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

SEC Enforcement Targets Ineffective Controls – Who Else Is at Risk?

The Securities and Exchange Commission recently fined four companies for having ineffective internal controls. In its enforcement press release, the SEC told the four companies, Grupo Simec S.A.B. de C.V. [SIM: NYSE], Lifeway Foods [LWAY: Nasdaq], Digital Turbine [APPS: Nasdaq] … Continue reading

Long-Term Capital Market Consequences of Financial Restatements

Key Findings Computing the cumulative average abnormal return (CAAR) to document market reaction after a financial restatement, we found no significant abnormal returns in either the first 30-day window following the date of restated financials or after a 90-day window for … 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