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Mobilizing accounting academia against the climate crisis

The following is an edited version of a (German-language) talk I gave at the annual meeting of the German Association of Business Professors' Accounting Section on 18 March 2021.   Crises and disasters are massive and threatening dysfunctions in a system. In the case of a crisis, a turning point is reached; in the case of a disaster, on the other hand, there is a permanent decline of often dramatic proportions. Unfortunately, the two can…
Thorsten Sellhorn
Thorsten Sellhorn
16 min read
0
594

Who Audits Public Companies – United Kingdom

This analysis was originally posted by Audit Analytics.  Note: This analysis will be updated to reflect 2020’s market share once all annual reports have been filed. Audit market share was highly concentrated among the top indexes in the United Kingdom at the end of 2019. PwC captured the highest percentage of the market, auditing 27% of London Stock Exchange index-listed companies. The rest of the Big Four combined audited 61% of the remaining companies. BDO and Grant…
Jessica McKeon
Jessica McKeon
5 min read
0
1472

Auditor University Education: Does it matter?

Does the educational background of a certified auditor matter? A joint study from Bocconi University, Milan, and University of Cambridge finds that it does. Auditors with an undergraduate university degree emphasizing quantitative analysis, such as accounting, business, engineering, mathematics or economics, produce more accurate audited financial reports (as measured by levels of abnormal accruals recorded) than do auditors with a bachelor’s in fields with a more qualitative approach, such as law, classics, or history. There…
ARC Commitee
ARC Commitee
2 min read
0
1687

Board Monitoring and Advising in Dynamic Agency

In a recent study, forthcoming in the European Accounting Review (EAR), Svetlana Katolnik, Sandra Kronenberger and Jens Robert Schöndube present a model to show that if managerial contract renegotiation is possible, then an active board of directors might not always be desirable from the shareholders’ perspective.   The shareholders delegate the roles of monitoring, advising, and incentivizing the manager to the board of directors (Larcker and Tayan, 2016). Monitoring is considered valuable because it is…
ARC Commitee
ARC Commitee
3 min read
0
1607

EAA SRC “In Conversation with Mr. Patrick de Cambourg”

Following the mandates given by the European Commission on 25 June 2020 to EFRAG and to EFRAG Board President Jean-Paul Gauzès, and the establishment of a dedicated multi-stakeholders EFRAG Project Task Force on the preparatory work for the elaboration of possible EU non-financial reporting standards (EFRAG PTF NFRS), on March 8th 2021 EFRAG has published its final report setting out 54 recommendations on the development of E​U sustainability reporting standards. The EAA Stakeholder Reporting Committee is pleased to…
EAA Stakeholder Reporting Committee
EAA Stakeholder Reporting Committee
< 1 min read
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890

EU V IFRS: Fundamentally different approaches to sustainability reporting

Main points: The IFRS Foundation and EU/EFRAG approaches are opposed in all key aspects; The EU/EFRAG approach is likely to contribute to addressing sustainable development (including climate change). The IFRS Foundation approach is likely to be a distraction from it; The IFRS Foundation has the backing of IOSCO, but the EU has legislative powers. A couple of days ago, I received a brief email update from the IFRS Foundation on their approach to Sustainability Reporting Standard Setting…
Carol Adams
Carol Adams
3 min read
0
1970

Accountancy Europe Makes Recommendations to Strengthen Going Concern Reporting

This analysis was originally posted by Audit Analytics. In the past few years, the EU has been hit with several high-profile corporate failures and collapses: Carillion, Thomas Cook, Patisserie Valerie. Corporate failure affects not only the related shareholders, but also the confidence the public has in the sustainability of the overall market.&nbsp;Supply chain, demand fluctuations, and unseen shifts in consumer behavior as a result of&nbsp;COVID-19&nbsp;have disrupted the global market and put many companies in positions…
Jessica McKeon
Jessica McKeon
2 min read
0
991

EAA 2021 Education Survey Results

EAA Education Survey 2021 Highway to improved pedagogy and advanced use of educational technology&nbsp; &nbsp; Brief description The recently founded EAA Education Committee conducted a survey on the current state of art and future perspectives of accounting education. Altogether we received 390 responses. We thank you for your time and effort to complete this survey, and your responses help the EAA to identify how it could improve your educational competences. This survey had a slight…
PHILIP JOOS
PHILIP JOOS
4 min read
0
1235

Anthony G. Hopwood Award for Academic Leadership

The EAA is delighted to announce two recipients of the 2021 Anthony G. Hopwood Award for Academic Leadership: &nbsp; Professor John Christensen, Emeritus professor at the University of Southern Denmark, and Professor Peter Walton, Emeritus professor at The Open University and ESSEC Business School &nbsp; The Award was established in 2005 and renamed to honour Professor Anthony G. Hopwood, who played a prominent role in the creation and development of the EAA. Previous recipients of…
ARC Commitee
ARC Commitee
2 min read
0
2862

Theses on strengthening corporate governance on the occasion of the Wirecard case

The Wirecard case once again shows the importance of good corporate governance for the integrity of corporate activities. In this respect, the laws under company law and the German Corporate Governance Code set the framework conditions, which should be tightened up in various points. This article presents twelve theses on strengthening corporate governance for discussion. &nbsp; I. Introduction The Wirecard case in particular has revealed weaknesses in the current system of reviewing financial reports. All…
Thorsten Sellhorn
Thorsten Sellhorn
2 min read
0
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