Unintended consequences of changes in the regulatory landscape on the statutory audit processNie

We examine the effect of changes in the regulatory environment on the conduct of financial statement audits in a European setting. These changes include the adoption of risk-based auditing, new Audit Risk Standards and increased scrutiny of audit quality by a new, co-ordinated oversight body in each Member State. We investigate this by analysing the audit hours and fees and their determinants for clients of Big N audit firms in Finland in 1996 and 2010. Our results show that audit fees and audit effort by senior auditors were generally higher for high risk clients in 2010 than in 1996. Second, we find that the relationship in 1996 between the client being owner-managed and lower audit hours for both senior and junior auditors is absent in 2010. This supports our argument that the increased auditor scepticism has increased audit effort for owner-managed firms. Third, we find that the average number of junior staff hours increased between 1996 and 2010, but the variance across engagements declined. In contrast, senior auditor hours (and total audit hours) decreased, but the variance across engagements increased. This supports the view that risk-based auditing has increased the efficiency of audits. However, it suggests that the general increase in regulation and the tightening of audit standards, reinforced by the new quality inspections, have led to less emphasis on processes requiring professional judgment and more emphasis on compliance with rules. These unintended consequences should be of interest to the auditing profession and policy makers

Facial expression of affect in children with Cornelia de Lange Syndrome

Background: Individuals with Cornelia de Lange syndrome (CdLS) have been reported to show comparatively high levels of flat and negative affect but there have been no empirical evaluations. In this study, we use an objective measure of facial expression to compare affect in CdLS with that seen in Cri du Chat syndrome (CDC) and a group of individuals with a mixed aetiology of intellectual disabilities (ID). Method: Observations of three groups of 14 children with CdLS, CDC and mixed aetiology of ID were undertaken when a one-to-one interaction was ongoing. Results: There was no significant difference between the groups in the duration of positive, negative or flat affect. However, the CdLS group displayed a significantly lower ratio of positive to negative affect than children in the other groups. Discussion: This difference partially confirms anecdotal observations and could be due to the expression of pain caused by health problems associated with CdLS or neurological expression of the CdLS gene in facial muscles related to expression of positive affect. However, further research is needed to directly test these possible associations. </p

The role and current status of IFRS in the completion of national accounting rules: Evidence from the UK

Drawing on secondary data, we examine the transposition of the Accounting Directive 2013 into UK GAAP, with a specific focus on references to IFRS. The process involved consultation and regulatory impact assessment on the options in the Accounting Directive and proposed changes to accounting standards for non-publically accountable entities. This led to an IFRS-based approach from 2016 with three tiers: EU-adopted IFRS for group listed companies and other publicly accountable entities, an adaptation of IFRS for SMEs for non-publicly accountable entities, and a simplified version for micro-entities incorporating the requirements of the Accounting Directive. This outcome is not surprising since the UK was one of the founding members of the original IASC and a strong proponent of little GAAP. Indeed, the UK’s former Financial Reporting Standard for Smaller Entities provided a model for the IFRS for SMEs. In the past, there were few references to IFRS by the UK’s enforcement and interpretation bodies. Today, guidance is taken from IFRIC. We contribute to the literature by describing the main processes involved in implementing the Accounting Directive and the move to an IFRS-based approach in UK GAAP. Our analysis should be of interest to researchers and policy makers alike

Doped Ceria Catalysts for NOx Storage and Reduction

The new Euro 7 protocol, proposed by the Commission on 26th October 2022, concerning emissions of leanburn engines, presents a need for further optimisation of existing after-treatment technologies. It reveals a 35% reduction to the NOx emission limit for cars and vans, compared to Euro 6 . A well-known technology employed to reduce NOx to clean emissions in light-duty vehicles is the Lean NOx Trap (LNT). LNTs employ catalysts consisting of PGMs supported on ceria (CeO2) or other mixed oxides. Ceria’s redox property makes it an attractive selection, as well as its ability to store NOx at low temp (<300 ̊C), especially when Pt is present. Storage properties of ceria can be further enhanced by doping. Dopants reportedly allow ceria to function better at low temperature (<300 ̊C), and to reduce the PGM loading required to achieve the same conversion efficiencies. The RE metals Sm, Pr and Nd have been employed as dopants on CeO2 for LNT applications to increase surface oxygen content, oxygen vacancies, defect densities, and cause changes to the Pt-ceria interaction. These structural changes can allow for higher NSC during lean operation and enhanced activation during rich purge. Sm, Pr and Nd doped catalysts (10 wt.%) were synthesised on a range of ceria based catalysts with different Pt loadings (0-1 wt.%). Morphological changes observed through dopant addition has been investigated and related to catalytic performance increases.

What turns the taxman on? Audit opinion and tax return adjustments in a voluntary audit environment

Using a large proprietary data set obtained from the Finnish Tax Administration, we examine the factors that trigger adjustments by the tax authority to the taxable income reported by around 25,000 small private companies in their tax returns. After controlling for tax aggressiveness and other relevant factors, we find that having a voluntary audit with an unqualified audit opinion decreases the likelihood of the tax authority not accepting taxable income as reported. At the same time, it moderates the otherwise significant positive effect of tax aggressiveness on the likelihood of tax authority making adjustments

Identification of clouds and aurorae in optical data images

In this paper we present an automatic image recognition technique used to identify clouds and aurorae in digital images, taken with a CCD all-sky imager. The image recognition algorithm uses image segmentation to generate a binary block object image. Object analysis is then performed on the binary block image, the results of which are used to assess whether clouds, aurorae and stars are present in the original image. The need for such an algorithm arises because the optical study of particle precipitation into the Earth's atmosphere by the Ionosphere and Radio Propagation Group at Lancaster generates vast data-sets, over 25 000 images/year, making manual classification of all the images impractical

Maximising Social Interactions and Effectiveness within Distance Learning Courses: Cases from Construction

Advanced Internet technologies have revolutionised the delivery of distance learning education. As a result, the physical proximity between learners and the learning providers has become less important. However, whilst the pervasiveness of these technological developments has reached unprecedented levels, critics argue that the student learning experience is still not as effective as conventional face-to-face delivery. In this regard, surveys of distance learning courses reveal that there is often a lack of social interaction attributed to this method of delivery, which tends to leave learners feeling isolated due to a lack of engagement, direction, guidance and support by the tutor. This paper defines and conceptualises this phenomenon by investigating the extent to which distance-learning programmes provide the social interactions of an equivalent traditional classroom setting. In this respect, two distance learning case studies were investigated, covering the UK and Slovenian markets respectively. Research findings identified that delivery success is strongly dependent on the particular context to which the specific distance learning course is designed, structured and augmented. It is therefore recommended that designers of distance learning courses should balance the tensions and nuances associated with commercial viability and pedagogic effectiveness

Post-Disaster Housing Reconstruction in Sri Lanka: What Methodology?

Research methodology is the procedural framework within which the research is conducted. This includes the overall approach to a problem that could be put into practice in a research process, from the theoretical underpinning to the collection and analysis of data. Choice of methodology depends on the primary drivers: topic to be researched and the specific research questions. Hence, methodological perspectives of managing stakeholder expectations of PDHR context are composed of research philosophies, research strategy, research design, and research techniques. This research belonged to social constructivism or interpretivism within a philosophical continuum. The nature of the study was more toward subjectivism where human behavior favored voluntary stance. Ontological, methodological, epistemological, and axiological positioning carried the characteristics of idealism, ideographic, anti-positivism, and value laden, respectively. Data collection comprises two phases, preliminary and secondary. Exploratory interviews with construction experts in the United Kingdom and Sri Lanka were carried out to refine the interview questions and identify the case studies. Case study interviews during the secondary phase took place in Sri Lanka. Data collected at the preliminary stage were used to assess the attributes of power, legitimacy/proximity, and urgency of stakeholders to the project using Stakeholder Circle™ software. Moreover, the data collected at secondary phase via case studies will be analyzed with NVivo 8. This article aims to discuss these methodological underpinnings in detail applied in a post-disaster housing reconstruction context in Sri Lanka

Platelet count and transfusion requirements during moderate or severe postpartum haemorrhage

Limited data exist on platelet transfusion during postpartum haemorrhage. We retrospectively analysed a consecutive cohort from a single centre of 347 women with moderate or severe postpartum haemorrhage, transfused according to national guidelines. Twelve (3%) women required a platelet transfusion. There were no differences between women who did and did not receive platelets with respect to age, mode of initiation of labour or mode of delivery. Women receiving a platelet transfusion had a lower median (IQR [range]) platelet count at study entry than women who did not receive platelets before haemorrhage (135 (97–175 [26–259])×109.l−1 vs 224 (186–274 [91–1006])×109.l−1), respectively), and at diagnosis of postpartum haemorrhage (median 114 (78–153 [58–238])×109.l−1 vs 193 (155–243 [78–762])×109.l−1 respectively). Six women were thrombocytopenic pre-delivery. The cause of haemorrhage that was associated with the highest rate of platelet transfusion was placental abruption, with three of 14 women being transfused. If antenatal thrombocytopenia or consumptive coagulopathy were not present, platelets were only required for haemorrhage > 5000 ml. Early formulaic platelet transfusion would have resulted in many women receiving platelets unnecessarily. Using current guidelines, the need for platelet transfusion is uncommon without antenatal thrombocytopenia, consumptive coagulopathy or haemorrhage > 5000 ml. We found no evidence to support early fixed-ratio platelet transfusion