A game theoretical analysis of an extended manager-auditor-conflict

Horst Albach has dealt in his research very often with problems of the quality of balance auditing (Albach 1992, 2003). Sometimes his considerations show close relations to the current crisis of the financial market and its consequences. Some of his contributions were already made in times, when it was not yet expected that the dependency of auditors from clients could once become a serious deficit of auditing. Those aspects also become relevant now in connection with the crisis of the financial market.The misgivings that arise continuously in this context with regard to the correctness of submitted balance sheets have sparked off intense discussions in two directions in the Federal Republic of Germany. Whereas the USA has already realised a prohibition of this nature to a great extent through statutory provisions, a broad spectrum of additional consultancy services is still permissible in the Federal Republic of Germany in spite of similar initiatives on the part of legislators.The present paper analyses methodically in the framework of an extended manager–auditor game how the Nash equilibrium is altered in a non-cooperative two-person game through the behaviour of the players, if the supervisory board, as an exogenous party, detects with a specific probability the incorrect certification of a substantively incorrectly prepared balance sheet. At the same time, payoffs from consultancy services for both players are included in the analysis here. However, with a greater probability of detection of an incorrectly certified incorrect balance sheet, and through the reductions of consultancy payoffs, the supervisory board can work towards the product of audit and publication quality being increased.     

Web-Enhanced Preservice Training for Prospective Resource Parents: A Randomized Trial of Effectiveness and User Satisfaction

ABSTRACT

Traditionally, prospective resource parents must attend all preservice training in person. Although live sessions are necessary for screening applicants, instructional portions of training could be enhanced by Web-based sessions. This pilot study compares the effectiveness of online and classroom versions of one session from a widely used preservice training program. Ninety-two individuals enrolled in the program in two states were randomly assigned to a treatment group that viewed an online version of the class on child abuse and neglect or to a comparison group that took the same class in person. Written questionnaires were completed before and after the class. Significant group differences on knowledge of child maltreatment and empathy toward birth parents plus high user satisfaction were hypothesized. Analysis of covariance results showed the online training was more effective than the live training at increasing knowledge. Multivariate analysis of covariance findings on empathy were not significant but trended toward greater empathy for the online group. Feedback indicated high satisfaction with the online course. The finding that online instruction is more effective than live instruction has positive implications for practice, because Web-based training offers advantages like standardizing instruction, cutting agency and trainee costs, and providing greater flexibility.     

European‐American and African‐American Mothers' Emotion Socialization Practices Relate Differently to Their Children's Academic and Social‐emotional Competence

The current study examines whether the relation between mothers' responses to their children's negative emotions and teachers' reports of children's academic performance and social‐emotional competence are similar or different for European‐American and African‐American families. Two hundred mothers (137 European‐American, 63 African‐American) reported on their responses to their five‐year‐old children's negative emotions and 150 kindergarten teachers reported on these children's current academic standing and skillfulness with peers. Problem‐focused responses to children's negative emotions, which have traditionally been considered a supportive response, were positively associated with children's school competence for European‐American children, but expressive encouragement, another response considered supportive, was negatively associated with children's competence for African‐American children. The findings highlight the need to examine parental socialization practices from a culturally specific lens.     

A time-varying measurement error model for age of onset of a psychiatric diagnosis: applied to first depressive episode diagnosed by the Composite International Diagnostic Interview (CIDI)

A substantial degree of uncertainty exists surrounding the reconstruction of events based on memory recall. This form of measurement error affects the performance of structured interviews such as the Composite International Diagnostic Interview (CIDI), an important tool to assess mental health in the community. Measurement error probably explains the discrepancy in estimates between longitudinal studies with repeated assessments (the gold-standard), yielding approximately constant rates of depression, versus cross-sectional studies which often find increasing rates closer in time to the interview. Repeated assessments of current status (or recent history) are more reliable than reconstruction of a person's psychiatric history based on a single interview. In this paper, we demonstrate a method of estimating a time-varying measurement error distribution in the age of onset of an initial depressive episode, as diagnosed by the CIDI, based on an assumption regarding age-specific incidence rates. High-dimensional non-parametric estimation is achieved by the EM-algorithm with smoothing. The method is applied to data from a Norwegian mental health survey in 2000. The measurement error distribution changes dramatically from 1980 to 2000, with increasing variance and greater bias further away in time from the interview. Some influence of the measurement error on already published results is found.     

School‐to‐Work Transition of Career and Technical Education Graduates

This study analyzed the career development of career and technical education (CTE) high school graduates during their school‐to‐work transition, specifically their adaptability in the face of barriers. Forty graduates (22 men, 18 women) from working‐class backgrounds participated in baseline surveys at graduation and phenomenological interviews 1 year postgraduation. Primary themes were job loss altered career plans, whereas relevant jobs propelled career development; limited access to college constrained options, whereas college experience expanded options; graduates experienced the loss of education‐related support, and CTE served as a backup plan. Teachers and school counselors emphasized organizational barriers including limited staffing for upper level math courses and inconsistent workplace partnerships.     

AGE,TIME, VINTAGE,AND PRICE INDEXES: MEASURING THE DEPRECIATION PATTERN OF HOUSES

Age, time, and vintage are key determinants of house prices, yet they cannot be included together linearly or as dichotomous variables in hedonic regressions as construction time + age of house = sale time. We introduce a method where the estimates of the age, time, and vintage effects on prices are obtained in a flexible manner, without requiring us to specify a pre‐determined functional form for any of these variables. Applying our method to Dutch data, we find that the estimated depreciation pattern over the life of houses does not follow the functional forms typically specified for the age of houses in hedonic regressions. (JEL C43, E01, E31, R31)