Strategic sampling, physical units sampling, and dollar units sampling
Article Abstract:
The relationship between the testing strategy of firms and the changes in item value under various conditions are examined. Unlike other studies, this investigation incorporates dishonest employees as a strategic source of errors. The connection between the net gain derived from testing and item value, and the existence of dishonest employees were varied across four models of accounts receivables. The permutation of the two variables results to two sets of outcomes. The first set shows that the mapping between the net gain from testing and item value indicates the link between the testing strategy of the firm, or the internal auditor, and item value. The second set assesses the effect of presenting a strategic variable: dishonest employees. In the study, randomization is used as an inexpensive way of preventing theft by dishonest employees.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 1993
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Associations between forecast errors and excess returns near to earnings announcements
Article Abstract:
The information content of annual earnings announcements is re-examined, utilizing mistakes in analyst forecasts published within a week of those announcements as the proxy for unexpected income. This study differs from earlier work in its use of a precise dating of earnings announcements; in its comparison of fourth-quarter earnings changes as proxies for unexpected earnings with analyst forecast errors; in its examination of unusual variability in excess returns at the time of earnings announcements with the influence of forecast errors eliminated; and in its separation of late and early disclosers within an industry. Results suggest that if analyst forecast errors measure unexpected earnings, annual earnings reports contain information content even when compared to market expectations very close to those announcements.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 1987
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A note on a comparison of Bayesian with non-Bayesian dollar-unit sampling bounds for overstatement errors of accounting populations
Article Abstract:
The validity of Bayesian models is tested by assessing their robustness, when using diffuse priors on the typical tainting patterns of Leitch, et al. (1982). Bayesian bounds are compared with non-Bayesian bounds. Results of the study indicate that, even with diffuse priors, Bayesian models tend to show potential for better performance than non-Bayesian dollar-unit sampling techniques.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 1986
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