Reengineering business reporting creating a test bed for technology driven reporting

Building on the work originally done for the Enhanced Business Reporting consortium of the AICPA, this paper develops a test bed for innovation in business reporting. As with flying test beds in aviation, the object is to explore the impact of new technologies and techniques rather than to create a product intended for immediate implementation. The starting point of our analysis is that if the financial reporting system was being built from scratch today, it would look very different, taking into account fundamental changes in the two drivers of financial reporting: First, the dominance of market making by professional investors, which includes such intermediaries as pension and mutual funds, which is how most ordinary individuals interact with the market; Second, the reduction in the variable costs of disclosures to technology-enabled firms, while time taking a broader view of the cost of reporting to include the opportunity cost to the firm from faulty disclosures and the cost to professional investors of having to extract the data they need from statements that were not designed for their needs. Taken together, the consequence of these two changes is that a system being designed today has to rethink the entire process by which financial data held by the firm is translated into decision relevant information by users. This process takes place both within the firm and outside of it, with a handover of financial statements taking place at the boundary between the firm and its users. Given these changes it is time to ask whether the location of that handover boundary point is still appropriate: whether the firm should continue to aggregate and condense information extensively before releasing it, or whether sophisticated users would prefer to have access to more information in closer to its raw format so that they can manipulate and aggregate it as they see fit. Based on this conceptual model we discuss the building blocks of a 21st century reporting system and the technical architecture needed to implement it. It is our hope that this paper will help create an open source test bed that will develop new ways to measure, manage and communicate firm performance in the 21st century.Creándose en el trabajo hecho originalmente por Enhanced Business Reporting Consortium de la AICPA (una iniciativa colaborativa y dirigida al comercio en el que los usuarios y los proveedores del capital trabajan juntos), este artículo desarrolla un banco de prueba para esta innovación. Como con los bancos de prueba que vuelan en la aviación, el objetivo es explorar el impacto de nuevas tecnologías y técnicas, en vez de crear un producto para una implementación inmediata. El punto de inicio de nuestro análisis es aquel en el que si el sistema de elaboración de informes financieros estuviera siendo creado desde cero hoy en día, se vería muy diferente, teniendo en cuenta los cambios fundamentales en los dos impulsores de estos informes. Primeramente, el dominio de la creación de mercados por parte de inversores profesionales, que incluye intermediarios como fondos de pensión y mutuos, siendo la forma más ordinaria en la que estos interactúan con el mercado. En segundo lugar, la reducción de los costes variables de las divulgaciones a empresas con tecnología, mientras se adopta una visión más amplia del coste de la elaboración de informes, con el propósito de incluir el coste de oportunidad a la empresa desde divulgaciones defectuosas, y el coste a inversores profesionales en extraer la información necesaria de las declaraciones que n no están diseñadas para sus necesidades. Como consecuencia a estos dos sistemas, un sistema que está siendo diseñado hoy en día debe de reflexionar sobre el proceso completo, por el que la información financiera poseída por las empresas se traduce en la decisión de la información relevante por los usuarios. Este proceso sucede tanto dentro como fuera de la firma, con una entrega de declaraciones financieras que toma lugar en el límite entre la firma y sus usuarios. Dados estos cambios, es hora de preguntarse si el lugar de esta entrega del punto límite es aún apropiado: si la firma debería continuar juntando y condensando información de forma extensiva antes de publicarla, o si los usuarios sofisticados preferirían tener acceso a más información más base para así poder manipularla y juntarla como ellos lo crean. Basado en este modelo conceptual, debatimos los bloques compilados de un sistema de informes del siglo XXI, y la arquitectura técnica necesaria para implementarlo. Es nuestra esperanza que este estudio ayudará a crear un banco de prueba de código abierto que desarrollará nuevas formas para medir, gestionar, y comunicar el desempeño de la firma en este siglo

Mass models of NGC 6624 without an intermediate-mass black hole

An intermediate-mass black hole (IMBH) was recently reported to reside in the centre of the Galactic globular cluster (GC) NGC 6624, based on timing observations of a millisecond pulsar (MSP) located near the cluster centre in projection. We present dynamical models with multiple mass components of NGC 6624 - without an IMBH - which successfully describe the surface brightness profile and proper motion kinematics from the Hubble Space Telescope (HST) and the stellar mass function at different distances from the cluster centre. The maximum line-of-sight acceleration at the position of the MSP accommodates the inferred acceleration of the MSP, as derived from its first period derivative. With discrete realizations of the models we show that the higher-order period derivatives - which were previously used to derive the IMBH mass - are due to passing stars and stellar remnants, as previously shown analytically in literature. We conclude that there is no need for an IMBH to explain the timing observations of this MSP.Comment: 8 pages, 7 figures, MNRAS. Updated to match final journal styl

Lessons for China and other developing economies from the crisis in US auditing

The continuing series of business scandals, from Enron to WorldCom have severely undermined the credibility of auditors and audited financial statements in the US. With developing economies such as China looking to emulate western models of corporate governance, what lessons should they draw from these apparent failures in auditing? There is a danger that those opposed to modernization of accounting and auditing will use these scandals as an excuse to delay the adoption of new standards and methods. Indeed, the Enron/Andersen scandal was apparently one reason that Chinese authorities watered down proposals to require firms seeking new Class-A shares to hire a foreign auditor to supplement their local auditor. In this paper we discuss a more productive lesson that developing countries seeking to bring their accounting infrastructure up to Western levels can draw from the recent US experience, using China as a case study. China is the most important of all developing economies, and its impending entry into the WTO makes reform there particularly urgent. The path that China takes is also likely to serve as a role model for much of the rest of the developing world, especially in South East Asia. We argue that developing countries have the opportunity to “leapfrog” existing auditing techniques in the West that have proven to have serious shortcomings, and instead, go straight to the cutting edge methodologies of continuous assurance and tertiary logging. Continuous assurance is a type of auditing which, by making use of the “electronization” of the firm, produces audit results simultaneously with, or a short period of time after, the occurrence of relevant events. In comparison with the traditional financial statements audit, continuous assurance is distinguished by being timelier, more comprehensive, more accurate and more supportive of the management process. These capabilities are especially valuable for Chinese firms who face an environment with weaker legal, regulatory and management controls than in the West. However, the tenuous nature of The International Journal of Digital Accounting Research Vol. 3, No. 5, pp. 33-60 ISSN: 1577-8517 34 the auditing infrastructure in China makes it essential that it also adopts tertiary logging as a way of “guarding the guards”. We discuss how logging the audit in a continuous assurance setting will increase the deterrence capability of peer review, as well as serving as a source of institutional memory in the case of mandated auditor rotation, the separation of auditing from consulting and the unique Chinese proposal for dual auditing.La constante serie de escándalos financieros, desde Enron a WorldCom, han perjudicado considerablemente la credibilidad de los auditores y las auditorías financieras en la US. Con economías desarrollándose como China imitando los modelos occidentales de gobierno corporativo, ¿qué lecciones deberían extraer de estos fracasos aparentes? Existe el peligro de que aquellos que se oponen a la modernización de la contabilidad utilicen estos escándalos como una excusa para aplazar la adopción de nuevos estándares y métodos. De hecho, el escándalo Enron/Andersen fue una de las razones por las que las autoridades chinas rechazaron propuestas que requerían la búsqueda de un auditor extranjero para complementar a su auditor local. En este artículo discutimos la productiva enseñanza de que los países en desarrollo que buscan alzar su estructura financiera a los niveles occidentales pueden aprender de la reciente experiencia americana, usando China como caso de estudio. China es la más importante de todas las economías del desarrollo, y su próxima entrada en el WTO hace que una reforma sea particularmente urgente. El camino que China siga probablemente servirá como modelo para el resto de países en desarrollo, especialmente en la Asia del sudeste. Debatimos si los países en Desarrollo tienen la oportunidad de hacer el “salto de rana” con respecto a las técnicas comerciales que en oriente han probado presentar serios problemas, y en su lugar, ir directos a las metodologías de filo cortante de constante asesoramiento e inserción de tertulias. El asesoramiento constante es un tipo de audición en el que mediante el uso de la “electronización” de la empresa, produce resultados de auditoría que simultáneamente, o un corto periodo de tiempo después, comparables con la ocurrencia de sucesos importantes. En comparación el sistema tradicional financiero, el asesoramiento continuo es distinguible por ser flexible en el tiempo, más comprensivo, más acertado y por apoyar más el proceso de desarrollo. Estas capacidades son especialmente valiosas para las empresas chinas que afrontan su entorno con controles legales, reguladores y de gestión más débiles que en occidente. Aun así, la naturaleza tenaz de The International Journal of Digital Accounting Research Vol. 3, No. 5, pp. 33-60 ISSN: 1577-8517 34 declara que la infraestructura de gestión en China hace necesario adoptar la deforestación terciaria como una manera de “guardarse las espaldas”. Discutimos cómo hacer esto en un escenario de asesoramiento constante incrementará la capacidad persuasiva de las reseñas de personal, así como servir como una fuente de memoria institucional en el caso de que se necesitase una rotación de auditores, o la separación de la auditoría con respecto a las consultas y la propuesta única de China acerca de la auditoría dual

Universal Flow-Driven Conical Emission in Ultrarelativistic Heavy-Ion Collisions

The double-peak structure observed in soft-hard hadron correlations is commonly interpreted as a signature for a Mach cone generated by a supersonic jet interacting with the hot and dense medium created in ultrarelativistic heavy-ion collisions. We show that it can also arise due to averaging over many jet events in a transversally expanding background. We find that the jet-induced away-side yield does not depend on the details of the energy-momentum deposition in the plasma, the jet velocity, or the system size. Our claim can be experimentally tested by comparing soft-hard correlations induced by heavy-flavor jets with those generated by light-flavor jets.Comment: 4 pages, 3 figure

Continuous auditing: the USA experience and considerations for its implementation in Brazil

Continuous Auditing, broadly defined as the transformation of internal and external auditing through the application of modern information technology, is being increasingly adopted by firms throughout the world. Organizations ranging from Siemens, HCA, the Royal Canadian Mounted Police, BIPOP Bank and the Internal Revenue Service are developing tools and practices that will bring assurance closer to the transaction and reduce through automation, the cost of auditing. A June 2006 PricewaterhouseCoopers survey finds that 50% of U.S. companies now use continuous auditing techniques and 31% percent of the rest have already made plans to follow suit. In this article we introduce the concepts of CA to a Brazilian audience and discuss its further application there

Dirac Quantization Condition for Monopole in Noncommutative Space-Time

Since the structure of space-time at very short distances is believed to get modified possibly due to noncommutativity effects and as the Dirac Quantization Condition (DQC), $\mu e = \frac{N}{2}\hbar c$, probes the magnetic field point singularity, a natural question arises whether the same condition will still survive. We show that the DQC on a noncommutative space in a model of dynamical noncommutative quantum mechanics remains the same as in the commutative case to first order in the noncommutativity parameter $\theta$, leading to the conjecture that the condition will not alter in higher orders.Comment: 11 page

Visualizing electromagnetic fields at the nanoscale by single molecule localization.

Coupling of light to the free electrons at metallic surfaces allows the confinement of electric fields to subwavelength dimensions, far below the optical diffraction limit. While this is routinely used to manipulate light at the nanoscale, in electro-optic devices and enhanced spectroscopic techniques, no characterization technique for imaging the underlying nanoscopic electromagnetic fields exists, which does not perturb the field or employ complex electron beam imaging. Here, we demonstrate the direct visualization of electromagnetic fields on patterned metallic substrates at nanometer resolution, exploiting a strong "autonomous" fluorescence-blinking behavior of single molecules within the confined fields allowing their localization. Use of DNA-constructs for precise positioning of fluorescence dyes on the surface induces this distance-dependent autonomous blinking thus completely obviating the need for exogenous agents or switching methods. Mapping such electromagnetic field distributions at nanometer resolution aids the rational design of nanometals for diverse photonic applications.We acknowledge financial support from EPSRC grant EP/G060649/1, EP/H028757/1-2, EP/I012060/1, EP/L015889/1, MRC grant MR/K015850/1 and ERC grant LINASS 320503.This is the author accepted manuscript. The final version is available from ACS at http://pubs.acs.org/doi/abs/10.1021/acs.nanolett.5b00405

High pTp_T Azimuthal Asymmetry in Non-central A+A at RHIC

The high $p_{\rm T}>3$ GeV azimuthal asymmetry, $v_2(p_{\rm T})$, in non-central nuclear collisions at RHIC is shown to be a sensitive measure of the initial parton density distribution of the produced quark-gluon plasma. A generalization of the Gyulassy-Levai-Vitev (GLV) non-abelian energy loss formalism including Bjorken 1+1D expansion as well as important kinematic constraints is used.Comment: 4 pages, Revtex, bbox.sty, 4 eps figures, references added, minor corrections, Phys.Rev.Lett versio

Sensitivity of Azimuthal Jet Tomography to Early Time Energy-Loss at RHIC and LHC

We compute the jet path-length dependence of energy-loss for higher azimuthal harmonics of jet-fragments in a generalized model of energy-loss that can interpolate between pQCD and AdS/CFT limits and compare results with Glauber and CGC/KLN initial conditions. We find, however, that even the high-pT second moment is most sensitive to the poorly known early-time evolution during the first fm/c. Moreover, we demonstrate that quite generally the energy and density-dependence leads to an overquenching jet fragments relative to the first LHC $R_{AA}$-data, once the parameters of the energy-loss model are fixed from $R_{AA}$-data at RHIC.Comment: 4 pages, 2 figures, version accepted for publication in J. Phys. G: Nucl. Part. Phys. as conference proceedings for Quark Matter 2011, May 23 - May 28, Annecy, Franc