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. Red … Continue reading
Category Archives: AQRM
Audit Analytics for Consulting & Accounting Software Firms
Workiva, a connected reporting cloud-based platform company, supports financial reporting by transforming how business data is managed and reported. We spoke with Steve Soter, Workiva’s senior director of product marketing, to determine how he uses Audit Analytics to explore new … Continue reading
Altman Z-Score as an Indicator of Financial Health
Evaluating a company’s financial health and performance always involves a degree of uncertainty, but there are measures that can be utilized to more objectively review financial strength. Metrics, such as the Altman Z-Score, have been developed in an attempt to … Continue reading
Non-Audit Fees Among S&P 500
A review of non-audit fees in relation to overall audit fees is an interesting comparison, as the SEC considers high non-audit fees to be an auditor independence concern. If an auditor earns a large amount of fees performing non-audit fee … Continue reading
An Overview of Nineteen Years of Changes in Accounting Estimates
While some numbers in financial statements are relatively straightforward, others can be complex. Some of the more complex figures that are unable to be concretely quantified require management to make significant estimates. There are many components of financial statements that … Continue reading
Accounting Quality + Risk Matrix Allows for Quick Insight
Trying to identify red flags or trends in a company’s financial statements and public disclosures is a monumental task. The lengthy, and often opaque, nature of financial reporting makes the process of trying to thoroughly screen a company’s disclosures, or … Continue reading
Benford’s Law as a Quality of Reporting Indicator
There are several different tools and mathematical formulas that can be utilized to determine the strength of a company’s financial statements. One of the most intriguing and useful tools to detect accounting irregularities is the mathematical formula Benford’s Law – … Continue reading