Essays on auditor independence

Auditor independence is a cornerstone of the auditing profession and the basic principle that underpins the reputation of the auditing profession in the public eye. Indeed, it is the attribute most demanded from auditors by the public. Therefore, the sustainability of the auditing profession depends on how auditors can protect this principle. This dissertation consists of four interrelated essays concerned with auditor independence. Specifically, it examines situations that can threaten and impair auditor independence. In addition, this dissertation also examines several variables that may enhance and protect auditor independence. The first essay aims to examine the impact of social pressures occurring within audit firms on auditors’ judgment in the setting of a society with “high power distance” and “low individualism” cultural dimensions. The social pressures consisted of obedience pressure exerted by an auditor’s superior and conformity pressure exerted by an auditor’s colleague. Moreover, two moderating variables—a multi-dimensional professional commitment and locus of control—were included as moderator variables in the relationship between the social pressures faced by auditors and their judgment. The findings show that obedience and conformity pressures influence auditor judgment. Auditors who face the social pressures will make a judgment that may be even diametrically opposite to the independence principle. The findings also indicate that a multi-dimensional professional commitment and locus of control may potentially influence auditor judgment in a situation with social pressures. The second essay aims to investigate the association of advocacy and familiarity threats caused by auditor fee dependence and auditor tenure on auditor independence based on Finnish data, law, and auditing environment. This essay was motivated by the Green Paper on Audit Policy, published by the European Commission in 2010 that questions whether the maximum fee collected from a client should be regulated and whether consecutive assignments should be limited, among others. Contrary to popular belief, this essay does not find evidence that audit fees and long auditor tenure will jeopardise auditor independence. Therefore, the findings do not support policies to regulate auditor fees or limit auditor tenure in Finland. The third essay aims to examine the effect of client intimidation on auditor independence in an audit-client conflict situation. Intimidation threat is one of five independence threats that are explicitly referenced in the IFAC’s independence framework. Client intimidation was manifested in the client threatening to replace the auditor if the auditor did not adopt the client’s position. In addition, this essay examines the role of auditor’s perceived pressure and multi-dimensions of professional commitment as moderator variables. The findings suggest that auditors who experience client intimidation in an audit conflict situation are more likely to have their independence impaired than those who are in a similar situation but without client intimidation. Moreover, auditors who experience client intimidation perceive higher pressure than those who do not experience intimidation. Finally, auditors’ affective and continuance professional commitment dimensions moderate the relationship between auditors’ perceived pressures and auditor independence. The aim of the fourth essay is twofold. First, it aims to develop a scale for measuring auditors’ reputation awareness. Second, it aims to examine the correlation between the levels of auditor reputation awareness and auditor independence. A seven-item scale was developed as the reputation awareness scale. The findings indicate that the scale consists of one dimension. It also has a level of satisfactory reliability and a high level of validity. The findings show that there is a positive correlation between the level of auditors’ reputation awareness and auditor independence.

Voimalaitoksen kanavien kannakkeiden rakennesuunnittelu

Tässä diplomityössä esitetään voimalaitoksen kanavien kannakkeiden rakennesuunnittelussa tarvittavat laskentamenetelmät. Työssä rakenteiden suunnitteluun ja mitoitukseen käytetään pääasiassa Eurokoodi 3 teräsrakenteiden suunnittelustandardin mukaista rajatilamitoitusta. Lisäksi kehitetään mitoitustyökaluja tärkeimpien kanavakannakkeiden suunnitteluun. Toteutettujen mitoitustyökalujen toiminta verifioidaan lujuusopin elementtimenetelmällä tehtävin tarkistuslaskelmin. Laskentatyökalujen analyyttisen ratkaisun verifioitiin olevan varmalla puolella kaikissa tutkituissa ilmiöissä. Työssä verifioituja menetelmiä voidaan soveltaa myös muiden vastaavien rakenteiden mitoittamiseen. Työssä luotujen laskentatyökalujen sisältämät laskentamenetelmät mahdollistavat monenlaisten rakenteiden vaatimustenmukaisen suunnittelun.

Painelaitehitsauksen laadunhallintajärjestelmän kehittäminen voimalaitosten kunnossapitotöissä

Diplomityössä tarkastellaan paineenalaisten laitteiden hitsaukseen liittyviä laadullisia asioita voimalaitosten kunnossapitotöissä. Työssä selvitetään hitsauksen laadunhallinnan on-gelmakohtia ja niiden aiheuttajia sekä tutustutaan erilaisiin toimintaa helpottaviin laadun-hallinnan työkaluihin. Teoriaosuus koostuu erilaisiin laatutyökaluihin, kuten ISO 9001- ja ISO 3834 -standardeihin, Total Welding Managementiin ja Benchmarkingiin tutustumisesta sekä hit-sauksen laatukäsitteen tarkentamisesta. Osaa näistä laadunhallinnan työkaluista käytettiin parantamaan painelaitehitsauksen laatujärjestelmää voimalaitosten kunnossapitotöissä. Laadunhallinnan kannalta korjaus- ja kunnossapitotyöt ovat haastavia, koska ne ovat todel-la monipuolisia ja lähes aina erilaisia. Hitsaustyöt ovat usein toisistaan poikkeavia, eikä valmistavaa hitsaustuotantoa suoriteta kuin harvoissa tapauksissa. Havaittuja ongelmakoh-tia olivat tiedonkulun puutteet suunnittelun ja työn toteutuksen välillä sekä painelaitteiden hitsaustöistä vaadittavien dokumenttien laadinnan ja tiedonjaon hitaus. Helsingin Energian painelaitehitsauksen laatujärjestelmän päivityksen yhteydessä huomat-tiin, että uusien tiedonjakojärjestelmien käyttöönotto helpottaa dokumenttien saatavuutta ja pienentää huomattavasti henkilöstön työtaakkaa laadittaessa painelaitteiden vaatimusten-mukaisuusvakuutuksia ja muita vaadittavia dokumentaatioita.

Yksilöarvot, konformisuus, sitoutuminen ja vastavuoroisuus yritysarvojen toteutumisen selittäjinä

Yritysarvojen toteutumisesta ei raportoidun tieteellisen tutkimuksen perusteella ole toistaiseksi tehty empiiristä tutkimusta, jossa yritysarvojen toteutumista selittävinä tekijöinä tarkasteltaisiin yhtäaikaisesti henkilöstön yksilöarvoja ja konformisuutta, yritykseen sitoutumista, yritykseltä saatua tukea sekä yritystä kohtaan koettua velvollisuuden tunnetta. Tässä tutkimuksessa analysoitiin edellä mainittujen tekijöiden vaikutusta kohdeyrityksen yritysarvojen toteutumiseen yksilönäkökulmasta sekä koko yrityksen että sen eri toimialojen osalta. Tutkimuksen tavoitteena oli kartoittaa yritysarvojen toteutumiseen vaikuttavia tekijöitä sekä tekijöiden vaikuttavuutta kohdeyrityksessä yritysarvojen toteutumisen tehostamiseksi. Tutkimus toteutettiin tapaustutkimuksena suomalaisessa kaupanalan yrityksessä. Tutkimuksen empiirinen osa toteutettiin yrityksen henkilöstölle suunnattuna strukturoituna kyselynä ja saatu aineisto analysoitiin kvantitatiivisesti. Tutkimustulosten perusteella merkittävimmät tekijät tapausyrityksen yritysarvojen toteutumisessa olivat koettu yritykseltä saatu tuki sekä velvollisuuden tunne yritystä kohtaan. Tarkastellussa aineistossa nämä tekijät selittivät yritysarvojen toteutumisen vaihtelusta 23 - 29 prosenttia toimialasta riippuen. Yksilöarvot ja konformisuus selittivät yritysarvojen toteutumisen vaihtelusta enintään kymmenen prosenttia. Yritykseen sitoutumisen selitysosuus puolestaan oli enintään viisi prosenttia affektiivisen sitoutumisen merkityksen ollessa suurempi kuin jatkuvuuteen perustuvan sitoutumisen.

Influence of body mass and environmental oxygen tension on the oxygen consumption rates of an enteropneust, Glossobalanus crozieri

The present study deals with a species of enteropneust, Glossobalanus crozieri, focusing on two aspects of its respiration: a) oxygen consumption and body mass, and b) the influence of environmental oxygen tension on the respiratory rate. Preliminarily, the body water content was shown to be 85% of the whole body weight. The regression coefficient of the oxygen consumption on the wet body mass (0.578) seems to agree with the view that in enteropneusts respiration is mainly cutaneous. The respiratory rate was significantly reduced at O2 tensions from 76 mmHg downwards, suggesting conformity rather than regulation

Complementarity of radioautographic and immunohistochemical techniques for localizing neuroreceptors at the light and electron microscopy level

To assess relationships between neuropeptide-binding sites and receptor proteins in rat brain, the distribution of radioautographically labeled somatostatin and neurotensin-binding sites was compared to that of immunolabeled sst2A and NTRH receptor subtypes, respectively. By light microscopy, immunoreactive sst2A receptors were either confined to neuronal perikarya and dendrites or diffusely distributed in tissue. By electron microscopy, areas expressing somatodendritic sst2A receptors displayed only low proportions of membrane-associated, as compared to intracellular, receptors. Conversely, regions displaying diffuse sst2A labeling exhibited higher proportions of membrane-associated than intracellular receptors. Furthermore, the former showed only low levels of radioautographically labeled somatostatin-binding sites whereas the latter contained high densities of somatostatin-binding suggesting that membrane-associated receptors are preferentially recognized by the radioligand. In the case of NTRH receptors, there was a close correspondence between the light microscopic distribution of NTRH immunoreactivity and that of labeled neurotensin-binding sites. Within the substantia nigra, the bulk of immuno- and autoradiographically labeled receptors were associated with the cell bodies and dendrites of presumptive DA neurons. By electron microscopy, both markers were detected inside as well as on the surface of labeled neurons. At the level of the plasma membrane, their distribution was highly correlated and characterized by a lack of enrichment at the level of synaptic junctions and by a homogeneous distribution along the remaining neuronal surface, in conformity with the hypothesis of an extra-synaptic action of this neuropeptide. Inside labeled dendrites, there was a proportionally higher content of immunoreactive than radiolabeled receptors. Some of the immunolabeled receptors not recognized by the radioligand were found in endosome-like organelles suggesting that, as in the case of sst2A receptors, they may have undergone endocytosis subsequent to binding to the endogenous peptide

Physicochemical characteristics of organic honey samples of africanized honeybees from Parana River islands

This research was carried out to evaluate the physicochemical composition of organic honey in Paraná River islands, in Porto Brasílio, State of Paraná. Honey was harvested directly from super of the colonies in three apiaries spread in the Floresta and Laranjeira Islands, from August 2005 to August 2006. Twenty-four samples of organic honey produced by Africanized honeybees were evaluated. The following parameters were analyzed: pH, acidity, formol index, hydroxymethylfurfural, ashes, color, electric conductivity and moisture. Three replications per sample were performed for laboratorial analysis, giving the means and standard deviation. Most honey samples were in conformity with the Normative Instruction 11 from October 20, 2000. However, 4.17% were not in accordance with the moisture standards, 8.33% showed high concentrations of hydroxymethylfurfural, thus, totalizing 12.50% of non-complying samples. Nevertheless, 87.50% of the analyzed honey samples are within the standards, being characterized as an organic product of excellent quality, with good commercialization perspectives in the market.

Isotope analysis (δ13C) of pulpy whole apple juice

The objectives of this study were to develop the method of isotope analysis to quantify the carbon of C3 photosynthetic cycle in pulpy whole apple juice and to measure the legal limits based on Brazilian legislation in order to identify the beverages that do not conform to the Ministry of Agriculture, Livestock and Food Supply (MAPA). This beverage was produced in a laboratory according to the Brazilian law. Pulpy juices adulterated by the addition of sugarcane were also produced. The isotope analyses measured the relative isotope enrichment of the juices, their pulpy fractions (internal standard) and purified sugar. From those results, the quantity of C3 source was estimated by means of the isotope dilution equation. To determine the existence of adulteration in commercial juices, it was necessary to create a legal limit according to the Brazilian law. Three brands of commercial juices were analyzed. One was classified as adulterated. The legal limit enabled to clearly identify the juice that was not in conformity with the Brazilian law. The methodology developed proved efficient for quantifying the carbon of C3 origin in commercial pulpy apple juices.

Carbon isotope analysis in apple nectar beverages

The aims of this study were to use the isotope analysis method to quantify the carbon of C3 photosynthetic cycle in commercial apple nectars and to determine the legal limit to identify the beverages that do not conform to the safety standards established by the Brazilian Ministry of Agriculture, Livestock and Food Supply. These beverages (apple nectars) were produced in the laboratory according to the Brazilian legislation. Adulterated nectars were also produced with an amount of pulp juice below the permitted threshold limit value. The δ13C values of the apple nectars and their fractions (pulp and purified sugar) were measured to quantify the C3 source percentage. In order to demonstrate the existence of adulteration, the values found were compared to the limit values established by the Brazilian Law. All commercial apple nectars analyzed were within the legal limits, which enabled to identify the nectars that were in conformity with the Brazilian Law. The isotopic methodology developed proved efficient to quantify the carbon of C3 origin in commercial apple nectars.

Hygienic-sanitary working practices and implementation of a Hazard Analysis and Critical Control Point (HACCP) plan in lobster processing industries

This study aimed to verify the hygienic-sanitary working practices and to create and implement a Hazard Analysis Critical Control Point (HACCP) in two lobster processing industries in Pernambuco State, Brazil. The industries studied process frozen whole lobsters, frozen whole cooked lobsters, and frozen lobster tails for exportation. The application of the hygienic-sanitary checklist in the industries analyzed achieved conformity rates over 96% to the aspects evaluated. The use of the Hazard Analysis Critical Control Point (HACCP) plan resulted in the detection of two critical control points (CCPs) including the receiving and classification steps in the processing of frozen lobster and frozen lobster tails, and an additional critical control point (CCP) was detected during the cooking step of processing of the whole frozen cooked lobster. The proper implementation of the Hazard Analysis Critical Control Point (HACCP) plan in the lobster processing industries studied proved to be the safest and most cost-effective method to monitor each critical control point (CCP) hazards.

Quality of deep frying oils and fats used in street-fairs in Goiânia, Brazil

Fried foods are widely consumed in Brazil and their quality depends on the oil or fat they are fried. Qualitative (physical chemistry indices) and quantitative measurements (fry-life oil or fat until disposal, oil turnover, type of oil or fat and amount and type of fried foods) and associations were performed. We applied a structured form and collected 60 mL of frying oil or fat in each of the 70 fried food stands of 15 street-fairs in Goiânia, Brazil. All samples were suitable in the quantity of free fat acids (<0.9% oleic acid), one was inadequate to peroxide value (>10 mEq/kg) and 1/3 was unsuitable to polar compounds (<25%). The majority (62%) use temperature up to the allowed (180 ºC). Approximately 250 units of products are fried in at least one day in 42% of the fried food stands. Soybean oil is used in the majority (94%) of fried food stands and the fry-life is of 6 hours (60%) or a day of work/sale. The nonconformity of the content of total polar compounds in fried foods had significant association with frying time and the conformity of acidity had significant relationship with frying time by a chi-square test. All other associations were not significant. A fry-life of oil or fat up to 6 hours can avoid the excess of polar compounds in the frying medium and protect the quality of fred foods.

Convenções financeiras e a taxa básica de juros no Brasil: uma primeira aproximação

Financial conventions and basic interest rate in Brazil. This article discusses the thesis that the Brazilian interest rate is a convention, focusing on the basic interest rate under the inflation targeting regime. On the one hand, there are some complications involved in this debate. In order to show this, we consider the theoretical works that have been references for the Brazilian economists who see an interest rate convention in the country. On the other hand, despite the difficulties, it is possible to find signs of conventionality in the determination of the Brazilian basic rate, by analyzing two properties of conventions: conformity of some with the conformity of others; and arbitrariness.

Tuotesuunnittelu direktiiviperustaisesti

Onnistuneen tuotekehitysprojektin läpivieminen vaatii huolellisen alkusuunnittelun ennen varsinaista tuotteen kehityksen aloitusta. Projektin läpiviemiseksi esitetään usein malleja joissa tuotekehitysprojektissa edetään yksi vaihe kerrallaan ja siirrytään seuraavaan vasta, kun edellinen on valmis. Tämän perinteisen mallin rinnalle on tullut DFMA-suunnittelu, jossa murretaan kommunikaatiomuuri suunnittelun ja valmistuksen väliltä ja useita vaiheita tehdään samanaikaisesta. Näin saadaan valmistus- ja kokoonpanoystävällisiä tuotteita, joilla tuotteesta saatava kate voidaan maksimoida samalla kun tuotteen laatua saadaan parannettua. Teknisen kehityksen lisäksi on tuotekehitysprosessissa erottamattomana osana direktiivien asettamien vaatimusten huomioon ottaminen. Jo lähes kaikissa tuotteissa on oltava CE-merkintä. CE-merkinnällä tuotteen valmistaja ottaa täyden vastuun siitä, että tuote täyttää sitä koskevien direktiivien asettamat vaatimukset vaatimustenmukaisuudesta. Direktiivien asettamat vaatimukset on hyvä tiedostaa jo tuotteen suunnittelun alkuvaiheista lähtien, jotta nämä osataan ottaa heti huomioon ja jälkikäteen tehtäviltä muutoksilta vältytään. Teknisten ratkaisujen lisäksi tuotteen dokumentoinnilla on suuri rooli vaatimustenmukaisuuden täyttämisessä. Tuotteesta tulee koota tekninen tiedosto, joka sisältää kaikki tarpeelliset dokumentit, joilla tuotteen vaatimustenmukaisuus voidaan todeta. Teknisen tiedoston vaatimukset on hyvä tiedostaa jo suunnittelun alusta lähtien, jotta tarvittavat dokumentit osataan kerätä projektin aikana tekniseen tiedostoon. Tässä työssä kehitettiin peltier-jäähdytin, jollaiselle asiakkailta saadun palautteen perusteella oli markkinoilla tarve. Jäähdyttimen suunnittelussa käytettiin DFMA:n keinoja yksinkertaistamaan kokoonpanoa. Jäähdyttimelle tehtiin vaatimustenmukaisuustarkastelu, missä tarkasteltiin peltier-jäähdytintä koskevien direktiivien asettamia vaatimuksia ja mitä asioita näiden vaatimusten täyttämiseksi tuli huomioida.

The functional fit between collaborative software and work systems:Qualification of work system needs to software functionality

The study develops an approach that tries to validate software functionality to work systems needs in SMEs. The formulated approach is constructed by using a SAAS based software i.e., work collaboration service (WCS), and SMEs as the elements of study. Where the WCS’s functionality is qualified to the collaboration needs that exist in operational and project work within SMEs. For this research constructivist approach and case study method is selected because the nature of the current study requires an in depth study of the work collaboration service as well as a detailed study of the work systems within different enterprises. Four different companies are selected in which fourteen interviews are conducted to gather data pertaining. The work systems method and framework are used as a central part of the approach to collect, analyze and interpret the enterprises work systems model and the underlying collaboration needs on operational and project work. On the other hand, the functional model of the WCS and its functionality is determined from functional model analysis, software testing, documentation and meetings with the service vendor. The enterprise work system model and the WCS model are compared to reveal how work progression differs between the two and make visible unaddressed stages of work progression. The WCS functionality is compared to work systems collaboration needs to ascertain if the service will suffice the needs of the project and operational work under study. The unaddressed needs provide opportunities to improve the functionality of the service for better conformity to the needs of enterprise and work. The results revealed that the functional models actually differed in how operational and project work progressed within the stages. WCS shared similar stages of work progression apart from the stages of identification and acceptance, and progress and completion stages were only partially addressed. Conclusion is that the identified unaddressed needs such as, single point of reference, SLA and OLA inclusion etc., should be implemented or improved within the WCS at appropriate stages of work to gain better compliance of the service to the needs of the enterprise an work itself. The developed approach can hence be used to carry out similar analysis for the conformance of pre-built software functionality to work system needs with SMEs.

"They're trying to trick us!": Making sense of anti-oppressive children's literature in the elementary school classroom

This study examines how children make sense of “anti-oppressive” children’s literature in the classroom, specifically, books that integrate and promote positive portrayals of gender non-conformity and sexual diversity. Through a feminist poststructural lens, I conducted ethnographic observations and reading groups with twenty students in a grade one/two classroom to explore how children engage with these storybooks. I further explored how the use of these books in the classroom might help to mediate and negotiate existing gendered and heteronormative beliefs and practices within educational settings. The books used in this study challenge oppressive gender and sexuality regimes within mainstream children’s literature that have traditionally served to marginalize and silence gender non-conforming and LGBTQ individuals. Responses from participants in this study aid in questioning how dominant discourses of gender and sexuality are produced and reinforced, as well as where we may find opportunities for change and reform within the elementary school classroom.