ABSTRACT
We explore potential effects of a new Public Accounting Oversight Board (PCAOB) rule that requires disclosure of the external audit partner's identity. By manipulating the presence or ...absence of audit partner disclosure (APD), we examine how investors might react to APD and the mechanism behind such reaction. We find that prospective investors are less likely to invest in a peer firm linked to a restating firm via APD than when the link is only through an audit firm and industry. This effect is mediated by investors' restatement likelihood assessments. Our study makes several contributions. First, we add empirical evidence to the emerging debate on the impact of APD to U.S. markets. Second, we experimentally demonstrate investor information contagion and provide support for one mechanism (speculated by archival-based literature) through which it works. Finally, we provide evidence that investors attribute more blame to partners for a negative outcome due to APD.
JEL Classifications: M42; M48.
SUMMARY
This case presents a collaborative and experiential learning technique that can be used to engage new auditing students in a classroom, or junior auditors in a training session, to facilitate ...their understanding of the social complexities and pressures associated with auditing. The case utilizes “the wave” (the collaborative activity performed at most stadium-based events) to represent the flow of information through an accounting system, and demonstrate how auditors are often put in a position in which they must decide how to handle the implicit pressures resultant from identifying a problem in an accounting system. The case creates real-world social and psychological pressures, and requires a participant to navigate the social awkwardness of identifying poorly performing participants and to choose between the well-being of a handful of participants compared with the well-being of the entire class. The case, which requires only three participant volunteers, no student pre-work, and about 25 minutes of class time, can stimulate dialogue about audit-related pressures, the audit risk model, fraud risk, professional responsibilities (and results of auditors not fulfilling their professional responsibilities), as well as the importance of internal controls.
SUMMARY
The Public Company Accounting Oversight Board's (PCAOB) Auditing Standard No. 5 (AS5) encourages external auditors to rely on internal auditors to increase the efficiency of lower-risk ...internal control evaluations (PCAOB 2007). We use post-SOX experimental data to compare the levels and effects of employer (client) identification on the control evaluations of internal (external) auditors. First, we find that internal auditors perceive a greater level of identification with the evaluated firm than do external auditors. We also find some evidence that, ceteris paribus, internal auditors are less lenient than external auditors when evaluating internal control deficiencies (i.e., tend to support management's preferred position to a lesser extent). Further, while we support Bamber and Iyer's (2007) results by finding that higher levels of external auditor client identification are associated with more lenient control evaluations, we demonstrate an opposite effect for internal auditors—higher levels of internal auditor employer identification are associated with less lenient control evaluations. Our results are important because we are the first to capture the relative levels of identification between internal and external auditors, as well as the first to compare directly internal and external auditor leniency, both of which are important in light of AS5. That is, we provide initial evidence that external auditors' increased reliance on internal auditors' work, while increasing audit efficiency, also could improve audit quality by resulting in less lenient internal control evaluations, due, at least in part, to the effects of employer and client identification.
Data Availability: Contact the first author.
We report the first measurement of rapidity-odd directed flow (v1) for D0 and D0¯ mesons at midrapidity (|y|<0.8) in Au+Au collisions at sNN=200 GeV using the STAR detector at the Relativistic Heavy ...Ion Collider. In 10–80% Au+Au collisions, the slope of the v1 rapidity dependence (dv1/dy), averaged over D0 and D0¯ mesons, is −0.080±0.017(stat)±0.016(syst) for transverse momentum pT above 1.5 GeV/c. The absolute value of D0 meson dv1/dy is about 25 times larger than that for charged kaons, with 3.4σ significance. These data give a unique insight into the initial tilt of the produced matter, and offer constraints on the geometric and transport parameters of the hot QCD medium created in relativistic heavy-ion collisions.
Rapidly changing environmental conditions and the increasing establishment of invasive alien species present many challenges for policy makers, managers and researchers. The traditional policies for ...data management, or lack thereof, are obstructing an adequate response to invasive alien species, which requires accurate and up-to-date information. This information can only be provided if data regarding invasive alien species are available and useable by all, irrespective of country, status or purpose. The best way forward is for researchers to publish their data openly, by making use of repositories in which the data are licenced in a permissive manner, while making sure they are credited by the adequate provision of citation. Reducing the barriers to data sharing will improve our ability to respond to the growing issue of biological invasions.
We report on the first measurement of the charmed baryon Λc± production at midrapidity (|y|<1) in Au+Au collisions at sNN=200 GeV collected by the STAR experiment at the Relativistic Heavy Ion ...Collider. The Λc/D0 denoting (Λc++Λc−)/(D0+D¯0) yield ratio is measured to be 1.08±0.16 (stat)±0.26 (sys) in the 0%–20% most central Au+Au collisions for the transverse momentum (pT) range 3<pT<6 GeV/c. This is significantly larger than the pythia model calculations for p+p collisions. The measured Λc/D0 ratio, as a function of pT and collision centrality, is comparable to the baryon-to-meson ratios for light and strange hadrons in Au+Au collisions. Model calculations including coalescence hadronization for charmed baryon and meson formation reproduce the features of our measured Λc/D0 ratio.
Here, we report the energy dependence of mid-rapidity (anti-)deuteron production in Au+Au collisions at $ \sqrt{s_{NN}}$ = 7.7, 11.5, 14.5, 19.6, 27, 39, 62.4, and 200 GeV, measured by the STAR ...experiment at RHIC. The yield of deuterons is found to be well described by the thermal model. The collision energy, centrality, and transverse momentum dependence of the coalescence parameter B2 are discussed. We find that the values of B2 for antideuterons are systematically lower than those for deuterons, indicating that the correlation volume of antibaryons is larger than that of baryons at $ \sqrt{s_{NN}}$ from 19.6 to 39 GeV. In addition, values of B2 are found to vary with collision energy and show a broad minimum around $ \sqrt{s_{NN}}$ = 20 to 40 GeV, which might imply a change of the equation of state of the medium in these collisions.
SUMMARY
This article summarizes “The Association between Characteristics of Audit Committee Accounting Experts, Audit Committee Chairs, and Financial Reporting Timeliness” (Abernathy, Beyer, Masli, ...and Stefaniak 2014), which investigates the association between audit committee members' accounting expertise and financial reporting timeliness. While we find a positive relation between audit committee accounting expertise and financial reporting timeliness, interestingly, we also find that accounting expertise gained from public accounting experience is associated with more timely financial reporting than accounting expertise gained from CFO experience. We discuss implications of these findings for auditors, companies, and regulators.
In this letter, measurements of the shared momentum fraction (zg) and the groomed jet radius (Rg), as defined in the SoftDrop algorithm, are reported in p+p collisions at s=200 GeV collected by the ...STAR experiment. These substructure observables are differentially measured for jets of varying resolution parameters from R=0.2−0.6 in the transverse momentum range 15<pT,jet<60 GeV/c. These studies show that, in the pT,jet range accessible at s=200 GeV and with increasing jet resolution parameter and jet transverse momentum, the zg distribution asymptotically converges to the DGLAP splitting kernel for a quark radiating a gluon. The groomed jet radius measurements reflect a momentum-dependent narrowing of the jet structure for jets of a given resolution parameter, i.e., the larger the pT,jet, the narrower the first splitting. For the first time, these fully corrected measurements are compared to Monte Carlo generators with leading order QCD matrix elements and leading log in the parton shower, and to state-of-the-art theoretical calculations at next-to-leading-log accuracy. We observe that PYTHIA 6 with parameters tuned to reproduce RHIC measurements is able to quantitatively describe data, whereas PYTHIA 8 and HERWIG 7, tuned to reproduce LHC data, are unable to provide a simultaneous description of both zg and Rg, resulting in opportunities for fine parameter tuning of these models for p+p collisions at RHIC energies. We also find that the theoretical calculations without non-perturbative corrections are able to qualitatively describe the trend in data for jets of large resolution parameters at high pT,jet, but fail at small jet resolution parameters and low jet transverse momenta.
We report the first measurement of the inclusive jet and the dijet longitudinal double-spin asymmetries, ALL, at midrapidity in polarized pp collisions at a center-of-mass energy s=510 GeV. The ...inclusive jet ALL measurement is sensitive to the gluon helicity distribution down to a gluon momentum fraction of x≈0.015, while the dijet measurements, separated into four jet-pair topologies, provide constraints on the x dependence of the gluon polarization. Both results are consistent with previous measurements made at s=200 GeV in the overlapping kinematic region, x>0.05, and show good agreement with predictions from recent next-to-leading order global analyses.
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