At times, errors may arise when issuing financial statements. When such an error is identified, a correction must be made. The scope and nature of these corrections dictate a company’s next steps and may provide useful information into financial reporting … Continue reading
Category Archives: Quality of Reporting
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
Reasons for an Amended 10-K: 2019
Form 10-K, an annual report filed by US-based public registrants, is the most comprehensive source of information regarding a company’s financials and its underlying business. These reports are thoroughly scrutinized by investors and other users, which explains why they need … 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
SOX 404 Disclosures: A Fifteen Year Review
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
2018 Financial Restatements Review
The annual Audit Analytics report on financial restatement trends is now available. This report provides a detailed analysis and comparison of trends in financial restatements over an eighteen-year period. When looking at restatements, we categorize them by two levels: reissuance restatements and revision restatements. Reissuance restatements, sometimes … Continue reading
Pros and Cons of Using Non-GAAP Metrics for Executive Compensation, Including ESG Considerations
This article was first available to subscribers of Accounting Quality Insights by Audit Analytics on Bloomberg, Eikon, FactSet, and S&P Global. There has been considerable debate about companies that use non-GAAP metrics for executive compensation and whether these firms are … Continue reading