Accounting Commons^™

Accounting For Financial Instruments: Difficulties With Fair Value Measurement And Reporting, Lindsey T. Byrne

Honors Theses

No abstract provided.

Audit Committee Oversight Of Fraud Risk, Robert M. Wilbanks

Dissertations, Theses and Capstone Projects

This study examines how audit committees (ACs) fulfill their responsibilities for assessing fraudulent financial reporting (FFR) risk by focusing on the social influence/risk aversion relationship. Although the AC’s responsibility for assessing FFR risk is arguably one of its most important roles, ACs lack consensus on how to perform the task of fraud risk oversight. This study explores this issue at a deeper level by examining the relationship between the AC’s fraud risk assessment process and the professional and personal ties that exist between AC members and (a) management (CEO and CFO), and (b) other corporate governance actors ...

Empirically Analyzing The “Five Percent Rule Of Materiality” In Financial Reporting Decisions, Adam Morgan

Senior Honors Projects

This study analyzes a sample of financial restatements from 2011 and 2012 as a way to assess a proposed “five percent rule of materiality” for financial reporting decisions. Such a rule claims the average investor is only influenced by income restatements greater than five percent. Market reactions are observed through stock price, volume, and bid-ask spread following the restatement in the Form 10-K/A. The study finds only some firms restating net income by more than five percent experience statistically significant reactions in two of these metrics. The study also suggests percent change in net income is a significant driver ...

Improved Accounting Helps Nonprofit Manufacturers, Michael Lee, Dan Robison

Accountancy Faculty Publications and Presentations

Prosperous manufacturing companies have accounting systems that can provide managers with product costs and allocation information for improved decision-making.

Product cost information is influential, because it provides insight regarding product margins and business profitability. Managers with effective-cost accounting systems can make informed decisions about manufacturing operations and product mix.

Diddle, John A., 1863-1942 (Sc 1271), Manuscripts & Folklife Archives

MSS Finding Aids

Finding aid only for Manuscripts Small Collection. General store account book, 1891, kept by John A. Diddle, Gradyville, Adair County, Kentucky. Also loose receipts, 1898-1903 of Diddle and J.J. Hunter that were in book and photos of store, which was also a post office.

Coke, James Guthrie, 1841-1908 (Sc 1252), Manuscripts & Folklife Archives

MSS Finding Aids

Finding aid only for Manuscripts Small Collection 1252. Account book kept by businessman and farmer James Guthrie Coke, Olmstead, Logan County, Kentucky. Includes accounts for farm operations, household expenses and employees.

Review Of Financial Intelligence For Entrepreneurs: What You Really Need To Know About The Numbers By Karen Berman And Joe Knight, With John Case., H. L. Vacher

Numeracy

Berman, Karen and Knight, Joe, with John Case. Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers, (Boston MA: Harvard Business Press, 2008). 285 pp. ISBN 978-1-4221-1915-0.

From “The art of finance (and why it matters)” (Part One) through “Creating a financially intelligent company” (Part Eight), Financial Intelligence for Entrepreneurs is an engaging explanation and appreciation of financial statements and financial ratios. Short, easily digested chapters; just-in-time boxes to introduce terminology; easy, direct, in-text calculations from bare-bones, hypothetical financial statements to illustrate concepts; a 44-page appendix of crafted exercises on the income statement, balance sheet, cash-flow ...

Financial Literacy And The Success Of Small Businesses: An Observation From A Small Business Development Center, Pearl Dahmen, Eileen Rodríguez

Numeracy

Small business is the backbone of the U.S. economy; when the financial literacy skills of entrepreneurs fall short of those needed to operate a successful business, it is more than the individual business at risk. In 2012, 14 small businesses requesting growth-acceleration consulting services from the Florida Small Business Development Center at the University of South Florida were assessed financially as part of the service provided by the Center. Financial ratios were used to analyze the business’s financial condition. While performing the financial analysis of these firms, we also surveyed the business owners to determine their level of ...

Do Loan Loss Reserves Behave Like Capital? Evidence From Recent Bank Failures, Jeffrey Tee Yong Ng, Sugata Roychowdhury

Research Collection School Of Accountancy

Regulatory capital guidelines allow for loan loss reserves to be added back as capital. The evidence in this paper suggests that the influence of loan loss reserves added back as regulatory capital (hereafter referred to as “add-backs”) on bank risk cannot be explained by either economic principles underlying the notion of capital, or accounting principles underlying the recording of reserves. Specifically, we observe that in sharp contrast to the economic notion of capital as a buffer against bank failure risk, add-backs are positively associated with the risk of bank failure during the recent economic crisis. Further the positive association of ...

Taxing Audit Markets And Reputation: An Examination Of The U.S. Tax Shelter Controversy, John Incardona, Yezen Kannan, Ronald Premuroso, Julia L. Higgs, Ivy Huang

Accounting and Finance Faculty Publications

From 2002 to 2007, the nation’s largest CPA firms faced allegations of illegal activity related to the sale of tax shelters: EY, KPMG and PwC paid fines; KPMG was investigated by a federal grand jury; and EY faced a criminal inquiry. These shelter events occurred shortly after the 2002 collapse of Arthur Andersen, when policy makers were concerned about audit market concentration. This is the first paper to provide a chronological summary of how the tax shelter controversy started and ended. We investigate the stock market reaction to tax shelter news developments between 2003 and 2005 to make inferences ...

Stock Liquidity And The Pricing Of Earnings: A Comparison Of China’S Floating And Non-Floating Shares, Jiwei Wang, Kevin Chen, Hongqi Yuan

Research Collection School Of Accountancy

The reform to convert non-floating shares to floating in China provides a setting in which shares are subject to different liquidity constraint. We show that the severity of this constraint is inversely related to the extent to which earnings information is reflected in the share prices. Specifically, before the reform, the transfer prices of non-floating shares reflect much less earnings information than the market prices of floating shares. After the reform, however, both types of transfer reflect more earnings information, although the weights are still less than that found in the market prices. Thus, China's unique setting shows that ...

Loan Loss Reserves, Regulatory Capital, And Bank Failures: Evidence From The Recent Economic Crisis, Tee Yong Jeffrey Ng, Sugata Roychowdhury

Research Collection School Of Accountancy

Regulatory capital guidelines allow for loan loss reserves to be added back as capital. The evidence in this paper suggests that the influence of loan loss reserves added back as regulatory capital (hereafter referred to as “add-backs”) on bank risk cannot be explained by either economic principles underlying the notion of capital, or accounting principles underlying the recording of reserves. Specifically, we observe that in sharp contrast to the economic notion of capital as a buffer against bank failure risk, add-backs are positively associated with the risk of bank failure during the recent economic crisis. Further the positive association of ...

Assignment Of Income At The Ivory Tower: Relaxing The Tax Treatment Of Services Donated To Charities By Their Employees, Mark J. Cowan

Accountancy Faculty Publications and Presentations

When a faculty member donates time to a college or university by, for example, teaching a summer course for no compensation, the federal income tax treatment of the donation can take one of two forms. One possibility is that the donation will have no tax consequences. The faculty member realizes no income from the donation and gets no charitable deduction. A second possibility is that the faculty member will be required to recognize taxable income equal to the value of the services provided and then may (subject to certain limits) be allowed a charitable contribution deduction. In many cases, the ...

Management Fee Provisions And Performance In The U.S. Mutual Fund Industry, Brett Anthony Averso

Honors Scholar Theses

This paper examines the extent to which generous portfolio management compensation is commensurate to long-term mutual fund performance, over the course of five to ten years. If the relationship between the compensation provision and historical performance exists, the maximum percent management fees as disclosed on the fund prospectuses could be employed as a covariance factor for a model of portfolio pricing. The results indicate that there is relationship between portfolio net assets and this compensation provision. The results do not support the hypothesis that a relationship exists between the size of the maximum percent management fee and long term fund ...

The Sentencing Structure Of White-Collar Crime, Catherine Reeves

Honors College Capstone Experience/Thesis Projects

Corporate fraud is an all-too-common element in our society today. Unfortunately, many of those convicted of fraud end up with a seemingly light jail sentence. A possible explanation for this is that the judges could have many subconscious reasons to give lighter sentences in these cases than they do with other more violent cases. Since there are no strict guidelines for the sentencing of these “white-collar criminals,” the judge’s personal views can play a significant role. Many of the laws and guidelines for determining the sentence in fraud cases have stemmed from the corporate scandals of the early 2000 ...

A Small Business Guide To Payroll, Denver Burke

Denver Burke

The responsibility of payroll is significant, so to help alleviate this, this article helps to reveal a variety of aspects to improve your options for a more efficient process.

Think Your Business Is Ready For Internationalization?, Michael Lee, Michael Wright

Accountancy Faculty Publications and Presentations

Many small and medium-size enterprises that reach a relative saturation point in their domestic market look toward the global stage as a way to grow into a multinational corporation. This is known as internationalization, the process of increasing business involvement in international operations. Internationalization requires considerable resources and coordination, and it is fraught with business risks.

A Proposal For An Ethics Class For The Master Of Accountancy Program At The University Of Tennessee, Knoxville, Philip Hardman

University of Tennessee Honors Thesis Projects

No abstract provided.

International Taxation And Initial Foreign Entries, Hannah Grace Alexander

University of Tennessee Honors Thesis Projects

No abstract provided.

Technology Expectations Of Cpa Firms: Hiring And The Accounting Curriculum, Kristy N. Wilson

Honors Theses

The purpose of this study is to determine the technology expectations of Certified Public Accounting (CPA) firms and to evaluate whether or not accounting curriculums adequately prepare students to meet the firms’ hiring expectations. A total of 28 participants - 19 sole practitioners and 9 CPA firms - completed an online survey designed to determine the technological skills CPA firms require of new hires, the extent to which recent new hires have met the firms’ expectations, and the accounting software and programs that firms typically use. The researcher also analyzed the accounting curriculums of 22 four-year public universities to gather information regarding ...