICPA [1977]). Thus, problems presented by uncertainties still remain for the auditor who must decide what constitutes "fair" disclosure of uncertainties. Discussions with members of large accounting firms indicate that they often use groups to resolve difficult reporting problems. This practice seems to be increasing due, perhaps, to concern for potential litigation, reporting complexity, and more use of specialists in auditing. The ration-

The Association between Municipal Market Measures and Selected Financial Reporting Practices

Abstract: Previous research has tried to identify the determinants of bond ratings in the corporate' and municipal2 sectors and to assess whether the use of an internal auditor rather than an external auditor has an effect on interest rates.3 The results of this research indicate that accounting measures and releases affect market measures. Presumably lenders perceive such reported numbers to be more credible when produced from a particular type of accounting system and when subjected to an audit.

A Marketing Audit Using a Conceptual Model of Consumer Behavior: Application and Evaluation

Abstract: This paper examines the role that conceptual models of consumer behavior can play in a marketing audit. Research employing a model of consumer decision making (an expanded version of a normative mo...

Relationships between leader behaviors and audit team performance

Abstract: This study considers the nature and importance of leadership in the audit process. The relationships between audit team performance and leader behaviors, which are practised by in-charge auditors to supervise staff assistants, are examined in a field experiment. The results identify a number of leader behaviors which relate, either directly or through some intermediary factors, to audit team performance. For example, high performing audit teams tended to be supervised by in-charge auditors who allowed staff innovation, were considerate to the staff's personal needs, administered frequent positive reinforcement, relied heavily on time budgets, assigned a small number of tasks per staff member and administered negative reinforcement infrequently. These and other results appear to have implications for practicing auditors as well as future research in the area.

A note on audit report readability

Abstract: Effective communication of the information contained in audit reports depends on how easily the general user of such reports can understand them. This study of audit reports indicates that many users of the reports have difficulty in understanding them.

Auditing : an instructional manual for accounting students

Abstract: This is a manual on modern auditing theory and practice intended for students preparing for the ICA, ACCA and AAT examinations as well as those studying Auditing as part of a BTEC Higher Business Studies course. The fourth edition incorporates the Companies Act 1985, and has expanded sections on computer auditing, ethics, advertising and auditors' liability. There is a new chapter on Public Sector audits, extra information on statistical sampling and a case study with every chapter. All current SSAPs and exposure drafts with auditing relevance are covered. The manual is on the reading list for ACCA Paper 2.1 in Auditing and AAT Paper 14 in Public Sector Accounting and Auditing. A lecturer's supplement is available.

Review of evaluations of utility home-energy-audit programs

Abstract: Evaluation efforts of utilities with active home energy audit programs are reviewed to suggest methodologies, issues, and data that can contribute to the development of a comprehensive Residential Conservation Service evaluation plan. About half of the utilities contacted had little or no evaluation activity. Of those with evaluation activity, most conducted only informal evaluations for in-house use. A few utilities had conducted fully documented formal evaluations. On the basis mainly of written reports received from the utilities, findings about customer response to programs are summarized. The topics discussed include: correlates of program penetration rates, use of financing, attitudes toward programs, actions taken, characteristics of participants and energy savings due to programs. Methodological issues raised by the utility evaluation efforts are discussed. Particular attention is given to three studies (Tennessee Valley Authority, Seattle City Light, and Pacific Gas and Electric) that analyze fuel consumption records as part of the evaluation. The potential contributions of these three studies, and of other evaluation efforts, to designing an RCS evaluation are explained.

Marketing in higher education

Abstract: Approaches to developing a successful marketing program for universities that is fair to both students and the academic integrity of the institution are considered. A comprehensive marketing plan includes market research, positioning, strategy formulaLion; recruitment/admission, communications, curriculum evaluation, retention, and evaluation. Good marketing begins with determining a market position; that is, differentiating what an institution offers in relation to other institutions. To arrive at a market position an institution must define its mission, philosophy, and goals. Differentiated marketing, or market segmentation, calls for identifying various markets or submarkets and targeting .communication to each one. Although enrollment forecasts and projects are difficult, an institution must have a reasonably accurate estimate of how many students will enroll in order to accurately plan budgets, faculty, programs, and facilities. Marketing, as a communications process, goes beyond promotion and advertising. It involves assessing the needs and interests of potential students and promoting the programs. Parents have a significant influence on the choice of a college. Contacts, such as current students, alumni, college staff, high school counselors and teachers, are not equally effective in their recruitment efforts. Financial aid information and the way financial aid is packaged need to be assessed. In addition, student retention is a vital part of marketing, and an institution needs to research the reasons its students withdraw. A market audit or evaluation will help an institution review its policies, practices, and procedures in marketing. A bibliography is appended.

The Sales Force Management Audit

Abstract: Industry is familiar with audits which focus on finances, human resources, operations and production, and marketing, but little interest has been shown in developing an audit to evaluate a firm's sales management process. This void is interesting in light of the large amount of financial and personal capital that organizations invest in their sales forces. A comprehensive, systematic, diagnostic, prescriptive tool to assess a firm's sales management process and to suggest needed changes would be helpful. The authors present such a tool—the sales force management audit—and discuss who should perform the audit, when it should be performed, and the benefits of the audit.

The Role of a Well Defined Auditing Process in the Enforcement of Privacy Policy and Data Security

Abstract: Financial people have advocated, and even demanded an auditing process within computers so that trails could be analyzed. Both security and privacy, likewise, can make great use of the same type of logging activity. This paper considers several issues with respect to such activity; but perhaps the most fundamental idea is that a single, unified, well-designed logging process has a wide variety of possible uses, and these ought all to be given weight during the design phase. Audit trails form a significant part of the detective mechanisms for data security, and they are essential in the case of computer records dealing with human subjects when privacy is at stake.

Evaluation of Psychosocial Health Care in Quality Assurance Activities

Abstract: This article documents the extent to which one type of quality assurance activity-the medical audit-includes evaluation of psychosocial aspects of health and disease. The criteria used for 448 medical audits completed in the Minneapolis-St. Paul area from 1975 to 1979 are examined in terms of three kinds of psychosocial criteria-those dealing with impact of illness, psychosocial consultation and psychosocial history, plus a fourth kind of criteria concerned with patient education. The majority of medical audits examined address no psychosocial or patient education criteria whatsoever (78 and 63 per cent, respectively). Audits of psychiatric diagnoses are more likely to include psychosocial criteria than those of surgical, pediatric, medical, or obstetricalgynecological diagnoses; on the other hand, pediatrics and psychiatry are most likely to include patient-education criteria. Furthermore, of the four kinds of criteria studied, those concerned with patient education are the most frequently found. It is recommended that methods to evaluate psychosocial health care be developed and implemented within the sphere of quality assurance activities, in order to more comprehensively define the quality of medical care.

The development of auditing standards in australia

Abstract: The development of auditing standards in Australia occurred in three phases. The primary professional initiatives have come from the Institute of Chartered Accountants in Australia. The first phase was marked by F. E. Trigg's presentation to the Australian Congress on Accounting in 1948. In this work Trigg relied heavily on English practice and thought. The second phase was largely a period of inactivity so far as auditing standards were concerned because of concern for other matters of greater urgency. The third phase was marked by the adoption of American ideas and, partly in response to continuing criticism of accounting, a commitment to the continuing review of auditing standards.

Theatre Objectives and Marketing Planning

Abstract: Looks at research undertaken in the grant‐aided sector of UK theatres with emphasis on a group of theatres active in Wales. Aims to assist theatres in the development and implementation of marketing plans. Concentrates on the role of objectives in the planning process and how they need to be refined before they are made operational. Provides guidelines for marketing planning. Demonstrates the value of using an external agency to structure an initial statement of objectives, participate in a current business audit and counsel top management in a restatement of objectives.

Independence of State Audit

Abstract: There is such widespread acceptance of independence as a sine qua non of state audit that there seems to be little point to engage in the academic exercise of marshaling the arguments in support of this proposition. More than a decade ago, Normanton cogently observed: “Since the time of Aristotle it has been accepted principle that state auditors should be free from direction, influence and intimidation by, and income or reward from, the authorities and persons whose affairs they are called upon to audit.”1 This analysis seeks to focus upon the implementation of the concept of state audit independence; in order to minimize redundancy, it deals only incidentally with such facets as the auditor’s selection and security of tenure and similar subjects that have been explored at length in the writings of others.

Impact of therapeutic audit on phenytoin prescribing.

Abstract: The methods used in this study were reasonably satisfactory, although the response rate from the general practitioners (52%/') was rather disappointing. In common with most other studies,' 2 our results provide no evidence of an increase in the risk of cardiovascular disease in women receiving hormone replacement treatment. Nevertheless, few subjects were studied and the use ofhormone replacement treatment (especially current use) was generally infrequent. This finding was not unexpected since general practice prescribing data suggest that only about 3% of women aged 45-69 years were using hormone replacement treatment at any given time during the year 1978 (unpublished observations, G T Bungay). It seems doubtful whether a full-scale study of the type we have described would be rewarding unless hormone replacement treatment becomes more widely used.