There have been several negative events within the insurance industry over the past few years. In 2017, there were 18 restatements among registrants in the insurance industry, versus 10 in both 2016 and 2015. This uptick has continued into 2018, … Continue reading
Category Archives: Quality of Reporting
Audit Analytics now Offers Accounting Quality Insights
Audit Analytics is proud to announce Accounting Quality Insights, our newest research product geared towards investors and financial professionals. Accounting matters are crucial in understanding the complete financial picture of a company; our insights cover accounting, control, and related governance … Continue reading
Do Companies With Data Breaches Belong in ESG Portfolios?
Socially responsible investment funds have become popular with investors over the past several years as buyers seek to align their beliefs with their portfolios. According to a report from Morningstar, sustainable funds averaged $924 million per month in net flows … 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
Literature Review: “The Effect of Enforcement Transparency: Evidence from SEC Comment-Letter Reviews”
In recent years, more attention has been given to policies surrounding transparency in financial reporting practices, such as banks disclosing results of stress tests and the recently proposed “Public Accounting Oversight Board (PCAOB) Enforcement Transparency Act of 2017”. In 2004, … Continue reading
PayPal: The Importance of Intangible Asset Impairments
In July 2017, PayPal Holdings, Inc. [PYPL] acquired Canadian payment-processing company TIO Networks for $238 million. The purchase price consisted of $66 million of technology and customer-related intangible assets, net assets of approximately $2 million and initial goodwill of approximately … 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