Cybersecurity is an ongoing concern for managing an evolving information technology (IT) control environment. In addition to costs related to investigation, remediation, and reputation, cyber incidents also impact costs related to the audit of internal controls. Companies that have a … Continue reading
Category Archives: Accounting + Oversight
PPE Impairments Surge During COVID-19
A staggering $518 billion was written off companies’ books through impairment charges in 2020 amidst the COVID-19 pandemic. $203.3 billion of that came from impairments related to property, plant, and equipment (PPE). As noted in our most recent report, Impacts … Continue reading
AQRM Red Flags: Auditors
The Audit Analytics Accounting Quality + Risk Matrix (AQRM) makes it easy to identify accounting, audit, and governance red flags for public companies. This blog series breaks down the risks associated with specific firm-level events included in the AQRM. A public company’s … Continue reading
AQRM Red Flags: Changes in Accounting Estimates
The Audit Analytics Accounting Quality + Risk Matrix (AQRM) makes it easy to identify accounting, audit, and governance red flags for public companies. This blog series breaks down the risks associated with specific firm-level events included in the AQRM. Changes in accounting estimates (CAE) … Continue reading
AQRM Red Flags: Financial Reporting
The Audit Analytics Accounting Quality + Risk Matrix (AQRM) makes it easy to identify accounting, audit, and governance red flags for public companies. This blog series breaks down the risks associated with specific firm-level events included in the AQRM. Misstating financial statements is a … Continue reading
A Closer Look at Votes Against Auditor Ratification – 2020
An analysis of shareholder votes filed between January 1, 2018, and December 31, 2020, shows that, on average, roughly 98% of votes were cast in favor of auditor ratification.1 Votes against auditor ratification comprised 2.0% of the total votes; abstained … Continue reading
Academic Spotlight: Auditor Ratification’s Impact on Audit Quality
Research shows that shareholder dissatisfaction improves audit quality. In June of 2020, Paul Tanyi, Gregory Martin, Dasaratha Rama, and K. Raghunandan published research in Accounting Horizons that measured shareholder votes against the ratification of an audit firm in the proxy statement. Their … Continue reading