The Impact of Noncompliance and Internal Control Deficiencies on Going Concern Audit Opinions and Viability of Nonprofit Charitable Organizations

2018 ◽  
Vol 35 (3) ◽  
pp. 637-664
Author(s):  
Nancy Chun Feng
Keyword(s):  
Survival Analysis ◽  
Internal Control ◽  
Type I ◽  
Type Ii ◽  
Charitable Organizations ◽  
Audit Opinion ◽  
Going Concern ◽  
Time Period ◽  
Internal Control Deficiencies ◽  
The Impact

This study investigates whether material noncompliance ( MNC) with laws and regulations and internal control deficiencies ( ICDs) in a nonprofit charitable organization (NPO) affect the likelihood that the NPO receives a going concern audit opinion ( GCO) and the viability of the NPO. I find that noncompliance and ICDs are positively associated with the likelihood that an NPO receives a GCO. The results also suggest that the entity-level ICDs increase auditors’ propensity to issue a GCO but ICDs that occur at the federal program level do not. The evidence from the survival analysis shows that only ICDs have significant influence on the viability of NPOs. The results of the survival analysis also show that GCO-receiving NPOs are more likely to discontinue operations than their financially distressed peers, indicating that either auditors are correct in issuing the GCOs or GCOs become self-fulfilling prophecies. Analyses of Type I/Type II misclassifications suggest that auditors make more Type I errors than Type II ones, and the accuracy of going concern decisions seems to vary by auditor type, sector, and time period. The overall findings of this study provide evidence of hidden costs of noncompliance and ICDs in NPOs, which can motivate regulators and the managers of NPOs to enhance NPOs’ governance to lower the probability of getting a GCO and improve the NPO’s sustainability.

The Effect of Stage of Development and Financial Health on Auditor Decision Behavior in the Going-Concern Task

1999 ◽  
Vol 18 (1) ◽  
pp. 37-54 ◽  
Author(s):  
Andrew J. Rosman ◽  
Inshik Seol ◽  
Stanley F. Biggs
Keyword(s):  
Information Acquisition ◽  
Type I ◽  
Type Ii ◽  
Financial Health ◽  
Inference Problem ◽  
Going Concern ◽  
Start Up ◽  
Mitigating Factors ◽  
Type Ii Errors ◽  
Problem Representations

The effect of different task settings within an industry on auditor behavior is examined for the going-concern task. Using an interactive computer process-tracing method, experienced auditors from four Big 6 accounting firms examined cases based on real data that differed on two dimensions of task settings: stage of organizational development (start-up and mature) and financial health (bankrupt and nonbankrupt). Auditors made judgments about each entity's ability to continue as a going concern and, if they had substantial doubt about continued existence, they listed evidence they would seek as mitigating factors. There are seven principal results. First, information acquisition and, by inference, problem representations were sensitive to differences in task settings. Second, financial mitigating factors dominated nonfinancial mitigating factors in both start-up and mature settings. Third, auditors' behavior reflected configural processing. Fourth, categorizing information into financial and nonfinancial dimensions was critical to understanding how auditors' information acquisition and, by inference, problem representations differed across settings. Fifth, Type I errors (determining that a healthy company is a going-concern problem) differed from correct judgments in terms of information acquisition, although Type II errors (determining that a problem company is viable) did not. This may indicate that Type II errors are primarily due to deficiencies in other stages of processing, such as evaluation. Sixth, auditors who were more accurate tended to follow flexible strategies for financial information acquisition. Finally, accurate performance in the going-concern task was found to be related to acquiring (1) fewer information cues, (2) proportionately more liquidity information and (3) nonfinancial information earlier in the process.

Modeling Endoleaks and Collateral Reperfusion following Endovascular AAA Exclusion

2003 ◽  
Vol 10 (3) ◽  
pp. 424-432 ◽  
Author(s):  
Chuh K. Chong ◽  
Thien V. How ◽  
Geoffrey L. Gilling-Smith ◽  
Peter L. Harris
Keyword(s):  
Stent Graft ◽  
Aortic Pressure ◽  
Type I ◽  
Type Ii ◽  
Pump System ◽  
Type Ii Endoleak ◽  
Type I Endoleak ◽  
The Impact ◽  
Mean Aortic Pressure

Purpose: To investigate the effect on intrasac pressure of stent-graft deployment within a life-size silicone rubber model of an abdominal aortic aneurysm (AAA) maintained under physiological conditions of pressure and flow. Methods: A commercial bifurcated device with the polyester fabric preclotted with gelatin was deployed in the AAA model. A pump system generated physiological flow. Mean and pulse aortic and intrasac pressures were measured simultaneously using pressure transducers. To simulate a type I endoleak, plastic tubing was placed between the aortic wall and the stent-graft at the proximal anchoring site. Type II endoleak was simulated by means of side branches with set inflow and outflow pressures and perfusion rates. Type IV endoleak was replicated by removal of gelatin from the graft fabric. Results: With no endoleak, the coated graft reduced the mean and pulse sac pressures to negligible values. When a type I endoleak was present, mean sac pressure reached a value similar to mean aortic pressure. When net flow through the sac due to a type II endoleak was present, mean sac pressure was a function of the inlet pressure, while pulse pressure in the sac was dependent on both inlet and outlet pressures. As perfusion rates increased, both mean and pulse sac pressures decreased. When there was no outflow, mean sac pressure was similar to mean aortic pressure. In the presence of both type I and type II endoleaks, mean sac pressure reached mean aortic pressure when the net perfusion rate was low. Conclusions: In vitro studies are useful in gaining an understanding of the impact of different types of endoleaks, in isolation and in combination, on intrasac pressure after aortic stent-graft deployment.

scholarly journals PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE, OPINION SHOPPING, KUALITAS AUDIT, DAN AUDIT CLIENT TENURE TERHADAP PENERIMAAN OPINI AUDIT GOING CONCERN AUDITING

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Panggah Wira Angkasa ◽  
Dewi Indriasih ◽  
Baihaqi Fanani
Keyword(s):  
Logistic Regression ◽  
Research Result ◽  
Institutional Ownership ◽  
Audit Opinion ◽  
Quality Audit ◽  
Going Concern ◽  
Opinion Shopping ◽  
Going Concern Opinion ◽  
Infrastructure Services ◽  
The Impact

The Impact of Good Governance, Opinion Shopping, Quality Audit and Audit Client Tenure Application towards Going Concern Opinion Audit Acceptance (Empirical Studies on Infrastructure Services Company, Utility, and Transportation which Registered at Indonesian Stock Exchange (ISE) during 2013 – 2017 Period). Essay. Tegal: Economic & Business Faculty, Pancasakti University Tegal. 2018. The aim of this research is to finding out the impact of institutional ownership, independent commissioner, committee audit, opinion shopping, quality audit, audit client tenure towards going concern’s opinion audit on infrastructure services company, utility, and transportation which registered at ISE during 2013 – 2017 period. The population in this research are infrastructure services company, utility, and transportation which registered at ISE during 2013 – 2017 period and the sample determination by using purposive sampling method, so within the result obtained 15 company’s samples. The data analysis method used is logistic regression analysis. Based on logistic regression analytic, the research result concluded that institutional ownership (0,109), audit committee (0,429), opinion shopping (0,607), and quality audit (0,998) are not affecting the going concern opinion audit. Meanwhile, the independent commissioner (0,006), and audit client tenure (0,004) are affecting the going concern opinion audit. Keywords: going concern, opinion audit, institutional ownership, independent commissioner, committee audit, opinion shopping, quality audit, audit client tenure

Type I Versus Type II Endometrial Cancer: Differential Impact of Comorbidity

2018 ◽  
Vol 28 (3) ◽  
pp. 586-593 ◽  
Author(s):  
Mette Calundann Noer ◽  
Sofie Leisby Antonsen ◽  
Bent Ottesen ◽  
Ib Jarle Christensen ◽  
Claus Høgdall
Keyword(s):  
Cox Regression ◽  
Type I ◽  
Prognostic Impact ◽  
Type Ii ◽  
Regression Analyses ◽  
Differential Impact ◽  
Kaplan Meier ◽  
Prediction Of Survival ◽  
Comorbidity Index ◽  
The Impact

ObjectiveTwo distinct types of endometrial carcinoma (EC) with different etiology, tumor characteristics, and prognosis are recognized. We investigated if the prognostic impact of comorbidity varies between these 2 types of EC. Furthermore, we studied if the recently developed ovarian cancer comorbidity index (OCCI) is useful for prediction of survival in EC.Materials and MethodsThis nationwide register-based cohort study was based on data from 6487 EC patients diagnosed in Denmark between 2005 and 2015. Patients were assigned a comorbidity index score according to the Charlson comorbidity index (CCI) and the OCCI. Kaplan-Meier survival statistics and adjusted multivariate Cox regression analyses were used to investigate the differential association between comorbidity and overall survival in types I and II EC.ResultsThe distribution of comorbidities varied between the 2 EC types. A consistent association between increasing levels of comorbidity and poorer survival was observed for both types. Cox regression analyses revealed a significant interaction between cancer stage and comorbidity indicating that the impact of comorbidity varied with stage. In contrast, the interaction between comorbidity and EC type was not significant. Both the CCI and the OCCI were useful measurements of comorbidity, but the CCI was the strongest predictor in this patient population.ConclusionsComorbidity is an important prognostic factor in type I as well as in type II EC although the overall prognosis differs significantly between the 2 types of EC. The prognostic impact of comorbidity varies with stage but not with type of EC.

RF Test Article Experiment on the Impact of Non-Hexavalent Chromium-Based Conversion Coatings on Electrical Assemblies

2018 ◽  
Vol 2018 (1) ◽  
pp. 000712-000717
Author(s):  
Joshua S. Petko ◽  
Philip A. Lovell ◽  
Jeremy D. Clifton ◽  
Alexander J. Bersani ◽  
Karl F. Schoch
Keyword(s):  
Hexavalent Chromium ◽  
Conversion Coating ◽  
Type I ◽  
Type Ii ◽  
Conversion Coatings ◽  
Environmental Testing ◽  
Rf Test ◽  
Test Article ◽  
And Performance ◽  
The Impact

Abstract Conversion coatings are treatments applied to aluminum structures to inhibit corrosion while maintaining electrical conductivity. In aerospace applications, the most common type of conversion coatings (MIL-DTL-5541 Type I) contain hexavalent chromium compounds as the corrosion-inhibiting agent. These Type I conversion coatings have a long pedigree and are highly effective in preventing corrosion; however, the hexavalent chromium compounds in these coatings are carcinogenic and water-soluble. Therefore, the use of these compounds is highly regulated in order to protect both workers and the public, leading to high cost in both use and disposal. Regulations are also beginning to restrict outright use, where new designs for the DOD are prohibited from using Type I coatings by DFARS 48 CFR Parts 223 and 252 and all use has been prohibited by Europe by REACH regulations since September 2017. In response, more environmentally friendly non-hexavalent chromium-based processes, referred to as MIL-DTL-5541 Type II conversion coatings, have become available. However, the long term reliability and performance impacts resulting from the use of these coatings are not fully understood and there is an ongoing effort in the aerospace industry organized by NASA to fully define these impacts while hardware is still in the design stage. While significant work has been performed to define the corrosion performance of various type-II conversion coatings, there has been minimal work performed to quantify the impact a type-II conversion coating would have on RF electrical assemblies. The standard methodologies defined by MIL-DTL-81706B have significant limitations and cannot fully capture the impact at microwave frequencies. For this reason, an investigation is underway at Northrop Grumman to quantify the impact these coatings may have on the quality, reliability, and performance of our electronic systems. At IMAPS 2017, Northrop Grumman introduced a RF test article designed to assess the longitudinal impact a Type II conversion coating would have on RF electrical assemblies where plated printed wiring boards (PWBs) and aluminum structures come in intimate contact. The test article features a specialized suspended stripline/microstrip stepped impedance filter designed to de-tune in the presence of galvanic corrosion. This talk follows the work presented in IMAPS 2017 by discussing an experiment where three different populations of test articles, each coated with a different type of conversion coating, are subjected to environmental testing. This talk also discusses how an initial measurement of these test articles before environmental exposure showed little difference between these populations. Finally, this talk reviews the initial results of this experiment, discussing environmental testing and the RF measurements captured during these tests.

Experimental Assessment of Microwave Loss Caused by Non-Hexavalent Chromium-Based Conversion Coatings

2017 ◽  
Vol 2017 (1) ◽  
pp. 000146-000150
Author(s):  
Joshua S. Petko ◽  
Philip A. Lovell ◽  
Jeremy D. Clifton ◽  
Paul H. Cohen ◽  
Karl F. Schoch
Keyword(s):  
Hexavalent Chromium ◽  
Environmental Exposure ◽  
Conversion Coating ◽  
Type I ◽  
Type Ii ◽  
Conversion Coatings ◽  
Test Methodology ◽  
Microwave Loss ◽  
Chromium Compounds ◽  
The Impact

Abstract Conversion coatings are used to inhibit corrosion on aluminum structures while maintaining electrical conductivity. The most common type of conversion coatings in aerospace applications (MIL-DTL-5541 Type I), contain hexavalent chromium compounds as the corrosion-inhibiting additive. These Type I conversion coatings have a long pedigree and are highly effective in preventing corrosion; however, the hexavalent chromium compounds in these coatings are carcinogenic and water-soluble. Therefore, the use of these compounds is highly regulated in order to protect both workers and the public leading to high cost in both use and disposal. In addition to these regulations, use of these materials on new designs for DOD is prohibited by DFARS 48 CFR Parts 223 and 252, and is scheduled to be prohibited in Europe in September 2017 by REACH regulations. In response, new more environmentally friendly non-hexavalent chromium-based processes are becoming available. Coatings resulting from these types of processes are referred to as MIL-DTL-5541 Type II conversion coatings. The long term reliability and performance impacts resulting from the use of these coatings are not fully understood and there currently is an effort in the aerospace industry organized by NASA to fully define these impacts while hardware is still in the design stage. While significant work has been performed to define the corrosion performance of various type-II conversion coatings, there has been minimal work performed to quantify the impact a type-II conversion coating would have on RF electrical assemblies. Of particular interest is the impact a conversion coating can have on microwave loss at higher frequencies. Many RF electrical assemblies use aluminum radiator and waveguide structures to transfer energy between components and radiate into freespace. If microwave losses increase due to a change in conversion coating, there could be negative impacts to key performance parameters such as system sensitivity, dynamic range, noise figure, and radiated power. Understanding this impact is critical in determining whether the design change impact is isolated only to the conversion coating or whether it propagates to other subcomponents to compensate for the loss in performance. The standard way to quantify the electrical resistance of conversion coatings is defined by MIL-DTL-81706B. The test involves collecting a DC resistance measurement on a processed panel using a two-probe measurement with 200 psi of pressure applied to the probes. The resulting value is averaged from 10 samples of data collected across the panel. While this test in MIL-DTL-81706B is well defined, it has significant limitations that caused this research to seek another way to quantify this value. First, the repeatability of the two-point probe is not consistent across the panel. Some of the conversion coatings can be brittle and can easily be disturbed by the force applied by the probes. The poor repeatability is exacerbated when the test articles are environmentally exposed, leaving a non-uniform surface. Finally, this test methodology is performed at DC, which does not directly quantify the impact of the coating at microwave frequencies due to phenomena such as skin effect and potential plasmonic response. This talk discusses an experiment performed to assess the impact of the use of type-II conversion coatings on microwave loss. In order to assess this impact, a set of precision machined waveguide structures were used as test articles in the experiment. The advantage of using this waveguide-based approach is that it provides a distributed surface to assess the average impact of conversion coatings on surface resistivity. This average resistivity more closely maps to the RF losses seen by microwave systems. In addition, testing the waveguide test article provides a very repeatable test methodology; waveguide technology is very mature from a manufacturing perspective. Also, the waveguide flanges provide a repeatable way to connect to the test article so long as they are masked or cleaned after any potential environmental exposure. Finally, the rectangular shape of the waveguide can be canonically described by a closed form expression, improving understanding of the specific mechanisms leading to the loss. This talk discusses an experiment where multiple 3-foot pieces of WR-28 were used as test articles. The WR-28 test articles were chosen to assess the impact to performance at Ka-band. The 3-foot sections are convenient articles because they can easily be measured on a workbench while at the same time being electrically long at Ka-band (on the order of 100 wavelengths). This talk discusses three different populations of test articles, each coated with a different type of conversion coating. This talk also discusses how an initial measurement of these test articles before environmental exposure showed little difference between these populations. Finally, this talk will discuss plans for environmental testing and in-process RF measurements to be captured during these tests.

RF Test Article to Assess the Impact of Non-Hexavalent Chromium-Based Conversion Coatings on Electrical Assemblies

2017 ◽  
Vol 2017 (1) ◽  
pp. 000046-000051 ◽  
Author(s):  
Joshua S. Petko ◽  
Philip A. Lovell ◽  
Jeremy D. Clifton ◽  
Paul H. Cohen ◽  
Karl F. Schoch
Keyword(s):  
Hexavalent Chromium ◽  
Galvanic Corrosion ◽  
Ground Plane ◽  
Conversion Coating ◽  
Type I ◽  
Type Ii ◽  
Conversion Coatings ◽  
Rf Test ◽  
Test Article ◽  
The Impact

Abstract Conversion coatings are used to inhibit corrosion on aluminum structures while maintaining electrical conductivity. The most common type of conversion coatings in aerospace applications (MIL-DTL-5541 Type I), contain hexavalent chromium compounds as the corrosion-inhibiting additive. These Type I conversion coatings have a long pedigree and are highly effective in preventing corrosion; however, the hexavalent chromium compounds in these coatings are carcinogenic and water-soluble. Therefore, the use of these compounds is highly regulated in order to protect both workers and the public leading to high cost in both use and disposal. In addition to these regulations, use of these materials on new designs for DOD is prohibited by DFARS 48 CFR Parts 223 and 252, and is scheduled to be prohibited in Europe in September 2017 by REACH regulations. In response, new more environmentally friendly non-hexavalent chromium-based processes are becoming available. Coatings resulting from these types of processes are referred to as MIL-DTL-5541 Type II conversion coatings. The long term reliability and performance impacts resulting from the use of these coatings are not fully understood and there currently is an effort in the U. S. aerospace industry organized by NASA to fully define these impacts while hardware is still in the design stage. While significant work has been performed to define the corrosion performance of various Type II conversion coatings, there has been minimal work performed to quantify the impact a Type II conversion coating would have on RF electrical assemblies where plated printed wiring boards (PWBs) and aluminum structures come in intimate contact. The primary concern for these assemblies is that these junctions are inherently susceptible to galvanic corrosion; PWBs are clad with copper, which is highly cathodic while aluminum is highly anodic. In order to reduce the potential for galvanic corrosion, PWBs in DOD applications are typically plated with SnPb coating which is less cathodic than the copper. In addition, an immersion bath is used to coat the aluminum with a conversion coating that is less anodic. Changes to the conversion coating could increase the galvanic corrosion occurring at this junction. In addition, RF signals may also be negatively impacted by changes to the electrical resistivity and parasitic capacitances caused by changes to this junction. For this reason, it is highly desirable to create a RF test article that is highly sensitive to the impacts of galvanic corrosion at the junctions of passivated aluminum and plated printed wiring boards. This talk discusses a RF test article that is designed to assess the longitudinal impact of galvanic corrosion on electrical assemblies. The test article features a specialized suspended stripline/microstrip stepped impedance filter that is designed to de-tune in the presence of galvanic corrosion. The design of this filter uses a pair of machined aluminum housings to sandwich a thin two sided printed wiring board. The high-impedance sections of the filter employ cavities above and below the thin PWB to create an effective airstripline transmission line. The low-impedance sections of the filter employ a PWB ground plane to create a microstrip mode. Small aluminum feet are machined in the bottom aluminum housing to create an electrical contact between the aluminum housing and PWB ground plane. These feet are designed to function as sacrificial elements that corrode away in the presence of galvanic corrosion, creating series capacitance in the ground signal path. This talk reviews recent test results that show how the response of this specially designed filter changes in the presence of galvanic corrosion and compares these results with electrical simulations. This talk also discusses how information gained from the filter response can be used to assess the electrical impact of Type II conversion coatings. Finally, this talk will discuss the experimental design needed to quantify the impact of Type II conversion coatings with respect to the current baseline processes.

Adenocarcinomas of the esophagogastric junction: How does surgeon’s assessment influence the fate of patients?

2012 ◽  
Vol 30 (4_suppl) ◽  
pp. 92-92
Author(s):  
Dean Bogoevski ◽  
Sormeh Mina ◽  
Asad Kutup ◽  
Maximilian Bockhorn ◽  
Matthias Reeh ◽  
...  
Keyword(s):  
Surgical Therapy ◽  
Esophagogastric Junction ◽  
Type I ◽  
Cancer Type ◽  
Type Ii ◽  
Recurrence Rates ◽  
Metastatic Recurrence ◽  
Staging Systems ◽  
Thoracoabdominal Approach ◽  
The Impact

92 Background: Due to controversial staging systems, classifying tumors of the esophagogastric junction (EGJ) and the choice of the following surgical therapy remains a delicate affair. Methods: In this study the impact of the preoperative surgical-clinical assessment concerning assorting tumors of the EGJ was evaluated in correlation to the patient’s outcome. We analyzed clinicopathological data from 92 patients who were pre- and intraoperatively classified as distal esophageal cancer (Type I) and thus underwent esophagectomy with gastric tube reconstruction and who afterwards (final histology) in part turned out to be cardia/gastric cancers (Type II). Results: Patients with Type II cancers showed significantly more frequent lymphonodal metastasis (p=0.022) and higher recurrence rates (p=0.01), especially distant metastatic recurrence (p=0.03). Cancer-related death was also significantly higher (p=0.002) and recurrence-free survival was significantly shorter (median: 22 vs. 57 months, p=0.027). Also the thoracoabdominal approach (TA) had a favourable influence on patients’ outcome compared to the transhiatal approach (TH). Conclusions: The correct preoperative assessment of tumors of the EGJ and the appropriate surgical therapy are crucial for the outcome of the patient. Those patients with Type II cancers might experience a survival benefit by undergoing radical combined esophago (-hemi)gastrectomy with colon interposition.

The Impact of Regulation on the U.S. Nonprofit Sector: Initial Evidence from the Nonprofit Integrity Act of 2004

2011 ◽  
Vol 25 (1) ◽  
pp. 107-125 ◽  
Author(s):  
Daniel G. Neely
Keyword(s):  
Nonprofit Organizations ◽  
Financial Reporting ◽  
Nonprofit Sector ◽  
Reporting Quality ◽  
Charitable Organizations ◽  
Time Period ◽  
Financial Statement Audit ◽  
Before And After ◽  
Financial Scandals ◽  
The Impact

SYNOPSIS: The early 2000s revealed a series of high-profile financial frauds in the corporate and nonprofit sectors. In response to several of these financial scandals, California passed the Nonprofit Integrity Act (NIA) of 2004. This seminal piece of governance regulation sought to increase financial transparency and mitigate fundraising abuses by California charitable organizations. This study examines the characteristics of California charitable organizations before and after the Act to understand the initial impact the Act had on nonprofit organizations. Key findings from the study include limited reported improvement in financial reporting quality and an increase in accounting fees following the implementation of the Act. California nonprofits subject to the Act’s provisions did exhibit an increase in executive compensation following the implementation of the Act; however, the increase was less than that exhibited by the population of nonprofits during the same time period. Overall, the results of this study suggest that the initial impact of regulations similar to the NIA is greatest for organizations that did not previously have a financial statement audit.

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