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 a sixteen-year period. As summed up by the Wall Street Journal, 2016 has seen an … Continue reading
Category Archives: Quality of Reporting
Reasons for an Amended 10-K: 2016
When a company files a 10-K, they are providing a substantial amount of information relating to their business including risk factors and financial statements. Understandably, these files are extensive and leave plenty of room for missed or omitted information, misstatements, or other inadvertent errors. … Continue reading
Review Notes – Volume 3
With filing season in full swing, we thought that it would be a nice change of pace to reveal another volume of Review Notes. In this edition we will be focusing on audit opinions that you would mostly read about in … Continue reading
No Opinion, No Problem?
Your average audit opinion is a pretty ho-hum affair. Boilerplate language and standard, precise wording doesn’t make for an enthralling read generally. But when you go through many thousands of audit opinions each year, there are bound to be some eye-opening outliers. … Continue reading
Risk of Internal Controls Failures
Companies are required to maintain and assess the effectiveness of Internal Controls over Financial Reporting (ICFR). Accelerated Filers are required to provide an audit report on the effectiveness of ICFR. For Non-Accelerated Filers, only a management assessment is required. The … Continue reading
EBay Reports Material Weakness: Second Control Deficiency in Three Years
Last week on February 6, in its Fiscal 2016 10-K, eBay (EBAY) disclosed a material weakness in its internal controls over financial reporting (“ICFR“). The deficiency related to a failure to properly apply tax accounting and affected the Deferred Tax Asset and Income Tax Benefit … Continue reading
Slacking is Status Quo after Christmas. Here’s Proof in SEC Filings.
If any extra motivation is needed to take that last sick day of the year around the holidays feel free to justify it with SEC filing data. Over the past five years there’s been a decrease in filings of about 50% … Continue reading