The requirement to disclose tenure became effective for audits of fiscal years ending on or after December 15, 2017. PCAOB Auditing Standard 3101 – The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses and Unqualified Opinion … Continue reading
Importance of Critical Audit Matters (CAMs) for Investors
As defined by the PCAOB, a critical audit matter (CAM) is any matter that the auditor communicated or was required to communicate to the company’s audit committee, and is related to items that are material to the company’s financial statements, … 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
Trends in the Number of Key Audit Matters Reported
As Audit Analytics’ Key Audit Matters (KAMs) database continues to expand, we are noticing some significant trends in the number of KAMs reported in annual reports. The average number of KAMs reported in 2018 was 2.66 per audit opinion. Interestingly, … Continue reading
Auditor Market Share of the Russell 3000
It is no secret that the Big Four auditors – Deloitte, EY, KPMG and PwC – dominate at the top of the public company audit market. Large companies almost exclusively use the Big Four, while a handful of other firms … Continue reading
Changes in KAM Count
We recently analyzed the frequency in which key audit matters (KAMs) were disclosed in 2017 and 2018. In this post, we take a closer look at the changes in the number of KAMs disclosed by companies during the same time … Continue reading
Litigation Overview for the Russell 3000
The Russell 3000 has been involved in a total of 2,616 material litigation cases filed with various US federal courts since January 1, 2016, based on an analysis of Audit Analytics’ litigation database.1 Similar to our last analysis, the most … Continue reading