The overall complexity of financial disclosures affects the ability of anyone reading the financial statements, including stockholders, regulators, and investors, to
Category: Academic Literature
Academic Literature Review – Changes in Accounting Estimates
In theory, accounting is supposed to be black and white, with binary decision-making processes and no wiggle room. In practice, however,
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
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
Audit Analytics for the Classroom
Audit Analytics has become an integral part of the accounting research community. Cited in numerous scholarly papers and used by over 260
Is the SEC Captured? Evidence from Comment Letter Reviews
In this post, we look at a recent academic paper titled “Is the SEC Captured? Evidence from Comment-Letter Reviews”. Using Audit Analytics’ SEC Comment
What’s Next for Perrigo?
In April 2016, the then-CEO of Perrigo (PRGO), Joe Papa, left the company to join the troubled pharmaceutical giant Valeant (VRX). On
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
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.
Literature Review: “An Analysis and Taxonomy of Disclosure Controls and Procedures Effectiveness”
In a recent post, we discussed trends in Sarbanes-Oxley Act Section 302 Disclosure Controls and Procedures (“DC&P”, or “SOX 302”) filings,
The PCAOB’s Effect on Auditor Market Share
One of the most important aspects of the epochal Sarbanes-Oxley Act (SOX) of 2002 was the institution of the Public Company