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COVID-19 Impacts on European Audit Opinions

This post was orginally posted by Audit Analytics. This post will be updated to reflect the current number of filings citing the COVID-19 pandemic in a going concern opinion, key audit matter, or emphasis of matter.   Overall Statistics As of the week ended 18 September 2020, Audit Analytics has observed the following trends in European audit opinions referencing COVID-191: Going Concern Modifications: 154 Emphasis of Matter: 273 Key Audit Matters: 465 Based on company…
Jessica McKeon
Jessica McKeon
6 min read
0
2026

Who Audits Public Companies – Market Share in France

This analysis was originally posted by Audit Analytics. Deloitte, EY, KPMG, and PwC collectively hold just 57% of the overall market share among the top indexes in France. This is a vastly different picture than we saw when looking at Germany, where the Big Four holds 91% of the market share. The difference, however, can be attributed to France’s joint audit system. As mentioned in a previous post, we’ll take a look at the auditor market…
Jessica McKeon
Jessica McKeon
5 min read
0
1536

How does one control change lead to another?

Organizations are frequently confronted with environmental shifts and change. In our recent publication (Toldbod and Van der Kolk, forthcoming in the European Accounting Review), we examine how environmental shifts can trigger cascades of management control changes, how this creates incoherence, and how managers can use the incoherence to stimulate organizational dialogue. Our study provides insights into the interplay of management control elements and control changes, and mobilizes notions from the organizational ecology literature to theorize our findings.…
Berend van der Kolk
Berend van der Kolk
3 min read
0
1330

Begona Giner, Chair of Stakeholder Reporting Committee, is part of EFRAG’s task force

The European Lab Steering Group has appointed the members and Chair of the Project Task Force to operate the project on preparatory work for the elaboration of possible EU non-financial reporting standards, mandated to EFRAG by the European Commission. ​ We are happy to report that Begona Giner, Chair of the EAA's Stakeholder Reporting Committee, was one of the newly-appointed project task force member!
ARC Commitee
ARC Commitee
< 1 min read
0
1542

PhD students – places at the 2021 CAAA Annual Conference

An excellent opportunity for PhD students: the Canadian Academic Accounting Association (CAAA) and the EAA are offering EAA students three places at the 2021 CAAA Annual Conference. The selected PhD students will receive a full waiver of the CAAA Conference fee. To apply for this opportunity please send a motivation letter by September 30th, 2020 to baha.diyarov@eiasm.be. Selected students will be informed by December 31th, 2020. &nbsp;
ARC Commitee
ARC Commitee
< 1 min read
0
2274

The Impact of CEO/CFO Outside Directorships on Auditor Selection and Audit Quality

In a recent study published in European Accounting Review, Byungjin Kwak, Myung Seok Park, Yoonseok Zang and I examine whether outside directorships of chief executive officer/chief financial officer (CEO/CFO) and resulting network ties to auditors affect auditor selection decisions and subsequent audit quality. While some studies suggest that executives&rsquo; outside board directorship is related to managerial opportunism and entrenchment (agency view) (Davis, 1991; Zajac &amp; Westphal, 1996), others argue that it can enhance the home…
Jaeyoon Yu
Jaeyoon Yu
4 min read
0
2279

ESG fails to immunize stocks against the COVID-19 market crash

Environmental, Social and Governance (ESG) investments are praised worldwide as the solution to environmental, social and societal problems, and would be the best vaccine during the Covid-19 crisis. Our research findings suggest that this is not the case, and that traditional measures such as liquidity and innovative capacity better describe crisis resilience. While corporate social responsibility companies may benefit in the longer term, it is advisable for investors to be critical of funds that promote…
PHILIP JOOS
PHILIP JOOS
2 min read
0
1645

Toothless Watchdogs

By Ferdinand Elfers and Jochen Pierk While Big Four auditing firm EY is facing legal action over the 1.9 billion EUR accounting fraud that has led to the collapse of its client, Munich-based payments firm Wirecard, the scandal has also turned the spotlight on an apparent failure of the responsible supervisory authorities. Indeed, the German government did not hesitate to terminate its contract with the Financial Reporting Enforcement Panel (FREP), a private-sector body that was…
ARC Commitee
ARC Commitee
4 min read
0
923

Who Audits Public Companies – Germany

This analysis was originally posted by Audit Analytics. Note: This post has been updated to reflect auditor changes not previously included in this analysis, specifically relating to the DAX 30. There are 12 accounting firms that audit Germany&rsquo;s top 160 companies. Perhaps coming as no surprise, the Big Four account for 91% of the top company market, with KPMG leading as the auditor of 51 companies, followed by PwC with 46, then EY and Deloitte…
Jessica McKeon
Jessica McKeon
4 min read
0
1370

Pension Deficits and Corporate Financial Policy: Does Accounting Transparency Matter?

Despite the significance of DB pension plans for risk and investment decisions (Campbell et al., 2012; Cardinale, 2007; Jin et al., 2006; Rauh; 2006), before the adoption of IFRS in 2005 some EU countries, including France, did not require pension plan transparency under domestic accounting standards. In a recent study, published in the European Accounting Review (EAR), Vicky Kiosse, Peter Pope and I study the changes in financial policies following a regulatory shock to the accounting transparency of…
FANI KALOGIROU
FANI KALOGIROU
5 min read
0
2028
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