This analysis was originally posted by Audit Analytics.   Going concern modifications have been more common during the COVID-19 pandemic than in recent years. The number of large companies worldwide whose future is uncertain has been staggering, but not surprising due to the lockdowns and other difficulties the pandemic has brought in 2020. In this post, we look at the largest companies by market cap listed on European stock exchanges with going concern modifications in their audit opinions…

  European Accounting Review 2020 Annual Conference 19-20 November, 2020 Announcement of Best Paper and Best Discussant Awards The scientific committee of the 2020 European Accounting Review Annual Conference is happy to announce the awards for Best Paper and Best Discussant at the 2020 EAR Conference. Best Paper Award “Probabilistic Audits and Misreporting – The Influence of Audit Process Design on Employee Behavior” by Corinna Ewelt-Knauer, Sandra Winkelmann (Presenter) – Justus-Liebig-University Giessen, and Anja Schwering…

This analysis was originally posted by Audit Analytics.   According to the Financial Times, Germany has responded to the Wirecard scandal by proposing a slew of audit regulations aimed at bolstering auditor independence. The proposal includes reducing the maximum auditor tenure from 20 years to 10 years and limiting firms from providing certain consulting services. It would also modify auditor liability by increasing the cap from €4 million to €20 million. Maximum tenures and limitations on…

Special issue on Standard-Setting of Sustainability Reporting   Guest Editors: Subhash Abhayawansa, Associate Professor in Accounting, Swinburne University of Technology, Australia (sabhayawansa@swin.edu.au) Mark Aleksanyan, Senior Lecturer in Accounting and Finance, University of Glasgow, United Kingdom (Mark.Aleksanyan@glasgow.ac.uk) Ioannis Tsalavoutas, Professor of Accounting, University of Glasgow, United Kingdom (Ioannis.Tsalavoutas@glasgow.ac.uk)   Background During the recent past, there has been an intensifying discourse on the regulatory work needed to converge and consolidate reporting frameworks for non-financial reporting (Accountancy Europe,…

  We are glad to announce that the registration links for the VARS with Beatriz García Osma, to be held on December 4th are now open at https://eaa-vars.com/   Beatriz will present a paper entitled “Narrative Conservatism“, coauthored with Juan Manuel Garcia Lara and Fengzhi Zhu. The seminar will start at 4.15pm CET.   If you are a PhD student or early career faculty member, consider registering for a one-to-one meeting with Beatriz! Registration link is open…

We are pleased to announce the PhD students selected to attend the CAAA Annual Conference 2021, under the EAA-CAAA agreement. Congratulations!   Fengzhi Zhu, Carlos III Madrid Marco Errico, ESADE Michael Farrel, University of Ireland Galway Xiaochi Ge, Cass Business School  

This analysis was originally posted by Audit Analytics. This post will be updated to reflect the current number of European audit opinions citing the COVID-19 pandemic in a going concern opinion, key audit matter, or emphasis of matter.   Overall Statistics As of the week ended 13 November 2020, Audit Analytics has observed the following trends in European audit opinions referencing COVID-191: Going Concern Modifications: 171 Emphasis of Matter Paragraphs: 289 Key Audit Matters: 574…

The IFRS Foundation in conjunction with the European Accounting Association (EAA) will hold a virtual workshop on 27 November 2020 at 12.00-13.35 (CET). The workshop will provide an overview of the IFRS Foundation Trustees’ Consultation Paper on Sustainability Reporting and invite commentary from academics. The aim of the consultation paper is to find out if there is a demand for global sustainability standards and what possible role the Foundation could play. The purpose of the…

This paper is the first to examine the impact of organizational memory of banks on the conservatism of accounting policy. Specifically, we examine the organizational memory of banks regarding bad times history. We separately address two related questions: 1) In the face of bank-level or macro-level crises, how can bank managers and/or the board of directors take action to change bank accounting policy? 2) Is the change of accounting policy driven by managers and board…

Nominations are now open for the 2021 EAA Anthony G. Hopwood Award for Academic Leadership.   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. The previous recipients of the award are Stephen Zeff, Sten Jönsson, Michael Shields and Willem Buijink. The award is made each year at the EAA Annual Congress, subject to there being a worthy recipient.…