As defined by the PCAOB, a critical audit matter (CAM) is any matter that the auditor communicated or was required to communicate to the company’s audit committee, and is related to items that are material to the company’s financial statements, … Continue reading
Author Archives: Nicole Hallas
2018 Financial Restatements Review
The annual Audit Analytics report on financial restatement trends is now available. This report provides a detailed analysis and comparison of trends in financial restatements over an eighteen-year period. When looking at restatements, we categorize them by two levels: reissuance restatements and revision restatements. Reissuance restatements, sometimes … Continue reading
Auditor Market Share of the Russell 3000
It is no secret that the Big Four auditors – Deloitte, EY, KPMG and PwC – dominate at the top of the public company audit market. Large companies almost exclusively use the Big Four, while a handful of other firms … Continue reading
Auditor Changes Roundup: Q2 2019
Prager Metis CPAs, with a net of 16 new SEC audit clients, accounts for the most new SEC audit clients among all firms in Q2 2019. The 18 engagements for Prager Metis CPAs in Q2 2019 was the highest of … Continue reading
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
Accounting and Auditing Enforcement Releases (AAERs): Q1 and Q2 of 2019
An extended version of this article was first available to subscribers of Accounting Quality Insights by Audit Analytics on Bloomberg, Refinitiv Eikon, FactSet, and S&P Global. The Securities and Exchange Commission (SEC) provides a list of certain enforcement actions related … Continue reading
Considering Internal Whistleblower Systems When Evaluating External Risk
Whistleblowers can serve as an integral component for identifying and stopping securities fraud. According to PricewaterhouseCooper’s 2016 Global Economic Crime Survey, 33% of suspicious activity was identified by internal reporting from staff and an additional 10% of suspicious activity was … Continue reading