Search results

The purpose of this paper was to explore the mechanisms of scuffing propagation of heavily loaded lubricated friction pair elements coated with low-friction WC/C coating for various material combinations.

The investigations were performed for low-friction coatings WC/C (a-C:H:W) deposited by the reactive sputtering physical vapour deposition (PVD) process. Experiments were carried out using a four-ball tester with continuously increasing loads. Tests were conducted for the following four material combinations: steel/steel tribosystem (all balls uncoated); steel/coating tribosystem (one upper ball uncoated/three lower balls WC/C-coated); coating/steel tribosystem (one upper ball WC/C-coated/three lower balls uncoated); and coating/coating tribosystem (all balls WC/C-coated).

The better scuffing resistance is achieved by coating only one element (coating/steel tribosystem) than all elements (coating/coating tribosystem). The description of scuffing propagation for all investigated tribosystems was done. The high scuffing resistance of the coating/steel tribosystem resulted from reducing the adhesion between rubbing surfaces due to low chemical affinity (similarities) between the steel and the coating material and the presence of solid lubricant in the friction zone.

In all cases, when a coating is applied, an increase in scuffing resistance is observed. However, it is better to coat only one element than all. Furthermore, the scuffing resistance for the coating/steel tribosystem is significantly higher than for the steel/coating tribosystem.

The main value of this paper is description of scuffing propagation and revealing the new aspects in application of low-friction WC/C coating for heavily loaded lubricated friction pair elements. The overlapping ratio has been defined as an important factor influencing the scuffing resistance of the coated tribosystems.

It is important that librarians know that unethical practices occasionally have occurred, and will occur in the future, in the field of library automation. Some vendors have “low‐balled” a bid—undersized a system—in order to make a sale. Some have bid undeliverable products. Libraries have occasionally “wired” a request for proposal—stated required specifications so that only one vendor can qualify. Consultants have occasionally compromised their objectivity and independence. Examples of unethical practices are described, as are procedures that will help identify and prevent those practices in the future.

This paper aims to investigate the impact of International Financial Reporting Standards (IFRS) adoption on audit and non-audit fees in the UK setting. The study investigates whether UK firms adopting IFRS for the first time or reporting under IFRS, in general, are being charged higher audit and non-audit fees and whether this impact is conditional on audit firm size and tenure.

Using empirical data for UK listed firms from 2003-2007, the paper uses a regression model that explains audit and non-audit fees by independent variables measuring auditors’ and auditees’ characteristics including IFRS adoption and reporting. Additional regressions with interaction terms were performed to test the hypothetical conditional impact of auditor size and audit firm tenure on the above-mentioned association.

Audit and non-audit fees increase significantly for companies adopting IFRS for the first time and this increase is persistent during later years. In addition, results suggest that both Big four and non-Big four auditors charge higher audit and non-audit fees to their clients adopting or reporting under IFRS in a similar manner. Furthermore, findings indicate that audit firms increase audit and non-audit fees for old and new clients using IFRS which suggests no low-balling effect is detected.

Results reported in this study provide insights to regulators in jurisdictions similar to the UK regarding the cost of IFRS adoption which includes higher audit and non-audit fees imposed by both Big four and non-Big four audit firms. In addition, this study argues, to some extent, against the notion that auditors may charge lower fees in the early years of the audit engagement to win new audit clients.

To the best of the knowledge, the findings are unique at two levels. First, the paper provides evidence on the cost of using IFRS in the UK jurisdiction which was not explored by previous research. Second, the paper investigates the potential conditional effect of auditor size and audit tenure on the association between IFRS adoption and auditors’ fees.

This paper studies the audit fee structure in Hong Kong. By analysing data concerning a number of variables representing auditee size, auditee risk, complexity of audit, auditor identity, and the timing of audit, we develop a model of the determinants of audit fees which is applicable to the unique environment in Hong Kong. Using a more recent time period of 1992 and 1993, this study strongly confirms that most of the previous research findings are also applicable to the Hong Kong audit service market. We provide additional evidence relating to variables such as the Big Six (previously Big Eight) effects, auditee risk and auditee complexity which have been found to have inconclusive associations with the level of audit fees in previous research. Specifically, auditee size appears to have been the main determinant of audit fees, and the size measure is two‐dimensional, both asset and turnover respectively add explanatory power to that provided by each other. Complexity of audit adds significantly to the cost of audit. There is also evidence of Big Six effects and low‐balling. In addition, some evidence is found for the effects of auditee risk on audit fees. Finally, a longer audit delay, which reflects the possibility of inefficient audit time spent, entails higher audit fees. Future research should consider the importance of other issues such as non‐audit services and the extent of market concentration.

In order to meet the requests of exploring environmental-friendly and multifunctional lubricant additives, some novel dimercaptothiadiazole derivatives containing hydroxyl are prepared and used as antiwear (AW) and extreme-pressure (EP) additives in biodegradable lithium grease. The paper aims to discuss these issues.

The tribological performances of the grease samples containing these derivatives are evaluated by using a four-ball tester. X-ray absorption near edge structure (XANES) spectroscopy is used to analyze the chemistry of tribofilms under AW/EP regime, and thermal films are also considered for comparison.

The tribological tests show that these derivatives are all effective in reducing wear, especially at lower additive concentrations, but they are basically failed in reducing friction. They are also helpful in improving the EP characteristic of the base grease. The thermal films generated by these derivatives are composed of adsorbed organic sulfide and ferrous sulfate, though for short-chain derivatives, organic sulfide is the only component at 5.0 wt.%. Ferrous sulfide is the main component of the tribofilms formed by these derivatives at various additive concentrations. But for short-chain derivatives, these tribofilms consist of ferrous sulfide and ferrous disulfide at 5.0 wt.%, and the appearance of disulfide suggests that the interfacial temperature between the upper ball and three lower balls under these conditions is considerably low. The EP films generated by short-chain derivatives are all composed of organic sulfide and ferrous sulfide, while for long-chain derivatives, ferrous sulfide is the main component.

These low-toxic and oil-soluble dimercaptothiadiazole derivatives are effective in improving the tribological characteristic of the biodegradable lithium grease, and these heterocyclic derivatives may be good substitutes for some harmful traditional additives.

The purpose of this paper is to examine the effect of the Enron scandal, Arthur Andersen's demise and the Sarbanes‐Oxley Act on audit fees.

The paper uses empirical methodology (univariate and multivariate).

Audit fees and the Big‐4 premium increased in 2002. Increase was larger for bigger and riskier clients. Evidence is also consistent with a competitive market for former Andersen clients.

Data requirements might bias the sample towards larger sized firms. Data availability limits the number of observations.

The research findings on audit fees in post‐Enron and Arthur Andersen period reported in this paper are important for policy makers.

It is found that the premium charged by Big 4 over non‐Big 4 has increased in 2002, and that the ability of an auditor to charge a premium is adversely affected when its reputation is tarnished. It is also reported that the frequency of voluntary switches within the Big 4 is lowest in 19 years. The audit fee model was also refined by adding two ownership variables to control for agency aspect of client firms; inside and institutional ownership.

There is limited evidence on how differences in economic environments affect the demand for and supply of auditing. Research on audit pricing has mainly focused on large client markets in developed economies; in contrast, the purpose of this paper is to focus on the small client segment in the emerging economy of Thailand which offers a choice between auditors of two different qualities.

This paper is based on a random stratified sample of small clients in Thailand qualifying for audit exemption. The final sample consists of 1,950 firm-year observations for 2002-2006.

The authors find evidence of product differentiation in the small client market, suggesting that small firms view certified public accountants as superior and pay a premium for their services. The authors also find that audit fees have a positive significant association with leverage, metropolitan location and client size. Audit risk and audit opinion are not, however, significantly associated with audit fees. Furthermore, the authors find no evidence that clients whose financial year ends in the auditors’ busy period pay significantly higher audit fees, and auditors engage in low-balling on initial engagements to attract audit clients.

The research shows the importance of exploring actual decisions regarding audit practice and audit pricing in different institutional and organizational settings.

The paper extends the literature from developed economies and large/listed market setting to the emerging economy and small client market setting. As far as the authors are aware, this is the first paper to examine audit pricing in the small client market in an emerging economy.

CAMERON‐PLINT Tribology Ltd, the emergent company from an association between Professor Alastair Cameron, head of the Tribology Section at Imperial College, London, until his recent retirement, and Plint & Partners Ltd, of Woking, is making good headway.

The purpose of this study is to explore the effect of industry specialization on the absorption and competitive pricing (or lack thereof) of audits of large Andersen clients (S&P 1500 companies) who switched to the remaining Big 4 international accounting firms in 2002 due to the demise of Arthur Andersen LLP (Andersen). Did the audit clients pay a premium or discount in audit fees to their new auditor who specialized in their industry?

Ordinary least squares regression is used to test hypothesis of a positive association between industry specialization and audit fees charged to former Andersen's audit clients in 2002 following Andersen's demise. This study provides more control over size effects by design. Test variables are constructed based on national market share of audit fees within an industry. Logistic regression is used to examine the likelihood of choosing new auditor that is an industry specialist.

Results support hypothesis, consistent with auditor differentiation explanation. Proportion of clients that had engaged an industry specialist in 2001 increased from 38 percent (84 clients) to 48 percent (105 clients) in 2002. No evidence of price‐gouging in 2002 although clients who aligned with industry specialist paid a 23.2 percent premium in audit fees. Large clients lost bargaining power to negotiate lower fees. Findings are robust to the inclusion of additional alternative measures of company size.

Results of logistic regression analysis imply that large audit clients with former auditor of tarnished reputation, long auditor tenure and high leverage are more likely to switch to an industry specialist to possibly signal audit/financial reporting quality. Large sample companies may limit the ability to generalize findings to smaller companies.

Mandatory audit firm rotation (currently being debated in the profession) will have costly effect on the pricing of Big 4 audits for companies wanting to signal audit and financial reporting quality to affect market perception, and large companies would likely lose their ability to bargain for lower audit fees.

The paper focus on the alignment of Andersen clients and impact on audit fees with Big 4 industry specialists resulting from the sudden increase in audit market concentration. Prior to Andersen's collapse, evidence on the association of audit fees premium and industry specialists was mixed, and little attention has been given to the influence of auditor industry specialization on both audit fees and alignment of former Andersen clients with a Big 4 specialist. This paper fills that void.

This study aims to characterize the composition of the tribo-layer formed during sliding of steel in the presence of crude jatropha oil (CJO) and epoxidized jatropha oil (EJO) under boundary lubricant application.

CJO was obtained from a local market and used as received. EJO was obtained by epoxidation process with peroxyformic acid catalyzed by acidic ion exchange resin. The tribological test was conducted by the four ball method according to ASTM 4192. Wear scars generated on the lower balls were used to characterize the tribo-layer. Energy-dispersive X-ray and X-ray photo spectroscopy analysis were conducted to characterize the tribo-layer composition.

EJO shows a lower friction coefficient compared to CJO. Moreover, EJO also shows better wear preventive properties compared to CJO. The oxidation of CJO and EJO has lead chemisorption of the oil to steel surface to cause formation of protective layers for the steel surface. The layers were constructed from inorganic oxide in the form of iron oxides and silicon oxide together with organic layers in form of aldehyde, ketone and carboxylic acid. The formation and removal of this layer from rubbing sites are considered to affect wear-preventive and friction behaviour of steel lubricated with CJO and EJO.

This works highlights friction and anti-wear characteristics of CJO and EJO. This work also presents the composition of the tribo-layer that formed because of the sliding of steel lubricated with CJO and EJO. The method and result can be used for further investigation and development of lubricant.