Public policy on corporate audit committees : case study evidence of current practice

Corporate failures and malpractices have led to an increasing emphasis on the governance role of audit committees. The Smith report Audit Committee Combined Code Guidance and the Higgs Review of the Role and Effectiveness of Non-Executive Directors (now incorporated in a Revised Combined Code) represent further attempts to strengthen corporate accountability in the UK. Although the regulatory focus on audit committees indicates confidence in their role as part of the solution to governance failures, questions remain about their efficacy in practice. Against the background of the publication of the Smith report and the wider reliance on audit committees in several countries to help improve corporate accountability, this paper provides research evidence, drawn from an ACCA-sponsored project, on the processes and effects of the audit committees in three UK companies. This study complements other research on audit committees by adopting a case study approach, in order to reflect the importance of investigating audit committee operations from within the organisation and to develop a closer understanding of audit committee impact than is available from generally observable data. The empirical evidence for the case studies was obtained from semi-structured interviews with personnel involved in the audit committee process, internal documents made available by the companies, and publicly available information, including annual reports.

Reframe : QUT's Evaluation Framework 2014 Communications Plan

2014 is the year for embedding the Reframe: QUT’s Evaluation Framework as core business within the University, with the following providing an outline of the Learning and Teaching Unit’s (LTU) planned activities to support this implementation. LTU is continuing its commitment to intensive support and engagement with the academic and teaching focused community within QUT. The Academic Quality and Standards team have extended the existing communication and dissemination activities into a comprehensive communication plan for 2014, with major initiatives defined within this document. It should be noted that these activities are aligned to the discussions from the 2013 Integrated Management of Feedback (IMF) Steering Group and as endorsed by the University Learning and Teaching Committee at their meeting in February, 2014.

Using the Driver Behaviour Questionnaire to predict crashes and demerit point loss : does it get better with larger sample sizes?

The Driver Behaviour Questionnaire (DBQ) continues to be the most widely utilised self-report scale globally to assess crash risk and aberrant driving behaviours among motorists. However, the scale also attracts criticism regarding its perceived limited ability to accurately identify those most at risk of crash involvement. This study reports on the utilisation of the DBQ to examine the self-reported driving behaviours (and crash outcomes) of drivers in three separate Australian fleet samples (N = 443, N = 3414, & N = 4792), and whether combining the samples increases the tool’s predictive ability. Either on-line or paper versions of the questionnaire were completed by fleet employees in three organisations. Factor analytic techniques identified either three or four factor solutions (in each of the separate studies) and the combined sample produced expected factors of: (a) errors, (b) highway-code violations and (c) aggressive driving violations. Highway code violations (and mean scores) were comparable across the studies. However, across the three samples, multivariate analyses revealed that exposure to the road was the best predictor of crash involvement at work, rather than DBQ constructs. Furthermore, combining the scores to produce a sample of 8649 drivers did not improve the predictive ability of the tool for identifying crashes (e.g., 0.4% correctly identified) or for demerit point loss (0.3%). The paper outlines the major findings of this comparative sample study in regards to utilising self-report measurement tools to identify “at risk” drivers as well as the application of such data to future research endeavours.

Online Customer Experience : What is the Experience and how is it Difference for Frequent and Infrequent Purchasers, Age Cohorts and Gender Groups?

What do we know? • Customer Experience is increasingly becoming the new standard for differentiation in both offline and online retailing, and offers a sustainable competitive advantage. o The economic value of a company’s offering has been observed to increase when the customer has a fulfilling shopping experience (Pine & Gilmore, 1998) o Crafting engaging and customer experience is a known method of generating loyalty, advocacy and word of mouth (Tynan & McKechnie, 2009). o A good experience can entice consumers to shop for longer and spend more (Kim, 2001). • The customer’s experience is made up of diverse elements occurring before, during and after the purchase itself. (Discussed further on page 5). It is cumulative over time and can be influenced by touch points across multiple channels. What remains unclear? • How do Coles customers respond to the elements of online customer experience? • How does the online customer experience differ for frequent and infrequent purchasers? • Do differences between genders and age cohorts for online customer experience exist?

Audit committee effectiveness in a mandatory disclosure environment

This study examines audit committee effectiveness in its association with regulatory compliance in a highly sanctioned environment. It uses the Australian continuous disclosure regime to investigate whether audit committee effectiveness is associated with a higher frequency of disclosures, thereby enhancing the efficiency of the capital market and creating more informed individual investors. The findings show that, as hypothesised, audit committee effectiveness measured as an index composed of sub-components involving audit committee size, meeting frequency, independence, member financial literacy and membership of other audit committees, is positively associated with disclosure frequency. Further tests show that it is the financial literacy sub component which is most implicated in this relationship. Company size, years of listing, the proportion of inventories and receivables to total assets, whether or not the company has been involved in a takeover offer or bid or in changes to its number of shares are significant control variables.

The waves in business transformation management: a conceptualization of how IT-enabled Business Transformations Unfold

We examine IT-enabled Business Transformations (ITBT) based on three case studies of successful, multi-year ERP implementation programs. Given the inconsistencies in segmenting the different key periods in ITBTs in both literature and our cases, we sought to consolidate the common events or critical incidents in such initiatives. We label those key periods as waves, and the emergence of triggers and reactions thereunto in the management of business transformations. We show that business transformations unfold in four distinct waves: Wave 1 Concept Development, Wave 2 Blueprint Design, Wave 3 Solution Delivery and Wave 4 Post-Transformation. These waves are characterized by the occurrence of strategic- and program-level triggers to which organizations respond by invoking different management services. Our interpretive research provides a new conceptualization of ITBTs based on a service-oriented view of such initiatives. This view draws attention to managerial capabilities as a service to transformations, and how and when these capabilities are required to respond to triggering incidents. We outline propositions and recommendations for business transformation management.

La Niña : we knew it was coming, and it’s not going away

"The major La Niña climate event responsible for record flooding in Queensland  - and the largest ever cyclone to hit Australia in Yasi  —  is not over yet according to a senior climatologist at Britain’s Met office."

Canagliflozin : something new for type 2 diabetes, but is it safe and efficacious?

Evaluation of Inagaki N, Kondo K, Yoshinari T, et al. Efficacy and safety of canagliflozin in Japanese patients with type 2 diabetes: a randomized, double-blind, placebo-controlled, 12-week study. Diabetes Obes Metab 2013. [Epub ahead of print] and Cefalu WT, Leiter LA, Yoon KH, et al. Efficacy and safety of canagliflozin versus glimepiride in patients with type 2 diabetes inadequately controlled with metformin (CANTATA-SU): 52 week results from a randomized, double-blind, phase 3 non-inferiority trial. Lancet 2013;382:941-50 INTRODUCTION Inhibition of the sodium-glucose cotransporter 2 (SGLT2), to promote the excretion of glucose, is a new paradigm in the treatment of type 2 diabetes. AREAS COVERED Canagliflozin is an SGLT2 inhibitor, which has been the subject of two recent clinical trials, which are evaluated. EXPERT OPINION Studies with canagliflozin, in subjects with type 2 diabetes, have shown that its use is associated with reductions in HbA1c and body weight and small reductions in blood pressure and triglycerides, while increasing high-density lipoprotein cholesterol and low-density lipoprotein cholesterol. As monotherapy in Japanese subjects, or in comparison with glimepiride in CANTATA-SU (CANagliflozin Treatment and Trial Analysis versus SUlphonylurea), canagliflozin causes a low incidence of hypoglycemia, and this is an advantage over glimepiride. However, one of the disadvantages with canagliflozin, which was also highlighted in CANTATA-SU, is that canagliflozin can cause urogenital infections, which are not observed with other antidiabetic drugs. The Federal Drug Administration has recently approved canagliflozin for use in type 2 diabetes, while directing that a clinical outcome safety trial be undertaken. We are concerned that canagliflozin has been approved for use in type 2 diabetes prior to a clinical outcome study of efficacy being undertaken and without the outcome of further safety testing.

Dapagliflozin – do we need it registered for type 2 diabetes?

INTRODUCTION: Inhibitors of the sodium-glucose co-transporter 2 (SGLT2) promote the excretion of glucose to reduce glycated hemoglobin (HbA1c) levels. Canagliflozin was the first SGLT2 inhibitor to be approved by the US FDA for use in the treatment of type 2 diabetes, and recently dapagliflozin has also been approved. AREAS COVERED: We evaluated a recent Phase III clinical trial with dapagliflozin. EXPERT OPINION: Dapagliflozin was studied as add-on therapy to sitagliptin with or without metformin, and was shown to lower HbA1c levels and body weight. The incidence of hypoglycaemia was low with dapagliflozin, but it did increase the incidence of urogenital infections. As no clear benefits have been identified for dapagliflozin over canagliflozin, which was the first gliflozin registered by the FDA, we do not fully understand why it was necessary to register dapagliflozin. Given that there are no completed cardiovascular/clinical outcome studies with dapagliflozin, and therefore no evidence of beneficial effect, it also seems premature to be using it extensively or considering it as an alternative to the clinically proven metformin.

Adapting “8-bit” motion style to 3D computer animation for Wreck-it Ralph

Tangled (2011) demonstrated that Walt Disney Animation has successfully extended the traditional Disney animation aesthetic to the 3D medium. The very next film produced by the studio however, Wreck-it Ralph (2012), required the animators (trained in the traditional Disney style) to develop a limited style of animation inspired by the 8-bit motion of 1980s video games. This paper examines the 8-bit style motion in Wreck-it Ralph to understand if and how the principles of animation were adapted for the film.

It wasn't my fault : does crash culpability improve predictive outcomes in a self-report study?

Introduction: Research that has focused on the ability of self-report assessment tools to predict crash outcomes has proven to be mixed. As a result, researchers are now beginning to explore whether examining culpability of crash involvement can subsequently improve this predictive efficacy. This study reports on the application of the Manchester Driver Behaviour Questionnaire (DBQ) to predict crash involvement among a sample of general Queensland motorists, and in particular, whether including a crash culpability variable improves predictive outcomes. Surveys were completed by 249 general motorists on-line or via a pen-and-paper format. Results: Consistent with previous research, a factor analysis revealed a three factor solution for the DBQ accounting for 40.5% of the overall variance. However, multivariate analysis using the DBQ revealed little predictive ability of the tool to predict crash involvement. Rather, exposure to the road was found to be predictive of crashes. An analysis into culpability revealed 88 participants reported being “at fault” for their most recent crash. Corresponding between and multi-variate analyses that included the culpability variable did not result in an improvement in identifying those involved in crashes. Conclusions: While preliminary, the results suggest that including crash culpability may not necessarily improve predictive outcomes in self-report methodologies, although it is noted the current small sample size may also have had a deleterious effect on this endeavour. This paper also outlines the need for future research (which also includes official crash and offence outcomes) to better understand the actual contribution of self-report assessment tools, and culpability variables, to understanding and improving road safety.

It's safe to say there is no safe level of air pollution

Outdoor air pollution is a killer. A recent report from the World Health Organization estimated that 3.7 million deaths per year are due to outdoor air pollution. Most of these deaths are in low and middle income countries, with China being the country that often springs to mind. However, Australia still has a relatively big air pollution problem with an estimated 3,000 deaths per year. Traffic pollution is the major contributor to urban air pollution in Australia. Extreme events, such dust storms, bushfires and the recent coal fire in Morwell, dramatically increase pollution levels (for days or weeks) and are also very hazardous to health. Australian governments in the last 30 years have committed to improving air quality, and policies have been discussed and implemented with the aim of creating cleaner air. One key policy measure is the National Environment Protection Measures for air quality. These set standards for six important outdoor pollutants. Their key goal is to create “ambient air quality that allows for the adequate protection of human health and wellbeing”.