Role of corporate governance in mitigating the selective disclosure of executive stock option information

We examine the nature and extent of statutory executive stock option (ESO) disclosures by Australian listed companies over the 2001 to 2004 period, and the influence of corporate governance mechanisms on these disclosures. Our results show a progressive increase in overall compliance from 2001 to 2004. However, despite the improved compliance, the results reveal managements’ continued reluctance to disclose more sensitive ESO information. Factors associated with good internal governance, including board independence, audit committee independence and effectiveness, and compensation committee independence and effectiveness are found to contribute to improved compliance. Similarly, certain external governance factors are associated with improved disclosure, including external auditor quality, shareholder activism (as proxied by companies identified as poor performers by the Australian Shareholders’ Association), and regulatory intervention.

Sequential decision fusion for controlled detection errors

Information fusion in biometrics has received considerable attention. The architecture proposed here is based on the sequential integration of multi-instance and multi-sample fusion schemes. This method is analytically shown to improve the performance and allow a controlled trade-off between false alarms and false rejects when the classifier decisions are statistically independent. Equations developed for detection error rates are experimentally evaluated by considering the proposed architecture for text dependent speaker verification using HMM based digit dependent speaker models. The tuning of parameters, n classifiers and m attempts/samples, is investigated and the resultant detection error trade-off performance is evaluated on individual digits. Results show that performance improvement can be achieved even for weaker classifiers (FRR-19.6%, FAR-16.7%). The architectures investigated apply to speaker verification from spoken digit strings such as credit card numbers in telephone or VOIP or internet based applications.

Transaction mining for fraud detection in ERP Systems

Despite all attempts to prevent fraud, it continues to be a major threat to industry and government. Traditionally, organizations have focused on fraud prevention rather than detection, to combat fraud. In this paper we present a role mining inspired approach to represent user behaviour in Enterprise Resource Planning (ERP) systems, primarily aimed at detecting opportunities to commit fraud or potentially suspicious activities. We have adapted an approach which uses set theory to create transaction profiles based on analysis of user activity records. Based on these transaction profiles, we propose a set of (1) anomaly types to detect potentially suspicious user behaviour, and (2) scenarios to identify inadequate segregation of duties in an ERP environment. In addition, we present two algorithms to construct a directed acyclic graph to represent relationships between transaction profiles. Experiments were conducted using a real dataset obtained from a teaching environment and a demonstration dataset, both using SAP R/3, presently the predominant ERP system. The results of this empirical research demonstrate the effectiveness of the proposed approach.

Fraud detection in ERP systems using scenario matching

ERP systems generally implement controls to prevent certain common kinds of fraud. In addition however, there is an imperative need for detection of more sophisticated patterns of fraudulent activity as evidenced by the legal requirement for company audits and the common incidence of fraud. This paper describes the design and implementation of a framework for detecting patterns of fraudulent activity in ERP systems. We include the description of six fraud scenarios and the process of specifying and detecting the occurrence of those scenarios in ERP user log data using the prototype software which we have developed. The test results for detecting these scenarios in log data have been verified and confirm the success of our approach which can be generalized to ERP systems in general.

Vision-based detection and tracking of aerial targets for UAV collision avoidance

Machine vision represents a particularly attractive solution for sensing and detecting potential collision-course targets due to the relatively low cost, size, weight, and power requirements of the sensors involved (as opposed to radar). This paper describes the development and evaluation of a vision-based collision detection algorithm suitable for fixed-wing aerial robotics. The system was evaluated using highly realistic vision data of the moments leading up to a collision. Based on the collected data, our detection approaches were able to detect targets at distances ranging from 400m to about 900m. These distances (with some assumptions about closing speeds and aircraft trajectories) translate to an advanced warning of between 8-10 seconds ahead of impact, which approaches the 12.5 second response time recommended for human pilots. We make use of the enormous potential of graphic processing units to achieve processing rates of 30Hz (for images of size 1024-by- 768). Currently, integration in the final platform is under way.

Airborne vision-based collision-detection system

Machine vision represents a particularly attractive solution for sensing and detecting potential collision-course targets due to the relatively low cost, size, weight, and power requirements of vision sensors (as opposed to radar and TCAS). This paper describes the development and evaluation of a real-time vision-based collision detection system suitable for fixed-wing aerial robotics. Using two fixed-wing UAVs to recreate various collision-course scenarios, we were able to capture highly realistic vision (from an onboard camera perspective) of the moments leading up to a collision. This type of image data is extremely scarce and was invaluable in evaluating the detection performance of two candidate target detection approaches. Based on the collected data, our detection approaches were able to detect targets at distances ranging from 400m to about 900m. These distances (with some assumptions about closing speeds and aircraft trajectories) translate to an advanced warning of between 8-10 seconds ahead of impact, which approaches the 12.5 second response time recommended for human pilots. We overcame the challenge of achieving real-time computational speeds by exploiting the parallel processing architectures of graphics processing units found on commercially-off-the-shelf graphics devices. Our chosen GPU device suitable for integration onto UAV platforms can be expected to handle real-time processing of 1024 by 768 pixel image frames at a rate of approximately 30Hz. Flight trials using manned Cessna aircraft where all processing is performed onboard will be conducted in the near future, followed by further experiments with fully autonomous UAV platforms.

Toward robust image detection of crown-of-thorns starfish for autonomous population monitoring

Robust texture recognition in underwater image sequences for marine pest population control such as Crown-Of-Thorns Starfish (COTS) is a relatively unexplored area of research. Typically, humans count COTS by laboriously processing individual images taken during surveys. Being able to autonomously collect and process images of reef habitat and segment out the various marine biota holds the promise of allowing researchers to gain a greater understanding of the marine ecosystem and evaluate the impact of different environmental variables. This research applies and extends the use of Local Binary Patterns (LBP) as a method for texture-based identification of COTS from survey images. The performance and accuracy of the algorithms are evaluated on a image data set taken on the Great Barrier Reef.

Obstacle detection using optical flow

Motion has been examined in biology to be a critical component for obstacle avoidance and navigation. In particular, optical flow is a powerful motion cue that has been exploited in many biological systems for survival. In this paper, we investigate an obstacle detection system that uses optical flow to obtain range information to objects. Our experimental results demonstrate that optical flow is capable of providing good obstacle information but has obvious failure modes. We acknowledge that our optical flow system has certain disadvantages and cannot be solely used for navigation. Instead, we believe that optical flow is a critical visual subsystem used when moving at reason- able speeds. When combined with other visual subsystems, considerable synergy can result.

Lip detection for audio-visual speech recognition in-car environment

Acoustically, car cabins are extremely noisy and as a consequence audio-only, in-car voice recognition systems perform poorly. As the visual modality is immune to acoustic noise, using the visual lip information from the driver is seen as a viable strategy in circumventing this problem by using audio visual automatic speech recognition (AVASR). However, implementing AVASR requires a system being able to accurately locate and track the drivers face and lip area in real-time. In this paper we present such an approach using the Viola-Jones algorithm. Using the AVICAR [1] in-car database, we show that the Viola- Jones approach is a suitable method of locating and tracking the driver’s lips despite the visual variability of illumination and head pose for audio-visual speech recognition system.

GPS fault detection with IMU and aircraft dynamics

Approaches with Vertical Guidance (APV) can provide greater safety and cost savings to general aviation through accurate GPS horizontal and vertical navigation. However, GPS needs augmentation to achieve APV fault detection requirements. Aircraft Based Augmentation Systems (ABAS) fuse GPS with additional sensors at the aircraft. Typical ABAS designs assume high-quality inertial sensors with Kalman filters but these are too expensive for general aviation. Instead of using high-quality (and expensive) sensors, the purpose of this paper is to investigate augmenting GPS with a low-quality MEMS IMU and Aircraft Dynamic Model (ADM). The IMU and ADM are fused together using a multiple model fusion strategy in a bank of Extended Kalman Filters (EKF) with the Normalized Solution Separation (NSS) fault detection scheme. A tightly-coupled configuration with GPS is used and frequent GPS updates are applied to the IMU and ADM to compensate for their errors. Based upon a simulated APV approach, the performance of this architecture in detecting a GPS ramp fault is investigated showing a performance improvement over a GPS-only “snapshot” implementation of the NSS method. The effect of fusing the IMU with the ADM is evaluated by comparing a GPS-IMU-ADM EKF with a GPS-IMU EKF where a small improvement in protection levels is shown.

Selective growth of carbon nanotubes on bare silicon : MWNT sinthesys on patterned substrates without predeposition of metal catalyst

Carbon nanotubes (CNTs) are expected to become the ideal constituent of many technologes, in particular for future generation electronics. This considerable interest is due to their unique electrical and mechanical properties. They show indeed super-high current-carrying capacity, ballistic electron transport and good field-emission properties. Then, these superior features make CNTs the most promising building blocks for electronic devices, as organic solar cells and organic light emitting devices (OLED). By using Focused Ion Beam (FIB) patterning it is possible to a obtain a high control on position, relative distances and diameter of CNTs. The present work shows how to grow three-dimensional architecture made of vertical-aligned CNTs directly on silicon. Thanks to the higher activity of a pre-patterned surface the synthesis process results very quick, cheap and simple. Such large area growths of CNTs could be used in preliminary test for application as electrodes for organic solar cells.

Intrusion detection system for encrypted networks using secret-sharing schemes

Secret-sharing schemes describe methods to securely share a secret among a group of participants. A properly constructed secret-sharing scheme guarantees that the share belonging to one participant does not reveal anything about the shares of others or even the secret itself. Besides the obvious feature which is to distribute a secret, secret-sharing schemes have also been used in secure multi-party computations and redundant residue number systems for error correction codes. In this paper, we propose that the secret-sharing scheme be used as a primitive in a Network-based Intrusion Detection System (NIDS) to detect attacks in encrypted networks. Encrypted networks such as Virtual Private Networks (VPNs) fully encrypt network traffic which can include both malicious and non-malicious traffic. Traditional NIDS cannot monitor encrypted traffic. Our work uses a combination of Shamir's secret-sharing scheme and randomised network proxies to enable a traditional NIDS to function normally in a VPN environment. In this paper, we introduce a novel protocol that utilises a secret-sharing scheme to detect attacks in encrypted networks.

Analysis and detection of cognitive load and frustration in drivers' speech

Non-driving related cognitive load and variations of emotional state may impact a driver’s capability to control a vehicle and introduces driving errors. Availability of reliable cognitive load and emotion detection in drivers would benefit the design of active safety systems and other intelligent in-vehicle interfaces. In this study, speech produced by 68 subjects while driving in urban areas is analyzed. A particular focus is on speech production differences in two secondary cognitive tasks, interactions with a co-driver and calls to automated spoken dialog systems (SDS), and two emotional states during the SDS interactions - neutral/negative. A number of speech parameters are found to vary across the cognitive/emotion classes. Suitability of selected cepstral- and production-based features for automatic cognitive task/emotion classification is investigated. A fusion of GMM/SVM classifiers yields an accuracy of 94.3% in cognitive task and 81.3% in emotion classification.

Exploring visual features through Gabor representations for facial expression detection

Gabor representations have been widely used in facial analysis (face recognition, face detection and facial expression detection) due to their biological relevance and computational properties. Two popular Gabor representations used in literature are: 1) Log-Gabor and 2) Gabor energy filters. Even though these representations are somewhat similar, they also have distinct differences as the Log-Gabor filters mimic the simple cells in the visual cortex while the Gabor energy filters emulate the complex cells, which causes subtle differences in the responses. In this paper, we analyze the difference between these two Gabor representations and quantify these differences on the task of facial action unit (AU) detection. In our experiments conducted on the Cohn-Kanade dataset, we report an average area underneath the ROC curve (A`) of 92.60% across 17 AUs for the Gabor energy filters, while the Log-Gabor representation achieved an average A` of 96.11%. This result suggests that small spatial differences that the Log-Gabor filters pick up on are more useful for AU detection than the differences in contours and edges that the Gabor energy filters extract.

Cascading appearance-based features for visual voice activity detection

The detection of voice activity is a challenging problem, especially when the level of acoustic noise is high. Most current approaches only utilise the audio signal, making them susceptible to acoustic noise. An obvious approach to overcome this is to use the visual modality. The current state-of-the-art visual feature extraction technique is one that uses a cascade of visual features (i.e. 2D-DCT, feature mean normalisation, interstep LDA). In this paper, we investigate the effectiveness of this technique for the task of visual voice activity detection (VAD), and analyse each stage of the cascade and quantify the relative improvement in performance gained by each successive stage. The experiments were conducted on the CUAVE database and our results highlight that the dynamics of the visual modality can be used to good effect to improve visual voice activity detection performance.