Criticisms of auditors and earnings management during the Asian economic crisis

Auditors were criticised during and after the Asian economic crisis for supplying variable quality across global audit markets. This study examines
the level of earnings management as measured by discretionary accruals in the pre-crisis compared to the post-crisis periods as they impacted Malaysia. Both the Jones (1991) and earnings per share frequency distribution methods are used to examine earnings management behaviour. As hypothesised, the pre-crisis period is associated with significantly higher levels of absolute discretionary accruals and increased propensity to meet or beat the prior year earnings per share, whereas the post-crisis period is not. This finding is consistent with auditors responding to the criticisms that were made. However, the propensity to avoid losses is found to be higher in the post-crisis period, indicating that earnings management is not fully constrained.

Protecting legal rights when things go wrong : legal recourse if mandatory fortification of a food were to harm human health

Food laws can encompass considerations that extend beyond food safety. The recent food standard mandating the fortification of flour with folic acid in Australia illustrates the legal problems and legal risks when governments introduce food standards that aim to medicinalise the population through the food supply despite a lack of scientific consensus. Legal analysis of the process by which the folic acid fortification was introduced into flour in Australia demonstrates legal inadequacies, administrative and policy failures, as well as flaws in safety assumptions. An analysis of the restrictions on legal rights and remedies for any adversely affected consumers seeking legal redress, and the existence of statutory immunities for governments, demonstrates a need for legal reform and changes in policy development processes.

Questioning deterrence policies in the mandatory detainment of asylum seekers

This thesis examined Australia's policy of mandatory detention of asylum seekers which is based on the theoretical premises that they are rational actors who have choices, and that mandatory detention will serve as a deterrent. Interviews with asylum seekers did not support these underlying assumptions, suggesting that a re-examination of Australia's policies is required. The professional portfolio evaluates the Ward & Hudson (1998) model of the offending child molestation process which is believed to account for the differences in goals, affective states and planning among sexual offenders, and consequently determine an individual's treatment needs. Four case studies are presented and analysed.

Costs and benefits of mandatory auditing of for-profit private and not-for-profit companies in Australia

This paper addresses the paucity of research surrounding the mandatory auditing of for-profit private and not-for-profit companies in Australia. We document the various mandatory auditing provisions under the Corporations Act and identify over 22 000 companies that lodge audited accounts with the regulator under federal law. In 2011, 6339 large proprietary companies, 186 small proprietary companies, 2797 foreign-owned companies, 3985 unlisted public companies and 8404 public companies limited by guarantee had an obligation under the Corporations Act to lodge audited accounts. While large proprietary and foreign-owned companies have an option to apply to the Australian Securities and Investment Commission for audit relief, we estimate that less than 10% are granted audit exemption. We document that since 1995 an additional 1500 large proprietary companies that should have lodged under the size provisions of the Corporations Act have been granted exemption from doing so (i.e., grandfathered), although these firms appear to be subject to an annual audit even though they do not lodge accounts. We estimate the costs and discuss the potential public interest and firm-level benefits associated with the mandatory auditing of for-profit private and not-for-profit companies in Australia.

An essay about the effect of vague accounting standards on the decision making process of auditors

Vague words and expressions are present throughout the standards that comprise the accounting and auditing professions. Vagueness is considered to be a significant source of inexactness in many accounting decision problems and many authors have argued that the neglect of this issue may cause accounting information to be less useful. On the other hand, we can assume that the use of vague terms in accounting standards is inherent to principle based standards (different from rule based standards) and that to avoid vague terms, standard setters would have to incur excessive transaction costs. Auditors are required to exercise their own professional judgment throughout the audit process and it has been argued that the inherent vagueness in accounting standards may influence their decision making processes. The main objective of this paper is to analyze the decision making process of auditors and to investigate whether vague accounting standards create a problem for the decision making process of auditors, or lead to a better outcome. This paper makes the argument that vague standards prompt the use of System 2 type processing by auditors, allowing more comprehensive analytical thinking; therefore, reducing the biases associated with System 1 heuristic processing. If our argument is valid, the repercussions of vague accounting standards are not as negative as presented in previous literature, instead they are positive.

Towards coherent optical control of a single hole spin: Rabi rotation of a trion conditional on the spin state of the hole

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)

Magneto-optical rotation of heavy-metal oxide glasses

Magneto-optical rotation was measured at room temperature for glasses containing Bi2O3-CdO-GeO2 (BCG), and Bi2O3-PbO-GeO2-B2O3 (BPGP). A pulsed magnetic field between 50 and 80 KG was used to measure Faraday rotation at 632.8 nm as a function of the concentration of Bi and Cd for BCG and Bi and Pb for BPGB. Verdet constant as high as 0.162 min G-1 cm-1 at 632.8 nm for the BPGB sample with the highest concentrations of Bi and Cd was found. Verdet constant increases linearly with the heavy-metal concentration for the BPGB whereas it reaches some saturation for the BCG system. Measurements of the magneto-optical rotation at other wavelengths in the visible and the refractive index at 632.8 nm are also reported. © 1998 Elsevier Science B.V. All rights reserved.

Dynamics of rotation of super-Earths

We numerically investigate the dynamics of rotation of several close-in terrestrial exoplanet candidates. In our model, the rotation of the planet is disturbed by the torque of the central star due to the asymmetric equilibrium figure of the planet. We model the shape of the planet by a Jeans spheroid. We use surfaces of section and spectral analysis to explore numerically the rotation phase space of the systems adopting different sets of parameters and initial conditions close to the main spin-orbit resonant states. One of the parameters, the orbital eccentricity, is critically discussed here within the domain of validity of orbital circularization timescales given by tidal models. We show that, depending on some parameters of the system like the radius and mass of the planet, eccentricity etc., the rotation can be strongly perturbed and a chaotic layer around the synchronous state may occupy a significant region of the phase space. 55 Cnc e is an example. © 2013 Springer Science+Business Media Dordrecht.

Mental rotation of anthropoid hands: a chronometric study

It has been shown that mental rotation of objects and human body parts is processed differently in the human brain. But what about body parts belonging to other primates? Does our brain process this information like any other object or does it instead maximize the structural similarities with our homologous body parts? We tried to answer this question by measuring the manual reaction time (MRT) of human participants discriminating the handedness of drawings representing the hands of four anthropoid primates (orangutan, chimpanzee, gorilla, and human). Twenty-four right-handed volunteers (13 males and 11 females) were instructed to judge the handedness of a hand drawing in palm view by pressing a left/right key. The orientation of hand drawings varied from 0º (fingers upwards) to 90º lateral (fingers pointing away from the midline), 180º (fingers downwards) and 90º medial (finger towards the midline). The results showed an effect of rotation angle (F(3, 69) = 19.57, P < 0.001), but not of hand identity, on MRTs. Moreover, for all hand drawings, a medial rotation elicited shorter MRTs than a lateral rotation (960 and 1169 ms, respectively, P < 0.05). This result has been previously observed for drawings of the human hand and related to biomechanical constraints of movement performance. Our findings indicate that anthropoid hands are essentially equivalent stimuli for handedness recognition. Since the task involves mentally simulating the posture and rotation of the hands, we wondered if "mirror neurons" could be involved in establishing the motor equivalence between the stimuli and the participants' own hands.