By Malcolm Schwartz
Implementing five basic principles of good management leads to more efficient and effective processes and offers a general solution to integrating internal control and risk management into the business of the organization.
Capital Budgeting Simulation Using Excel: Enhancing the Discussion of Risk in Managerial Accounting Classes
By Sylwia Gornik-Tomaszewski, DBA, CMA, CFM
Accounting textbooks focus on widely used decision models to determine risk associated with capital investment analysis but do not delve into the details of additional techniques. To expand classroom discussion, accounting instructors can use an Excel-based simulation model. This article contains a simple example.
The Value Relevance of S&P’s Core Earnings vs. GAAP Earnings
By Matthew M. Wieland, Ph.D.; Mark C. Dawkins, CMA, CPA, Ph.D.; and Michael T. Dugan, DBA
Standard & Poor’s (S&P) developed an earnings measure called Core Earnings, which aims to improve U.S. financial reporting by providing a uniform earnings measure. Statistics show that it is more valuable and more relevant than reporting with U.S. Generally Accepted Accounting Principles (GAAP).
Insights on Auditor Rotation
By Veena L. Brown, Ph.D., CPA; Brian Daugherty, Ph.D., CPA; Denise Dickins, Ph.D., CPA, CIA; and Julia Higgs, Ph.D., CPA
Auditor independence requires auditors to maintain an unbiased mental attitude when performing an audit, and auditor rotation requirements help to decrease bias. In a survey the authors conducted, auditor partners perceive the value of mandatory auditor rotation as a means of enhancing auditor independence and improving financial reporting quality.