Do Relatively More Efficient Firms Demand Additional Audit Effort (Hours)?

We examine whether firms with higher relative efficiency (operational performance) require additional audit effort (hours) to signal audit quality to demonstrate that their financial reporting systems are robust. Therefore, we use a Korean sample of publicly listed firms because of the Korean audit hour policy which mandates that audit hour information be made available for market participants. We find that client firms with higher relative efficiency have higher audit hours, suggesting that management has an incentive to demand additional audit hours for signalling purposes, and that shareholders, amongst other stakeholders, have an incentive to demand external monitoring to reduce potential agency problems. The results show that relative efficiency is a unique measure of firm performance that can provide insights into a client firm's business and audit risk. We also find evidence suggesting that audit firms do not subject clients to a fee (fee per hour) premium based on relative efficiency, supporting our finding that client firms require audit effort for signalling purposes. Thus, our results have important implications for policymakers about audit effort demand

Do Relatively More Efficient Firms Demand Additional Audit Effort (Hours)?

We examine whether firms with higher relative efficiency (operational performance) require additional audit effort (hours) to signal audit quality to demonstrate that their financial reporting systems are robust. Therefore, we use a Korean sample of publicly listed firms because of the Korean audit hour policy which mandates that audit hour information be made available for market participants. We find that client firms with higher relative efficiency have higher audit hours, suggesting that management has an incentive to demand additional audit hours for signalling purposes, and that shareholders, amongst other stakeholders, have an incentive to demand external monitoring to reduce potential agency problems. The results show that relative efficiency is a unique measure of firm performance that can provide insights into a client firm's business and audit risk. We also find evidence suggesting that audit firms do not subject clients to a fee (fee per hour) premium based on relative efficiency, supporting our finding that client firms require audit effort for signalling purposes. Thus, our results have important implications for policymakers about audit effort demand

Nickel--chromium strain gages for cryogenic stress analysis of superconducting structures in high magnetic fields

Evaluation and calibration measurements were performed on commercial nickel-chromium metal-foil strain gages in a high-magnetic-field (12 T), liquid-helium (4.2 K) environment. The purpose was to fully characterize strain gages for use at cryogenic temperatures in high magnetic fields. In this study, the magnetoresistance of a number of strain gages was measured in three orthogonal directions at mechanical strain levels to 8900 ..mu..m/m. As a result, a unique calibration curve was defined for magnetoresistance strain errors that is independent of strain level and field direction to 12 T at 4.2 K. A current strain-gage application is the measurement of superconductor mechanical properties. These gages will soon be used in the stress analysis of superconducting fusion magnets during cooldown from ambient temperatures and during operation at 4.2 K with magnetic fields to 12 T