Crunch time for bank audits? Questions of practice and scope for dialogue

Purpose – The purpose of this paper is to review the way in which auditing issues have been raised and addressed during the credit crunch and developing global financial crisis. Design/methodology/approach – Analysis is based on a review of the academic auditing literature, regulatory and audit reports, together with papers from the financial press. Findings – After highlighting the relative lack of media attention devoted to the external auditing function in the light of major corporate collapses, the paper considers what, contrastingly, is an active and ongoing series of responses to the current crisis on the part of auditing firms and the profession more generally. Through such analysis the paper explores a number of implications of the credit crunch for both auditing practice and research. Research limitations/implications – The paper is constrained in part by the rapidly unfolding nature of events, with important policy developments arising almost on a daily basis. The paper draws primarily on events up to the beginning of October 2008. Practical implications – The paper has important messages for audit practice and research, including the technical capacities of external audits in the banking sector, the contributions of standard setting bodies and regulatory oversight, and the scope for enhanced dialogue between such parties and audit researchers. Originality/value - The paper serves both to focus and stimulate analysis of the credit crunch on the audit profession. It demonstrates the complexity of contemporary practice and highlights the importance, especially from an educational perspective, of developing understanding of banking audit practice and associated regulatory interactions – including the presented possibilities both for research and enhanced academic‐practitioner dialogue.

Area summation of first- and second-order modulations of luminance

To extend our understanding of the early visual hierarchy, we investigated the long-range integration of first- and second-order signals in spatial vision. In our first experiment we performed a conventional area summation experiment where we varied the diameter of (a) luminance-modulated (LM) noise and (b) contrastmodulated (CM) noise. Results from the LM condition replicated previous findings with sine-wave gratings in the absence of noise, consistent with long-range integration of signal contrast over space. For CM, the summation function was much shallower than for LM suggesting, at first glance, that the signal integration process was spatially less extensive than for LM. However, an alternative possibility was that the high spatial frequency noise carrier for the CM signal was attenuated by peripheral retina (or cortex), thereby impeding our ability to observe area summation of CM in the conventional way. To test this, we developed the ''Swiss cheese'' stimulus of Meese and Summers (2007) in which signal area can be varied without changing the stimulus diameter, providing some protection against inhomogeneity of the retinal field. Using this technique and a two-component subthreshold summation paradigm we found that (a) CM is spatially integrated over at least five stimulus cycles (possibly more), (b) spatial integration follows square-law signal transduction for both LM and CM and (c) the summing device integrates over spatially-interdigitated LM and CM signals when they are co-oriented, but not when crossoriented. The spatial pooling mechanism that we have identified would be a good candidate component for amodule involved in representing visual textures, including their spatial extent.

Some properties of g- and P-spaces

A γ-space with a strictly positive measure is separable. An example of a non-separable γ−space with c.c.c. is given. A P−space with c.c.c. is countable and discrete.

Coincidence of Vietoris and Wijsman Topologies: A New Proof

Let (X, d) be a metric space and CL(X) the family of all nonempty closed subsets of X. We provide a new proof of the fact that the coincidence of the Vietoris and Wijsman topologies induced by the metric d forces X to be a compact space. In the literature only a more involved and indirect proof using the proximal topology is known. Here we do not need this intermediate step. Moreover we prove that (X, d) is boundedly compact if and only if the bounded Vietoris and Wijsman topologies on CL(X) coincide.

Stability of Supporting and Exposing Elements of Convex Sets in Banach Spaces

* This work was supported by the CNR while the author was visiting the University of Milan.

Visualising and controlling the flow in biomolecular systems at and between multiple scales:from atoms to hydrodynamics at different locations in time and space

A novel framework for modelling biomolecular systems at multiple scales in space and time simultaneously is described. The atomistic molecular dynamics representation is smoothly connected with a statistical continuum hydrodynamics description. The system behaves correctly at the limits of pure molecular dynamics (hydrodynamics) and at the intermediate regimes when the atoms move partly as atomistic particles, and at the same time follow the hydrodynamic flows. The corresponding contributions are controlled by a parameter, which is defined as an arbitrary function of space and time, thus, allowing an effective separation of the atomistic 'core' and continuum 'environment'. To fill the scale gap between the atomistic and the continuum representations our special purpose computer for molecular dynamics, MDGRAPE-4, as well as GPU-based computing were used for developing the framework. These hardware developments also include interactive molecular dynamics simulations that allow intervention of the modelling through force-feedback devices.

Solution of Space-Time Fractional Schrödinger Equation Occurring in Quantum Mechanics

Dedicated to Professor A.M. Mathai on the occasion of his 75-th birthday. Mathematics Subject Classi¯cation 2010: 26A33, 44A10, 33C60, 35J10.

A hybrid molecular dynamics/fluctuating hydrodynamics method for modelling liquids at multiple scales in space and time

A new 3D implementation of a hybrid model based on the analogy with two-phase hydrodynamics has been developed for the simulation of liquids at microscale. The idea of the method is to smoothly combine the atomistic description in the molecular dynamics zone with the Landau-Lifshitz fluctuating hydrodynamics representation in the rest of the system in the framework of macroscopic conservation laws through the use of a single "zoom-in" user-defined function s that has the meaning of a partial concentration in the two-phase analogy model. In comparison with our previous works, the implementation has been extended to full 3D simulations for a range of atomistic models in GROMACS from argon to water in equilibrium conditions with a constant or a spatially variable function s. Preliminary results of simulating the diffusion of a small peptide in water are also reported.

Personal Work Space and Content Analysis Functionality in a Cultural Heritage Digital Library

The paper presents a different vision for personalization of the user’s stay in a cultural heritage digital library that models services for personalized content marking, commenting and analyzing that doesn’t require strict user profile, but aims at adjusting the user’s individual needs. The solution is borrowed from real work and studying of traditional written content sources (incl. books, manuals), where the user mainly performs activities such as underlining the important parts of the content, writing notes and inferences, selecting and marking zones of their interest in pictures, etc. In the paper a special attention is paid to the ability to execute learning analysis allowing different ways for the user to experience the digital library content with more creative settings.

Combination of Global and Local Attributional Similarities for Synonym Detection

2000 Mathematics Subject Classification: 68T50.

An empirical examination of emotional and cognitive responses to threat appeals

Advertising and other forms of communications are often used by government bodies, non-government organisations, and other institutions to try to influence the population to either a) reduce some form of harmful behaviour (e.g. smoking, drunk- driving) or b) increase some more healthy behaviour (e.g. eating healthily). It is common for these messages to be predicated on the chances of some negative event occurring if the individual does not either a) stop the harmful behaviour, or b) start / increase the healthy behaviour. This design of communication is referred to by many names in the relevant literature, but for the purposes of this thesis, will be termed a ‘threat appeal’. Despite their widespread use in the public sphere, and concerted academic interest since the 1950s, the effectiveness of threat appeals in delivering their objective remains unclear in many ways. In a detailed, chronological and thematic examination of the literature, two assumptions are uncovered that have either been upheld despite little evidence to support them, or received limited attention at all, in the literature. Specifically, a) that threat appeal characteristics can be conflated with their intended responses, and b) that a threat appeal always and necessarily evokes a fear response in the subject. A detailed examination of these assumptions underpins this thesis. The intention is to take as a point of departure the equivocality of empirical results, and deliver a novel approach with the objective of reducing the confusion that is evident in existing work. More specifically, the present thesis frames cognitive and emotional responses to threat appeals as part of a decision about future behaviour. To further develop theory, a conceptual framework is presented that outlines the role of anticipated and anticipatory emotions, alongside subjective probabilities, elaboration and immediate visceral emotions, resultant from manipulation of the intrinsic message characteristics of a threat appeal (namely, message direction, message frame and graphic image). In doing so, the spectrum of relevant literature is surveyed, and used to develop a theoretical model which serves to integrate key strands of theory into a coherent model. In particular, the emotional and cognitive responses to the threat appeal manipulations are hypothesised to influence behaviour intentions and expectations pertaining to future behaviour. Using data from a randomised experiment with a sample of 681 participants, the conceptual model was tested using analysis of covariance. The results for the conceptual framework were encouraging overall, and also with regard to the individual hypotheses. In particular, empirical results showed clearly that emotional responses to the intrinsic message characteristics are not restricted to fear, and that different responses to threat appeals were clearly attributed to specific intrinsic message characteristics. In addition, the inclusion of anticipated emotions alongside cognitive appraisals in the framework generated interesting results. Specifically, immediate emotions did not influence key response variables related to future behaviour, in support of questioning the assumption of the prominent role of fear in the response process that is so prevalent in existing literature. The findings, theoretical and practical implications, limitations and directions for future research are discussed.

Development of potent and selective tissue transglutaminase inhibitors:their effect on TG2 function and application in pathological conditions

Potent-selective peptidomimetic inhibitors of tissue transglutaminase (TG2) were developed through a combination of protein-ligand docking and molecular dynamic techniques. Derivatives of these inhibitors were made with the aim of specific TG2 targeting to the intra- and extracellular space. A cell-permeable fluorescently labeled derivative enabled detection of in situ cellular TG2 activity in human umbilical cord endothelial cells and TG2-transduced NIH3T3 cells, which could be enhanced by treatment of cells with ionomycin. Reaction of TG2 with this fluorescent inhibitor in NIH3T3 cells resulted in loss of binding of TG2 to cell surface syndecan-4 and inhibition of translocation of the enzyme into the extracellular matrix, with a parallel reduction in fibronectin deposition. In human umbilical cord endothelial cells, this same fluorescent inhibitor also demonstrated a reduction in fibronectin deposition, cell motility, and cord formation in Matrigel. Use of the same inhibitor in a mouse model of hypertensive nephrosclerosis showed over a 40% reduction in collagen deposition.

A seismic shift? An evaluation of the impact of new media on perceptions of freedom of expression and privacy

New media platforms have changed the media landscape forever, as they have altered our perceptions of the limits of communication, and reception of information. Platforms such as Facebook, Twitter and WhatsApp enable individuals to circumvent the traditional mass media, converging audience and producer to create millions of ‘citizen journalists’. This new breed of journalist uses these platforms as a way of, not only receiving news, but of instantaneously, and often spontaneously, expressing opinions and venting and sharing emotions, thoughts and feelings. They are liberated from cultural and physical restraints, such as time, space and location, and they are not constrained by factors that impact upon the traditional media, such as editorial control, owner or political bias or the pressures of generating commercial revenue. A consequence of the way in which these platforms have become ingrained within our social culture is that habits, conventions and social norms, that were once informal and transitory manifestations of social life, are now infused within their use. What were casual and ephemeral actions and/or acts of expression, such as conversing with friends or colleagues or swapping/displaying pictures, or exchanging thoughts that were once kept private, or maybe shared with a select few, have now become formalised and potentially permanent, on view for the world to see. Incidentally, ‘traditional’ journalists and media outlets are also utilising new media, as it allows them to react, and disseminate news, instantaneously, within a hyper-competitive marketplace. However, in a world where we are saturated, not only by citizen journalists, but by traditional media outlets, offering access to news and opinion twenty-four hours a day, via multiple new media platforms, there is increased pressure to ‘break’ news fast and first. This paper will argue that new media, and the culture and environment it has created, for citizen journalists, traditional journalists and the media generally, has altered our perceptions of the limits and boundaries of freedom of expression dramatically, and that the corollary to this seismic shift is the impact on the notion of privacy and private life. Consequently, this paper will examine what a reasonable expectation of privacy may now mean, in a new media world.

A vállalatok árképzési gyakorlata a versenyképesség szolgálatában (The pricing practice of corporates and the competitiveness)

A marketing-szakirodalom szerint az ár az egyik legfontosabb marketingeszköz, és a vállalati versenyképesség értelmezésében is meghatározó szerepe van. A megfelelő árképzés kialakítása ugyanakkor összetett folyamat, amely önmagában is külön képességnek tekinthető, és kell befektetést igényel. A szerző az elemzés során így arra volt kíváncsi, hogy a vezető, azaz a versenyképes vállalatok árazási gyakorlata mutat-e eltéréseket, és, ha igen, melyek azok a területek, amelyek leginkább összefüggnek az eredményességükkel. A háromszáz hazai vállalatra kiterjedő kutatás során azt találta, hogy a vezető vállalatok valamelyest másképp tekintenek az ár szerepére és szignifikánsan magasabb árszínvonalon értékesítenek. Ez nagyobb mozgásteret enged számukra, a versenytársak árkihívásaira így könnyebben tudnak árakciókkal válaszolni. Árképzési céljaikban azonban kevésbé mutatkoznak különbségek, mert számukra is kihívást jelent a válság, és nekik is több szempontnak kell egyszerre megfelelniük. Az árak meghatározásánál azonban több tényezőt vesznek figyelembe és jobban támaszkodnak a vevőkről szerzett információkra. ______________ According to the marketing literature the price is one of the most important marketing tools and it plays a dominant role in the interpretation of corporate competitiveness, as well. The appropriate pricing, however, a complex process that can be regarded as a distinct capability and it requires sufficient investment itself. In this analysis the author enquired if the pricing practice of the leading, that is, the most competitive companies has a different profile, and if yes, which areas are associated with the success of them. Based on the survey of 300 domestic organisations he found that the leading companies consider the role of price in a slightly different way and they price their products or services significantly higherthan the others. This let them some space to manoeuvre and they can react with price promotions when the competitors challenge them with price activities. Regarding the pricing objectives the author couldn’t identify differences. The leading companies are also affected by the economic crisis and they have to match many expectations at the same time but they take more factors into consideration when they set their prices and more likely use customer information.

"Lájkolom őket, de ennék is náluk?" – Aktivitásra buzdító kis- és középvállalati közösségimédia-tevékenységek fogyasztói fogadtatása magyarországi vendéglátóhelyek példáján keresztül ("I like them, but would I eat at their place?" – Encouraging social media activities of small and medium-sized enterprises and their consumerreactions – the case of Hungarian catering establishments)

A vendéglátóipari egységek kommunikációjában fontos szerepe van a közösségi médiában való jelenlétnek. Hazánkban a leggyakrabban használt felület a Facebook, amely sok ilyen vállalkozás esetében kiemelt fontosságú, vagy akár az egyetlen reálisan elérhető marketingkommunikációs felület. Kutatásunkban azt vizsgáljuk, hogy a felhasználók hogyan érzékelik a feléjük továbbított üzleti célú információkat a közösségi felületen, illetve hogy a fogyasztókra milyen mértékű aktivitás jellemző kedvenc vendéglátóipari egységük oldalán. Ennek céljából szubjektív fogyasztói narratívákat (n=151) elemzünk a kvalitatív tartalomelemzés módszertanával. A válaszadókat arra kértük, hogy írjanak kedvenc vendéglátóhelyükkel való kapcsolatukról az online térben. A "belájkolt" vendéglátóipari egységek felületeinek fogyasztók által észlelt aktivitása segítheti a vállalkozásokat abban, hogy alaptevékenységük elemeinek kommunikálásával, vagy akár ettől teljesen eltérő közösségi stratégiát használva pozicionálják márkájukat. A márkák tudatos tartalommenedzselése hozzájárulhat továbbá a felhasználók virtuális térben való hatékonyabb eléréséhez és bevonásához. ____ Presence in social media is an important element in the communication of catering establishments. The most frequently used platform in Hungary – that is extraordinarily important, or even the only reasonably accessible marketing communications platform for many catering companies – is Facebook. In our research, we analyse how users perceive the business-purposed information forwarded to them on the social media platform, and how intensive are the consumers’ activities on their most preferred catering establishment's site. For this purpose we analyse subjective consumer narratives (N=151) with the methodology of qualitative content analysis. We asked the respondents to write about the relationship with their most preferred catering establishment in the online sphere. Perceived activity of the "liked" catering establishment's platform could help enterprises to position themselves by communicating their core activities, or by using a totally different social strategy. Moreover, conscious content management of brands could contribute to reach and to engage users in the virtual sphere more efficiently.