How Effective is Joint Public and Private Monitoring? The Case of the AICPA Auditor Change Notification Letter

1999 ◽  
Author(s):  
Michael L. Ettredge ◽  
David B. Smith ◽  
Mary S. Stone
2001 ◽  
Vol 20 (1) ◽  
pp. 29-43 ◽  
Author(s):  
Michael L. Ettredge ◽  
David B. Smith ◽  
Mary S. Stone

The AICPA SEC Practice Section (SECPS) notification rule requires a member firm to notify its former client and the Chief Accountant of the SEC in writing within five business days of the date it determines the client-auditor relationship has ended. The rule is unique because it was developed and is enforced by a private organization (the AICPA) to assist a public organization (the SEC) in fulfilling its charge of ensuring full and timely disclosure. An SECPS educational effort to make members aware of their notification responsibilities recently ended. Our paper evaluates the effectiveness of the SECPS educational effort and the SECPS notification letter. It shows that registrant as well as auditor compliance and timeliness increased during the time the notification rule has been in effect, and that the improved registrant performance is likely due in part to improved auditor performance. One implication of our study is that a disclosure requirement auditors impose upon themselves can be effective in helping the SEC monitor client behavior.


2019 ◽  
Vol 11 (1) ◽  
pp. 1-43 ◽  
Author(s):  
Masaki Aoyagi ◽  
V. Bhaskar ◽  
Guillaume R. Fréchette

This paper uses a laboratory experiment to study the effect of the monitoring structure on the play of the infinitely repeated prisoner’s dilemma. Keeping the strategic form of the stage game fixed, we examine the behavior of subjects when information about past actions is perfect (perfect monitoring), noisy but public (public monitoring), and noisy and private (private monitoring). We find that the subjects sustain cooperation in every treatment, but that their strategies differ across the three treatments. Specifically, the strategies under imperfect monitoring are both more complex and more lenient than those under perfect monitoring. The results show how the changes in strategies across monitoring structures mitigate the effect of noise in monitoring on efficiency. (JEL C72, C73, C92, D82, D83)


2003 ◽  
Vol 8 (1) ◽  
pp. 28-33
Author(s):  
Yolanda García Rodríguez

In Spain doctoral studies underwent a major legal reform in 1998. The new legislation has brought together the criteria, norms, rules, and study certificates in universities throughout the country, both public and private. A brief description is presented here of the planning and structuring of doctoral programs, which have two clearly differentiated periods: teaching and research. At the end of the 2-year teaching program, the individual and personal phase of preparing one's doctoral thesis commences. However, despite efforts by the state to regulate these studies and to achieve greater efficiency, critical judgment is in order as to whether the envisioned aims are being achieved, namely, that students successfully complete their doctoral studies. After this analysis, we make proposals for the future aimed mainly at the individual period during which the thesis is written, a critical phase in obtaining the doctor's degree. Not enough attention has been given to this in the existing legislation.


1989 ◽  
Vol 44 (8) ◽  
pp. 1133-1137 ◽  
Author(s):  
Leonard Bickman ◽  
Paul R. Dokecki

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