Audit Analytics CEO Mark Cheffers was recently interviewed by Cindy Fornelli, executive director of the Center for Audit Quality, in an episode of the CAQ’s video series “Profession in Focus.” During the interview, Cheffers and Fornelli discussed the second edition … Continue reading
Category Archives: Corporate Governance
Is Contract Accounting under the Microscope?
Last week, news came out that the SEC was investigating Boeing Co. for possible irregularities in the company’s long-term contract accounting. (Bloomberg) The U.S. Securities and Exchange Commission is investigating whether Boeing Co. properly accounted for the costs and expected … Continue reading
Non-GAAP Metrics in SAB 99 Materiality Analyses
The pros and cons of non-GAAP metrics have been discussed in more than a few recent articles. Proponents of non-GAAP frequently claim that GAAP contains many ambiguities and loopholes, and that non-GAAP metrics can be more current and relevant. Opponents sometimes … Continue reading
Enron Saga Concludes
After more than a decade of criminal proceedings and appeals, the civil court case against former Enron senior executive Jeffrey K. Skilling for his involvement in the historic fraud has finally concluded. On December 8, 2015, the SEC obtained a summary … Continue reading
When is a Cybersecurity Incident Material?
Recently we discussed the principle of materiality in the context of Valeant Pharmaceuticals and its Variable Interest Entity (VIE), Philidor. In that post we examined two key concepts in assessing materiality, namely quantitative and qualitative. It is possible for something to be quantitatively immaterial, … Continue reading
Trends in Non-GAAP Disclosures
Investors were not overjoyed at the conclusion of the Q3 earnings season, thanks to lukewarm results for many significant companies. According to Bloomberg, earnings for the S&P 500 are expected to fall 0.5% for the year as a whole, and some … Continue reading
Peer Benchmarking and Trends in Executive Compensation
In a recent edition of the Big Number, the Wall Street Journal’s Maxwell Murphy reported that 96% of S&P 500 companies disclosed in their 2015 proxy statements that they used a peer group to gauge executive pay. Generally, peer groups used for benchmarking … Continue reading