The effect of client characteristics on the negotiation tactics of auditors

Paper presented at the 2006 American Accounting Association Auditing Section Mid-Year Meeting, Los Angeles, CA.Although the financial statements of an organization are considered a product of management, prior research suggests that a company’s financial statements may be affected by the negotiation strategy employed by the auditor when resolving audit differences with management. However, little subsequent research has discussed the potential strategies that auditors may employ during the negotiation process. Our study extends the literature by investigating, in a post-Sarbanes-Oxley environment, whether auditors will employ a reciprocitybased strategy for the resolution of audit differences and what client characteristics (client management’s negotiating style and client retention risk) will increase the extent to which it is utilized. Such a strategy involves bringing inconsequential items to management and subsequently waiving these items in an effort to encourage management to be more cooperative in the posting of significant income-decreasing adjustments. The results of our study indicate that client management’s negotiating style and retention risk have an interactive effect on auditors’ use of a reciprocity-based strategy. Specifically, auditors are more likely to utilize a reciprocitybased strategy when management’s negotiating style is competitive and client retention risk is high. Interestingly, the end result of the negotiation process is essentially identical (i.e., similar items are posted), regardless of client characteristics or the auditor’s utilization of a reciprocitybased strategy. Thus, it appears that use of a reciprocity-based strategy does not affect the quality of the financial statements, but simply facilitates the process of posting significant items

Emissions Calculated from Particulate Matter and Gaseous Ammonia Measurements from Commercial Dairy in California, USA

Emission rates and factors for particulate matter (PM) and gaseous ammonia (NH3) were estimated from measurements taken at a dairy in June 2008. Concentration measurements were made using both point and remote sensors. Filter-based PM samplers and optical particle counters (OPCs) characterized aerodynamic and optical properties, while a scanning elastic lidar measured particles around the facility. The lidar was calibrated to PM concentration using the point measurements. NH3 concentrations were measured using 23 passive samplers and 2 open-path Fourier transform infrared spectrometers (FTS). Emission rates and factors were estimated through both an inverse modeling technique using AERMOD coupled with measurements and a mass-balance approach applied to lidar PM data. Mean PM emission factors ± 95% confidence interval were 3.8 ± 3.2, 24.8 ± 14.5, and 75.9 ± 33.2 g/d/AU for PM2.5, PM10, and TSP, respectively, from inverse modeling and 1.3 ± 0.2, 15.1 ± 2.2, and 46.4 ± 7.0 g/d/AU for PM2.5, PM10, and TSP, respectively, from lidar data. Average daily NH3 emissions from the pens, liquid manure ponds, and the whole facility were 143.4 ± 162.0, 29.0 ± 74.7, and 172.4 ± 121.4 g/d/AU, respectively, based on the passive sampler data and 190.6 ± 55.8, 16.4 ± 8.4, and 207.1 ± 54.7 g/d/AU, respectively, based on FTS measurements. Liquid manure pond emissions averaged 5.4 ± 13.9 and 3.1 ± 1.6 g/m2/d based on passive sampler and FTS measurements, respectively. The calculated PM10 and NH3 emissions were of similar magnitude as those found in literature. Diurnal emission patterns were observed

The effect of risk of misstatement and workload pressure on the choice of workpaper review format

Paper presented at the 2007 International Symposium on Audit Research, Shanghai, China.The advent of electronic communication and electronic workpapers at audit firms has provided workpaper reviewers with options of how to interact with their audit team. Concurrently, other review formats have developed that rely more on in-person communication (e.g., review-by-interview). Prior research indicates that in-person discussion during review results in qualitatively different workpapers and judgments than when the reviewer interacts with the workpaper preparer electronically. As reviewers typically have discretion over how to conduct their reviews, the choice of review format can be viewed as a controllable audit input. Thus, the reviewer’s choice of review format could impact the quality of the audit review team’s work. Our study extends the audit review process literature by examining reviewers’ choice of the form of their reviews and by considering factors that influence that choice. Specifically, we examine the effect of misstatement risk and workload pressure on this choice. We find that misstatement risk and workload pressure affect reviewers’ review mode choices, with both those facing low risk and those under high pressure more likely to perform their reviews electronically. Further, risk and workload pressure interact to affect reviewers’ likelihood of choosing to review electronically. Results indicate that misstatement risk moderates the effect of workload pressure such that, when risk is high, the effect of workload pressure is reduced. Our findings provide insight to firms and regulators regarding the impact of misstatement risk and workload pressure on how audit workpaper reviewers conduct their reviews. These issues are particularly relevant in light of recent changes in the regulatory environment that both emphasize the auditor’s role in detecting fraud/misstatements and exacerbate traditional workload pressures during busy times of the year

Particulate-Matter Emission Estimates from Agricultural Spring-Tillage Operations Using LIDAR and Inverse Modeling

Particulate-matter (PM) emissions from a typical spring agricultural tillage sequence and a strip–till conservation tillage sequence in California’s San Joaquin Valley were estimated to calculate the emissions control efficiency (η) of the strip–till conservation management practice (CMP). Filter-based PM samplers, PM-calibrated optical particle counters (OPCs), and a PM-calibrated light detection and ranging (LIDAR) system were used to monitored upwind and downwind PM concentrations during May and June 2008. Emission rates were estimated through inverse modeling coupled with the filter and OPC measurements and through applying a mass balance to the PM concentrations derived from LIDAR data. Sampling irregularities and errors prevented the estimation of emissions from 42% of the sample periods based on filter samples. OPC and LIDAR datasets were sufficiently complete to estimate emissions and the strip–till CMP η, which were ∼90% for all size fractions in both datasets. Tillage time was also reduced by 84%. Calculated emissions for some operations were within the range of values found in published studies, while other estimates were significantly higher than literature values. The results demonstrate that both PM emissions and tillage time may be reduced by an order of magnitude through the use of a strip–till conservation tillage CMP when compared to spring tillage activities

Lidar Based Emissions Measurement at the Whole Facility Scale: Method and Error Analysis

Particulate emissions from agricultural sources vary from dust created by operations and animal movement to the fine secondary particulates generated from ammonia and other emitted gases. The development of reliable facility emission data using point sampling methods designed to characterize regional, well-mixed aerosols are challenged by changing wind directions, disrupted flow fields caused by structures, varied surface temperatures, and the episodic nature of the sources found at these facilities. We describe a three-wavelength lidar-based method, which, when added to a standard point sampler array, provides unambiguous measurement and characterization of the particulate emissions from agricultural production operations in near real time. Point-sampled data are used to provide the aerosol characterization needed for the particle concentration and size fraction calibration, while the lidar provides 3D mapping of particulate concentrations entering, around, and leaving the facility. Differences between downwind and upwind measurements provide an integrated aerosol concentration profile, which, when multiplied by the wind speed profile, produces the facility source flux. This approach assumes only conservation of mass, eliminating reliance on boundary layer theory. We describe the method, examine measurement error, and demonstrate the approach using data collected over a range of agricultural operations, including a swine grow-finish operation, an almond harvest, and a cotton gin emission study

The Structure of Episodic Memory: Ganeri's ‘Mental Time Travel and Attention’

We offer a framework for assessing what the structure of episodic memory might be, if one accepts the Buddhist denial of persisting selves. This paper is a response to Jonardon Ganeri's paper "Mental time travel and attention", which explores Buddhaghosa's ideas about memory. (It will eventually be published with a reply by Ganeri)

Western Bumble Bee: Declines in the Continental United States and Range-Wide Information Gaps

In recent decades, many bumble bee species have declined due to changes in habitat, climate, and pressures from pathogens, pesticides, and introduced species. The western bumble bee (Bombus occidentalis), once common throughout western North America, is a species of concern and will be considered for listing by the U.S. Fish and Wildlife Service (USFWS) under the Endangered Species Act (ESA). We attempt to improve alignment of data collection and research with USFWS needs to consider redundancy, resiliency, and representation in the upcoming species status assessment. We reviewed existing data and literature on B. occidentalis, highlighting information gaps and priority topics for research. Priorities include increased knowledge of trends, basic information on several life‐history stages, and improved understanding of the relative and interacting effects of stressors on population trends, especially the effects of pathogens, pesticides, climate change, and habitat loss. An understanding of how and where geographic range extent has changed for the two subspecies of B. occidentalis is also needed. We outline data that could be easily collected in other research projects that would increase their utility for understanding range‐wide trends of bumble bees. We modeled the overall trend in occupancy from 1998 to 2018 of Bombus occidentalis within the continental United States using existing data. The probability of local occupancy declined by 93% over 21 yr from 0.81 (95% CRI = 0.43, 0.98) in 1998 to 0.06 (95% CRI = 0.02, 0.16) in 2018. The decline in occupancy varied spatially by landcover and other environmental factors. Detection rates vary in both space and time, but peak detection across the continental United States occurs in mid‐July. We found considerable spatial gaps in recent sampling, with limited sampling in many regions, including most of Alaska, northwestern Canada, and the southwestern United States. We therefore propose a sampling design to address these gaps to best inform the ESA species status assessment through improved assessment of how the spatial distribution of stressors influences occupancy changes. Finally, we request involvement via data sharing, participation in occupancy sampling with repeated visits to distributed survey sites, and complementary research to address priorities outlined in this paper

Tiered Approach to Resilience Assessment

Regulatory agencies have long adopted a three-tier framework for risk assessment. We build on this structure to propose a tiered approach for resilience assessment that can be integrated into the existing regulatory processes. Comprehensive approaches to assessing resilience at appropriate and operational scales, reconciling analytical complexity as needed with stakeholder needs and resources available, and ultimately creating actionable recommendations to enhance resilience are still lacking. Our proposed framework consists of tiers by which analysts can select resilience assessment and decision support tools to inform associated management actions relative to the scope and urgency of the risk and the capacity of resource managers to improve system resilience. The resilience management framework proposed is not intended to supplant either risk management or the many existing efforts of resilience quantification method development, but instead provide a guide to selecting tools that are appropriate for the given analytic need. The goal of this tiered approach is to intentionally parallel the tiered approach used in regulatory contexts so that resilience assessment might be more easily and quickly integrated into existing structures and with existing policies

Ex vivo correction of selenoprotein N deficiency in rigid spine muscular dystrophy caused by a mutation in the selenocysteine codon

Premature termination of translation due to nonsense mutations is a frequent cause of inherited diseases. Therefore, many efforts were invested in the development of strategies or compounds to selectively suppress this default. Selenoproteins are interesting candidates considering the idiosyncrasy of the amino acid selenocysteine (Sec) insertion mechanism. Here, we focused our studies on SEPN1, a selenoprotein gene whose mutations entail genetic disorders resulting in different forms of muscular diseases. Selective correction of a nonsense mutation at the Sec codon (UGA to UAA) was undertaken with a corrector tRNASec that was engineered to harbor a compensatory mutation in the anticodon. We demonstrated that its expression restored synthesis of a full-length selenoprotein N both in HeLa cells and in skin fibroblasts from a patient carrying the mutated Sec codon. Readthrough of the UAA codon was effectively dependent on the Sec insertion machinery, therefore being highly selective for this gene and unlikely to generate off-target effects. In addition, we observed that expression of the corrector tRNASec stabilized the mutated SEPN1 transcript that was otherwise more subject to degradation. In conclusion, our data provide interesting evidence that premature termination of translation due to nonsense mutations is amenable to correction, in the context of the specialized selenoprotein synthesis mechanism