The Sarbanes-Oxley Act of 2002 was passed by Congress to better protect investors. Section 404 of this act (SOX 404) requires companies to review their internal controls over financial reporting (ICFR) and declare whether they are “effective” or “ineffective”. In … Continue reading
Category Archives: Internal Controls (ICFR – SOX 404)
Audit Analytics for Regional Accounting Firms
Frazier & Deeter LLC is a full-service accounting firm, headquartered in Atlanta, Georgia. Operating across all industries, Frazier & Deeter offers a wide range of tax, audit, accounting and advisory services. Bill Godshall is the lead quality control Partner for … Continue reading
How to Predict Which Acquisitions Will Fail and Generate Negative Stock Returns
Summary of Key Findings It can be difficult to predict which acquisitions are going to fail An academic article using Audit Analytics’ data identified statistically significant negative abnormal returns of 12% for a subset of acquisitions that were excluded from … Continue reading
SOX 404 Disclosures: First-Time Auditor Attestations
In 2017, the administration proposed raising the bar to permanently exempt companies with market cap of less than $250 million from the audit attestation requirement – up from $75 million. The major goal of the proposal is to spur growth … Continue reading
Five Years of Restatements Following Internal Investigation for MiMedx Group, Inc.
On June 7, 2018, MiMedx Group, Inc. [MDXG], a biopharmaceutical company, announced that the Company is going to restate previously filed financial statements for years 2012 through 2016, and the first three quarters of 2017. A financial restatement of this … Continue reading
Reasons for an Amended 10-K: 2017
Annual reports, or 10-Ks, are known for their extensive information relating to all aspects of a company’s business. With that being said, these files leave plenty of room for missed or omitted information, misstatements, or other inadvertent errors. In such … Continue reading
Early Indicators Predict an Uptick in Revenue Recognition Accounting Failures
We have been asked several times whether or not the adoption of the new revenue recognition standard will cause an increase in the number of restatements and control failures. While it may be early to say, our review of SEC … Continue reading