In a recently released tool for the Audit Committees, the Center for the Audit Quality stated that it is “urgent that audit committees understand how management is assessing the impact of the new revenue recognition standard”. ASC 606 (which is … Continue reading
Category Archives: Quality of Reporting
Disclaimer of Opinion – have you ever seen one?
Non-standard audit opinions got their fair share of attention earlier this year in conjunction with the late filing of Valeant Pharmaceuticals. For Valeant, getting anything but a clean, non-qualified opinion could have meant a default on substantial loans. It has been … Continue reading
The Importance of Director and Officer Changes
Earlier this year we explored departure statistics regarding general counsel and chief legal officers. In this blog, we provide an update for this year’s departures involving all director and officer positions. So far, there have been over 8,400 records filed during 2016 with the … Continue reading
Literature Review: “Qualitative Characteristics of Financial Reporting Errors Deemed Immaterial by Managers”
In this post, we look at a recent paper titled “Qualitative Characteristics of Financial Reporting Errors Deemed Immaterial by Managers” by Preeti Choudhary, Kenneth Merkley, and Katherine Schipper. The authors use Audit Analytics’ databases on restatements and immaterial error corrections to provide an in-depth analysis of the … Continue reading
2016 Audit Committee Transparency Barometer
On Tuesday, the Center for Audit Quality released its third annual Audit Committee Transparency Barometer. Compiled and published in partnership with Audit Analytics, the Barometer evaluates the extent of audit committee disclosures for the S&P 1500 Composite companies, broken out … Continue reading
Benford’s Law Among the Russell 3000
Benford’s Law, an arcane rule from the math books, is making something of a splash in the world of financial analysis. The basic idea is this: in certain sets of data (the lengths of a collection of rivers, the populations … Continue reading
Accountants’ Liability 2016 Conference Overview
At this year’s annual Accountants’ Liability conference held in Washington, D.C., Audit Analytics’ CEO, Mark Cheffers, together with Robert Kueppers, former Vice Chairman at Deloitte, presented a comprehensive update on liability exposure issues faced by the accounting industry. Topics covered in their presentation included large … Continue reading