The Effect Of Directors And Officers Liability Insurance On Audit Effort

This study investigates the effect of directors and officers liability insurance (hereafter, D&O liability insurance) on audit effort of auditors. D&O liability insurance is a liability insurance payable to top executives of a company as indemnification for losses or litigation costs from the lawsuits. Companies carry D&O liability insurance for the purpose of protecting their directors and officers from the legal actions. However, according to prior studies, the managers of their companies with D&O liability insurance may become more risk averse, and they take more risks for their decision. If D&O liability insurance causes more risks at the company, auditors for the companies may use the information of D&O liability insurance as a risk factor at the audit engagement. This study examines whether D&O liability insurance has a significant influence audit effort of auditors empirically. We use the mandatory disclosed Korean data of D&O liability insurance for testing the association between D&O liability insurance and audit effort. From the results, we find that auditors use D&O liability insurance information for setting the amount of audit effort. Also, both Big4 and Non-Big4 use D&O liability insurance as useful informaion.

Implementation Of Automated Systems For Target Cost Management And Assessing Performance: A Case Study In A Global Automobile Component Company

We examine the implementation of automated systems for target cost management and assessing firm performance in global automobile component company. After financial crisis, companies need to make strategic decisions as fast as possible. However, global companies are difficult to make fast decisions because of taking time for sorting the internal data through oversea companies. Also there are difficult to build systems of cost management and assessment of performance achievement. In this study, as we explain elaborately about the automatic process of cost management and assessment of performance achievement systems in global automobile component companies, we provide practical implications of this benchmark case for other companies’ automated target cost management systems and assessing performance system’s innovations

The Relationship Between An Auditing Firm's Characteristics And The Incidence Rate Of Its Clients Subject To AAERs

This paper examines the relationship between an auditors characteristics and the incidence rate of its client subject to the Accounting and Auditing Enforcement Release. Using the sample of AAERs from 2002 to 2006, we find that when a firm is audited from a large accounting firm, there is a significantly less incidence rate subject to AAERs. Also, we find that the audit time of AAERs firms is significantly less than that of non-AAERs firms. Because AAER is related with audit quality, it implies that AAER depends on audit time and audit firm size, and that a firm is affected by the incidence rate of subjects toward AAERs. However, there is no difference between the audit fee of AAERs firms audit fee and that of non-AAERs firms. Although audit time leads to a high audit fee, audit firms are very competitive and therefore, there are some limitations with receiving a high audit fee according to audit time. Therefore, the audit fee is significantly affected by the incidence rate of subjects toward AAERs. Additionally, we also examine the effectiveness of AAERs and the difference of audit efforts depending on the cause of AAERs and the degree of penalties imposed by FSS. Overall, the results suggest that depending on the auditors characteristics, such as the size of accounting firm, audit time, and audit fee, a company is affected by the incidence rate subject to AAERs

Is Foreign Direct Investment Effective From The Perspective Of Tax Avoidance? An Analysis Of Tax Avoidance Through The International Transfer Pricing Behaviors Of Korean Corporations

This study examines whether multinational companies carry out tax avoidance through subsidiaries. An empirical analysis was conducted of 4,585 Korean firms from 2001 to 2010 by company and year. The results are as follows. First, MNCs that have become more internationally diversified through the establishment of overseas subsidiaries generally show a higher tendency to avoid tax. Thus, the analysis results show a positive correlation between globally diversified MNCs and corporate tax avoidance. This correlation is established due to the firms' active use of tax strategies (investment tax credits, tax cuts) applicable to the various countries in which they have expanded their businesses. Second, the analysis results showed that these firms actively avoided tax with overseas transfer pricing behaviors when compared to companies without overseas subsidiaries. Thus, the adjustment of sales prices and purchase value through actual transactions increased the propensity of the parent company to avoid tax.

Identification of a potential pathway of the exotic black weevil (Coleoptera: Curculionidae) in South Korea

The black weevil, Aclees taiwanensis Kôno (Coleoptera: Curculionidae), is one of the primary pests of fig trees in southeastern Asia and southern Europe. Thought to be of subtropical and tropical Asian origin, including China, the weevil was first found in southern areas of South Korea in July 2020. Subsequently, it was found in the following five cities: Haenam, Hampyeong, Jindo, Sinan, and Tongyeong (RDA 2020). Attempts to trace a possible pathway for the exotic black weevil suggested that this species probably followed pathways of illegal importation of infested plants from Taiwan and was unintentionally introduced into South Korea based on analysis of a Pest Information System (PIS) database, a phylogenetic analysis of mitochondrial cytochrome c oxidase subunit I gene (COI) sequences data, and interviews with fig growers. In addition, this exotic weevil could expand to other regions of South Korea since proper control methods for this weevil pest have not yet been developed and some fig trees are cultivated using eco-friendly farming practices. Therefore, constant monitoring will be required for the invasive alien weevil species which seriously damages the trunk of fig trees

Ab‑interno surgical technique for the implantation of a wireless subretinal prosthesis in mini‑pigs

We sought to describe the surgical techniques required in the ab-interno method to implant subretinal prostheses in mini-pigs and suggest tips to facilitate optimal outcomes. During vitrectomy, the use of valved trocar cannulas was essential to stabilize the detached retina and implanted chip. As a first step in retinal detachment, a 23-gauge cannula with very small amount of viscoelastic material was used to establish the retinal hole and promote retinal detachment. Then, balanced salt solution was applied to increase the retinal detachment and diathermy was used to make opening for subretinal prosthesis. For easy positioning of the subretinal prosthesis, a curved laser probe was adopted when handling the subretinal prosthesis under the retina. After surgery, the sclerotomy sites were tightly sutured to prevent silicone oil leakage. Without special equipment, such as a 41-gauge tip, retinal detachment could be induced easily, while the prosthesis was also successfully inserted and manipulated under the retina without an iatrogenic retinal tear. Two weeks after the operation, the oil fully occupied the intraocular volume without leakage. The subretinal prosthesis remained stable without complication. Understanding the principle of the ab-interno method and considering several tips for improving surgical access may help to enhance surgical success rates of subretinal prostheses implantation. © 2020, The Author(s).1

Analyses bactériologiques et cellulaires des échantillons de lait chez des chèvres après sélection divergente sur la résistance aux mammites

La concentration des cellules somatiques (CCS) est un critère très utilisé pour évaluer le statut infectieux de la mamelle chez la chèvre. Grace à l’analyse en cytométrie en flux, celle-ci a été décomposée en concentrations de neutrophiles (vivants et morts), lymphocytes, macrophages dans le but d’étudier la réponse inflammatoire locale chez deux lignées de chèvres génétiquement divergentes sur le critère de la CCS. L’objectif de cette étude était de décrire l’évolution au cours de la lactation de la CCS en fonction du statut bactériologique. Les infections mammaires chez les chèvres de la lignée résistante sont moins fréquentes et avec des titres bactériens plus faibles d’après les données acquises par les méthodes conventionnelle et moléculaire. De plus, leurs réponses inflammatoire et immunitaire locales semblent plus efficaces lors d’infection