Investors and analysts should be aware that there is more than one way to disclose Changes in Accounting Estimates. In some cases, inconsistency in the disclosure practices make it difficult to predict whether a review or an investigation is likely … Continue reading
Monthly Archives: February 2018
Nearly 65% of Affected Public Companies Did Not Report Cybersecurity Breaches to the SEC
Over 90% of the Russell 3000 companies see cybersecurity as a significant risk and provide the cyber risk disclosure in the Risk Factors section. This should come as no surprise – the number of cyber breaches for companies registered with … Continue reading
Auditor Changes in Canada: 2017
Auditor departures for public companies in Canada continue to decline, with 264 departures in 2017 compared with 284 in 2016 (2015: 318). Dismissals continue to comprise the bulk of auditor departures, with 231 (88%) dismissals and 33 (13%) resignations. National … Continue reading
Companies Paying Less in Accounting and Legal Fees to IPO
The average amount of accounting and legal fees disclosed by IPO companies slightly declined in 2017. Compared to 2016, average accounting fees in 2017 decreased 10% to $0.85 million and average legal fees decreased 16% to $1.42 million. Audit Analytics … Continue reading
A Review of Recent Regulation A+ Offerings
Amendments to Regulation A (Regulation A+) went into effect in 2015. The SEC proposed Regulation A+ to satisfy provisions of the 2012 JOBS Act that called for increasing access to public capital for early stage companies. The hope was that … Continue reading
Auditor Changes Roundup: 2017 Annual Summary
Deloitte took the top spot for new SEC audit client wins among all firms this year, with 41 engagements and 20 losses, for a net of 21 new SEC audit clients. BDO USA, the previous annual leader, had 16 new engagements this … Continue reading
Early Indicators Predict an Uptick in Revenue Recognition Accounting Failures
We have been asked several times whether or not the adoption of the new revenue recognition standard will cause an increase in the number of restatements and control failures. While it may be early to say, our review of SEC … Continue reading