Business Commons^™

Rapid Calculation Of The Price Of Guaranteed Minimum Death Benefit Ratchet Options Embedded In Annuities, Eric R. Ulm

Journal of Actuarial Practice (1993–2006)

This paper presents a new method of obtaining quick and accurate values and deltas for discrete look back options using Taylor series expansions. This method is applied to the case of ratchet guaranteed minimum death benefits attached to annuity contracts, and the method is extended to include annuities where a fixed fund is attached to the variable account. Finally, both the speed and the accuracy of the method are compared to Monte Carlo simulation and the exact analytic solution. The Taylor expansion method is shown to be faster and, in most cases, more accurate than the alternative methods.

Approximating The Bias And Variance Of Chain Ladder Estimates Under A Compound Poisson Model, Janagan Yogaranpan, Sue Clarke, Shauna Ferris, John Pollard

Journal of Actuarial Practice (1993–2006)

We consider the problem of estimating the outstanding claims produced by a homogeneous general insurance portfolio. The specific model considered in this paper is one where the number of claims in any loss period follows a Poisson distribution, settlement delays follow the same multinomial distribution, and settlements are single lump sums that are independent identically distributed random variables. Simulations using this model reveal that the development ratios and the outstanding claims estimates produced using the chain ladder method are positively biased. We obtain approximate formulas for the biases using Taylor series expansions of the random variables about their means. The …

Product Innovation In Financial Services: A Survey, Christopher O'Brien

Journal of Actuarial Practice (1993–2006)

This paper considers product innovation in insurance and other financial services, an area where actuaries have an important role. It considers the proposition that there is no unique formula for success and that what works well in one situation may not work well in another. It first examines the sources of ideas for new products and, in particular, the role played by consumers, which is generally regarded as weak. It then looks at how ideas are implemented, with particular importance attributed to cross-functional teams and the formality of the product development process. Then it considers how success is measured (with …

Aicpa Work/Life And Women's Initiatives 2004 Research, American Institute Of Certified Public Accountants. Work/Life & Women's Initiatives. Executive Committee

Association Sections, Divisions, Boards, Teams

No abstract provided.

Asb Meeting Minutes, 2004, September 28-30, American Institute Of Certified Public Accountants. Auditing Standards Board

Association Sections, Divisions, Boards, Teams

No abstract provided.

Comment Letters On Proposed Statement Of Position “Auditing The Statement Of Social Insurance”, American Institute Of Certified Public Accountants. Social Insurance Task Force

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Enterprise Risk Management Framework, Exposure Draft For Public Comment, Committee Of Sponsoring Organizations Of The Treadway Commission

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Auditing The Statement Of Social Insurance; Statement Of Position 04-1; Statement Of Position 04-1, American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Proposed Statement Of Position : Auditing The Statement Of Social Insurance;Auditing The Statement Of Social Insurance; Exposure Draft (American Institute Of Certified Public Accountants), 2004, March 5, American Institute Of Certified Public Accountants. Social Insurance Task Force

Exposure Drafts, Comment Letters, and Statements of Position

This proposed Statement of Position (SOP) was issued to assist CPAs in auditing the statement of social insurance. a financial statement required by Federal Accounting Standards Advisory Board (FASAB) Statement of Federal Financial Accounting Standards (SFFAS) No. 17, Accounting for Social Insurance, and SFFAS No. 25, Reclassification of Stewardship Responsibilities and Eliminating the Current Services Assessment. In summary, a statement of social insurance is a long-term projection of the present value of the income to be received from or on behalf of existing and future participants of social insurance programs (for example, Social Security), the present value of the benefits …

Proposed Statement Of Position : Accounting By Insurance Enterprises For Deferred Acquisition Costs On Internal Replacements;Accounting By Insurance Enterprises For Deferred Acquisition Costs On Internal Replacements; Exposure Draft (American Institute Of Certified Public Accountants), 2004, Nov. 29, American Institute Of Certified Public Accountants. Accounting Standards Executive Committee

Exposure Drafts, Comment Letters, and Statements of Position

This Statement of Position (SOP) provides guidance on accounting by insurance enterprises for deferred acquisition costs on internal replacements other than those specifically described in Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No. 97, Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of lnvestments. The SOP defines an internal replacement as a modification in product benefits, coverages, or features that occurs by the exchange of a contract for a new contract, amendment, endorsement, or rider to a contract, or the election of a feature within a …

Proposed Statement Of Position: Auditing The Satement Of Social Insurance; Exposure Draft (American Institute Of Certified Public Accountants), 2004, March 5, American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Audit And Accounting Manual, Nonauthoritative Practice Aids, As Of July 1, 2004, Lori West, American Institute Of Certified Public Accountants. Accounting And Auditing Publications

Guides, Handbooks and Manuals

No abstract provided.

Why Do Auditors Over-Rely On Weak Analytical Procedures? The Role Of Outcome And Insensitivity To Precision, Steven M. Glover, Douglas F. Prawitt, T. Jeffrey Wilks

Faculty Publications

Recent evidence from highly publicized frauds and from the Public Oversight Board’s Panel on Audit Effectiveness (2000) indicates that auditors sometimes over-rely on weak evidence supporting a clean audit opinion. In experiment 1 we examine whether a favorable outcome, together with insensitivity to factors relating to the strength of evidence, could lead to over-reliance on weak substantive procedures. In experiment 2 we examine whether an explicit ex ante prompt can sensitize auditors to the weaknesses of an unreliable substantive procedure. Our examination is conducted in the context of substantive analytical procedures that are performed to provide evidence during the substantive …

Perceived Likelihood Of Activity-Based Costing To Succeed In A University Setting, Nazmi Jarrar

Theses: Doctorates and Masters

The study provides exploratory empirical evidence on the likelihood of Activity Based Costing (ABC) to succeed in a university setting and the association of this success with specific behavioral implementation factors. The study examined perceptions of Edith Cowan University's ABC users and preparers of the likelihood of the system to succeed in the University and their perceptions of eleven behavioral implementation factors identified by previous studies to have significant association with ABC implementation success. Results were analyzed so as to determine the significance of the correlation between the users' and preparers' perceptions of each of the eleven factors and their …

Secps Gets Reorganized And Is Now The Center For Public Company Audit Firms, American Institute Of Certified Public Accountants (Aicpa)

Association Sections, Divisions, Boards, Teams

No abstract provided.

Enterprise Risk Management : Integrated Framework: Executive Summary, Framework, September 2004, Pricewaterhousecoopers Llp, Committee Of Sponsoring Organizations Of The Treadway Commission

Association Sections, Divisions, Boards, Teams

No abstract provided.

Asb Meeting Minutes, 2004, May 4;Auditing Standards Board Conference Call, Approved Highlights, 2004, May 4, American Institute Of Certified Public Accountants. Auditing Standards Board

Association Sections, Divisions, Boards, Teams

No abstract provided.

Asb Meeting Minutes, 2004, February 24-25;Auditing Standards Board Approved Highlights, 2003, February 24-25, Meeting, American Institute Of Certified Public Accountants. Auditing Standards Board

Association Sections, Divisions, Boards, Teams

No abstract provided.

Asb Meeting Minutes, 2004, June 22-23;Auditing Standards Board Approved Highlights, 2004, June 22-23, Meeting, American Institute Of Certified Public Accountants. Auditing Standards Board

Association Sections, Divisions, Boards, Teams

No abstract provided.

Asb Meeting Minutes, 2004, December 14-16, American Institute Of Certified Public Accountants. Auditing Standards Board

Association Sections, Divisions, Boards, Teams

No abstract provided.

Legislative-Executive Relations And The Budgetary Process In Nigeria: An Evaluation Of The 1999 Constitution., S.C. Rapu

CBN Occasional Papers

Since the transition to civilian rule in May 29, 1999, the country has witnessed conflicts between the legislature and the executive over budget matters. These conflicts are not only restricted to the federal level but also a common phenomenon at the state government level. This paper discussed the poor relationship over the budget matters and made suggestions on how to improve the process. The paper surveyed the literature on the legal framework of the budgetary process in several countries. Thereafter, the paper examined the legal framework for the budgetary process in Nigeria as well as the issues involved. The paper …

Thomas P. Ochsenschlager Joins Aicpa As Vice President - Taxation, American Institute Of Certified Public Accountants (Aicpa)

Association Sections, Divisions, Boards, Teams

No abstract provided.

Aicpa Publishes Audit Committee Guidelines In Light Of New Regulations, American Institute Of Certified Public Accountants (Aicpa)

AICPA Committees

No abstract provided.

New Release: Aicpa Chair Calls For More Change, Delivers Keynote Address At Institute’S Annual Sec Conference, American Institute Of Certified Public Accountants (Aicpa)

Association Sections, Divisions, Boards, Teams

No abstract provided.

Procurement Fraud & Data Analytics, Sridhar Ramamoorti, Scott Curtis

Accounting Faculty Publications

The purpose of this article is to bolster the government auditor's ability to detect procurement fraud through the use of information technology (IT) tools in performing more sophisticated data analytics and effective audit testing. The article primarily focuses on fraud detection. The government auditor should customize the application of general fraud detection principles to specific facts and circumstances and use sound professional judgment. Procurement fraud detection tests may help identify fraudulent activity and also inefficiencies, waste and abuse.

The Value Relevance Of Announcements Of Transformational Information Technology Investments, Bruce Dehning, Vernon J. Richardson, Robert W. Zmud

Accounting Faculty Articles and Research

In this paper, we examine the influence of IT strategic role to extend the findings of Im et al. (2001), Chatterjee et al. (2002) and Dos Santos et al. (1993). Specifically, we demonstrate that IT strategic role can explain how IT investments in each of the IT strategic roles might affect the firm's competitive position and ultimately firm value. We find positive, abnormal returns to announcements of IT investments by firms making transformative IT investments, and with membership in industries with transform IT strategic roles. The results of previous research are not found to be significant when IT strategic role …

Practicing Cpa, Vol. 27 No. 10, December 2003, American Institute Of Certified Public Accountants (Aicpa)

Newsletters

No abstract provided.

Cpa Client Bulletin, December 2003, American Institute Of Certified Public Accountants (Aicpa)

Newsletters

No abstract provided.

Why Toyota And Honda Topped The 2002 J.D. Power Quality Study, Susan Lightle, Kenneth Yale Rosenzweig, John Talbott

Accounting Faculty Publications

Toyota again topped the annual J. D. Power and Associates quality study released in late May of 2002. Toyota scored the highest mark ever with l 07 defects per l 00 vehicles, while Honda came in second with 113 defects. The study was based on responses of approximately 65,000 new car owners queried during their first 90-days of ownership.

These results do not surprise us, as we have been fortunate to make numerous sojourns to the Toyota plant in Georgetown, Kentucky, and observe the manufacturing processes. These trips were normally facilitated by a former Japanese student of ours, Minako Yanke, …

Assessing The Relative Informativeness And Permanence Of Pro Forma Earnings And Gaap Operating Earnings, Nilabhra Bhattacharya, Erv Black, Ted Christensen, Chad Larson

Research Collection School Of Accountancy

This study investigates whether market participants perceive pro forma earnings to be more informative and more persistent than GAAP operating income by analyzing a sample of 1,149 actual pro forma press releases. We find that pro forma announcers report frequent GAAP losses and are mostly concentrated in the service and high-tech industries. Our analyses of short-window abnormal returns and revisions in analysts’ one-quarter-ahead earnings forecasts indicate that pro forma earnings are more informative and more permanent than GAAP operating earnings. Our evidence suggests that market participants believe pro forma earnings are more representative of “core earnings” than GAAP operating income.