No abstract

This study examines how the legal and regulatory changes in China affect the relationship between client economic importance and audit quality. At the individual auditor level, we find that the propensity to issue modified audit opinions (MAOs) is negatively correlated with client importance from 1995 to 2000. However, from 2001 to 2004, when the institutional environment became more investor-friendly, the propensity to issue MAOs is positively associated with client importance. These findings are corroborated by an analysis of regulatory sanctions. Although client importance measured at the office level is also negatively related to the propensity for MAOs from 1995 to 2000 without controlling for the auditor-level client importance, this result is sensitive to model specification and sample composition. Our results suggest that (1) institutional improvements prompt auditors to prioritize the costs of compromising quality over the economic benefits gained from important clients; and (2) the impact of client importance on audit decisions appears to be different at the individual auditor and office levels.

No abstract

This study, using data from the Chinese stock market, investigates the relationship between earnings management induced by profitability regulation and modified audit opinions (MAOs). We review recent developments in the accounting profession and in independent auditing to foster an understanding of the environment in which Chinese auditing operates. Based on annual reports published by listed companies from 1995 to 1997, we analyze the underlying reasons for MAOs. Our test results show a significant association between receiving MAOs and reporting profits marginally above the target levels specified in stock de-listing and rights offering regulations. Our findings are consistent with the notion that asymmetric profitability requirements exacerbate managers' propensity to engage in earnings management, which in turn is positively associated with receiving MAOs. Though based on Chinese data, our findings are of general interest because they address a fundamental issue of trade-offs between expected costs and expected benefits in deciding whether to avoid MAOs in a transitional economy.

PurposeMicroRNAs (miRNAs) play an essential role in breast malignant tumor development and progression. The development of clinically validated biomarkers for primary breast cancer (BC) has remained an insurmountable task despite other advances in the field of cancer molecular biology. The objective of this study is to investigate the differential expression of miRNAs and the potential of circulating microRNAs as novel primary breast cancer biomarkers.MethodsOur analyses were performed on 48 tissue and 100 serum samples of patients with primary BC and a set of 20 control samples of healthy women, respectively. The relative expression of ten candidate miRNAs (miR-106b, miR-125b, miR-17, miR-185, miR-21, miR-558, miR-625, miR-665, miR-92a, and miR-93) from the results of four bioinformatics approaches and literature curation was measured by real-time quantitative reverse transcription PCR (qRT-PCR).ResultsThe level of miR-92a was significantly lower, while miR-21 was higher, as previous reports, in tissue and serum samples of BC than that of healthy controls (p < 0.001). Logistic regression and receiver operating characteristic curve analyses revealed the significant and independent value (p < 0.001) of the miR-92a and miR-21 expression quantification in serums. Moreover, the comparison with the clinicopathologic data of the BC patients showed that decreased levels of miR-92a and increased levels of miR-21 were associated with tumor size and a positive lymph node status (p < 0.001).ConclusionsThese findings suggest that many miRNAs expressions are altered in BC, whose expression profiling may provide a useful clue for the pathophysiological research. Circulating miR-92a has potential use as novel breast cancer biomarker, which is comparable to miR-21.

Henrich, Heine, and Norenzayan summarized cultural differences in psychology and argued that people from one particular culture are outliers: people from societies that are Western, educated, industrialized, rich, and democratic (WEIRD). This study shows that liberals think WEIRDer than conservatives. In five studies with more than 5,000 participants, we found that liberals think more analytically (an element of WEIRD thought) than moderates and conservatives. Study 3 replicates this finding in the very different political culture of China, although it held only for people in more modernized urban centers. These results suggest that liberals and conservatives in the same country think as if they were from different cultures. Studies 4 to 5 show that briefly training people to think analytically causes them to form more liberal opinions, whereas training them to think holistically causes shifts to more conservative opinions.

Computer systems in the near future are expected to have Non-Volatile Main Memory (NVMM), enabled by a new generation of Non-Volatile Memory (NVM) technologies, such as Phase Change Memory (PCM), STT-MRAM, and Memristor. The non-volatility property has the promise to persist in-memory data structures for instantaneous failure recovery. However, realizing such promise requires a careful design to ensure that in-memory data structures are in known consistent states after failures. This paper studies persistent in-memory B +-Trees as B +-Trees are widely used in database and data-intensive systems. While traditional techniques, such as undo-redo logging and shadowing, support persistent B +-Trees, we find that they incur drastic performance overhead because of extensive NVM writes and CPU cache flush operations. PCM-friendly B +-Trees with unsorted leaf nodes help mediate this issue, but the remaining overhead is still large. In this paper, we propose write atomic B +-Trees (wB +-Trees), a new type of main-memory B +-Trees, that aim to reduce such overhead as much as possible. wB +-Tree nodes employ a small indirect slot array and/or a bitmap so that most insertions and deletions do not require the movement of index entries. In this way, wB +-Trees can achieve node consistency either through atomic writes in the nodes or by redo-only logging. We model fast NVM using DRAM on a real machine and model PCM using a cycle-accurate simulator. Experimental results show that compared with previous persistent B +-Tree solutions, wB +-Trees achieve up to 8.8x speedups on DRAM-like fast NVM and up to 27.1x speedups on PCM for insertions and deletions while maintaining good search performance. Moreover, we replaced Memcached's internal hash index with tree indices. Our real machine Memcached experiments show that wB +-Trees achieve up to 3.8X improvements over previous persistent tree structures with undo-redo logging or shadowing.

While international harmonization of accounting is gaining momentum in recent years, there is little empirical evidence on whether the harmonization of accounting standards leads to harmonized accounting practices and comparable financial reports. Benefiting from a unique research opportunity in China, this study provides such evidence. Since January 1, 1998, a newly promulgated Accounting Regulation for Listed Companies is in effect. This new regulation is the most comprehensive effort at harmonizing Chinese generally accepted accounting standards (GAAP) with International Accounting Standards (IAS). Based on a sample of listed companies required to reconcile accounting earnings from Chinese GAAP to IAS, we find no evidence that the Chinese government's efforts eliminated or significantly reduced the gap between Chinese and IAS earnings despite harmonized accounting standards. We explore reasons for the continued earnings gap after the 1998 regulation and find that a lack of adequate supporting infrastructure, manifested in excessive earnings management and low quality auditing, may explain the gap.