Business Commons^™

No. 210 Carolyn Ackerman, Et Al., Responents, V. Price Waterhouse, Apppellant. American Institute Of Certified Public Accountants And New Ork State Society Of Certified Public Accountants, Amici Curiae. Opinion, American Institute Of Certified Public Accountants (Aicpa), New York State Society Of Certified Public Accountants, Court Of Appeals For The State Of New York

State Publications

No abstract provided.

The New Auditor's Report: Have The Benefits Of Wording Changes Been Acknowledged Outside The Cpa Profession?, Marshall A. Geiger

Accounting Faculty Publications

CPAs use the auditor's report to communicate their opinions of an entity's financial statements and related disclosures. Concerned parties, in turn, use the report to assess the integrity of the financial statements and the accuracy of the disclosures.

In 1988, the American Institute of CPAs auditing standards board established new wording for the standard unqualified audit report. It also revised the reporting requirements and types of audit reports allowed (for example, the subject-to report for uncertainties and except-for report for consistency departures were eliminated). The new wording appears in Statement on Auditing Standards no. 58, Reports on Audited Financial Statements …

Ua62/4 The Western Worksheet, Wku Accounting

WKU Archives Records

Newsletter created by WKU Accounting and the Eta Omicron chapter of Beta Alpha Psi.

Information And Accountants In The Role Of Strategic Planning, Michael D. Akers, Grover L. Porter

Accounting Faculty Research and Publications

This article on strategic planning practices is based upon a field study of five world-class companies. The strategic planning practices discussed in this article were extracted from the corporate environment. The information contained in this article, however, is of value alike to CPAs assisting with the enhancement of strategic planning practices in corporations and public accounting firms.

Earnings Manipulation: A Report By Robert Lavine On The Business Ethics Research Of Kenneth Rosenzweig And Marilyn Fischer, Kenneth Yale Rosenzweig, Marilyn Fischer

Accounting Faculty Publications

This column by Robert LaVine in the Chartered Accountants Journal of New Zealand reports on the research of University of Dayton professors Kenneth Rosenzweig and Marilyn Fischer, "Is Managing Earnings Ethically Acceptable? Surveys Show Age and Seniority Affect Attitudes on Earnings Management," >>> published in the journal Management Accounting.

Management Accounting & Academe, Heather M. Hermanson, Dana R. Hermanson

Faculty Articles

Management accounting offers rewarding research opportunities. If researchers are able to identify more efficient ways to analyze internal accounting data, these new methods can be adopted immediately by interested companies. Breakthroughs in management accounting research do not have to filter through a standard-setting body before they can have an impact on practice. Due to the absence of management accounting rules, the great demand for management accounting research, and the availability of management accounting data, it is not surprising that academic research is beginning to drive the field of management accounting.

Managing Risk In Information Technology Project: A Case Study Of Tradenet, Boon Siong Neo, Kwong Sin Leong

Research Collection School Of Accountancy

The development and implementation of IT (Information Technology) projects are plagued with problems of cost and time overruns, technical inadequacy, inability to meet user requirements, lack of utilization and failure to achieve anticipated benefits. These problems occur to some projects and not to others because 1) IT projects have different profiles of risk, and 2) IT projects risks have been managed more or less effectively. This paper synthesizes the literature into four classes of risks and applies it to evaluate TradeNet, an EDI-based trading system implemented in Singapore in 1989. Through a case study of TradeNet, we derived a typology …

Report Earnings Accurately, Kenneth Yale Rosenzweig, Marilyn Fischer

Accounting Faculty Publications

As authors of the March article, “Is Managing Earnings Ethically Acceptable?,” we wish to thank Alfred M. King for his letter in the April issue questioning some of the contentions in our article. In a time when corruption seems to be rampant in many aspects of our national life, it is important for accountants to discuss openly what are their ethical responsibilities, and what are the limits to those responsibilities. The credibility of accounting numbers is vital to our success as a profession and as individual accountants. There will be no demand for accounting service if accounting information is not …

Further Comments On The Use Of The Lsi In Research On Student Performance In Introductory Accounting, Marshall A. Geiger, Edmund J. Boyle

Accounting Faculty Publications

In this note we respond to the comments of Ruble and Stout (1993) concerning the use of the revised Learning Style Inventory (LSI) developed by Kolb (1985). While our more recent psychometric research on the LSI leads us to conclude that the standard version should no longer be used, unlike Ruble and Stout, we see promise for new or modified versions in future research. We also indicate where several of their comments on our work, as well as the work of others, are not well founded.

Ua62/4 The Western Worksheet, Wku Accounting

WKU Archives Records

Newsletter created by WKU Accounting and the Eta Omicron chapter of Beta Alpha Psi.

Is Managing Earnings Ethically Acceptable? Surveys Show Age And Seniority Affect Attitudes On Earnings Management, Kenneth Yale Rosenzweig, Marilyn Fischer

Accounting Faculty Publications

Is managing earnings through accounting methods ethically acceptable? That's the question we recently asked a sample group of management accountants. The response to the survey was enlightening. Our survey was designed as a follow-up and extension of the research done by Bruns and Merchant and published in Management Accounting in August 1990. They found that managers disagreed considerably on whether earnings management is ethically acceptable. They also found that in general the respondents thought manipulating earnings via operating decisions was more ethically acceptable than manipulation by accounting methods. Bruns and Merchant were disturbed by these findings. They were concerned that …

Journal Of Actuarial Practice, Volume 2, No. 1, 1994, Colin Ramsay , Editor

Journal of Actuarial Practice (1993-2006)

ARTICLES

Health Insurance Reform and its Effects on the Small Employer Market: A Review of H.R. 3626 • P. Anthony Hammond

An Introduction to Individual Disability Income Insurance • Mark J. Chartier

Cost Containment in Workers' Compensation: Evaluating Medical Fee Schedules • David L. Durbin and Barry I. Llewellyn

The Markov Chain Interest Rate Scenario Generator Revisited • Sarah L.M. Christiansen

Managing the Costs and Risks of Housing Finance: A New Role For Actuaries • Anthony Asher

Reconciling Two Rate Level Indications: A Chain Rule Approach • Cheng-Sheng Peter Wu

Tax Assistance to Qualified Retirement Savings Plans: Deferral or Waiver? …

Disenrollment Patterns Of Elderly In Managed Care And Fee For Service, Kenneth G. Manton, Dennis H. Tolley, Robert Newcomer, James C. Vertrees, Charlene Harrington

Journal of Actuarial Practice (1993-2006)

As the trend to provide health care through managed care facilities increases, the need to examine ,vhy insured individuals voluntarily terminate managed care coverage grows. Voluntary termination of coverage, or dis enrollment, has both social and fiscal implications. Particularly among the elderly, patterns of disenrollment likely are related to self assessment of care needs and levels of health. In this paper we examine the patterns of dis enrollment among elderly enrollees as a function of health status and disability. We focus on disenrollment patterns from an experimental prepaid extended care facility, called a social HMO (S/HMO) and compare this pattern …

Modeling Insurance Cash Flows For Universal Life Policies, Robert E. Hoyt

Journal of Actuarial Practice (1993-2006)

This paper develops a methodology that can be used by insurers to construct predictive models for their own insurance cash flows. The insurance cash flow components evaluated include premium flows, policy loans, and cash value surrenders. Also, the paper evaluates several hypotheses in the insurance literature that attempt to explain insurance cash flows. Though the results are theoretically consistent, they produce some interesting contrasts to findings of similar studies for whole life policies. For example, these results confirm that: (i) the credited rate strategy is important to policy performance; (ii) the emergency fund hypothesis appears to apply to policy loan …

A Statistical Approach To Ibnr Reserves, Bradford S. Gile

Journal of Actuarial Practice (1993-2006)

This paper develops a three dimensional statistical approach to the estimation of the mean and the standard deviation of pure incurred but not reported (IBNR) reserves. This means that the time of occurrence, the reporting lag, and the claim severity are separately modeled. It is assumed that, beyond any fixed time t, the claim number development process is Poisson and that the severity of loss depends on the length of the reporting lag. Two key assumptions are made to simplify the estimation of model parameters: for a given reporting lag, (i) the conditional mean of the claim size is a …

Cost Containment In Workers' Compensation: Evaluating Medical Fee Schedules, David L. Durbin, Barry I. Llewellyn

Journal of Actuarial Practice (1993-2006)

Medical expenditures in workers' compensation programs have been subjected to few cost containment strategies. As workers' compensation costs have escalated, however, increasing attention is being given to the role of medical fee schedules in containing the prices of medical services. To this end, we develop a model for estimating the potential cost savings from implementing medical fee schedules. A market basket of medical services received by injured workers is constructed. This basket is used to estimate the parameters of the model. In addition, the basket is used to determine the impact of imposing a fee schedule linked to usual and …

The Markov Chain Interest Rate Scenario Generator Revisited, Sarah L.M. Christiansen

Journal of Actuarial Practice (1993-2006)

This paper furthers the development of the Markov chain interest rate generator. Though the basic technique remains essentially unchanged, there are still many significant changes to the model. For example: (i) the long (key) rates are now are generated by a mean reversionary process; (ii) the number of shapes is increased from seven to 11; (iii) the limitation of changing by only two shape codes per year is removed; and (iv) the random walk matrix that determines the shapes is revised to be more realistic. An algorithm is developed to determine the shape code of the original yield curve, thus …

An Introduction To Individual Disability Income Insurance, Mark J. Chartier

Journal of Actuarial Practice (1993-2006)

There are several actuarial software packages purporting to calculate expected benefit cash flows on disability income insurance policies. To the author's knowledge, however, there is no published text that explains how to perform these calculations. This paper is intended to fill this gap in the literature. It describes some of the more common techniques for pricing disability income insurance. Those techniques for which claim costs can be used and those for which the pricing actuary must project cash flows are identified.

Discussion Of Robert L. Brown's "Tax Assistance To Qualified Retirement Savings Plans: Deferral Or Waiver"*, Mark W. Campbell

Journal of Actuarial Practice (1993-2006)

In the paper entitled "Tax Assistance to Qualified Retirement Savings Plans: Deferral or Waiver," Robert L. Brown concludes that "the nontaxation of investment income on qualified funds until taken is a tax waiver or tax subsidy from the government to participants of qualified plans". I believe, however, that this conclusion is based on flawed assumptions pertaining to:

• The behavioral responses of taxpayers to the withdrawal of such tax assistance;

• The definition of an appropriate benchmark tax system against which to measure the cost of such tax assistance; and

• The appropriate basis of comparison of alternative government tax …

Tax Assistance To Qualified Retirement Savings Plans: Deferral Or Waiver?, Robert L. Brown

Journal of Actuarial Practice (1993-2006)

There exist significant tax incentives for retirement savings plans in Canada and the United States. Qualified employer and employee contributions, within limits, are tax deductible to the employer and nontaxable to the employee. Also, investment income is not taxed until taken. On the other hand, monies received from funds having such tax incentives are taxable in full as income to the recipient when taken. This paper analyzes the two tax advantages of qualified retirement savings plans: the tax deductibility of contributions and the nontaxation of investment income until it has been distributed. The algebraic analysis shows that the deductibility of …

Safety First And Ambiguity, Lawrence A. Berger, Howard Kunreuther

Journal of Actuarial Practice (1993-2006)

There is considerable empirical evidence suggesting that ambiguity (i.e., parameter risk) impacts pricing decisions by actuaries and underwriters and their desire to provide coverage. Stone proposed a safety first model of choice that provides a possible explanation for this behavior. This paper analyzes Stone's proposed stability and survival constraints and compares the results with those predicted by expected utility theory. The analysis is motivated by insurers' increasing reluctance to provide coverage for certain specific risks such as earthquake damage insurance where the probability of loss is ambiguous. We show that such behavior is consistent with safety first but is difficult …

Managing The Costs And Risks Of Housing Finance: A New Role For Actuaries, Anthony Asher

Journal of Actuarial Practice (1993-2006)

Housing finance is a nontraditional field where actuarial expertise could be applied fruitfully. The development of mortgage instruments requires the application of financial mathematics, while the evaluation and management of the financial risks to which borrowers and lenders are exposed require a knowledge of insurance principles. This paper splits the financial costs of home ownership into several components: those that arise from inflation, risk, administration, and the residual real interest charge. The risk component further is partitioned into life contingencies, economic contingencies, and various moral hazards. This analysis provides a basis for future financial innovation, highlights where government intervention may …

Reconciling Two Rate Level Indications: A Chain Rule Approach, Cheng-Sheng Peter Wu

Journal of Actuarial Practice (1993-2006)

The problem considered is that of reconciling two rate level indications that are based on several common factors, but have been made at different review periods. A popular approach to this problem is the so-called sequential replacement method, which calculates the impact of each individual factor. Unfortunately, this method has a serious deficiency: the estimated impact of a factor depends upon the order of the replacement. To counteract this defect, a new approach, called the chain rule approach, is developed. Using this approach, an explicit formula is given for calculating the impact and the marginal impact of each factor.

Modal Premium Factors In Ordinary Life Insurance, James B. Ross, Criss G. Woodruff

Journal of Actuarial Practice (1993-2006)

For ordinary life policyholders who want to pay more frequently than annually, insurers construct schedules of modal premium factors that reflect additional charges for the costs of collection, forgone interest, and premiums uncollected or refunded in the year of death. Competition within the industry forces convergence of such schedules. On the other hand, if such factors for a given company reflect its own experience (in expense, interest, mortality, and persistency), the differences between companies will force schedules apart. Analysis of a large group of life insurers over the 1972-1982-1992 period shows that modal premium factors are dustered closely, that they …

Predicting Automobile Insurance Multi-Regional Base Pure Premiums, Edward Nissan, Iskandar S. Hamwi

Journal of Actuarial Practice (1993-2006)

Multi-regional insurance base premiums are customarily computed by a top-down method where national or state projections are adjusted to reflect regional differences. This paper proposes a methodology for a bottom-up projection. A weighing scheme that minimizes the variance of the estimator is suggested as a criterion to establish an overall multi-regional rate.

Ethics Of Teaching Critical: A Feminist Perspective, M. M. Day

Faculty of Business - Accounting & Finance Working Papers

In this brief paper, I identify 'alternative' researchers' apparent indifference to the transformatory needs / wants / desires of accounting students. After expressing my lack of understanding and curiosity about this phenomenon to some said researchers, I received a variety of answers / reasons / excuses. In this paper, I reconstruct some of these, as well as possible subtexts, to tease out my feminist ethical perspective. I believe that this perspective is useful in exposing some of the silences I inconsistencies / contradictions we need to address in accounting education and research. One explanation for accounting researchers' reticence in transferring …

Environmental Accounting: An Analysis Of Environmental Liabilities, Mark Evans

Honors Theses, 1963-2015

I have identified the environment as our most important asset and have illustrated how the role it plays in our lives has undergone a metamorphosis. This change in the way we interact with the environment has magnified the accountant¹s deficiency in reporting environmental liabilities. Fortunately, these deficiencies are beginning to be recognized. Changes in environmental accounting will validate the relevancy and reliability of information as well as foster positive environmental practices. Through the influence of consumers, investors, and policy makers, companies will be forced to adapt new accounting procedures. In reporting and recording the social costs that businesses occur, a …

The Internal Control Paradox: What Every Manager Should Know, Dana R. Hermanson, Heather M. Hermanson

Faculty Articles

Examines some conflicting trends concerning internal control systems of companies in the 1990s. Definition of internal control; Trends toward internal control; Trends away from internal control; Balanced view of internal control; Solution to the internal control paradox.

1993-1994 Morehead State University Audit Report, Morehead State University. Accounting And Financial Services Office.

Morehead State University Audit Reports

1993-1994 Audit Report for Morehead State University.

Government Auditing Standards. 1994 Revision; Yellow Book. 1994 Revision, United States. General Accounting Office

Federal Publications

This revision of the standards supersedes the 1988 revision. Its provisions are effective for financial audits of periods ending on or after January 1, 1995, and for performance audits beginning on or after January 1, 1995. Early application is permissible.