We investigate (i) whether traders on an experimental asset market form different and separate mental accounts for sale revenues and for dividend earnings and whether (ii) an increase in tax penalty or (iii) an increase in audit frequency increases tax compliance. The results indicate that participants did not form separate mental accounts for sale revenues and for dividend earnings. However in...

We examine honesty and credible auditing in firm-investor relations in a repeated game of imperfect information, embedded in a general equilibrium framework. Informed auditors enhance credibility over a range of audit fees – despite the auditor’s incentive to collude – provided the probability of detection is imperfectly correlated across clients. Auditing can enhance growth especially for a re...

We study the impact of transfer pricing rules on sales prices, firms’ organizational structure, and consumers’ utility within a two-country monopolistic competition model featuring source-based profit taxes that differ across countries. Firms can either become multinationals, i.e., they serve the foreign market through a fully controlled affiliate; or they can become exporters, i.e., they serve...

The AICPA Special Committee on Assurance Services was set up in response to a decline in the market vitality of the audit. (See Elliott 1994a and 1994b for background.) Our purpose is to develop ideas and initiate steps to refurbish the profession's product. This mission was conceived in response to the current and emergent audit/assurance environment, the obvious context for considering the vi...

We study the impact of transfer pricing rules on sales prices, firms’ organizational structure, and consumers’ utility within a two-country monopolistic competition model featuring source-based profit taxes that differ across countries. Firms can either become multinationals, i.e., they serve the foreign market through a fully controlled affiliate; or they can become exporters, i.e., they serve...

Many modern intrusion detection systems are based on data mining and database-centric architecture, where a number of data mining techniques have been found. Among the most popular techniques, association rule mining is one of the important topics in data mining research. This approach determines interesting relationships between large sets of data items. This technique was initially applied to...