Is There Transparency In Auditor Change Disclosures?

In this paper, we examine the reasons disclosed in a small representative sample of Form 8-Ks for switching auditors. We classify auditor switches in terms of changes from big-4 to other big-4, big-4 to non-big-4, non-big-4 to big-4 and non-big-4 to non-big-4. Our primary objective is to assess compliance with the required disclosures for auditor changes and to reflect on the implications for corporate governance. This line of research is important in light of the requirements of SEC Regulation S-K 304 and recent calls for greater transparency in financial reporting, particularly after Sarbanes-Oxley.  Our research shows that companies use boilerplate language and adopt a check-the-box approach to compliance with Regulation S-K 304. Contrary to the spirit and intent of corporate governance, their disclosures generally lack transparency and offer little or no insight into the underlying reasons for auditor changes. One of the clearest patterns is that several auditor changes are preceded by such reportable events as going concern uncertainties and material internal control deficiencies that often lead to financial statement restatements. Even so, many companies are less than forthright in the language used to disclose such events. Thus, we conclude that the implied objective of auditor change regulations is not being fulfilled.  In general, neither auditors nor clients appear to take the auditor change disclosure requirements seriously. It is vital that the PCAOB, SEC, and the audit committees take note of this weakness in auditor change regulation

Five Simple and Low Maintenance Investing Strategies: Seeking an Automated Investing System

The purpose of the paper is to examine five different investment strategies which are known to be easily implemented by ordinary investors: (1) S&P 500 strategy, (2) No OTC & No ADR (NoOtcAdr) strategy, (3) Warren Buffett’s stock market indicator-based strategy, (4) Federal Reserve Bank’s monetary policy-based strategy, and (5) Joel Greenblatt’s magic formula strategy. Among a large number of minimal maintenance strategies available, we investigate the efficacy of these five investment strategies because these strategies are extremely simple to implement and require little time commitment for investment research. Once they are set up, they will be maintenance free. Based on our findings and analysis, we propose a pair of options to retail investors, depending on their time commitment and risk tolerance level. Among five investment strategies, investors with high-risk tolerance may find merits in the Fed’s monetary policy-based strategy, whereas investors with low-risk tolerance may find Buffett’s stock market indicator-based strategy attractive. Keywords: Low maintenance investing strategies; Fed funds rate; Greenblatt’s magic formula; Sector rotation, Warren Buffett stock market indicator DOI: 10.7176/RJFA/11-2-01 Publication date: January 31st 202

An Application Of An Artificial Neural Network Investment System To Predict Takeover Targets

Artificial neural networks are a robust, effective complement to traditional statistical methods in financial applications. They can incorporate qualitative and quantitative information, and recognize underlying patterns and trends in large, complex data sets.  This paper applies a neural network model to identify potential acquisition targets. The model incorporates various factors based on acquisition theories suggested in the literature.  The resulting neural network model exhibits a highly successful prediction rate and a portfolio of predicted target stocks identified by the network substantially outperformed the market

An Examination Of The Current State Of Accounting Information Systems Education

This paper reviews several factors that drive the need for a closer examination of accounting information systems (AIS) education and provides an assessment of the current state of AIS education in the US. The assessment draws from two separate sets of guidelines for AIS education, published by the American Institute of Certified Public Accountants and Information Systems Audit and Control Association. These guidelines are used because they were developed by professionals in the field, with input from academics, and represent publicly available, coherent attempts to identify a body of AIS knowledge for accountants and auditors. We surveyed undergraduate and masters programs offered in all accounting departments with separate AACSB-accounting accreditation. Our survey found very few degree programs or concentrations in AIS as well as a considerable amount of diversity among existing programs.  Consistent with Christensen’s innovation dilemma (1997), we speculate that the traditional absence of a focused, coherent attempt to develop and promote accounting information systems as an academic discipline may be one of the critical factors that contributes to the slow diffusion of AIS programs in business school

Genetic association study of QT interval highlights role for calcium signaling pathways in myocardial repolarization.

The QT interval, an electrocardiographic measure reflecting myocardial repolarization, is a heritable trait. QT prolongation is a risk factor for ventricular arrhythmias and sudden cardiac death (SCD) and could indicate the presence of the potentially lethal mendelian long-QT syndrome (LQTS). Using a genome-wide association and replication study in up to 100,000 individuals, we identified 35 common variant loci associated with QT interval that collectively explain ∼8-10% of QT-interval variation and highlight the importance of calcium regulation in myocardial repolarization. Rare variant analysis of 6 new QT interval-associated loci in 298 unrelated probands with LQTS identified coding variants not found in controls but of uncertain causality and therefore requiring validation. Several newly identified loci encode proteins that physically interact with other recognized repolarization proteins. Our integration of common variant association, expression and orthogonal protein-protein interaction screens provides new insights into cardiac electrophysiology and identifies new candidate genes for ventricular arrhythmias, LQTS and SCD

Genetic Risk Score for Coronary Disease Identifies Predispositions to Cardiovascular and Noncardiovascular Diseases.

BACKGROUND: The taxonomy of cardiovascular (CV) diseases is divided into a broad spectrum of clinical entities. Many such diseases coincide in specific patient groups and suggest shared predisposition. OBJECTIVES: This study focused on coronary artery disease (CAD) and investigated the genetic relationship to CV and non-CV diseases with reported CAD comorbidity. METHODS: This study examined 425,196 UK Biobank participants to determine a genetic risk score (GRS) based on 300 CAD associated variants (CAD-GRS). This score was associated with 22 traits, including risk factors, diseases secondary to CAD, as well as comorbid and non-CV conditions. Sensitivity analyses were performed in individuals free from CAD or stable angina diagnosis. RESULTS: Hypercholesterolemia (odds ratio [OR]: 1.27; 95% CI: 1.26 to 1.29) and hypertension (OR: 1.11; 95% CI: 1.10 to 1.12) were strongly associated with the CAD-GRS, which indicated that the score contained variants predisposing to these conditions. However, the CAD-GRS was also significant in patients with CAD who were free of CAD risk factors (OR: 1.37; 95% CI: 1.30 to 1.44). The study observed significant associations between the CAD-GRS and peripheral arterial disease (OR: 1.28; 95% CI: 1.23 to 1.32), abdominal aortic aneurysms (OR: 1.28; 95% CI: 1.20 to 1.37), and stroke (OR: 1.08; 95% CI: 1.05 to 1.10), which remained significant in sensitivity analyses that suggested shared genetic predisposition. The score was also associated with heart failure (OR: 1.25; 95% CI: 1.22 to 1.29), atrial fibrillation (OR: 1.08; 95% CI: 1.05 to 1.10), and premature death (OR: 1.04; 95% CI: 1.02 to 1.06). These associations were abolished in sensitivity analyses that indicated that they were secondary to prevalent CAD. Finally, an inverse association was observed between the score and migraine headaches (OR: 0.94; 95% CI: 0.93 to 0.96). CONCLUSIONS: A wide spectrum of CV conditions, including premature death, might develop consecutively or in parallel with CAD for the same genetic roots. In conditions like heart failure, the study found evidence that the CAD-GRS could be used to stratify patients with no or limited genetic overlap with CAD risk. Increased genetic predisposition to CAD was inversely associated with migraine headaches.National Institute of Health Research (NIHR) Barts Biomedical Research Centre - NIHR (IS-BRC-1215-20022)Fondation Leducq (CADgenomics, 12CVD02)Sonderforschungsbereich CRC 1123 (B2)German Federal Ministry of Education and Research (BMBF) (ERA-CVD: grant JTC2017_21-040

New genetic loci implicated in fasting glucose homeostasis and their impact on type 2 diabetes risk.

Levels of circulating glucose are tightly regulated. To identify new loci influencing glycemic traits, we performed meta-analyses of 21 genome-wide association studies informative for fasting glucose, fasting insulin and indices of beta-cell function (HOMA-B) and insulin resistance (HOMA-IR) in up to 46,186 nondiabetic participants. Follow-up of 25 loci in up to 76,558 additional subjects identified 16 loci associated with fasting glucose and HOMA-B and two loci associated with fasting insulin and HOMA-IR. These include nine loci newly associated with fasting glucose (in or near ADCY5, MADD, ADRA2A, CRY2, FADS1, GLIS3, SLC2A2, PROX1 and C2CD4B) and one influencing fasting insulin and HOMA-IR (near IGF1). We also demonstrated association of ADCY5, PROX1, GCK, GCKR and DGKB-TMEM195 with type 2 diabetes. Within these loci, likely biological candidate genes influence signal transduction, cell proliferation, development, glucose-sensing and circadian regulation. Our results demonstrate that genetic studies of glycemic traits can identify type 2 diabetes risk loci, as well as loci containing gene variants that are associated with a modest elevation in glucose levels but are not associated with overt diabetes

Genome-wide association study identifies a variant in HDAC9 associated with large vessel ischemic stroke

Genetic factors have been implicated in stroke risk but few replicated associations have been reported. We conducted a genome-wide association study (GWAS) in ischemic stroke and its subtypes in 3,548 cases and 5,972 controls, all of European ancestry. Replication of potential signals was performed in 5,859 cases and 6,281 controls. We replicated reported associations between variants close to PITX2 and ZFHX3 with cardioembolic stroke, and a 9p21 locus with large vessel stroke. We identified a novel association for a SNP within the histone deacetylase 9(HDAC9) gene on chromosome 7p21.1 which was associated with large vessel stroke including additional replication in a further 735 cases and 28583 controls (rs11984041, combined P = 1.87×10−11, OR=1.42 (95% CI) 1.28-1.57). All four loci exhibit evidence for heterogeneity of effect across the stroke subtypes, with some, and possibly all, affecting risk for only one subtype. This suggests differing genetic architectures for different stroke subtypes