<span>This study examines the importance of certain accounting firm characteristicsreputation, personnel, industry experience, and feeto the selection of audit firms by publicly-traded corporations. Client perceptions of these attributes were assessed to determine: (1) possible longitudinal changes in the relative importance of these attributes to clients selections, and (2) possible concurrent differences in the relative importance of these attributes to two different client strata-large versus small corporations. Using conjoint analysis, interval measures of the relative importance of each firm attribute were determined. The results of this study indicate that large and small corporations have very different relative preferences for characteristics of audit firms. In addition the importance attached to certain attributes of audit firms by large and small clients appears to be stable over time.</span>
Generally accepted accounting principles (GAAP) advise that revenue should not be recognized until a n exchange has occurred, the earningsprocess is complete, and the collection of the sale is reasonably assured. These conditions are normally satisfied when products are exchanged for cash (or claims to cash) and when the entity has substantially satisfied its obligations in order to be entitled to the benefits. Generally, a transfer of risks and rewards has to occur in order to effect a n exchange for the revenue recognition.evenue reporting issues continue to plague registrants and generate interest and action within the Securities andAlthough the theory of revenue recognition is clearly established, actual implementation ofthe principle has been subject to questionable interpretation and abuse by companies. Registrants, faced with the reality of reporting positive trends in sales to investing analysts and the public, may be tempted to disregard the requirement that all risks and rewards have been transferred from the buyer to the seller before revenue is recognized.As an example, a company may be approaching an interim reporting deadline. The company may wish to report additional revenue in order to maintain an established trend. A tentative sales transaction may encourage the registrant to "push the envelope" to record the revenue prematurely. If the sale is not consummated, then the transaction can be reversed in a subsequent reporting prior to the end oftheyear, and the year's income would still be fairly stated. This approach, while initially appearing plausible, has been the subject of various enforcement proceedings from the SEC.This article will review several recent enforcement proceedings of the SEC which address revenue recognition abuses. The cases, presented with the benefit of "20-20" hindsight, illustrate a diverse range of revenue recognition violations undertaken by companies trying to artificially boost their financial results. These cases provide
This paper investigated the accounting system of Walker Evans & Cogswell, a printing company in Charleston, South Carolina, in order to ascertain the nature and influence of management accounting during the New South Movement. Through archival analysis, the accounting techniques used by the Company were found to be effective management tools for planning and control during the period in which the Southern economy was transformed from agrarian to manufacturing. The findings raise new questions about existing studies on nineteenth century managerial accounting, especially for the printing industry.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.