Social audit failure: Legal liability of external auditors

In this chapter, we look at the step beyond reporting, to the external audit or assurance function. The role of any audit engagement is to provide a professional opinion on a set of financial or non-financial assertions reported by an organization's management, based on an agreed evaluative framework. Any such opinion is not a guarantee that the underlying report is free from fraud or misstatement. Where an audit opinion on financial statements is incorrect, this is referred to as an audit failure. Specifically, the textbook definition of audit failure has two components: that the financial statements contain a serious error and that the auditor has failed to detect the error due to the auditor's failure during the audit process.

Non-bonded interactions in 2,2,4,4-tetramethyl-1,3-cyclobutanedithione and 2,2,4,4-tetramethyl-3-thio-1,3-cyclobutanedione

Electronic absorption and emission spectra as well as He(I) photoelectron spectra of 2,2,4,4-tetramethyl-,3-cyclobutanedithione and 2,2,4,4-tetramethyl-1-3-thio-1,3-cyclobutanedione have been interpreted on the basis of molecular orbital calculations. The results show that the non-bonded orbital of the dithione is split owing to through-bond interaction, the magnitude of splitting being 0.4 eV. The π* orbital of the dithione appears to be split by about 0.2 eV. Electronic absorption spectra show evidence for the existence of four n—π* transitions, arising out of the splitting of the orbitals referred to above, just as in the case of 2,2,4,4-tetramethyl-1,3-cyclobutanedione. Electronic and photoelectron spectra of the thio-dione show evidence for weak interaction between the C=S and C&.zdbnd;O groups, probably via π* orbitals. Infrared spectra of both the dithione and the thio-dione are consistent with the planar cyclobutane ring; the ring-puckering frequency responsible for non-bonded interactions is around 67 cm−1 in both the dithione and the thio-dione, the value not being very different from that in the dione. The 1,3-transannular distance is also similar in the three molecules.

Survey of weed flora and management relative to cropping practices in the north-eastern grain region of Australia

The main weeds and weed management practices undertaken in broad acre dryland cropping areas of north-eastern Australia have been identified. The information was collected in a comprehensive postal survey of both growers and agronomists from Dubbo in New South Wales (NSW) through to Clermont in central Queensland, where 237 surveys were returned. A very diverse weed flora of 105 weeds from 91 genera was identified for the three cropping zones within the region (central Queensland, southern Queensland and northern NSW). Twenty-three weeds were common to all cropping zones. The major common weeds were Sonchus oleraceus, Rapistrum rugosum, Echinochloa spp. and Urochloa panicoides. The main weeds were identified for both summer and winter fallows, and sorghum, wheat and chickpea crops for each of the zones, with some commonality as well as floral uniqueness recorded. More genera were recorded in the fallows than in crops, and those in summer fallows exceeded the number in winter. Across the region, weed management relied heavily on herbicides. In fallows, glyphosate and mixes with glyphosate were very common, although the importance of the glyphosate mix partner differed among the cropping zones. Use and importance of pre-emergence herbicides in-crop varied considerably among the zones. In wheat, more graminicides were used in northern NSW than in southern Queensland, and virtually none were used in central Queensland, reflecting the differences in winter grass weed flora across the region. Atrazine was the major herbicide used in sorghum, although metolachlor was also used predominantly in northern NSW. Fallow and inter-row cultivation were used more often in the southern areas of the region. Grazing of fallows was more prominent in northern NSW. High crop seeding rates were not commonly recorded indicating that growers are not using crop competition as a tool for weed management. Although many management practices were recorded overall, few growers were using integrated weed management, and herbicide resistance has been and continues to be an issue for the region.

Copyright, fair use and the Australian Constitution

There has been much debate over recent years about whether Australian copyright law should adopt a fair use doctrine. In this chapter we argue by pointing to the historical record that the incorporation of the term 'copyrights' in the Australian Constitution embeds a notion of balance and fair use in Australian law and that this should be taken into account when interpreting the Australian Copyright Act 1968. English case law in the 18th and 19th centuries developed a principle that copyright infringement did not occur where a person had made a fair use of a work. Fair use was generally established where the defendant had made a productive use that did more than alter the original work for the purpose of evading liability, and where the defendant had made an original contribution to the resulting work. Additionally, fairness was shown by a use that did not supersede or prejudice the market for the original work. At the time of including the copyright power in the Constitution, the UK Parliament’s understanding of “copyrights” included the notion of fair use as it had been developed in U.K. precedent. In this chapter we argue that the work “copyrights” in the Australia Constitution takes its definition from copyright in 1900 and as it has evolved since. Importantly, the word “copyrights” is infused with a particular meaning that incorporates the principle of copyright balance. The constitutional notion of copyright, therefore, is not that of an unlimited power to prevent all copying. Rather, copyright distinguishes between infringing copying and non-infringing copying and grants to the copyright owner only the power to control the former. Non-infringing copying includes well-accepted limitations on the copyright owner’s rights, including the copying of ideas, the copying of public domain works and the copying of insubstantial parts of copyrighted works. In this chapter we argue that non-infringing copying also includes copying to make a fair use of a work. The sections that distinguish infringing copying from non-infringing copying in the Copyright Act 1968 are sections 36(1) and 101(1), which define infringement as the doing, without licence, of an “act comprised in the copyright”. An infringing copy is an act comprised the copyright, whereas a non-infringing copy is not. We argue that space for fair uses of copyrighted works is built into the Copyright Act 1968 through these sections, because a fair use will not produce an infringing copy and so is not an act comprised in the copyright.

Stress and Resilience in Combat-Related PTSD: Integration of Psychological Theory and Biological Mechanisms

Post-traumatic stress disorder (PTSD) is a debilitating psychiatric disorder that has a major impact on the ability to function effectively in daily life. PTSD may develop as a response to exposure to an event or events perceived as potentially harmful or life-threatening. It has high prevalence rates in the community, especially among vulnerable groups such as military personnel or those in emergency services. Despite extensive research in this field, the underlying mechanisms of the disorder remain largely unknown. The identification of risk factors for PTSD has posed a particular challenge as there can be delays in onset of the disorder, and most people who are exposed to traumatic events will not meet diagnostic criteria for PTSD. With the advent of the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition (DSM V), the classification for PTSD has changed from an anxiety disorder into the category of stress- and trauma-related disorders. This has the potential to refocus PTSD research on the nature of stress and the stress response relationship. This review focuses on some of the important findings from psychological and biological research based on early models of stress and resilience. Improving our understanding of PTSD by investigating both genetic and psychological risk and coping factors that influence stress response, as well as their interaction, may provide a basis for more effective and earlier intervention.

Country of Origin and Internet Publication: Applying the Berne Convention in the Digital Age

Historically, determining the country of origin of a published work presented few challenges, because works were generally published physically – whether in print or otherwise – in a distinct location or few locations. However, publishing opportunities presented by new technologies mean that we now live in a world of simultaneous publication – works that are first published online are published simultaneously to every country in world in which there is Internet connectivity. While this is certainly advantageous for the dissemination and impact of information and creative works, it creates potential complications under the Berne Convention for the Protection of Literary and Artistic Works (“Berne Convention”), an international intellectual property agreement to which most countries in the world now subscribe. Under the Berne Convention’s national treatment provisions, rights accorded to foreign copyright works may not be subject to any formality, such as registration requirements (although member countries are free to impose formalities in relation to domestic copyright works). In Kernel Records Oy v. Timothy Mosley p/k/a Timbaland, et al. however, the Florida Southern District Court of the United States ruled that first publication of a work on the Internet via an Australian website constituted “simultaneous publication all over the world,” and therefore rendered the work a “United States work” under the definition in section 101 of the U.S. Copyright Act, subjecting the work to registration formality under section 411. This ruling is in sharp contrast with an earlier decision delivered by the Delaware District Court in Håkan Moberg v. 33T LLC, et al. which arrived at an opposite conclusion. The conflicting rulings of the U.S. courts reveal the problems posed by new forms of publishing online and demonstrate a compelling need for further harmonization between the Berne Convention, domestic laws and the practical realities of digital publishing. In this chapter, we argue that even if a work first published online can be considered to be simultaneously published all over the world it does not follow that any country can assert itself as the “country of origin” of the work for the purpose of imposing domestic copyright formalities. More specifically, we argue that the meaning of “United States work” under the U.S. Copyright Act should be interpreted in line with the presumption against extraterritorial application of domestic law to limit its application to only those works with a real and substantial connection to the United States. There are gaps in the Berne Convention’s articulation of “country of origin” which provide scope for judicial interpretation, at a national level, of the most pragmatic way forward in reconciling the goals of the Berne Convention with the practical requirements of domestic law. We believe that the uncertainties arising under the Berne Convention created by new forms of online publishing can be resolved at a national level by the sensible application of principles of statutory interpretation by the courts. While at the international level we may need a clearer consensus on what amounts to “simultaneous publication” in the digital age, state practice may mean that we do not yet need to explore textual changes to the Berne Convention.

Duty and Control in Intermediary Copyright Liability: An Australian Perspective

In the internet age, copyright owners are increasingly looking to online intermediaries to take steps to prevent copyright infringement. Sometimes these intermediaries are closely tied to the acts of infringement; sometimes – as in the case of ISPs – they are not. In 2012, the Australian High Court decided the Roadshow Films v iiNet case, in which it held that an Australian ISP was not liable under copyright’s authorization doctrine, which asks whether the intermediary has sanctioned, approved or countenanced the infringement. The Australian Copyright Act 1968 directs a court to consider, in these situations, whether the intermediary had the power to prevent the infringement and whether it took any reasonable steps to prevent or avoid the infringement. It is generally not difficult for a court to find the power to prevent infringement – power to prevent can include an unrefined technical ability to disconnect users from the copyright source, such as an ISP terminating users’ internet accounts. In the iiNet case, the High Court eschewed this broad approach in favor of focusing on a notion of control that was influenced by principles of tort law. In tort, when a plaintiff asserts that a defendant should be liable for failing to act to prevent harm caused to the plaintiff by a third party, there is a heavy burden on the plaintiff to show that the defendant had a duty to act. The duty must be clear and specific, and will often hinge on the degree of control that the defendant was able to exercise over the third party. Control in these circumstances relates directly to control over the third party’s actions in inflicting the harm. Thus, in iiNet’s case, the control would need to be directed to the third party’s infringing use of BitTorrent; control over a person’s ability to access the internet is too imprecise. Further, when considering omissions to act, tort law differentiates between the ability to control and the ability to hinder. The ability to control may establish a duty to act, and the court will then look to small measures taken to prevent the harm to determine whether these satisfy the duty. But the ability to hinder will not suffice to establish liability in the absence of control. This chapter argues that an inquiry grounded in control as defined in tort law would provide a more principled framework for assessing the liability of passive intermediaries in copyright. In particular, it would set a higher, more stable benchmark for determining the copyright liability of passive intermediaries, based on the degree of actual, direct control that the intermediary can exercise over the infringing actions of its users. This approach would provide greater clarity and consistency than has existed to date in this area of copyright law in Australia.

Social Influence and Blood Donation: Cultural Differences Between Scotland and Australia

People can be motivated to carryout behaviours which contribute to improvement of quality of life for reasons driven by cultural norms. There is a common perception that people within a cultural cluster, particularly one with a common language such as English, will exhibit similar consumer behaviours. However there is an emerging field of research investigating intra-cultural differences in marketing that challenges this perception. In particular, the role of peers and norms as drivers of altruistic behaviours that benefit society may differ between these countries. Altruism is an important motivation for pro-social behaviours such as blood donation, water conservation and peer counselling for health problems. Understanding the social influences for these behaviours assists marketers to develop programs that meet the needs of donors and potential donors. An ongoing foundation of altruistic consumers is essential for delivering services that improve quality of life for people. Without blood donors, there would be no blood products for cancer sufferers or accident victims, without a sufficient water supply the quality of life for residents would be compromised and without breastfeeding peer counselling, new mothers and their babies would have reduced quality of life. This chapter reports the findings of two online surveys with Scottish and Australian blood donors and demonstrates differences in the way social norms influence donation behaviour, and importantly different impacts of cultural factors in the two populations.

Interaction of manganese(II) with valinomycin: Observation of mixed complexes

The interaction of antibiotic valinomycin with manganese (II) has been studied using circular dichroism, electron spin resonance and infrared techniques. Results show that Mn(II) forms complexes with valinomycin in both 2:1 (valinomycin-ion-valinomycin sandwich) and 1:1 (equimolar) stoichiometries. The 1:1 type observed here is very different from the well known K+-valinomycin bracelet conformation.

Stream power criterion and design of sand bed channels at incipient motion

The critical stream power criterion may be used to describe the incipient motion of cohesionless particles of plane sediment beds. The governing equation relating ``critical stream power'' to ``shear Reynolds number'' is developed by using the present experimental data as well as the data from several other sources. Simultaneously, a resistance equation, relating the ``particle Reynolds number'' to the``shear Reynolds number'' is developed for plane sediment beds in wide channels with little or no transport. By making use of these relations, a procedure is developed to design plane sediment beds such that any two of the four design variables, including particle size, energy/friction slope, flow depth, and discharge per unit width in the channel should be known to predict the remaining two variables. Finally, a straightforward design procedure using design tables/design curves and analytical methods is presented to solve six possible design problems.

Impacts of improved grazing land management on sediment yields, Part 1: Hillslope processes.

Summary Poor land condition resulting from unsustainable grazing practices can reduce enterprise profitability and increase water, sediment and associated nutrient runoff from properties and catchments. This paper presents the results of a 6 year field study that used a series of hillslope flume experiments to evaluate the impact of improved grazing land management (GLM) on hillslope runoff and sediment yields. The study was carried out on a commercial grazing property in a catchment draining to the Burdekin River in northern Australia. During this study average ground cover on hillslopes increased from ~35% to ~75%, although average biomass and litter levels are still relatively low for this landscape type (~60 increasing to 1100 kg of dry matter per hectare). Pasture recovery was greatest on the upper and middle parts of hillslopes. Areas that did not respond to the improved grazing management had <10% cover and were on the lower slopes associated with the location of sodic soil and the initiation of gullies. Comparison of ground cover changes and soil conditions with adjacent properties suggest that grazing management, and not just improved rainfall conditions, were responsible for the improvements in ground cover in this study. The ground cover improvements resulted in progressively lower runoff coefficients for the first event in each wet season, however, runoff coefficients were not reduced at the annual time scale. The hillslope annual sediment yields declined by ~70% on two out of three hillslopes, although where bare patches (with <10% cover) were connected to gullies and streams, annual sediment yields increased in response to higher rainfall in latter years of the study. It appears that bare patches are the primary source areas for both runoff and erosion on these hillslopes. Achieving further reductions in runoff and erosion in these landscapes may require management practices that improve ground cover and biomass in bare areas, particularly when they are located adjacent to concentrated drainage lines.

Surface explosive instability for high frequency waves

High frequency three-wave nonlinear 'explosive' interaction of the surface modes of a semi-infinite beam-plasma system under no external field is investigated. The conditions that favour nonlinear instability, keep the plasma linearly stable. The beam runs parallel to the surface. If at least one of the three wave vectors of the surface modes is parallel to the beam, explosive interaction at the surface takes place after it has happened in the plasma bulk, provided the bulk waves propagate almost perpendicular to the surface and are of short wavelength. On the other hand if the bulk modes have long wavelength and propagate almost parallel to the surface, the surface modes can 'explode' first.

Pyrrolizidine Alkaloids in Crotalaria Taxa from Northern Australia: Risk to Grazing Livestock.

Crotalaria species containing hepatotoxic pyrrolizidine alkaloids grow widely in pastures in northern Australia and have sporadically poisoned grazing livestock. The diverse Crotalaria taxa present in these pastures include varieties, subspecies, and chemotypes not previously chemically examined. This paper reports the pyrrolizidine alkaloid composition and content of 24 Crotalaria taxa from this region and assesses the risk of poisoning in livestock consuming them. Alkaloids present in C. goreensis, C. aridicola subsp. densifolia, and C. medicaginea var. neglecta lack the esterified 1,2-unsaturated functionality required for pyrrole adduct formation, and these taxa are not hepatotoxic. Taxa with high levels of hepatotoxic alkaloids, abundance, and biomass pose the greatest risk to livestock health, particularly C. novae-hollandiae subsp. novae-hollandiae, C. ramosissima, C. retusa var. retusa, and C. crispata. Other species containing moderate alkaloid levels, C. spectabilis and C. mitchellii, also pose significant risk when locally abundant.