EXTERNAL AUDITOR'S EVALUTIONS OF INTERNAL : AUDIT WORK - A CASCADED INFERENCE APPROACH The trends identified in Figures and are again clear. First, θ is well above zero when δ is small, indicating that the residential housing market mechanism rewards administrators of effective schools with the wealthiest students when parents primarily assess schools by their effectiveness. When δ is large, θ is close to zero for all J, as no district structure creates the desired rewards when parents are largely unconcerned with school effectiveness
