Note: This article was first available to subscribers of Accounting Quality Insights by Audit Analytics on Bloomberg, Eikon, FactSet, and S&P Global. Key Points: SEC fined former CEO of GT Advanced Technologies (GTAT) over $140,000 in connection with making false … Continue reading
Category Archives: Accounting + Oversight
What Caused SEC Investigation for Healthcare Services Group, Inc.?
Note – This article has been updated to clarify the following: In the notification of late filing for their 2018 annual report, Healthcare Services Group disclosed the receipt of an SEC subpoena, after nearly 18 months of investigation. Previously, the … 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
An Overview of Accounting and Auditing Enforcement Releases (1999-2018)
The Securities and Exchange Commission (SEC) provides a list of certain enforcement actions related to financial reporting concerning administrative proceedings and civil lawsuits. These Accounting and Auditing Enforcement Releases (AAERs) are reviewed by Audit Analytics and key data points are … Continue reading
PayPal: SEC Requests Clarification about TIO Intangibles
In August 2018, the SEC issued comments to PayPal Holdings Inc. [PYPL] requesting clarification about the value of intangible assets recorded during the acquisition of TIO Networks. In July 2017, PayPal acquired Canadian payment-processing company TIO Networks for $238 million. … Continue reading