Browsing by Author "Smith, Reed"

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    The Strategic Effects of Auditing Standard No. 5 in a Multi-location Setting
    (AAA, 2016-02) Patterson, Evelyn; Smith, Reed; Kelley School of Business
    Auditing Standard No. (AS) 5 provides guidance in the required audit of internal control over financial reporting and its integration into the financial statement audit. AS 5 advocates a “top-down” approach, in which control testing helps the auditor assess the risk of financial misstatement across multiple locations. We consider a manager who oversees two locations and who has private information about internal control strength in each location. Only when controls are weak can the manager commit fraud. We show how the manager's opportunity to commit fraud and informational characteristics of internal control tests impact the manager's probability choice of fraud and the auditor's choice of substantive test effort.
  • Thumbnail Image
    Item
    Time-driven Activity-based Costing Analysis in Total Knee Arthroplasty
    (2025-04-25) Ali, Iyad S; Smith, Reed; Sandberg, Rory
    Understanding the costs associated with total knee arthroplasty (TKA) is crucial for optimizing resource allocation and improving healthcare value. This pilot study employs time-driven activity-based costing (TDABC) to assess procedural costs for TKA in both hospital and outpatient surgery center settings. By mapping process steps and recording time spent on each phase, we calculated the associated personnel costs based on salary-derived cost per minute. Data from three TKA cases were analyzed, with a mean procedural time of 167.2 minutes. Personnel costs for attending surgeons, scrub technologists, circulating nurses, advanced practice providers, and anesthesiologists were computed, resulting in an average total indirect cost of $2,751.18 per procedure. Our findings demonstrate TDABC’s effectiveness in providing a granular and accurate assessment of TKA costs compared to traditional accounting methods. As healthcare reimbursement models shift and surgical costs rise, precise cost quantification is increasingly vital. This study highlights cost drivers within TKA procedures, offering insights for cost containment strategies without compromising patient outcomes. Future research should incorporate additional cost variables such as implant prices, facility expenses, and postoperative care to develop a comprehensive financial model for TKA. TDABC has the potential to enhance financial transparency and inform policy decisions in orthopedic surgery.