Business Commons^™

The Fraud Diamond: Considering The Four Elements Of Fraud, David T. Wolfe, Dana R. Hermanson

Faculty and Research Publications

Focuses on the use of the elements of the fraud diamond to prevent and detect accounting fraud. Essential traits for committing fraud; Steps in assessing fraud risk through the use of the fourth element of the diamond; Ways for auditors to prevent potential fraud.

An Environmentally Enlightened Accounting, Jesse Dillard, Darrell Brown, Scott Marshall

Business Faculty Publications and Presentations

Environmental stewardship must become a primary concern if management is to adequately fulfill its societal responsibilities. Management and accounting information systems must aggressively respond to these emerging requirements in order to support adequately the associated information needs as well as to design organizational systems that motivate and facilitate desired behavior. Our purpose here is to consider a framework useful for developing environmentally enlightening management and accounting information systems that take into account alternative environmental perspectives. The framework can be used to develop prototypes representing different levels of environmental enlightenment and, as such, can provide general guidance for moving collectives and …

Corporate Governance Ratings: Good Or Bad?, Dana R. Hermanson

Faculty and Research Publications

If something is important, eventually it gets measured. The last several years clearly have demonstrated that corporate governance is important, so it is no surprise that an industry has emerged to provide ratings of companies' corporate governance. There are several governance ratings providers, and three have been chosen that illustrate the types of rating systems currently in use: 1. Institutional Shareholder Services, 2. Corporate Library-Board Effectiveness Ratings, and 3. Governance Metrics International. For each service, the rating system's purpose, methodology, and criteria are presented. What is good about governance ratings? The ratings further promote the importance of good governance, and …

Install Your Own Wireless Network, William G. Heninger, Craig J. Lindstrom, Bryce H. Peterson, Marshall B. Romney

Faculty Publications

Would you like to access the Internet, your printer and your other computers, including laptops, without stringing wires throughout your office or home? The solution is a wireless local area network (WLAN) and we'll tell you how easy it is to install one yourself at a nominal cost. WLANs replace conventional wires with devices called wireless access points that plug into any electrical wall socket. WLAN hardware contains miniature transmitters and antennae that send and receive radio signals to and from your computers and other peripherals.

How Corporate Culture Impacts Unethical Distortion Of Financial Numbers, Joseph F. Castellano, Kenneth Y. Rosenzweig, Harper A. Roehm

Accounting Faculty Publications

The recent accounting scandals have highlighted the critical role that investor confidence in the accuracy and lack of distortion of accounting data plays in the health of capital markets and, indeed, the whole economy. The legal and moral culpability of top-level company managers (as well as auditors) is an issue that will be addressed by the nation in the coming months. Whether or not legal sanctions are imposed on managers, it would be well to examine some of the reasons managers may feel compelled to distort accounting numbers as well as engage in other actions that damage the interests of …

The Impact Of Culture On Accounting Choices: Can Cultural Conservatism Explain Accounting Conservatism?, Tony Kang, Lian Fen Lee, Jeffrey Ng, Joanne Tay

Research Collection School Of Accountancy

We explore the extent to which cultural conservatism explains accounting conservatism. Our primary measure for accounting conservatism is the magnitude of non-operating accruals, which are highly discretionary in nature. Culture permeates values and attitudes, and thus governs many aspects of human behavior. Hence it is likely to affect managers’ accounting choice behaviors. However, there is surprisingly little evidence on the association between the two types of conservatism in the literature. Using a sample of 800 firms originating from 21 countries during the nine-year period from 1993 to 2001, we find strong evidence that the managers in more conservative cultural environments …

The Application Of Sarbanes-Oxley To Intercollegiate Athletics, Gregory Naples, Michael D. Akers

Accounting Faculty Research and Publications

No abstract provided.

Going Beyond Sarbanes-Oxley Compliance: Five Keys To Creating Value, Mark S. Beasley, Dana R. Hermanson

Faculty and Research Publications

Discusses the factors involved in implementing Sarbanes-Oxley Act of 2002 for U.S. accounting firms. Appreciation of the goal behind the law; Comprehension of the accounting fraud; Aggressiveness in addressing ethical attitudes and rationalization.

Teacher In The Spotlight, Bjorn Karlman

Lake Union Herald

No abstract provided.

Local Government Reporting Under Gasb 34, Robert Yahr, Don Rahn

Accounting Faculty Research and Publications

No abstract provided.

Obesity, Educational Attainment, And State Economic Welfare, Martin W. Sivula Ph.D.

MBA Faculty Conference Papers & Journal Articles

For the first time in history, estimates of the overweight people in the world rival estimates of those malnourished. The World Health Organization (WHO, 2002) ranked obesity among the top 10 risks to human health worldwide. In the early 1960s, nearly half of the Americans were overweight and 13% were obese. Today some 64% of U.S. adults are overweight and 30.5% are obese. Even more alarming, twice as many U.S. children are overweight than were twenty years ago, a 66% increase. Non-communicable diseases impose a heavy economic burden on already strained health systems. Health is a key determinant of development …

Measuring And Changing The Values Of Accounting Students, Michael Akers, Tim V. Eaton, Don Giacomino

Accounting Faculty Research and Publications

Although prior research has consistently shown that personal values influence behavior, limited research and curricular activity have been conducted with respect to the role of personal values in accounting. This purpose of this paper is to propose a methodology that accounting programs can use to measure the personal values of students. Specifically, we examine the Muser and Orke Typology for measuring personal values. Using students from a comprehensive, private university in the Midwest, we discuss the administration of the instrument and the evaluation of the results. The paper concludes with a detailed description of how accounting programs can apply this …

Understanding The Impact Of Financial Decisions On Financial Statements: A Pedagogical Note, Tom Arnold, Leroy Brooks, Terry D. Nixon

Finance Faculty Publications

Viable financial planning requires financial managers' understanding of the consequences of impending decisions on their company's financial performance and position. Understanding the impact of prior decisions on their financial statements also enables future decisions aimed at improving their shareholders' wealth. This note intends to contribute to developing this capacity in finance students. We provide a presentation format directly connecting financial decisions to financial statement impacts. Bridging material covered in accounting courses and a finance student's needs as a possible future manager or analyst, this classroom pedagogy supplements and reinforces the objectives of the financial planning component of a finance course.

Journal Of Actuarial Practice, Volume 11, 2004, Colin Ramsay , Editor

Journal of Actuarial Practice (1993-2006)

ARTICLES (the entire volume)

Product Innovation in Financial Services: A Survey • Christopher O'Brien 5

Phased Retirement for Defined Benefit Plan Participants • Patricia L. Scahill and Jonathan Barry Forman . 43

The Actuarial Value of Life Insurance Backdating • James M Carson and Krzysztof M Ostaszewski . 63

Decision Tree Analysis of Terminated Life Insurance Policies • Robert Keng Heong Lian, Yuan Wu, and Hian Chye Koh . 79

A Comparative Study of Parametric and Nonparametric Estimators of Old-Age Mortality in Sweden • Peter Fledelius, Montserrat Guillen, Jens Perch Nielsen, and Kitt Skovsø Petersen 103

Estimation of Complete …

2004-2005 Operating Budget, Morehead State University. Budget & Financial Planning Office.

Morehead State University Operating Budgets Archive

2004-2005 Operating Budget of Morehead State University.

2003-2004 Financial Summary, Morehead State University. Budget & Financial Planning Office.

Morehead State University Financial Summaries Archive

2003-2004 Financial Summary of Morehead State University.

2004-2005 Morehead State University Audit Reports, Morehead State University. Accounting And Financial Services Office.

Morehead State University Audit Reports

2004-2005 Audit Report for Morehead State University.

Internal Control Components: Did Coso Get It Right?, Marshall A. Geiger, Steven M. Cooper, Edmund J. Boyle

Accounting Faculty Publications

Financial accounting frauds and the attention they bring are not new. Fortunately, neither are the accounting profession’s ongoing attempts to limit these types of fraud by encouraging strong systems of internal control. In October 1986, amid growing concerns about the extent of fraudulent financial reporting, the National Commission on Fraudulent Financial Reporting (the Treadway Commission) began an extensive study and evaluation of the integrity of the U.S. system of financial reporting. The Treadway Commission’s final report, issued in 1987, provided numerous recommendations for improving the financial reporting environment and auditing standards. In response, the Committee of Sponsoring Organizations (COSO) developed …

An Empirical Analysis Of Internal Control Weaknesses Under Sas No. 78: An Examination Of State Audit Reports, Edmund J. Boyle, Steven M. Cooper, Marshall A. Geiger

Accounting Faculty Publications

While there has been a considerable amount of research regarding internal control over the past several years, scant empirical research has examined SAS No. 78's integrated five-component depiction of internal control in a government setting. In particular, to our knowledge, no study has assessed the types or frequency of weaknesses under the SAS No. 78 framework using actual internal control system findings. In this study, we examine 32 state department and agency internal control reports to assess how well the theoretical framework captures actual system weaknesses, and to determine the relative distribution of weaknesses across components of the framework.

Our …

Journal Of Actuarial Practice - Volume 11 (2004) - Contents And Masthead

Journal of Actuarial Practice (1993-2006)

Contents

Editorial Policy: Topics suitable for this journal include AIDS, annuity products, asset-liability matching, cash-flow testing, casualty rate making, credibility theory, credit insurance, disability insurance, expense analysis, experience studies, FASB issues, financial reporting, group insurance, health insurance, individual risk taking, insurance regulations, international issues, investments, liability insurance, loss reserves, marketing, pensions, pricing issues, product development, reinsurance, reserving issues, risk-based capital, risk theory, social insurance, solvency issues, taxation, valuation issues, and workers' compensation

Review Process

Editor - Colin Ramsay, University of Nebraska

Associate Editors: Robert Brown, University of Waterloo ○ Cecil Bykerk, Mutual of Omaha ○ Ruy Cardoso, …

Estimation Of Complete Period Life Tables For Singaporeans, Siu-Hang Li, Wai-Sum Chan

Journal of Actuarial Practice (1993-2006)

Complete period life tables, with death rates for every year of age, are not available in Singapore. This study constructs such tables for Singaporeans from the limited mortality information contained in the abridged life tables provided by the Singapore Department of Statistics. We find that linear interpolation, Whittaker graduation, and the Coale-Kisker method together can generate complete life tables that are smooth and continuous. The validity of the complete life tables generated by our method is further confirmed by (1) comparing the life expectancies calculated from our estimated life tables with those provided by the Singapore Department of Statistics, and …

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 …

Phased Retirement For Defined Benefit Plan Participants, Patricia L. Scahill, Jonathan Barry Forman

Journal of Actuarial Practice (1993-2006)

The demographic makeup of the U.S. workforce is changing. The population between ages SS and 64 is projected to increase significantly by 2020, but employment rates for this age group have not been increasing. Employers will likely need to encourage critical employees in this age group to delay retirement. Phased retirement is one tool for delaying retirement, while also not continuing full-time employment, so it can be a compromise for employers and employees. Both Congress and two administrative agencies have begun to consider changes in pension laws and regulations that would be needed to accommodate phased retirement for employers who …

Human Capital Reporting In A Developing Nation, Indra Abeysekera, J. Guthrie

Faculty of Commerce - Papers (Archive)

In recent years, a trend in management has been the introduction of human capital (HC) management and accounting. As a result of this trend, there has been a demand from external stakeholders for a different sort of information, and many firms have, in an attempt to meet this demand, become more involved in the creation, measurement and reporting of information other than ‘financial’ data. Using the method of content analysis, this paper reports on human capital reporting (HCR) practices taken from a sample of firms in Sri Lanka, a developing nation. The paper aims first to examine the disclosure patterns …

How Is Intellectual Capital Being Reported In A Developing Nation?, Indra Abeysekera, J. Guthrie

Faculty of Commerce - Papers (Archive)

To ascertain the status of intellectual capital reporting in a developing nation, this study examined annual reports of the top 30 companies in Sri Lanka. These were analysed using content analysis, and data were recorded in a theoretically backed coding framework with 45 intellectual capital items that were categorized into internal, external and human capital. The findings indicated that the most reported was external capital by frequency and human capital by line count. Only a small proportion of intellectual capital items reported were quantified.

Boards Of Advisors In Small Businesses: An Empirical Profile Of Their Composition And Use, Michael D. Akers, Don Giacomino

Accounting Faculty Research and Publications

This article discusses the literature coverage on Boards of Advisors to date and provides the results of a study designed to determine the formation and composition of Boards of Advisors and the ways in which small businesses use such boards. Our study surveyed the Chief Executive Officers or Presidents of a large sample of small businesses. We found that there is very limited use of Boards of Advisors in small businesses and that many small business managers are not aware of the concept of a Board of Advisors. However, those small business managers (97%) that use a Board of Advisors …

The Actuarial Value Of Life Insurance Backdating, James M. Carson, Krzysztof Ostaszewski

Journal of Actuarial Practice (1993-2006)

Backdating is a common (and legal) practice in the U.S. whereby a life insurance contract bears a policy date that is prior to the actual application date. This practice often results in the opportunity for some insureds to reduce the annual premium paid. Using cash flow projections and U.S. mortality, lapse, and interest rate data, we provide a model of the actuarial value of term life insurance backdating. Results indicate that the benefits to the applicant of backdating a term life insurance policy increase as the applicant age (and hence premium) increases. Increasing mortality, lapse, and interest rates, as well …

Decision Tree Analysis Of Terminated Life Insurance Policies, Robert Keng Heong Lian, Yuan Wu, Hian Chye Koh

Journal of Actuarial Practice (1993-2006)

Statistical methods such as regression and survival analysis have traditionally been used to investigate the factors affecting the duration of terminated life insurance policies. This study explores a different approach: it uses a more recently developed data mining technique called decision trees. By sequentially partitioning the data to maximize differences in the dependent variable (duration in this study), the decision trees technique is good at identifying data segments with significant differences in the dependent variable. This identification can be useful when a company is trying to understand the factors driving or associated with the termination of life insurance policies. Decision …

Credibility Theory And Geometry, Elias S.W. Shiu, Fuk Yum Sing

Journal of Actuarial Practice (1993-2006)

We present a geometric approach to studying greatest accuracy credibility theory. Our main tool is the concept of orthogonal projections. We show, for example, that to determine the Buhlmann credibility premium is to find the coefficients of the minimum-norm vector in an affine space spanned by certain orthogonal random variables. Our approach is illustrated by deriving various common credibility formulas. Several equivalent forms of the credibility factor Z are derived by means of similar triangles.