bluuebunny/crossref_metadata_2025_split huggingface dataset:
Evidence of Perceived Quality of “Plain-Paper Statements”
Authors: Reinstein Alan , Green Brian Patrick , Miller Cathleen L. 
Published: April 2008

CPAs have struggled with financial statement users placing too much confidence in nonpublic entities' limited-assurance documents. Despite Statement on Standards for Accounting and Review Services Number 1 (SSARS No. 1) issued in 1979, research shows that CPAs and statement users place confidence in and reliance on CPA compiled and reviewed statements. In 2000, the American Institute of Certified Public Accountants (AICPA) issued SSARS No. 8, Amendment to SSARS No. 1, Compilation and Review of Financial Statements, relating to plain-paper statements.
We surveyed practicing CPAs and bankers to measure their confidence in and reliance on no-assurance engagements: compilations, plain-paper statements, and statements with accountants' reports/letters. We find that both CPAs and bankers report some level of confidence in and reliance on plain-paper statements. Both parties perceive greater confidence in and reliance on financial statements where a CPA is known to be minimally associated with the statements.
Sources of Work-Family Conflict in the Accounting Profession
Authors: Pasewark William R. , Viator Ralph E. 
Published: April 2008

Turnover of experienced and well-trained professionals continues to be a problem for accounting firms. Much of the turnover is among individuals who are trying to satisfy demands of both work and family. This study examines the sources of work-family conflict and their association with job outcomes in the accounting profession. One source of work-family conflict, work interfering with the family (WIF), is found to significantly relate to job satisfaction and turnover intentions. Females are much more likely than males to experience turnover intentions when their work interferes with their family.Another source, family interfering with work (FIW), is not significantly related to either job satisfaction or to turnover intentions when flexible work arrangements are offered, but is related to turnover intentions when flexible work arrangements are not offered. As currently offered, flexible work arrangements seem to be effective at reducing turnover related to FIW.
The Effects of Experience on Complex Problem Representation and Judgment In Auditing: An Experimental Investigation
Authors: Lehmann Constance M. , Norman Carolyn Strand 
Published: April 2008

The purpose of this study is to investigate problem representation and judgment by auditing professionals within the context of a going-concern task. Our results suggest more experienced auditors have more concise problem representations than do novices. In addition, our results show that some types of concepts listed in the problem representation are associated with judgment, regardless of experience level.
This study makes several contributions. First, understanding differences in problem representation at different levels of experience (novice, intermediate, and experienced) gives insight into the process of how representations change as experience changes/develops. Understanding the development of “becoming qualified” to make judgments regarding the going-concern evaluation assists in (1) the development of teaching approaches for analyzing a company's financial condition, and (2) professional development for less-experienced professionals. Further, our measure of problem representation, similar to that in Christ's (1993) study, provides a task-sensitive measure of problem representation for accounting research. This should have important implications for understanding expertise development in complex problem-solving tasks that auditors and accountants face.
The Ridgely House Venture: Triple Net Commercial Lease/Purchase Case
Authors: Quinn Joseph D. , Smith Kenneth J. 
Published: April 2008

This case examines the tax, financial accounting, and governmental reporting consequences of a private Developer's actual purchase, renovation, and transfer of Ridgely House—an historical building in Ridgely, Maryland—to the Town of Ridgely. In short, the Developer purchases the building for $110,000 and incurs $190,000 in renovation costs to convert the property to a Town Hall and Police Station. He then “leases” the property back to the Town under terms and conditions outlined in a lease/purchase agreement (which can be viewed on the Web at http://faculty.ssu.edu/∼kjsmith/ridgely.htm).
The case is constructed from the background information and actual lease/purchase agreement provided by the Developer. The terms of the agreement raise several questions regarding the proper tax and financial accounting treatment of various aspects of the transaction. The Developer (lessor) questions whether the transaction is to be reported for tax and financial-reporting purposes as a rental or a sale, if the property qualifies for a federal historical tax credit, and what net cash flow can be expected from the project. As an optional assignment (at the instructor's discretion), the Town (lessee) questions whether it has entered into an operating or capital lease, how to record the transaction in accordance with Governmental Accounting Standards Board (GASB) guidelines, and what disclosures are required on its Statement of Financial Position.
The case background, key lease/purchase agreement terms, and actual lease/purchase agreement provide the prerequisite material for solving the case requirements. In addition, outside resources (textbooks, online tax and financial accounting web sites, etc.) should be consulted in the process of seeking solutions to the questions posed by the Developer and the Town Commissioners. It is suggested that solutions to the case requirements be presented to the instructor in the form of an Executive Summary with supporting documentation and schedules.
The Role of Supplemental Instruction in the First Accounting Course
Authors: Jones Jefferson P. , Fields Kent T. 
Published: April 2008

This study investigates empirically the role of supplemental instruction (SI) as a means of enhancing student performance in the first accounting course. SI is a proactive educational intervention program that targets traditionally “high-risk” courses and employs collaborative learning techniques emphasizing learning strategies and critical-thinking skills. This emphasis on “learning to learn” has been advocated by the Accounting Education Change Commission (AECC) as a goal of the first accounting course.
ANCOVA-based results from 1,359 students in nine sessions of Principles of Accounting indicate that SI was effective at increasing academic performance; after controlling for self-selection bias, participation in both voluntary and mandatory SI sessions was found to be positively associated with the total points earned in the course. Additionally, a step pattern is observed in the increased performance for both the voluntary and mandatory attendance phases of the study, indicating that the level of SI attendance may play a role in the benefits obtained. The implications of this analysis for the accounting curriculum are addressed.
A Linear Programming Framework for Flexible Budgeting and Its Application to Classroom Teaching
Authors: Yahya-Zadeh Massood 
Published: April 2008

Accounting educators and practitioners are well aware of the importance of increased competencies in analytical areas. In response to this need, authors of management accounting textbooks typically offer brief introductions to linear programming (LP), regression analysis, and decision theory. Most textbooks introduce LP in the context of optimal product-mix decisions. However, it is possible to incorporate LP into the discussion of other accounting topics, such as product costing and pricing, and financial and operational budgeting. (For a pioneering article on the subject of integrating activity-based costing and the theory of constraints, see Kee [1995], who applies integer programming to a numerical example in a fashion similar to what is done in this article.)
The paper demonstrates a method of incorporating LP into flexible budgeting and variance analysis. By incorporating production and market constraints into budgeting and variance analysis, the proposed method resolves some of the weaknesses of traditional flexible budgeting and offers a framework for integration of marketing and operations factors into accounting procedures. More specifically, the paper offers a revised definition of the flexible budget and a new procedure for determining flexible budget direct cost variances, overhead cost variances, and revenue variances. Further, this paper introduces a method of incorporating variance analysis into the theory of constraints and offers alternative measures of controlling throughput and operating expenses to companies implementing it.
Equity Method Accounting and Intercompany Transactions
Authors: Chasteen Lanny G. 
Published: April 2008

In their consolidated statements chapters, most advanced accounting texts include a presentation of the “full” or “complete” equity method from the standpoint of the parent company. Under this method, the parent company adjusts its accounts for intercompany transactions with the subsidiary, in addition to accounting for its share of the subsidiary's net income and dividends (the “simple” equity method) and for differences between the price paid and its share of the underlying book value of the subsidiary (the “partial” equity method). In these texts, many entries made by the parent company to adjust its accounts for unrealized profits on intercompany transactions would require modification if the parent issued “parent only” statements, or if the subsidiary was not consolidated (or an investor/investee relationship instead of a parent/subsidiary relationship existed).
The purpose of this paper is to discuss and illustrate parent/investor accounting for these intercompany transactions when the parent/investor uses the full equity method, but does not consolidate. Although the advanced texts provide the correct consolidating working paper techniques and resulting consolidated statements, the parent company's need to issue “parent only” statements (a one-line consolidation) makes these issues important. This paper's modified approach is also important regarding an investor/investee relationship in which the investor has significant influence, but not control, over the investee. The paper could be useful for students in advanced accounting courses or in intermediate accounting courses where the equity method is introduced and covered in some detail.
No, the Sky Is Not Falling: Evidence of Accounting Student Characteristics at FSA Schools, 1995–2000
Authors: Nelson Irvin T. , Vendrzyk Valaria P. , Quirin Jeffrey J. , Allen Robert D. 
Published: April 2008

This article presents the most recent results of an ongoing, longitudinal study of characteristics of accounting students conducted by the Federation of Schools of Accountancy (FSA). Surveys were administered to seniors and Mastera^€™s students at FSA member schools in the United States in 1995 and again in 2000. Data regarding student characteristics in 1995 and 2000 are presented. Specifically, the study contains evidence pertaining to student quality, future educational plans, career plans, plans for professional certification, extracurricular involvement, attitude toward the 150-hour requirement, and various demographic dimensions.
The results of the survey do not coincide with those of other studies that have reported a decline in the quality of accounting students. On the contrary, our findings suggest that the quality of accounting students is not decreasing. Further research is necessary to more fully understand these contradictory findings and the direction and magnitude of any changes in student quality.
Other findings of this study include a reversal in the gender mix of graduate students, with females now comprising the majority. More graduate students are pursuing their studies full-time. The average age of students is declining. More accounting students are interested in taking the Certified Public Accountant (CPA) exam and pursuing careers in public accounting, while interest in the Certified Management Accountant (CMA) exam and in pursuing careers in industry are declining. Both seniors and Master's students indicate a very high level of support for five or more years of college education for the CPA. Student involvement in internship programs has nearly doubled since 1995, while involvement in extracurricular organizations has dropped. These results are relevant to many currently debated topics in accounting education—including the effects of the implementation of the 150-hour rule in many states.
Garbage In, Garbage Out Waste Disposal Incorporated: An Audit Case
Authors: Ragothaman Srinivasan C. , Wilcox William , Davies Thomas L. 
Published: April 2008

Waste Disposal Incorporated (WDI) became a major player in both the domestic and international trash collection industries during the late 1990s by aggressively acquiring a large number of local haulers. The company also diversified into recycling, water treatment, energy, power, and lawn care. This rapid expansion initially resulted in substantial profits and a skyrocketing stock price for WDI. The financial market's desire for continued growth put intense pressure on the company to meet higher profit expectations. Increased government regulation of the waste industry and growing competition from smaller garbage haulers hindered WDI's ability to meet those expectations. When extensive cost-cutting measures failed to achieve their desired results, WDI's management turned to other strategies to keep the company at the top of the industry.
In this case, you will follow Jane Sweeny, an audit manager employed by Alfred Peterson LLP, as she completes her duties as manager of the WDI 1999 year-end audit. Included in these duties is a review of the financial records, management's accounting practices, and other relevant details of WDI's audit. The review raises some doubts about the reasonableness of WDI's financial statements in Jane's mind. Jane also discusses her concerns with Peterson's engagement partner and the WDI controller.
A Note on Ethics Educational Interventions in an Undergraduate Auditing Course: Is There an “Enron Effect”?
Authors: Earley Christine E. , Kelly Patrick T. 
Published: April 2008

In light of recent accounting scandals and the ensuing “crisis in confidence” facing the public accounting profession, there is a new challenge to accounting educators: how to effectively incorporate ethics into accounting courses, and increase the moral reasoning abilities of their students. Providing accounting students with the ability to reason effectively with respect to moral dilemmas may help to minimize future judgment errors in accounting and auditing settings.
This article describes several different educational interventions that were adopted in an undergraduate auditing course. Students' moral reasoning was assessed both at the beginning and the end of the course to determine whether their moral reasoning scores improved based on the interventions. This was done over two semesters: one occurring in 2001 (“pre-Enron”), and one occurring in 2002 (“post-Enron”). Accounting context-specific scores were collected in both semesters (using Thorne's [2000] Accounting Ethical Dilemma Instrument [AEDI]), and general moral reasoning scores (Rest's [1979] Defining Issues Test [DIT]) were also collected in the post-Enron semester. Results indicate increases in AEDI scores, which were robust over both semesters. There was no corresponding increase in DIT scores, which is consistent with previous research; however, students' DIT scores were not significantly different than AEDI scores, which is contrary to the findings of Thorne (2001). In addition, the educational interventions appear to be equally effective in both the pre-Enron and post-Enron semesters, indicating the absence of an “Enron effect.”
Helecom Communications: Considering Fraud Risk on an Engagement before and after Analyzing a Key Business Process
Authors: Ballou Brian , Mueller Jennifer M. 
Published: April 2008

Helecom Communications is a fictitious public company in the cable industry, founded by its current Chairman and CEO, Jefferson Means. For this case, students assume the role of an entry-level accountant in an international accounting firm that has just acquired this client. Students are provided with background information on the company and its environment in Part I of the case and provided with information related to a critical business process, subscriber management, in Part II of the case.
This case involves audit planning, considering fraud risk of an organization in a competitive, regulated, and volatile industry. For this case, the established criterion is AICPA Statement of Auditing Standards No. 99, Consideration of Fraud in a Financial Statement Audit (SAS No. 99). While many of the facts in the case are adapted from fraud risks and actions that occurred at actual organizations, the company is fictitious to enable the case to place students in the role of the auditor evaluating the organization for fraud risks both before and after analyzing a key business process. By performing the requirements in this case, students are exposed the key aspects of SAS No. 99, which should be maintained and possibly expanded pursuant to consideration by the Public Company Accounting Oversight Board (PCAOB), within the context of audit approaches being used to some extent by all international accounting firms (e.g., Lemon et al. 2000). The case illustrates the usefulness of business process analysis for assessing fraud risk as well as the iterative nature of the assessment.
The Influence of Effective Teaching in Accounting on Student Attitudes, Behavior, and Performance
Authors: Shaftel Julia , Shaftel Timothy L. 
Published: April 2008

In 1993 the School of Business at a large midwestern university established a task force to redesign its introductory accounting/business course. The task force shared many goals of the contemporaneous Accounting Education Change Commission, which addressed desirable attitudes and behaviors for the profession. Although approaches to knowledge and skill development are well understood at universities, much less is known about the impact of effective accounting education on student attitudes and behavior.
After implementing instructional interventions, student attitudes and study skills improved significantly over one semester. The causal relationship of attitudes and behaviors was modeled using the Theory of Reasoned Action. Self-reported behaviors were validated by external ratings and course performance. Achievement attitudes were strongly and directly influenced by subjective norms. Our results reflect positively on the activities and procedures used to create normative influences within the class. In particular, the use of teaching assistants (TAs) as positive role models was substantiated.
After implementing instructional interventions, student attitudes and study skills improved significantly over one semester. The causal relationship of attitudes and behaviors was modeled using the Theory of Reasoned Action. Self-reported behaviors were validated by external ratings and course performance. Achievement attitudes were strongly and directly influenced by subjective norms. Our results reflect positively on the activities and procedures used to create normative influences within the class. In particular, the use of teaching assistants (TAs) as positive role models was substantiated.
Reporting Financial Results with the Video Medium: An Experimental Analysis
Authors: Clements Curtis E. , Wolfe Christopher J. 
Published: April 2008

This research uses an experimental approach to study the user effects of a video financial report compared to a paper financial report. We hired professional actors and created newscast-type videos of a fictitious company's management discussion and analysis section of the annual report. The experimental task involved either viewing a video financial report or reading a paper financial report. After viewing/reading the financial report, subjects judged their personal opportunity with the firm (i.e., career and investment) and firm quality. Additionally, they rated perceptions gathered from the report, and they were tested on recall from the report.
Overall, our results indicate that video report users rate personal opportunity with the firm in the report higher than do paper report users, but paper report users recall more about the firm and rate the quality of the firm higher than do video report users. We also find that personal opportunity judgments are more influenced by emotive perceptions of the financial report than by its ability to inform, regardless of report media. For the firm-quality judgment, we find that video report users are most influenced by emotive perceptions of the report, whereas paper report users are equally influenced by emotive and information oriented perceptions.
Our findings indicate that video financial reports can influence unsophisticated report users differently than traditional paper reports. We also find evidence that some of this difference in influence between report media relates to video's capacity to heighten emotional processing.
Information Assurance Seals: How They Impact Consumer Purchasing Behavior
Authors: Nikitkov Alexei 
Published: April 2008

Public accounting firms and other independent assurance providers have developed and marketed web assurance services resulting in a seal as an indicator of compliance. Academic research finds that seals potentially meet some of the most acute consumer concerns, but that consumers have inadequate understandings about the seals, and low regard for them. This study extends the research on the role of information assurance seals as an antecedent of trust by examining the use of seals on the eBay auction site.
The study analyzes a sample of transactions in which buyers acted with their own money, and had time to learn about various signals and consider their strengths. The transactions are examined to see whether presence of a seal on the seller's web page made a significant difference on actual consumer purchasing behavior. Empirical tests found significant associations between the presence of seals and consumer purchasing behavior in both auction and posted-price contexts.