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This section reprints the article What Is on-the-Job Training by Peter King, which appeared in the January 1971 issue of the Chartered Accountant in Australia. With the introduction of higher educational standards at the matriculation level and the increasing number of university graduates being attracted to the profession, practitioners are having greater demands placed on their staff training programmes than ever before. As these people joining the profession are considerably better educated and more mature than their counterparts of a decade ago, it is essential that we obtain and build upon their initial interest in the profession and train them to become enthusiastic and efficient members of our staffs as quickly as possible. Thus, many firms conduct formal staff training programmes either on an internal basis or through courses being conducted by the Institute and other educational bodies.

The article focuses on public accounting issues in the United States. An accountant's report is specifically leisured only with respect to statements of past operating results and financial position, but accountants normally are requested by boards of directors to satisfy themselves that directors' forecasts have been prepared on a reasonable basis. The client's procedures are being followed and are adequate to insure the proper accumulation, recording and disbursing of payroll. Preprinted audit programs designed for all clients are a poor substitute for a program designed on a client by client basis. For example, the payroll and purchasing data, where applicable, can be traced to the job cost cards to test the accumulation of job costs upon which the auditor may rely for his valuation of inventory. In cases where subsidiary ledgers of accounts receivable or accounts payable are not in use, the steps for retracing of posting to subsidiary-ledger would not apply, but instead the auditor could examine the collection copy of the sales invoice noting that it is stamped paid and date thereof.

Comments on several issues concerning the accounting profession in the U.S. Policy regarding professional ethics; Review of a financial statement by the New Jersey's practice review committee.

The article provides information on a survey on the developments in the supply of accounting doctoral programs in the U.S. A summary of the number of schools that offer doctoral programs in accounting and on the degrees that were actually completed in the past years is displayed. There is an evaluation of substantial increases and decreases on the number of individuals entering the doctoral program in various schools for the year 1970-1971. The author mentions alternatives that schools are faced with in the event that they do not have enough doctoral students.

This article discusses the educational background of professional employees of public accounting firms in the U.S. It was found out that smaller accounting firms rely almost totally on undergraduate accounting majors as the educational experience of new personnel. Also, undergraduate accounting majors are reluctant to take quantitative courses in the new management topics of computers, statistics and operations research. Partners in the eight largest accounting firms are not satisfied with the breadth of training received by students with undergraduate accounting majors.

This article discusses some solutions on the problem regarding the planning and scheduling of staff for auditing engagements of accounting firms. Overall scheduling practices are governed by the broad long-term firm policy goals. One proposal to solve the issue is to schedule men to engagements with which they are familiar. Another is the advance delegation of probable engagement segments so that each certified public accountant is assigned to a task and so that the overall audit staff is working as near optimum capacity as is possible.

Deals with several matters concerning the practice of the accounting profession in the United States. Policy on fees of Ware & Fulle, an accounting firm in Richmond, Indiana; Reprint of an article on the use of appraisal values on balance sheets.

Reports on issues in accounting in the United States as of February 1971. Partnership agreement checklist developed by the Texas Society of Certified Public Accountants; Travels with a high school junior; Examination of accounts receivable.

This article deals with employee retention in public accounting firms in the U.S. The results of a survey of 42 accounting offices and firms were presented at the 1967 American Institute of Certified Public Accountants' annual meeting. Experience was remarkably consistent nationwide except the firms located in smaller cities reported somewhat longer retention patterns. The key finding was that 90 percent of the offices retained at least one-half of their beginning employees for three years, but only 25 percent kept one-half of them for four years. There is general agreement that public accounting must recruit better employees and do a better job of retaining and utilizing the superior talent which it attracts. Because of the greater demands for personnel at the upper levels of the firm, the increased opportunities in industry and the relative decline in the quality of public accounting recruits, the staff retention problem can be expected to grow.

Presents an update on issues concerning the accounting profession in the U.S. as of January 1971. Advantages and disadvantages of using computers in the preparation of tax returns; Signs of organized crime; Equipment for handling memos efficiently.

This article presents the authors' comments on a study by accountant Ralph W. Estes regarding the ranked reputations of graduate accounting faculties and programs of universities in the U.S. Since the authors believe the study to be the first of its kind in the accounting literature, and because many practitioners, academicians and students may use the rankings to draw conclusions about the quality of graduate accounting education, it is important that the strengths and weaknesses of the study be pointed out. The questionnaire states that the survey is similar to an earlier academic evaluation taken in 29 discipline areas by Allan M. Cartter in 1964. In his study, Cartter discussed at length the substantial problems of sampling and interpretation of data in such a survey, he asked respondents to rank both the quality of the graduate faculty and the effectiveness of the doctoral program for schools with which they were familiar. Yet while Cartter reported rankings separately for each of his two factors, Estes' rankings combine both factors as a result of having asked respondents to rank solely their perceptions of listed accounting programs. It is impossible to determine how the respondents' opinions on each of the two aspects were assimilated into Estes' single ranking. Added to the concern over the combination of graduate faculty and program rankings is Estes' weighting system. In an ordinal manner respondents ranked the leading programs by assigning schools a score from 1 to 10. Such a ranking scheme does not allow for weighting differentials beyond ranked values.

This article deals with the applications for computer time sharing in public accounting. Time sharing makes available to the user the power of large-scale computer systems--their speed, accuracy, etc.--but eliminates some of the major disadvantages of acquiring such a system, including its large fixed cost, its frequent nonavailability due to tight batch processing schedules, and the necessity of having a large staff of highly-trained personnel to manage and operate the system. The type of problem that is best suited to the application of time sharing is one that occurs relatively frequently, but at irregular intervals, and is therefore not amenable to advance scheduling. The need for computer time for problems of this sort is what makes the immediate access feature of time sharing so valuable. A second feature of a good time-sharing application is that the problem has standard solution technique with relatively few variations. Writing program for such a problem will not be as difficult as for a more complex problem. Probably the most potentially useful applications of time sharing in the audit area involve statistical sampling, both in drawing a sample and in appraising the results of a test. Programs which generate sets of random numbers are very simple to write, and are also usually available among the library programs supplied by the time-sharing service.

This article discusses the correlation between accounting and business insurance risks. The key to a full understanding of business insurance is to relate the coverage to the financial statements. The purpose of insurance is to provide stability, by insulating the business from the financial consequences of an adverse occurrence. Analysis of Insurable Risks form is important to relate risks to financial statements. This form shows the usual risks to which a business is exposed, and which portion of the statements is affected: the balance sheet, the profit and loss statement and the capital and surplus accounts.

Deals with issues related to the accounting practice in the United States. Simplified worksheet for source and application of funds; Comparison between direct and absorption costing; Extent of adherence of practicing accountants to the Statement on Auditing Procedure No. 39.

This article presents a survey to answer as to how do business school deans, accounting department chairmen, professors and practitioners rank accounting programs. The present study used a direct approach in which each respondent was asked to rank schools on the basis of his perception of their accounting programs. Thus, each respondent was required to go through the subjective process of selecting his own criteria and weights and integrating these in the manner that be considered most appropriate. The questionnaire asked respondents to rank from one to ten the leading programs in accounting from a list of the schools which then offered a doctorate with a major or concentration in accounting. Results were tabulated by assigning a weight of ten points for a No. 1 ranking, nine points for a No. 2 ranking and so on to one point for a No. 10 ranking. Such a weighting system would permit the ranking of all 55 schools, However, only the first ten positions will be shown in the following presentation of results because each respondent actually ranked only ten schools.

This article focuses on the techniques in facing problems and challenges in the practice of public accounting in the U.S. The most flexible approach would be to work in many areas of accounting from write-up work through management services. The social structure of an office can also have significant bearing on future success and happiness. The problems created by large offices, and the virtually automatic need for increased emphasis on formal status, are further aggravated by the facts that only a small percentage of partners seem to be aware of the people problems created by large numbers of people and that only some of the partners are trained or educated to cope with those kinds of problems.

This article reports that Carl S. Chilton, a certified public accountant in Chilton & Co. has discovered that there was some misunderstanding by clients about the method his firm uses for charging various rates for its staff in the U.S. A client of long standing had expressed concern about the firm's sending a staff man to do some work they thought a partner should be doing. He discovered they were disturbed mainly because they thought the billing rates were the same for all staff. Chilton's firm is not afraid to stand up and be measured by clients.

Summarizes the authors' reactions to the study "Horizons for a Profession" and its implications for the accounting professions in the U.S. Guidelines for curriculum building and for professional development; Discussion of the interdisciplinary approach to education; Achievement of greater integration of subject matter; Responsibility for the education and training of accountants; Role of the colleges and universities in providing the tools for a student's becoming a professional accountant.

Several questions are pertinent at this point. Do we want to maintain universities and colleges which provide the best education possible for those among the college-age generation who can take advantage of such educational opportunities? Or, do we want to lower our standards to accommodate each and every member of this generation, even if this means that we undereducated the more alert of our young people? Let me try to summarize: 1. We have failed to define the purpose of our institutions of higher learning so that we do not know whether we want them to be research or teaching institutions. We know, or should know by now, that our institutions cannot be distinguished research places and at the same time be satisfactory places for general undergraduate education. 2. We have tended to leave the defining of the purpose of education to the "experts" and not to say what we expect the output of our undergraduate institutions to be. 3. We have failed to provide an adequate set of institutions where true vocational education may be given. Instead of requiring that such institutions persist in their purpose, we have allowed their faculties to start them on the road to upgrading (if that is a proper name for it) to compete with the research centers. 4. We have not insisted that the universities and colleges modify their curriculums to match the changes in society and in industry. I'd estimate that more than half our undergraduate students arc spending their time in collegiate institutions taking work that is not related closely enough to them or to the world they live in to interest them. Having asked for bread, they have been given the dry bones of the past and have not been made to see its relevancy to today and to them. We must make the hard decisions that all (Kate specific educational tasks to particular universities and colleges. We must decide whether a baccalaureate degree is a political placebo or a mark of work accomplished under rigorous standards. Our general run-of-the-mill undergraduates are dissatisfied with what they are getting. Those students in business, engineering, the sciences and law are satisfied, even though our work in those fields is not as good as it should be; they feel a sense of relevance and of purpose what they study. But other students feel a sense of futility and deprivation. I am sure their methods of protest are extreme. But they have a point. It seems to me that some rethinking of our collegiate system is a necessary step toward peace on our campuses. [ABSTRACT FROM AUTHOR]

This article discusses the application of statistical sampling to small business audits in the U.S. Published studies on the application of statistical sampling have, in general, been related to large company audits. Even those supposedly applicable to audits of small businesses deal with companies having a minimum of approximately $1 million in accounts receivable and about $5 million in sales. The determination of the field of items to be examined is the focal point of statistical sampling. The auditor must know the system well enough to know that each type transaction will be processed in the same manner and have an equal opportunity to be examined. One of the most important audit judgments made in using statistical sampling is that of deciding what confidence level and degree of precision should be used. Each test and each accounting system require an evaluation of internal control and a determination of the significance of the test on the financial statements.

The article presents a compendium of opinions of tax teachers on the scope and content of graduate tax courses. Intense attention by educators continues to be focused on university taxation courses. Content of courses and their places in the accounting curriculum are of major importance. University educators and accounting practitioners are concerned about what is taught in taxation courses and the manner in which the courses are taught. Some educators would like to delete taxation from the accounting curriculum or at least reduce the amount of fax offered. While many accounting practitioners would like the newly employed accounting graduate to be competent to prepare clients' income tax return without additional training. Besides, many tax professors believe that procedures used in preparing tax returns should not be taught in the classroom. Lastly, many professors feel the textbooks in the area are inadequate to accomplish their desired objective, but with such diverse objectives this is not unexpected.

The article presents a corporation tax return review sheet. Law practitioner Jackson L. Boughner has prepared the review sheet. The sheet addresses the complexities of corporation tax returns. The increasing complexities of corporation tax returns are making it more and more difficult for the small practitioner to he sure each return is complete and nothing is overlooked. An oversight might be serious and costly, or it might just be embarrassing.

The article deals with the employment of restraint in the recruitment of staff members by public accounting firms in the U.S. It presents a review of the recruiting performances of companies of assumed acumen in personal matters. It notes that there is much that is good in their performances, but the lapses are frequent enough to cause concern. Finally, suggestions are provided on how to approach the bright ones.

The article presents information on Beta Alpha Psi which is the national professional organization for superior college students concentrating in the study of accounting in the U.S. Approximately 35,000 individuals have been initiated into Beta Alpha Psi since its founding 49 years ago. The purposes of the fraternity as expressed in its constitution are to instill in its members a desire for continuing self-improvement, to foster high moral and ethical standards in its members, to encourage and give recognition to scholastic and professional excellence, to cultivate a sense of responsibility and service in its members, to promote the collegiate study of accounting and to provide opportunities for association among its members and practicing accountants. To be eligible for a dissertation grant, the applicant must be working toward a doctorate at a school that is a member of the American Association of Collegiate Schools of Business. He must also express an intent to become a teacher of accounting.

Discusses cooperative efforts of accountants and lawyers in trials. Experience of the author related to a trial in which he was asked to be an expert witness; Preparation for an actual presentation of accounting information in the courtroom; Areas of joint contribution of accountants and lawyers.

The article discusses the commendable spirit of continual practice by certified public accountants (CPA) by citing a motivating example. It depicts how after the serious accident of an fellow accountant, CPAs of the Idaho Society of Certified Public Accountants took over the pending works of injured colleague. The Society notified the officers of the state society, who approved the action taken and immediately called the Society's emergency professional assistance committee to active duty. Subsequently after the death of the injured colleague, all the clients were requested on the letterhead of deceased CPA to cooperate in the grave situation. List of the clients was prepared and all the CPAs of the society were given the choice to serve the clients of deceased colleague. Each CPA or representative at the meeting was told to review the list and make a separate written offer for each client they would like to serve. The efforts of the Idaho Society of Certified Public Accountants reminds of the proverb "The show must go on."

Examines areas of concern in the practice of accounting. Relation between the weighted totals for determination of professional fees and retirement of partners; Method of increasing fees in line with rising salaries and wages; Situations where a client might recommend a practitioner.

This article focuses on self-management, a vital subject encompassing the professional development program for accounting practitioners and small firms. Self-discipline includes a schedule to determine priorities and to allocate time and complete all assignments and still allow for social life. An important facet of self-management for the accountant is being well prepared when he goes to a client's office. On an out-of-town engagement, it is even more essential that nothing be forgotten. It is embarrassing to have to call the office for something that should be in the possession of the accountant. Self-confidence is also an aspect of becoming an effective manager. If a major decision has to be made, it is the accountant's responsibility to gather all pertinent facts and express a preliminary opinion based upon his observations.

This article discusses issues concerning the role of a certified public accountant (CPA). In performing audits, the CPA must examine the adequacy of his clients' insurance coverage. While not claiming to possess the expertise of insurance underwriters, CPA should be sufficiently familiar with the subject to intelligently probe and review his clients' protection on insurable risks. Both the independent CPA and his client have much to gain by the conclusion of an audit as quickly as possible. The client undergoes a shorter period of inconvenience while the auditor is working on his premises and receives the financial statements early enough to permit timely action on the factors revealed. This leaves a satisfied client and also reduces the accountant's exposure to liability for the disclosure of post-balance sheet events.

This paper discusses various issues related to accounting in the U.S. as of January 1967. The sale of a residence usually creates a problem in determining the cost, and the longer the client has lived in his or her residence, the greater the problem will be. As soon as one are a certified public accountant, join the American Institute of Certified Public Accountants and a state society. Be an active member. The friends and acquaintances one make will be valuable when starting a practice. A rigorous self-development program should be established early. Just before one open a practice, one will need to plan a filing system, seek full- or part-time clerical help and work out necessary forms for one's own use.

The article focuses on issues related to small business accounting in the U.S. The Small Business Administration's financial function is to supplement private lenders by making intermediate to long-term credit available to qualified small businesses which cannot obtain the financing elsewhere on reasonable terms, or where required funds aren't available from the principals' personal resources. The Small Business Administration makes the determination as to whether the funds are otherwise available. The Small Business Administration has a lending ceiling, and loan funds must be apportioned fairly throughout the country. The agency has an obligation to approve loans selectively, thus insuring that available funds yield the most beneficial results for the borrower and the economy. Although the Small Business Administration regulates the operations of small business investment companies, they are privately owned and operated. Therefore, their transactions with small concerns are considered private arrangements.

This section presents several advice given by accounting practitioners on issues related to accounting in the U.S. Leslie A. Heath, a Charlotte, North Carolina-based certified public accountant, said one of the bench marks of a professional is not only a competent piece of work but also the way in which it is organized. For instance, the trial balance may be divided into two sections. The net of each section is the profit per books with the balance sheet net offsetting the operating net. After audit work is completed, each supporting work paper may be numbered and entered on the trial balance as a reference number opposite the adjusted account balance. Meanwhile, Warren J. Wittreich, president of the Philadelphia Division of Daniel Yankelovitch Inc., said the amounts paid to accountants for fees are often quite small in comparison to the dollars at stake when their clients follow their advice. Nevertheless, in engaging accountants, prospective clients often attempt to use the methods that they would use in buying merchandise by asking for a guaranteed price or even competitive bidding.

Answers several questions on the purchase, sale and merger of certified public accountant practices. Need for a study to be made of the economic outlook of the community; Practice among practitioners to establish a fixed price for their practice together with the terms they would like; Instructions for starting on an audit engagement.

This article describes the procedures that a Certified Public Accountant (CPA) firm may follow to implement an incentive plan that stresses the measurable factors of employee performance. Before implementing an incentive plan, the CPA firm should resolve various matters. The firm should decide whether its partners will participate in the plan, and, if so, how the bonus payments will affect the distribution of profits among the partners. Of course, the firm may choose to admit all personnel except partners into the plan. Of all the duties facing the accounting profession, staff training is one of the most necessary, as well as the most complex. If the accounting profession as a whole is to occupy its proper position in the society, one has to furnish properly trained men and women to fill the ever-increasing demand. The real problem in staff training is organized planning. This has to begin with periodic, weekly or monthly, programming of the entire office "time inventory." In this program there should be adequate provision for everybody, including the staff, to continue their professional development.

Explains the importance of firm image. Recommendations in creating the firm image; Importance of referrals in accounting practice; Views on professional liability of certified public accountants.

Presents information on the challenges presented by a Beamer Committee report for the accounting profession in the United States. Factors in the economic environment which affect the need for education by the accounting profession; Attributes of the professional accountant; Role of education in the success of the practice of the profession.

Discusses the need for approaches to the professional development of accountants. Training method for accountants; Problems in professional development; Means to professional development.

This article deals with the relevance of the development of a college relations and recruiting program for non-national certified public accountant firms. It is advantage to recruit on campus because the firm gets a first chance at the students as they prepare to enter the profession. It is also significant because the firm's potential supply of personnel is increased in number and improved in quality. And the firm's public image is broadened and enhanced. The firms build valuable relationships with the academic community. Factors contributed to the development of a recruiting program are recruiting brochure, company newsletter, meeting with placement directors and faculty and the involvement of staff members.

This article comments on the article by Samuel A. Derieux, describing the effect of related referrals to accounting 1040 taxes in the U.S. He concludes that while preparation of 1040s involves a nuisance factor, it is offset by the benefits of related referrals. His procedure in testing his policy against facts is rational and systematic but the real answer to this problem will not be provided by simplistic reference to charts and statistics, while they might produce certain guidelines, the final decision must be based on data available only through the medium of experience in having lived with one's practice, that is, through consideration of all component factors and not merely whether a referral originates through an attorney for whom a 1040 was prepared or through a banker who is not a 1040 client.

Answers several questions on contemporary accounting in the United States. Explanation of the incorporation of a basic accounting course among general education courses; Significance of accounting as an undergraduate major; Relevance of accounting to social problems.

Discusses the standards for professional accountant training and examination in the Netherlands. Changes in the regulation of Dutch accountants; Outline of the training and examination requirements of the Registered Accountants Act.

This article presents discusses several issues related to accounting practitioners. Where shares of stock issued pursuant to a qualified stock option plan are disposed of before the required three-year holding period, the optionee who disposes of these shares recognizes ordinary income for federal income tax purposes. The issuer of the shares is entitled to a deduction in an equivalent amount. In practice, the benefit to the issuer is treated as an addition to capital surplus and not as a reduction of the income tax provision for financial reporting purposes. Upon the disposition because of an operating loss, capital surplus would not be benefited in that period. The "magic book" to solve the problems of the new practitioner would have many chapters and might be entitled "A Complete Handbook for the New CPA Practitioner: How to Handle Every Possible and Impossible Situation." The article lists a few of the more obvious chapter titles. Some are serious, some not; some have easy answers and some have difficult or no answers.

Presents information on a study which identified the factors considered by accounting graduates in their employment decision. Focus on job characteristics considered in evaluating employment opportunities; Employer preferences of accounting students; Perceptions of students who prefer small firms; View that the local practitioner is in a favorable position to meet the needs that students consider most important.

Provides an update related to accounting practice in the United States. Management of investment credit in relation to retroactive taxes; Requirements on the formation of partnership between accounting firms; Factors to be considered in preparing financial statements of nonprofit organizations. INSET: Checklist for Preparation and Review of Financial Statements.

The article discusses how accountants can increase their participation in government activities. The scope and complexity of government activities have increased significantly. Unfortunately there are many misconceptions regarding the management of financial affairs of the federal government. Many federal agencies can act individually or collectively to help accounting faculty and students obtain better information about accounting, budgeting, internal auditing, and financial management in the federal government. There are a number of programs which the federal government might develop to stimulate increased understanding and appreciation of its problems on the part of educators, potential educators, and practitioners.

The article discusses topics relevant to accounting practice in the U.S. The Truth in Lending Act requires vendors to advise their customers about cash collections. The act requires this disclosure to be made only in dealing with individuals, but it might not be a bad idea for clients to put the same statement on invoices to all customers. Another accounting practice issue is the net losses of individuals. The loss appearing on the tax return for the loss year, if resulting from trade or business or casualty, is subjected to prescribed modifications, and the resultant net operating loss is generally carried back three years and over five years, beginning with the earliest year, as a net operating loss deduction until exhausted.

The article reports on various issues relating to accounting and auditing in the United States. It discusses the job responsibilities of an auditor, and the client's expectations from an audit engagement. The problems of the inexperienced certified public accountant serving the small client are explored. The need for accountants to have the ability to manage people is discussed. The article lists six requirements which must be met before a certified public accountant accepts a new client.

The article describes a summer workshop program for high school students offered by the Department of Accounting of M.J. Neeley School of Business at Texas Christian University in Fort Worth. It suggests that the summer workshop program can be used as a tool for universities to attract students to major in accounting. The principal purposes of the workshop are given, which include the communication to high school students that career opportunities in accounting are challenging, exciting, and involve important social contributions and responsibilities. The length and the subject matters covered in the workshop are discussed. Other workshop activities are presented.

Provides an update related to accounting practice in the United States as of 1970. Discussion on the recruitment and training of junior accountants; Guidelines on the analysis of financial statements; Assessment of partnership agreement between accounting firms.

This section presents a syllabus for a proposed introductory accounting course in the U.S.