Fixed Costs, Audit Production, and Audit Markets: Theory and Evidence

We analyze the role of discretionary joint fixed costs in audit production. Given such costs, the investment decision and production of audit services must be analyzed over a client portfolio. We model this problem, and use monotone comparative statics (Milgrom and Shannon [1994]) to show the implications of variations in client-specific losses and the number of clients for the optimum level of fixed investment and auditassurance. We develop four hypotheses concerning the relations between audit quality and (1) the magnitude of potential client-specific losses; (2) average client losses in a portfolio; (3) the number of clients in a portfolio; and (4) the variability of losses in a portfolio. Using discretionary accruals as the audit quality proxy, we find evidence consistent with these hypotheses. Using PCAOB inspection results and financial statement restatements as proxies for audit quality, we find weaker evidence consistent with hypotheses 2, 3 and 4

Tensiomyographic assessment of muscle contractile properties in 9- to 14-year old children

While there are numerous data on the skeletal muscle fibre type composition in adults, little is known about the changes in fibre type composition and contractile properties during maturational growth in children. Using noninvasive tensiomyography we measured contraction time, an indirect estimate of the myosin heavy chain I (MHC-I) proportion, to assess the longitudinal changes of the biceps brachii (BB), biceps femoris (BF), vastus lateralis (VL), and erector spinae (ES) muscles in 53 boys and 54 girls. The children were 9 years at the start of the study and returned for 5 follow-up measurements till the age of 14 years. The ES has the shortest and the BF has the longest Tc. The VL and ES of boys have shorter Tc than those from girls. When applying the relationship between proportion of MHC-I and Tc established in adults to the children TMG data, we found a slow-to-fast transition in the VL between at least the age of 6 and 10 years, when it had stabilized to adult proportions. Regular participation in sport was associated with a faster BF, but not in VL. Our data represents a first non-invasive indication of the developmental changes in muscle fiber type composition in children

Absence of an ageing-related increase in fibre type grouping in athletes and non-athletes.

The ageing-related loss of muscle mass is thought to be partly attributable to motor neuron loss and motor unit remodelling that result in fibre type grouping. We examined fibre type grouping in 19- to 85-year-old athletes and non-athletes and evaluated to which extent any observed grouping is explained by the fibre type composition of the muscle. Since regular physical activity may stimulate reinnervation, we hypothesised that fibre groups are larger in master athletes than in age-matched non-athletes. Fibre type grouping was assessed in m. vastus lateralis biopsies from 22 young (19-27 years) and 35 healthy older (66-82 years) non-athletes, and 14 young (20-29 years), 51 middle-aged (38-65 years) and 31 older (66-85 years) athletes. An 'enclosed fibre' was any muscle fibre of a particular type surrounded by fibres of the same type only. A fibre type group was defined as a group of fibres with at least one enclosed fibre. Only type II fibre cross-sectional area (FCSA) showed an age-related decline that was greater in athletes (p < 0.001) than in non-athletes (p = 0.012). There was no significant age-related effect on fibre group size or fibre group number in athletes or non-athletes, and the observed grouping was similar to that expected from the fibre type composition. At face value these observations do 1) neither show evidence for an age-related loss and remodelling of motor units nor 2) improved reinnervation with regular physical activity, but 3) histological examination may not reveal the full extent of ageing-related motor unit remodelling

Financial Characteristics of Companies Audited by Large Audit Firms

Purpose “ The purpose of this paper is to examine how financial characteristics associated with the choice of a big audit firm with further investigation on the agency costs of free cash flows.Design/methodology/approach “ The sample used for this work includes industrial listed companies from Germany and France. To test our hypothesis, we used a number of logit models, extending the standard model selection audit firm, to include the variables of interest. Following previous work, our dependent dummy variable is Big4 or non-Big4.Findings “ We observed that most independent variables in the German companies show similar results to previous work, but we did not have the same results for the French industry. Moreover, our findings suggest that the total debt and dividends can be an important reason for determining the choice of a large audit firm, reducing agency costs of free cash flows.Research limitations/implications “ This study has some limitations on the measurements of the cost of the audit fees and also generates opportunities for additional searching.Originality/value “ The paper provides only one aspect to explain the relationship between the problems of agency costs of free cash flow and influence in choosing a large auditing firm, which stems from investors\u27 demand for higher quality audits

Power Saving Techniques for Wireless LANs

Submitted on behalf of EDAA (http://www.edaa.com/)International audienceFast wireless access has rapidly become commonplace. Wireless access points and Hotspot servers are sprouting everywhere. Battery lifetime continues to be a critical issue in mobile computing. This paper first gives an overview of WLAN energy saving strategies, followed by an illustration of a system-level methodology for saving power in heterogeneous wireless environments