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 flag events … Continue reading
Category Archives: Disclosure Controls (SOX 302)
Assessing Impacts of COVID-19 in Disclosure Controls
As the COVID-19 pandemic continues to sow chaos and disruption, SEC registrants need to evaluate the impact of the pandemic related to multiple aspects of financial reporting, including the quality of disclosures. Audit Analytics has discussed some of the tangible … Continue reading
Trends in Disclosure Controls: 2010-2017
Audit Analytics has released a new report, Trends in Disclosure Controls: 2010 – 2017, which takes a closer look at the research initially discussed in our annual disclosure controls trends blog published in December. The analysis is multifaceted, diving deeper … Continue reading
Ineffective Disclosure Controls, a Twelve Year Update
Last year, we discussed the rise in information technology-related disclosures in both effective and ineffective disclosure controls among the Russell 3000. In this post, we continue our analysis by taking a closer look at all 26 issues that were flagged in … 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
Ineffective Disclosure Controls, an Eleven Year Update
Section 302 of the Sarbanes-Oxley Act (SOX 302) mandates that public companies establish a system of effective Disclosure Controls. The signing officers are required to certify that that they (1) are responsible for establishing and maintaining disclosure controls and procedures, … Continue reading
Canadian Controls – What is Disclosed and What is Not?
Let’s pretend for a second that Sarbanes-Oxley Act of 2002 (SOX) does not exist; auditing requirements for controls are absent and legislation surrounding disclosures is significantly reduced. Would companies voluntarily report controls information? If so, how detailed would that information … Continue reading