Verification Services and Financial Reporting Quality: Assessing the Potential of Review Procedures

Are financial statement reviews, which are limited to primarily analytical procedures and inquiries, a cost-effective verification service for some firms? The answer is important for owner/managers considering reviews as well as investor/lenders, regulators, and those interested in effective verification mechanism design. Using data from U.S. private companies choosing to have financial statements compiled, reviewed, or audited, we calculate four model-based financial reporting quality proxies and, to reflect broader economics, the cost of debt and verification fee estimates. Consistent with application of prescribed verification procedures, we find both reviews and audits yield significantly better reporting quality scores and lower cost of debt than zero-verification compilations. However, model-based reporting quality scores of reviews and audits are indistinguishable statistically, on average. Regarding broader economics, we find that relative to compilations, reviews yield more than half the added interest rate benefit associated with an audit, at considerably less than half the added cost. Overall, our results suggest reviews may provide a cost-effective verification alternative to audits, and the potential of analytical procedures warrants more attention by audit researchers and regulators

Frost fairs, sunspots and the Little Ice Age

Mike Lockwood, Mat Owens, Ed Hawkins, Gareth S. Jones and Ilya Usoskin examine the links between the solar Maunder minimum, the Little Ice Age and the freezing of the River Thame

Thunderstorm occurrence at ten sites across Great Britain over 1884–1993

The UK Met Office's Daily Weather Reports (DWR) contain extensive logs of UK thunderstorm activity. To date, only a very small fraction of these data have been digitized as part of the MIDAS dataset, and exclusively after 1950. Using the recently‐scanned UK Met Office Monthly Weather Reports (MWR), which are based on a subset of the observations that form the DWR, we here provide digitized data and a summary of thunderdays from 10 long‐running British stations over the period 1884–1993. The data are presented ‘as is’, with no attempt to provide any corrections or calibration. For 4 of the 10 stations, thunderday observations were discontinued at various times between 1949 and 1964, and it is necessary to switch to a neighbouring station in order to continue the series. Approximately half the series exhibit sharp drops in thunderdays at various points between 1960 and 1990, although none are coincident with known station changes. Comparison with nearby MIDAS stations suggests the low thunderdays are the result of changes in observing practice, rather than genuine changes in thunderstorm occurrence. These potential data issues limit interpretation of the long‐term trends. However, it can nevertheless be concluded that none of the stations show the expected increase in thunderdays as a result of the rise in surface temperature over the 20th century. In order to provide more quantitative determination of the long‐term trends in thunderstorm occurrence, we advocate further digitization efforts to recover the data from the numerous stations in the MWRs, and subsequent analysis of the common signals across neighbouring stations

The Maunder minimum and the Little Ice Age: an update from recent reconstructions and climate simulations

The Maunder minimum (MM) was a period of extremely low solar activity from approximately AD 1650 to 1715. In the solar physics literature, the MM is sometimes associated with a period of cooler global temperatures, referred to as the Little Ice Age (LIA), and thus taken as compelling evidence of a large, direct solar influence on climate. In this study, we bring together existing simulation and observational studies, particularly the most recent solar activity and paleoclimate reconstructions, to examine this relation. Using northern hemisphere surface air temperature reconstructions, the LIA can be most readily defined as an approximately 480 year period spanning AD 1440–1920, although not all of this period was notably cold. While the MM occurred within the much longer LIA period, the timing of the features are not suggestive of causation and should not, in isolation, be used as evidence of significant solar forcing of climate. Climate model simulations suggest multiple factors, particularly volcanic activity, were crucial for causing the cooler temperatures in the northern hemisphere during the LIA. A reduction in total solar irradiance likely contributed to the LIA at a level comparable to changing land use

Low birthweight and preterm birth in young people with special educational needs: a magnetic resonance imaging analysis

<p>Abstract</p> <p>Background</p> <p>Although neuroanatomical and cognitive sequelae of low birthweight and preterm birth have been investigated, little is understood as to the likely prevalence of a history of low birthweight or preterm birth, or neuroanatomical correlates of such a history, within the special educational needs population. Our aim was to address these issues in a sample of young people receiving additional learning support.</p> <p>Methods</p> <p>One hundred and thirty-seven participants aged 13–22 years, receiving additional learning support, were recruited via their schools or colleges and underwent structural magnetic resonance imaging (MRI). Obstetric records, available in 98 cases, included birthweight and gestational data in 90 and 95 cases, respectively. Both qualitative and quantitative voxel-based analyses of MRI data were conducted.</p> <p>Results</p> <p>A history of low birthweight and preterm birth was present in 13.3% and 13.7% of cases, respectively. Low birthweight and preterm birth were associated with specific qualitative anomalies, including enlargement of subarachnoid cisterns and thinning of the corpus callosum. Low birthweight was associated with reduced grey matter density (GMD) in the superior temporal gyrus (STG) bilaterally, left inferior temporal gyrus and left insula. Prematurity of birth was associated with reduced GMD in the STG bilaterally, right inferior frontal gyrus and left cerebellar hemisphere. Comparison of subjects with no history of low birthweight or preterm birth with a previously defined control sample of cognitively unimpaired adolescents (<it>n </it>= 72) demonstrated significantly greater scores for several anomalies, including thinning of the corpus callosum, loss of white matter and abnormalities of shape of the lateral ventricles.</p> <p>Conclusion</p> <p>Although a two-fold increased prevalence of a history of low birthweight and preterm birth exists within the special educational needs population, other aetiological factors must be considered for the overwhelming majority of cases. Neuroanatomical findings within this sample include qualitative anomalies of brain structure and grey matter deficits within temporal lobe structures and the cerebellum that persist into adolescence. These findings suggest a neurodevelopmental mechanism for the cognitive difficulties associated with these obstetric risk factors.</p

The Grizzly, February 15, 2000

UC Students Debate Pros, Cons of Pledging On Campus • Feelings of Brotherhood, Sisterhood Prevalent During Pledging Process • Employment Available for Graduating Seniors • True Love: Sorrow and Devotion • Hackers, Hijackers, and the Wide World of Sports • The Greeks Agree: Pledges Have no Free Will • Pledging: What\u27s the Big Deal Anyway? • muMs Schemes at Ursinus • Pat McGee to Jam at Ursinus • Music Review: The Alligator Blues Band • Gymnastics Tops RIC with Season High Score • Intramural 3 on 3 Action: Brains vs. Brute • Indoor Track Steps Up to Eight Way Challenge • Ursinus Wrestling Battles for 4-1 • Sports Profile: Shana Goanehttps://digitalcommons.ursinus.edu/grizzlynews/1459/thumbnail.jp

Inferring the structure of the solar corona and inner heliosphere during the Maunder minimum using global thermodynamic magnetohydrodynamic simulations

Observations of the Sun’s corona during the space era have led to a picture of relatively constant, but cyclically varying solar output and structure. Longer-term, more indirect measurements, such as from 10Be, coupled by other albeit less reliable contemporaneous reports, however, suggest periods of significant departure from this standard. The Maunder Minimum was one such epoch where: (1) sunspots effectively disappeared for long intervals during a 70 yr period; (2) eclipse observations suggested the distinct lack of a visible K-corona but possible appearance of the F-corona; (3) reports of aurora were notably reduced; and (4) cosmic ray intensities at Earth were inferred to be substantially higher. Using a global thermodynamic MHD model, we have constructed a range of possible coronal configurations for the Maunder Minimum period and compared their predictions with these limited observational constraints. We conclude that the most likely state of the corona during—at least—the later portion of the Maunder Minimum was not merely that of the 2008/2009 solar minimum, as has been suggested recently, but rather a state devoid of any large-scale structure, driven by a photospheric field composed of only ephemeral regions, and likely substantially reduced in strength. Moreover, we suggest that the Sun evolved from a 2008/2009-like configuration at the start of the Maunder Minimum toward an ephemeral-only configuration by the end of it, supporting a prediction that we may be on the cusp of a new grand solar minimum

Evidence for solar wind modulation of lightning

The response of lightning rates over Europe to arrival of high speed solar wind streams at Earth is investigated using a superposed epoch analysis. Fast solar wind stream arrival is determined from modulation of the solar wind V y component, measured by the Advanced Composition Explorer spacecraft. Lightning rate changes around these event times are determined from the very low frequency arrival time difference (ATD) system of the UK Met Office. Arrival of high speed streams at Earth is found to be preceded by a decrease in total solar irradiance and an increase in sunspot number and Mg II emissions. These are consistent with the high speed stream's source being co-located with an active region appearing on the Eastern solar limb and rotating at the 27 d period of the Sun. Arrival of the high speed stream at Earth also coincides with a small (~1%) but rapid decrease in galactic cosmic ray flux, a moderate (~6%) increase in lower energy solar energetic protons (SEPs), and a substantial, statistically significant increase in lightning rates. These changes persist for around 40 d in all three quantities. The lightning rate increase is corroborated by an increase in the total number of thunder days observed by UK Met stations, again persisting for around 40 d after the arrival of a high speed solar wind stream. This result appears to contradict earlier studies that found an anti-correlation between sunspot number and thunder days over solar cycle timescales. The increase in lightning rates and thunder days that we observe coincides with an increased flux of SEPs which, while not being detected at ground level, nevertheless penetrate the atmosphere to tropospheric altitudes. This effect could be further amplified by an increase in mean lightning stroke intensity that brings more strokes above the detection threshold of the ATD system. In order to remove any potential seasonal bias the analysis was repeated for daily solar wind triggers occurring during the summer months (June to August). Though this reduced the number of solar wind triggers to 32, the response in both lightning and thunder day data remained statistically significant. This modulation of lightning by regular and predictable solar wind events may be beneficial to medium range forecasting of hazardous weather

Automated identification of insect vectors of Chagas disease in Brazil and Mexico: the Virtual Vector Lab

Identification of arthropods important in disease transmission is a crucial, yet difficult, task that can demand considerable training and experience. An important case in point is that of the 150+ species of Triatominae, vectors of Trypanosoma cruzi, causative agent of Chagas disease across the Americas. We present a fully automated system that is able to identify triatomine bugs from Mexico and Brazil with an accuracy consistently above 80%, and with considerable potential for further improvement. The system processes digital photographs from a photo apparatus into landmarks, and uses ratios of measurements among those landmarks, as well as (in a preliminary exploration) two measurements that approximate aspects of coloration, as the basis for classification. This project has thus produced a working prototype that achieves reasonably robust correct identification rates, although many more developments can and will be added, and—more broadly—the project illustrates the value of multidisciplinary collaborations in resolving difficult and complex challenges