Earnings Management Pressure on Audit Clients: Auditor Response to Analyst Forecast Signals

This study investigates whether auditors respond to earnings management pressure created by analyst forecasts. Analyst forecasts create an important earnings target for management, and professional standards direct auditors to consider how this pressure could affect their clients. Using annual analyst forecasts available during the planning phase of the audit, I examine whether this form of earnings management pressure affects clients’ financial statement misstatements. Next, I investigate whether auditors respond to earnings forecast pressure through audit fees and reporting delay. I find that higher levels of analyst forecast pressure increase the likelihood of client restatement. I also find that auditors charge higher audit fees and delay the issuance of the audit report in response to pressure from analyst expectations. Finally, I find that when audit clients are subject to high analyst forecast pressure, a high audit fee response by auditors mitigates the likelihood of client misstatements

Does a Lack of Choice Lead to Lower Quality?: Evidence from Auditor Competition and Client Restatements

We examine the relationship between auditor competition and the likelihood of financial restatements that occur as a result of failures in the application of GAAP. Policy makers and audit market participants have expressed concern that the current level of auditor competition is low, resulting in a negative impact on audit quality. However, we find that restatements are more likely to occur in metropolitan statistical areas (MSAs) that have higher auditor competition. The association between audit market competition and restatements is statistically and economically significant. Our finding that audit quality is higher when auditor competition is lower suggests that at least some of the concerns about concentrated audit markets may be unfounded

Detection of Multi-drug Resistant \u3cem\u3eEscherichia coli\u3c/em\u3e in the Urban Waterways of Milwaukee, WI

Urban waterways represent a natural reservoir of antibiotic resistance which may provide a source of transferable genetic elements to human commensal bacteria and pathogens. The objective of this study was to evaluate antibiotic resistance of Escherichia coli isolated from the urban waterways of Milwaukee, WI compared to those from Milwaukee sewage and a clinical setting in Milwaukee. Antibiotics covering 10 different families were utilized to determine the phenotypic antibiotic resistance for all 259 E. coli isolates. All obtained isolates were determined to be multi-drug resistant. The E. coli isolates were also screened for the presence of the genetic determinants of resistance including ermB (macrolide resistance), tet(M) (tetracycline resistance), and β-lactamases (blaOXA, blaSHV, and blaPSE). E. coli from urban waterways showed a greater incidence of antibiotic resistance to 8 of 17 antibiotics tested compared to human derived sources. These E. coli isolates also demonstrated a greater incidence of resistance to higher numbers of antibiotics compared to the human derived isolates. The urban waterways demonstrated a greater abundance of isolates with co-occurrence of antibiotic resistance than human derived sources. When screened for five different antibiotic resistance genes conferring macrolide, tetracycline, and β-lactam resistance, clinical E. coli isolates were more likely to harbor ermB and blaOXA than isolates from urban waterway. These results indicate that Milwaukee’s urban waterways may select or allow for a greater incidence of multiple antibiotic resistance organisms and likely harbor a different antibiotic resistance gene pool than clinical sources. The implications of this study are significant to understanding the presence of resistance in urban freshwater environments by supporting the idea that sediment from urban waterways serves as a reservoir of antibiotic resistance

Internal Control Opinion Shopping and Audit Market Competition

This study examines whether audit clients engage in internal control opinion shopping activities and whether audit market competition appears to facilitate those activities. Regulators have long been concerned about the impact of both audit market competition and opinion shopping on audit quality. We adopt the framework developed in Lennox (2000) to construct a proxy to measure the tendency that clients engage in internal control opinion shopping activities. Our empirical results suggest that clients are successful in shopping for clean internal control opinions. In addition, we find evidence that successful internal control opinion shopping occurs primarily in competitive audit markets. Finally, our results indicate that among auditor dismissal clients, opinion shopping is more likely to occur when dismissals are made relatively late during a reporting period and when audit market competition is high. Our findings have implications for the current policy debate regarding audit quality and audit market competition

Identification of antiviral roles for the exon-junction complex and nonsense-mediated decay in flaviviral infection.

West Nile virus (WNV) is an emerging mosquito-borne flavivirus, related to dengue virus and Zika virus. To gain insight into host pathways involved in WNV infection, we performed a systematic affinity-tag purification mass spectrometry (APMS) study to identify 259 WNV-interacting human proteins. RNA interference screening revealed 26 genes that both interact with WNV proteins and influence WNV infection. We found that WNV, dengue and Zika virus capsids interact with a conserved subset of proteins that impact infection. These include the exon-junction complex (EJC) recycling factor PYM1, which is antiviral against all three viruses. The EJC has roles in nonsense-mediated decay (NMD), and we found that both the EJC and NMD are antiviral and the EJC protein RBM8A directly binds WNV RNA. To counteract this, flavivirus infection inhibits NMD and the capsid-PYM1 interaction interferes with EJC protein function and localization. Depletion of PYM1 attenuates RBM8A binding to viral RNA, suggesting that WNV sequesters PYM1 to protect viral RNA from decay. Together, these data suggest a complex interplay between the virus and host in regulating NMD and the EJC

Systematic Blueshift of Line Profiles in the Type IIn Supernova 2010jl: Evidence for Post-Shock Dust Formation?

Type IIn SNe show spectral evidence for strong interaction between their blast wave and dense circumstellar material (CSM) around the progenitor star. SN2010jl was the brightest core-collapse SN in 2010, and it was a Type IIn explosion with strong CSM interaction. Andrews et al. recently reported evidence for an IR excess in SN2010jl, indicating either new dust formation or the heating of CSM dust in an IR echo. Here we report multi-epoch spectra of SN2010jl that reveal the tell-tale signature of new dust formation: emission-line profiles becoming systematically more blueshifted as the red side of the line is blocked by increasing extinction. The effect is seen clearly in the intermediate-width (400--4000 km/s) component of H$\alpha$ beginning roughly 30d after explosion. Moreover, we present near-IR spectra demonstrating that the asymmetry in the hydrogen-line profiles is wavelength dependent, appearing more pronounced at shorter wavelengths. This evidence suggests that new dust grains had formed quickly in the post-shock shell of SN 2010jl arising from CSM interaction. Since the observed dust temperature has been attributed to an IR echo and not to new dust, either (1) IR excess emission at $\lambda < 5 \mu$m is not a particularly sensitive tracer of new dust formation in SNe, or (2) some assumptions about expected dust temperatures might require further study. Lastly, we discuss one possible mechanism other than dust that might lead to increasingly blueshifted line profiles in SNeIIn, although the wavelength dependence of the asymmetry argues against this hypothesis in the case of SN2010jl.Comment: 6 pages, 4 figures, submitted to A

Like a rolling stone:the dynamic world of animal ecology publishing

International audienc

Platelets retain inducible alpha granule secretion by P‐selectin expression but exhibit mechanical dysfunction during trauma‐induced coagulopathy

Peer Reviewedhttps://deepblue.lib.umich.edu/bitstream/2027.42/149281/1/jth14414.pdfhttps://deepblue.lib.umich.edu/bitstream/2027.42/149281/2/jth14414_am.pd

Poincare Semigroup Symmetry as an Emergent Property of Unstable Systems

The notion that elementary systems correspond to irreducible representations of the Poincare group is the starting point for this paper, which then goes on to discuss how a semigroup for the time evolution of unstable states and resonances could emerge from the underlying Poincare symmetry. Important tools in this analysis are the Clebsch-Gordan coefficients for the Poincare group.Comment: 17 pages, 1 figur