To contribute to the PCAOB project on risk assessment in financial statement audits, we draw on the academic literature to offer insights and conclusions on the risk-assessment process. We use the PCAOB's (2005) recent briefing paper on risk assessment as the organizing framework for our literature review, and we examine academic auditing literature addressing topics including business risk, inherent risk, control risk, fraud risk, linking risk assessments to subsequent testing, and the audit risk model. Overall, we believe that the results of academic research are consistent with the PCAOB staff's apparent reconsideration of the auditor's risk-assessment process. We conclude with identification of future research topics and recognition of barriers to performing research that is relevant to standard setters.

This study examines changes in auditor risk assessments and sample size decisions based on information gathered from three large accounting firms for audits during 1994 and 1999. The five-year interval between data collection periods allows us to measure changes in risk assessments and sample sizes between the two periods. Auditors relied on controls and assessed inherent risk below the maximum on most audits, and were more likely to do so in the later period, consistent with a trend of lower risk assessment levels. Average sample sizes declined between 1994 and 1999 for the firms that had larger sample sizes in the earlier period. Overall, we find a significant relationship between inherent risk assessments and sample sizes, but this relationship is stronger in the earlier period and is not significant for all firms, especially in the later period. We find limited evidence of a relationship between control risk and sample sizes.

This article presents the most recent results of an ongoing, longitudinal study of characteristics of accounting students conducted by the Federation of Schools of Accountancy (FSA). Surveys were administered to seniors and Mastera^€™s students at FSA member schools in the United States in 1995 and again in 2000. Data regarding student characteristics in 1995 and 2000 are presented. Specifically, the study contains evidence pertaining to student quality, future educational plans, career plans, plans for professional certification, extracurricular involvement, attitude toward the 150-hour requirement, and various demographic dimensions. The results of the survey do not coincide with those of other studies that have reported a decline in the quality of accounting students. On the contrary, our findings suggest that the quality of accounting students is not decreasing. Further research is necessary to more fully understand these contradictory findings and the direction and magnitude of any changes in student quality. Other findings of this study include a reversal in the gender mix of graduate students, with females now comprising the majority. More graduate students are pursuing their studies full-time. The average age of students is declining. More accounting students are interested in taking the Certified Public Accountant (CPA) exam and pursuing careers in public accounting, while interest in the Certified Management Accountant (CMA) exam and in pursuing careers in industry are declining. Both seniors and Master's students indicate a very high level of support for five or more years of college education for the CPA. Student involvement in internship programs has nearly doubled since 1995, while involvement in extracurricular organizations has dropped. These results are relevant to many currently debated topics in accounting education—including the effects of the implementation of the 150-hour rule in many states.

Biological Physics is an attempt to bridge the gap between introductory physics and biology. The author indi-cates that the book is "... basically a

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