Aligning off-balance sheet risk, on-balance sheet risk and audit fees: a PLS path modelling analysis

This study focuses on using the partial least squares (PLS) path modelling technique in archival auditing research by replicating the data and research questions from prior bank audit fee studies. PLS path modelling allows for inter-correlations among audit fee determinants by establishing latent constructs and multiple relationship paths in one simultaneous PLS path model. Endogeneity concerns about auditor choice can also be addressed with PLS path modelling. With a sample of US bank holding companies for the period 2003-2009, we examine the associations among on-balance sheet financial risks, off-balance sheet risks and audit fees, and also address the pervasive client size effect, and the effect of the self-selection of auditors. The results endorse the dominating effect of size on audit fees, both directly and indirectly via its impacts on other audit fee determinants. By simultaneously considering the self-selection of auditors, we still find audit fee premiums on Big N auditors, which is the second important factor on audit fee determination. On-balance-sheet financial risk measures in terms of capital adequacy, loan composition, earnings and asset quality performance have positive impacts on audit fees. After allowing for the positive influence of on-balance sheet financial risks and entity size on off-balance sheet risk, the off-balance sheet risk measure, SECRISK, is still positively associated with bank audit fees, both before and after the onset of the financial crisis. The consistent results from this study compared with prior literature provide supporting evidence and enhance confidence on the application of this new research technique in archival accounting studies.

Aligning off-balance sheet risk, on-balance sheet risk and audit fees: a PLS path modelling analysis

This study focuses on using the partial least squares (PLS) path modelling methodology in archival auditing research by replicating the data and research questions from prior bank audit fee studies. PLS path modelling allows for inter-correlations among audit fee determinants by establishing latent constructs and multiple relationship paths in one simultaneous PLS path model. Endogeneity concerns about auditor choice can also be addressed with PLS path modelling. With a sample of US bank holding companies for the period 2003-2009, we examine the associations among on-balance sheet financial risks, off-balance sheet risks and audit fees, and also address the pervasive client size effect, and the effect of the self-selection of auditors. The results endorse the dominating effect of size on audit fees, both directly and indirectly via its impacts on other audit fee determinants. By simultaneously considering the self-selection of auditors, we still find audit fee premiums on Big N auditors, which is the second important factor on audit fee determination. On-balance-sheet financial risk measures in terms of capital adequacy, loan composition, earnings and asset quality performance have positive impacts on audit fees. After allowing for the positive influence of on-balance sheet financial risks and entity size on off-balance sheet risk, the off-balance sheet risk measure, SECRISK, is still positively associated with bank audit fees, both before and after the onset of the financial crisis. The consistent results from this study compared with prior literature provide supporting evidence and enhance confidence on the application of this new research technique in archival accounting studies.

Empirical modelling of rolling shutter effect

We propose and evaluate a novel methodology to identify the rolling shutter parameters of a real camera. We also present a model for the geometric distortion introduced when a moving camera with a rolling shutter views a scene. Unlike previous work this model allows for arbitrary camera motion, including accelerations, is exact rather than a linearization and allows for arbitrary camera projection models, for example fisheye or panoramic. We show the significance of the errors introduced by a rolling shutter for typical robot vision problems such as structure from motion, visual odometry and pose estimation.

Systems modelling of mine water and energy tradeoffs

In the coming decades, the mining industry faces the dual challenge of lowering both its water and energy use. This presents a difficulty since technological advances that decrease the use of one can increase the use of the other. Historically, energy and water use have been modelled independently, making it difficult to evaluate the true costs and benefits from water and energy improvements. This paper presents a hierarchical systems model that is able to represent interconnected water and energy use at a whole of site scale. In order to explore the links between water and energy four technologies advancements have been modelled: use of dust suppression additives, the adoption of thickened tailings, the transition to dry processing and the incorporation of a treatment plant. The results show a synergy between decreased water and energy use for dust suppression additives, but a trade-off for the others.

Modelling total duration of traffic incidents including incident detection and recovery time

Traffic incidents are key contributors to non-recurrent congestion, potentially generating significant delay. Factors that influence the duration of incidents are important to understand so that effective mitigation strategies can be implemented. To identify and quantify the effects of influential factors, a methodology for studying total incident duration based on historical data from an ‘integrated database’ is proposed. Incident duration models are developed using a selected freeway segment in the Southeast Queensland, Australia network. The models include incident detection and recovery time as components of incident duration. A hazard-based duration modelling approach is applied to model incident duration as a function of a variety of factors that influence traffic incident duration. Parametric accelerated failure time survival models are developed to capture heterogeneity as a function of explanatory variables, with both fixed and random parameters specifications. The analysis reveals that factors affecting incident duration include incident characteristics (severity, type, injury, medical requirements, etc.), infrastructure characteristics (roadway shoulder availability), time of day, and traffic characteristics. The results indicate that event type durations are uniquely different, thus requiring different responses to effectively clear them. Furthermore, the results highlight the presence of unobserved incident duration heterogeneity as captured by the random parameter models, suggesting that additional factors need to be considered in future modelling efforts.

Measuring, modelling and understanding the mechanical behavior of bagasse

In the Australian sugar industry, sugar cane is smashed into a straw like material by hammers before being squeezed between large rollers to extract the sugar juice. The straw like material is initially called prepared cane and then bagasse as it passes through successive roller milling units. The sugar cane materials are highly compressible, have high moisture content, are fibrous, and they resemble some peat soils in both appearance and mechanical behaviour. A promising avenue to improve the performance of milling units for increased throughput and juice extraction, and to reduce costs is by modelling of the crushing process. To achieve this, it is believed necessary that milling models should be able to reproduce measured bagasse behaviour. This investigation sought to measure the mechanical (compression, shear, and volume) behaviour of prepared cane and bagasse, to identify limitations in currently used material models, and to progress towards a material model that can predict bagasse behaviour adequately. Tests were carried out using a modified direct shear test equipment and procedure at most of the large range of pressures occurring in the crushing process. The investigation included an assessment of the performance of the direct shear test for measuring bagasse behaviour. The assessment was carried out using finite element modelling. It was shown that prepared cane and bagasse exhibited critical state behavior similar to that of soils and the magnitudes of material parameters were determined. The measurements were used to identify desirable features for a bagasse material model. It was shown that currently used material models had major limitations for reproducing bagasse behaviour. A model from the soil mechanics literature was modified and shown to achieve improved reproduction while using magnitudes of material parameters that better reflected the measured values. Finally, a typical three roller mill pressure feeder configuration was modelled. The predictions and limitations were assessed by comparison to measured data from a sugar factory.

Review and future options for computer modelling in the sugar industry

Computer modelling has been used extensively in some processes in the sugar industry to achieve significant gains. This paper reviews the investigations carried out over approximately the last twenty five years,including the successes but also areas where problems and delays have been encountered. In that time the capability of both hardware and software have increased dramatically. For some processes such as cane cleaning, cane billet preparation, and sugar drying, the application of computer modelling towards improved equipment design and operation has been quite limited. A particular problem has been the large number of particles and particle interactions in these applications, which, if modelled individually, is computationally very intensive. Despite the problems, some attempts have already been made and knowledge gained on tackling these issues. Even if the detailed modelling is wanting, a model can provide some useful insights into the processes. Some options to attack these more intensive problems include the use of commercial software packages, which are usually very robust and allow the addition of user-supplied subroutines to adapt the software to particular problems. Suppliers of such software usually charge a fee per CPU licence, which is often problematic for large problems that require the use of many CPUs. Another option to consider is using open source software that has been developed with the capability to access large parallel resources. Such software has the added advantage of access to the full internal coding. This paper identifies and discusses the detail of software options with the potential capability to achieve improvements in the sugar industry.

Modelling of the mechanical behaviour of heavily over-consolidated bagasse

A better understanding of the behaviour of prepared cane and bagasse, and the ability to model the mechanical behaviour of bagasse as it is squeezed in a milling unit to extract juice, would help identify how to improve the current process, for example to reduce final bagasse moisture. Previous investigations have proven that juice flow through bagasse obeys Darcy’s permeability law, that the grip of the rough surface of the grooves on the bagasse can be represented by the Mohr-Coulomb failure criterion for soils, and that the internal mechanical behaviour of the bagasse is critical state behaviour similar to that for sand and clay. Current Finite Element Models (FEM) available in commercial software have adequate permeability models. However, no commercially available software seems to contain an adequate mechanical model for bagasse. The same software contains a few material models for soil and other materials, while the coding of hundreds of developed models for soil and other materials remains confidential at universities and government research centres. Progress has been made in the last ten years towards implementing a mechanical model for bagasse in finite element software code. This paper builds on that progress and carries out a further step towards obtaining an adequate material model. The fifth and final loading condition outlined previously, shearing of heavily over-consolidated bagasse, is outlined.

Short utterance PLDA speaker verification using SN-WLDA and variance modelling techniques

This paper proposes a combination of source-normalized weighted linear discriminant analysis (SN-WLDA) and short utterance variance (SUV) PLDA modelling to improve the short utterance PLDA speaker verification. As short-length utterance i-vectors vary with the speaker, session variations and phonetic content of the utterance (utterance variation), a combined approach of SN-WLDA projection and SUV PLDA modelling is used to compensate the session and utterance variations. Experimental studies have found that a combination of SN-WLDA and SUV PLDA modelling approach shows an improvement over baseline system (WCCN[LDA]-projected Gaussian PLDA (GPLDA)) as this approach effectively compensates the session and utterance variations.

Mathematical modelling and experimental validation of solar assisted heat pump system

Singapore is located at the equator, with abundant supply of solar radiation, relatively high ambient temperature and relative humidity throughout the year. The meteorological conditions of Singapore are favourable for efficient operation of solar energy based systems. Solar assisted heat pump systems are built on the roof-top of National University of Singapore’s Faculty of Engineering. The objectives of this study include the design and performance evaluation of a solar assisted heat-pump system for water desalination, water heating and drying of clothes. Using MATLAB programming language, a 2-dimensional simulation model has been developed to conduct parametric studies on the system. The system shows good prospect to be implemented in both industrial and residential applications and would give new opportunities in replacing conventional energy sources with green renewable energy.

Modelling the dynamics of Plasmodium falciparum histidine-rich protein 2 in human malaria to better understand malaria rapid diagnostic test performance

BACKGROUND: Effective diagnosis of malaria is a major component of case management. Rapid diagnostic tests (RDTs) based on Plasmodium falciparumhistidine-rich protein 2 (PfHRP2) are popular for diagnosis of this most virulent malaria infection. However, concerns have been raised about the longevity of the PfHRP2 antigenaemia following curative treatment in endemic regions. METHODS: A model of PfHRP2 production and decay was developed to mimic the kinetics of PfHRP2 antigenaemia during infections. Data from two human infection studies was used to fit the model, and to investigate PfHRP2 kinetics. Four malaria RDTs were assessed in the laboratory to determine the minimum detectable concentration of PfHRP2. RESULTS: Fitting of the PfHRP2 dynamics model indicated that in malaria naive hosts, P. falciparum parasites of the 3D7 strain produce 1.4 x 10(-)(1)(3) g of PfHRP2 per parasite per replication cycle. The four RDTs had minimum detection thresholds between 6.9 and 27.8 ng/mL. Combining these detection thresholds with the kinetics of PfHRP2, it is predicted that as few as 8 parasites/muL may be required to maintain a positive RDT in a chronic infection. CONCLUSIONS: The results of the model indicate that good quality PfHRP2-based RDTs should be able to detect parasites on the first day of symptoms, and that the persistence of the antigen will cause the tests to remain positive for at least seven days after treatment. The duration of a positive test result following curative treatment is dependent on the duration and density of parasitaemia prior to treatment and the presence and affinity of anti-PfHRP2 antibodies.

Modelling of a magnetocaloric system for cooling in the kilowatt range

A numerical time-dependent model of an active magnetic regenerator (AMR) was developed for cooling in the kilowatt range. Earlier numerical models have been mostly developed for cooling power in the 0.4 kW range. In contrast, this paper reports the applicability of magnetic refrigeration to the 50 kW range. A packed bed active magnetic regenerator was modelled and the influence of parameters such as geometry and operating parameters were studied for different geometries. The pressure drop for AMR bed length and particle diameter was also studied. High cooling power and coefficient of performance (COP) were achieved by optimization of the diameter of the magnetocaloric powder particles and operating frequency. The optimum operating conditions of the AMR for a cooling capacity of 50 kW was determined for a temperature span of 15 K. The predicted coefficient of performance (COP) was found to be ∼6, making it an attractive alternative to vapour compression systems.

Mathematical modelling of fumigant transport in stored grain

Computational fluid dynamics, analytical solutions, and mathematical modelling approaches are used to gain insights into the distribution of fumigant gas within farm-scale, grain storage silos. Both fan-forced and tablet fumigation are considered in this work, which develops new models for use by researchers, primary producers and silo manufacturers to assist in the eradication grain storage pests.

Agent-based modelling of aircraft boarding methods

We implemented six different boarding strategies (Wilma, Steffen, Reverse Pyramid, Random, Blocks and By letter) in order to investigate boarding times for Boeing 777 and Airbus 380 aircraft. We also introduce three new boarding methods to find the optimum boarding strategy. Our models explicitly simulate the behaviour of groups of people travelling together and we explicitly simulate the timing to store their luggage as part of the boarding process. Results from the simulation demonstrates the Reverse Pyramid method is the best boarding method for Boeing 777, and the Steffen method is the best boarding method for Airbus 380. For the new suggested boarding methods, aisle first boarding method is the best boarding strategy for Boeing 777 and row arrangement method is the best boarding strategy for Airbus 380. Overall best boarding strategy is aisle first boarding method for Boeing 777 and Steffen method for Airbus 380.

Topic dependent language modelling for spoken term detection

This paper investigates the effect of topic dependent language models (TDLM) on phonetic spoken term detection (STD) using dynamic match lattice spotting (DMLS). Phonetic STD consists of two steps: indexing and search. The accuracy of indexing audio segments into phone sequences using phone recognition methods directly affects the accuracy of the final STD system. If the topic of a document in known, recognizing the spoken words and indexing them to an intermediate representation is an easier task and consequently, detecting a search word in it will be more accurate and robust. In this paper, we propose the use of TDLMs in the indexing stage to improve the accuracy of STD in situations where the topic of the audio document is known in advance. It is shown that using TDLMs instead of the traditional general language model (GLM) improves STD performance according to figure of merit (FOM) criteria.