Teaching Basic Transfer Pricing Inductively Using A Student Price-Negotiation Case

Students in an introductory management accounting course are given a brief introduction to the concept of transfer pricing and presented with a transfer pricing problem without any guidance on how to solve the problem. The problem requires groups of students to play the role of a selling(buying) division and determine an acceptable minimum(maximum) price for their group before negotiating with other groups. Students learn transfer pricing inductively as they work through the details of the case and arrive at a profit maximizing price for the product they are selling(buying)

Audit Firm Affiliations with Companies Backdating Executive Stock Options

Several reports during 2005 -2007 questioned how over one-hundred pub-licly-traded companies had apparently backdated stock-option grants beginning in the 1990s. An analysis of the external audit firms affiliated with these companies revealed that these firms are dis-proportionally represented as compared to relative audit-market shares of all public companies. After controlling for industry-adjusted audit-market shares, statistically fewer backdating companies than expected used Arthur Andersen as their auditors. Overall, the results argue against the notion of audit firm involvement as a conduit for these transactions

Accounting Firm Internet Sites That Work (And Those That Do Not)

Gives advice to accounting firms in creating and maintaining an effective Internet site. Items commonly found on the accounting firm Internet sites; Suggestions in building an Internet site; Most important aspect of Internet site content

Silicon Valley Meets Norwalk

The article discusses financial reporting issues raised by the U. S. corporations in the increasing use of the Internet. The Internet is affecting traditional statements and audits as companies explore online options. Financial information is now easily available online, creating a new readership. CPAs must consider how to help make this information useful to the expanded public. Companies need to identify who will use their sites and provide appropriate features. Search engines help users connect information from all over a given Web site. Analysts may want to download financials into spreadsheets

The Internet: Changing the Way Corporations Tell Their Story

Discusses the effect of technological changes in the dissemination of financial information. Potential of the Internet to change the way decision makers can use the information; Future of financial disclosure

Analysts’ Evaluation of the Information Content of Changes in Auditor Types

Companies hire auditors to meet legal requirements if they are publicly traded and to provide credibility to their financial statements. However, all auditors may not provide the same level of service to third parties. Prior research regarding such events as initial public offerings has found qualitative differences among big Five and non-Big Five auditors. Companies may, therefore, switch auditors to attain some perceived qualitative difference in the audit engagement. The degree that this auditor change is or is not incorporated by financial analysts into analysts\u27 forecasts has not been fully researched for the benefit of determining if there is any information content associated with the auditor change on security prices. The results of this study show that financial analysts do not fully incorporate information relative to auditor changes in their forecasts. This study might provide insight into the currently accepted view of the Efficient Market Hypothesis with respect to the information content of auditor changes and the market\u27s interpretation of the information. In addition, analysts may need to scrutinize auditor changes more closely in order to fully understand the signal that may be included in the decision to change auditors