Auditor Tenure, Fixed Fee Contracts, and the Supply of Substandard Single Audits

Our purpose is to provide empirical evidence of the relations between the quality of governmental audit services and auditor tenure and between quality and fixed fee audit contracts. Audit quality is assessed by Offices of Regional Inspectors General and is based on a review of the audit reports and supporting working papers. We test a model of quality supplied on a sample of audit engagements selected from a population of audited federal assistance programs. The empirical analysis finds that the probability of receiving a substandard audit increases with the length of the auditor-client relationship. Our analysis finds a positive relation between fixed fee contracts and the incidence of violations of professional standards among audits of federal assistance programs. Additionally, we provide evidence that the incidence of noncom-pliance with professional standards is significantly lower when the audit contract contains a provision for administrative and/or legal remedies in the event of substandard performance.     

Social capital in the Japanese youth labor market: Labor market policy,schools, and norms

This paper develops the concept of institutional social capital and discusses its importance in the labor market. Institutional social capital is constituted by the resources inherent in an organization (such as a school) and thereby available to members of that organization. This is contrasted with the social capital available to individuals through their own personal networks. In the labor market context, an example of institutional social capital is the ties that schools have with employers who recruit a proportion of their new employees as they prepare to graduate. The paper examines how these ties and the norms governing the important labor market screening role played by the high school developed in post-WWII Japan. I also discuss an important positive externality – social control over students – generated by schools institutional social capital. Finally, I examine current challenges to Japanese high schools institutional social capital.     

Evaluation of Raman spectroscopy for the analysis of colored fibers: a collaborative study

A collaborative study on Raman spectroscopy was carried out by members of the ENFSI (European Network of Forensic Science Institutes) European Fibres Group (EFG) on three dyed fibers: two red acrylics and one red wool. Raman instruments from six different manufacturers were tested as well as nine different laser wavelengths ranging from blue (lambda = 458 nm) to near infrared-NIR (lambda = 1064 nm). This represents the largest comparison study of Raman analytical parameters carried out on identical fiber samples. For the chosen fiber and dye samples, red lasers (lambda = 633 and 685 nm) gave the poorest spectral quality whereas blue (458 nm), green (514 nm) and near infrared lasers (785, 830 and 1064 nm) provided average results. Blue (488 nm) and green lasers (532 nm) globally gave the best quality spectra. Fluorescence problems were often encountered with some of the excitation wavelengths and therefore a flexible Raman instrument equipped with different lasers can be recommended to measure forensic fiber samples. The instrument should also be equipped with a Raman microscope in order to be able to focus on a single fiber. This study shows that Raman spectroscopy usually enables the identification of the main dye present in a colored fiber; however, minor dye components are much more difficult to detect. SERRS (Surface Enhanced Resonance Raman Scattering) techniques give an improvement of the dye's spectral intensity but no spectral improvement was observed for the two red acrylic and red wool fibers tested.