There are several different tools and mathematical formulas that can be utilized to determine the strength of a company’s financial statements.
Category: Quality of Reporting
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
Could SEC Charges Have Been Predicted for GT Advanced Technologies?
Note: This article was first available to subscribers of Accounting Quality Insights by Audit Analytics on Bloomberg, Eikon, FactSet, and S&P
Academic Literature Review: Accounting Reporting Complexity and Non-GAAP Earnings Disclosure
The overall complexity of financial disclosures affects the ability of anyone reading the financial statements, including stockholders, regulators, and investors, to
2018 Audit Committee Transparency Barometer
Last week, the Center for Audit Quality released its fifth annual Audit Committee Transparency Barometer. Compiled and published with Audit Analytics,
Insurance Industry Sees Rise in Negative Events
There have been several negative events within the insurance industry over the past few years. In 2017, there were 18 restatements
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
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
2017 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
2017 Audit Committee Transparency Barometer
The Center for Audit Quality has released its fourth annual Audit Committee Transparency Barometer. The Barometer, compiled and published in partnership with
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
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
The Risks of Internal Controls
Companies are required to maintain and assess the effectiveness of Internal Controls over Financial Reporting (ICFR). Accelerated Filers are required to
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
Early Adoption of ASC 606: first glance
In a recently released tool for the Audit Committees, the Center for the Audit Quality stated that it is “urgent that
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.
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
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.
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
Disclosure Requirements of Non-GAAP Error Corrections?
In a series of posts, we have discussed mounting evidence that, with 90% of U.S. public companies using custom metrics, non-GAAP