Many times, people overlook out of period adjustments. Adjustments are a method of correcting errors in which prior periods are not revised or restated, and the error is corrected in the current period. However, one is only allowed to use … Continue reading
Category Archives: Accounting + Oversight
2020 Financial Restatements Review
Audit Analytics recently released a new report, Financial Restatements: A Twenty-Year Review. This annual report, containing an updated format, takes a closer look at trends in financial restatements, spanning from 2001 to 2020. When looking at restatements, we categorize them … Continue reading
2021 Audit Committee Transparency Barometer
Now in its eighth year of publication, the Audit Committee Transparency Barometer, released by the Center for Audit Quality (CAQ) on November 10, 2021, continues to provide investors with unique insight into the disclosures made by audit committees in proxy statements each … Continue reading
Companies that Experience Cyber Incidents See Higher Audit Fees
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
AQRM Red Flags: Shareholder Activism
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. Shareholder activism is the process … Continue reading
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
Impacts of COVID-19 on Public Companies
Audit Analytics recently released a new report, Impacts of COVID-19 on Public Companies. Leveraging our extensive databases, this report provides an in-depth look at the pandemic’s impacts on certain aspects of financial reporting and financial health metrics of public companies. … Continue reading