The implementation of PCAOB Auditing Standard 3101 (AS 3101): The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion, adopted on June 1, 2017, makes significant changes to the auditor’s opinion. Among the new requirements is … Continue reading
Author Archives: Jessica McKeon
Microsoft Discloses Critical Audit Matters
Microsoft Corporation [MSFT] filed its annual report on August 1, 2019, and, in addition to the wealth of information provided in the 10-K, we came across one of the first disclosures of critical audit matters from a large accelerated filer.1 … Continue reading
Auditor Market Share of Russell 3000 Companies with Revenue between $50M and $1B
In this analysis, we look at who audits Russell 3000 companies having $50 million to $1 billion in revenue. There are currently 60 audit firms competing over 1,235 companies within this revenue range. Unsurprisingly, the Big Four audit the majority … Continue reading
A Closer Look at Votes Against Auditor Ratification – 2018
An analysis of shareholder votes filed between January 1, 2016, and December 31, 2018, shows that, on average, roughly 98% of votes were cast in favor of auditor ratification. The remaining 2% is comprised of votes against auditor ratification (about … Continue reading
Shutdown Slows Comment Letters, IPOs
On Friday, January 25th, 2019, President Trump signed a bill to reopen the federal government [temporarily] for three weeks, putting an end to the longest government shutdown in U.S. history. The following day, SEC Chairman Jay Clayton released a statement … Continue reading
Sixteen Year Review of Audit Fee and Non-Audit Fee Trends
Audit Analytics has released its annual audit fees report, Sixteen Year Review of Audit Fee and Non-Audit Fee Trends, which focuses on the audit and non-audit fees paid and disclosed by accelerated and large accelerated filers over a sixteen-year period. … Continue reading
Can Tenure Requirement Provide Insight into Engagement Partner Rotation?
Who audits public companies? This question is continuously of interest to investors, audit firms and academics alike. Firm-level information is, and always has been, available from the audit opinions included in the annual reports. However, until recently, information regarding engagement … Continue reading