Wed April 13, 2016

The revised CPA Exam features a new content specification outline CSO.

This will allow the candidate to know better what to expect on the exam.

When I took the exam in 1975 it was paper and pencil. It was divided between multiple choice and hand written (and graded) answers.

It required one to write out answers using good grammar and exhibit an understanding of accounting terminology.

Multiple choice exams do not let one do that. By infusing more content type problems it seems to me that the exam is beginning to look more like it did four decades ago.

Read this article to stay up on the latest developments in the exam.

Professor Elam

PCAOB Strenghtens Auditor Control over other Auditors

April 13, 2016

Wed April 13, 2016

The PCAOB strengthened the ability of the lead auditor to control other auditors.

Seems that some 55% pf audits involve another firm performing some of the work. New rules will allow more supervision of these third parties.

Professor Elam

Olive Garden Sales Rise 6.8%

April 6, 2016

Wed April 6, 2016

Olive Garden's last quarter sales are up 6.8%.

How did they do it? I will be teaching Managerial Accounting in Summer II and this is a great example of what we study in that class.

Olive Garden

simplified the menu

installed order tablets on the tables ( is a waiter another job classification in danger?)

now it takes seven minutes less to complete the meal experience

emphasized take out orders which are now 11% of the overall business

Managerial accounting emphasizes efficiency. Improving productivity is how one does more business in the same location with the same staff.

Professor Elam

Three Indicted for SS Fraud

April 6, 2016

Wed April 6, 2016

I never seem to run out of fraudster examples.

Eric Conn (I mean is the name a tip off?) along with a former Federal Judge and a psychologist became the go to trio for qualifying for SS Disability benefits.

The judge found individuals deserving of disability in 1,280 out of 1,284 cases. Hmm didn't anyone notice? So the psychologist would find them disabled, the lawyer took the case to court and the judge found for the lawyer. Yes the lawyer rewarded the judge by paying him some of the fees from the clients for his ruling.

Gee did they think no one would notice?

And in a fit of egoism, Conn billed himself as Mr. Social Security.

What punishment would fit this crime ?

Professor Elam

CIA Webinar

April 5, 2016

Tuesday April 5, 2016

Free Online Info Session

Please join us on Tuesday, May 3 at 1:00 pm ET for our free webinar, "Increase Your Chances of Passing the CIA^® Exam." This session is an excellent source of information about the Certified Internal Auditor^® program, exam and preparation tips.

This free session, held only four times each year, will help you:

Understand the CIA program, eligibility requirements, and exam.
Determine how much time you'll need to prepare for the exam.
Prepare to pass using The IIA's CIA Learning System.
Utilize simple test-taking tips to increase your chances of success.

All session participants will be entered for a chance to win an IIA CIA eSeminar valued at US$1450. (The winner will be drawn at the end of the webinar. The winner must be present to win.)

Our last session filled up in less than a day. Register now to save your seat!

Professor Elam

More on the Ten Week Cycle

April 5, 2016

Tuesday April 5, 2016

A reader asks for more evidence of the ten week cycle.

2014 Down July to October

up October to December

20114-15

up Dec into Feb 2015

up March into May

down May into August

up August into November

down November into Feb 2016

2016

up February into now first week of April

the Dow closed down 55 Monday and is down over 100 this morning in pre market trading

DJIA versus Inverse fund DOG

Stockcharts does not offer PAR SAR on the second price index but I put a 13 day EMA on both. We do not have a buy signal yet but a couple of down days of 150 points would

get us there.