The problem with which this study is concerned is that of determining the optimal transfer of property from a decedent to his surviving spouse. A secondary problem addressed is whether equity between common law states and community property states in the application of the estate tax provisions has been achieved through the allowance of the marital deduction. From this analysis decision criteria were developed to aid taxpayers and their advisors in determining optimal property transfers to a surviving spouse. Conclusions of the study were the following: (1) The primary concern when formulating an estate plan should be to determine whether any property should be transferred to the surviving spouse. The literature has stressed qualifying transfers for the marital deduction while giving minimal consideration to the wisdom of doing so. This study indicates that in a majority of estates optimal results are obtained by making no transfers to the surviving spouse. (2) Relative after-tax rates of return of the surviving spouse and other beneficiaries are the most important factors in determining optimal transfers to the spouse. This again conflicts with the literature which has emphasized relative estate sizes as the dominant factor. (3) Rates of inflation have minimal influence in determining …

This research was undertaken to test the effects of conservatism on the decisions made by auditors. The evaluation of the research results provided by the two psychological tests indicated that, when measured on the construct of resistance to change, auditors as a group are essentially heterogeneous and slightly conservative. However, the auditors' test scores on the construct of aversion to risk reflected a homogeneous group who were distinctly conservative. Based on these results, this research seems to indicate that the firm effect is more important in auditors' decision making than personal characteristics except, perhaps, in the area of compliance testing decisions. If this is indeed the case, it could be said that the different audit philosophies held by the public accounting firms and instilled in their auditors may be the prime cause of the substantial differences that have been continuously found in auditor judgments.

Business organizations disclose financial Information to a wide range of audiences through the medium of audited financial statements. Distinct classes of readers come in contact with these statements—each reader possessing varying degrees of financial expertise. Readers as "semantic reactors" develop their own expectations and interpretations of the messages management and the auditor are attempting to convey. In the process, many readers look upon the auditor's report as a "symbol" or seal of approval. The purposes of this study were to assess the role that communication theory plays In the auditor's attestation, to examine the perceived communication effects of the expanded auditor's certificate versus the current auditor's certificate, and to recommend ways in which communication problems can be dealt with more effectively. It was concluded that a communication problem does exist in relation to the auditor's report, and communication theory can play a distinctive role in reducing the magnitude of this problem. The profession should continue to seek answers as to the proper role of the auditor and management in relation to audited financial statements, as well as to settle the question concerning whom the statements are intended to serve.