Auditor Tenure, Fixed Fee Contracts, and the Supply of Substandard Single Audits

Our purpose is to provide empirical evidence of the relations between the quality of governmental audit services and auditor tenure and between quality and fixed fee audit contracts. Audit quality is assessed by Offices of Regional Inspectors General and is based on a review of the audit reports and supporting working papers. We test a model of quality supplied on a sample of audit engagements selected from a population of audited federal assistance programs. The empirical analysis finds that the probability of receiving a substandard audit increases with the length of the auditor-client relationship. Our analysis finds a positive relation between fixed fee contracts and the incidence of violations of professional standards among audits of federal assistance programs. Additionally, we provide evidence that the incidence of noncom-pliance with professional standards is significantly lower when the audit contract contains a provision for administrative and/or legal remedies in the event of substandard performance.     

COMPETITIVE TENDERING POLICIES IN THE PUBLIC AND PRIVATE SECTORS

Abstract: This paper compares and contrasts the application of competitive tendering policies in the public and private sectors. It is based on information derived from a large-scale survey of public and private sector organisations in New South Wales. Analysis of the survey responses suggests a common approach to the basic elements of the tendering (market-testing) process. However, there are also some important differences, the most striking of which is that public sector organisations advertise more frequently and generally review more tenders. Despite this, there appears to be little difference in the degree of effective competition achieved between the two sectors. More generally, while nearly all organisations surveyed collect information that is relevant to performance evaluation, it does not appear to be systematic or rigorous enough to secure contract compliance.     

State and federal tax equity: Estimates before and after the Tax Reform Act of 1986

The progressivity and equity of both state and federal individual income taxes, as well as the combined system of both taxes, are examined before and after the federal Tax Reform Act of 1986 using a variety of measures applied to federal Statistics of Income individual income tax data; state taxes are calculated using TAXSIM. Our findings are as follows: First, in both 1985 and 1987, state personal income taxes were generally less progressive and more horizontally equitable than the federal system. Second, in moving from 1985 to 1987, state personal income tax systems generally displayed decreased progressivity and horizontal inequity. The combination of the two systems displayed generally lower progressivity and horizontal equity scores when we compare 1987 to 1985. Last, the after-tax income distribution became more unequal when we compared 1987 to 1985.     

Local interests,central leadership,and the passage of TRA86

The U.S. federalist public economy is an ever-evolving system of financing and expenditure responsibilities between local, state, and federal governments. The past decades have seen a significant centralization of responsibility for the financing of state and local public services through grants-in-aid and federal tax subsidies. This article advances a model of local constituent influence in central government fiscal policies which seeks to explain this trend, and then examines how strong executive branch and congressional leadership might begin to control the local pressures for central government financing. TRA86 is offered as one example in which this leaedership proved effective. The general lesson is that good fiscal policy in federalist public economies requires not only capable local governments, but central government political institutions with the strength to meet national needs as well.     

Consistency and change in American perceptions of China

The cold war dominated American perceptions of the People's Republic of China during the 1950s and 1960s, and opinions of China were correspondingly negative. Improved Sino-American relations, accompanied by domestic reforms in China, led to a gradual improvement in American attitudes toward China during the 1970s and 1980s. By the late 1980s, Americans held positive perceptions of China and its relations with the United States, but continued to view the People's Republic as communist and undemocratic. This sort of inconsistency is characteristic of periods of cognitive transition: some established perceptions are slower to change than others, and this results in structural imbalance. The Tiananmen Square massacre of June 1989 interrupted this transitional process and sent perceptions of China shooting back toward balanced, cold war stereotypes. The massacre set the Chinese government in a clear symbolic struggle against freedom and democracy. This rekindled latent cold war images of China and elicited disapproving rhetoric from American leaders. The result was a quick reversion to negative perceptions of China, structured by a lingering cold war schema. These processes are demonstrated through the presentation of a study that explores the cognitive structure of perceptions of China both before and after the massacre.     

A Prospective Study of Adolescents' Peer Support: Gender Differences and the Influence of Parental Relationships

This longitudinal study investigates parent and child predictors of adolescents' perceived social support from peers. Adolescents (285) and their parents filled out surveys when students were 11 and 15 years of age. Parent reports of their own social support and child reports of parental support to them, depression, and self-esteem were used as predictors of adolescents' peer social support. Path analyses revealed functional dissimilarity in the predictive model, for boys and girls. For boys and girls, the amount of spousal support parents' reported impacted the amount of parent to child support that children reported. For boys, this relationship impacted their perceptions of peer support indirectly through depression. However, for girls, parents' own supportive relationships directly impacted both their self-esteem and depression, above and beyond parent to child support, which then impacted girls' peer social support.     

Stability in Depressed Mood in Adolescence: Results from a 6-Year Longitudinal Panel Study

A 6-year longitudinal panel study investigated the absolute and relative stability in depressed mood throughout adolescence by reporting data from a sample of 538 adolescents between 13 and 19 years of age. Results revealed the following. (1) Girls had on average higher depressed mood scores than boys at all ages. (2) Among boys there were no substantial changes in depressed mood mean scores, while among girls there was a slight tendency of a curvilinear trend, with a peak level reached in midadolescence. (3) There was a tendency for adolescents to retain their relative level in depressed mood, most pronounced for a period of 4 years, from age 15 to age 19 years. (4) Depressed mood was most stable in a subgroup of adolescents who had high initial depressed mood scores. (5) By applying structural equation modeling, it was shown that the stable (trait) component of depressed mood increased in importance with increasing age, while the temporal (state) component decreased with increased age.     

Mothers' and Fathers' Attitudes Toward Their Children's Academic Performance and Children's Perceptions of Their Academic Competence

Journal of Youth and Adolescence - Do mothers' and fathers' attitudes towards their children's academic performance influence children's perceptions of their academic competence?...