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KAMs Enter as the UK Exits

This analysis was originally posted by Audit Analytics. The United Kingdom’s pending exit from the European Union has been a cause of extreme uncertainty, both geopolitically and economically. Given the potential magnitude of the event, and considering London’s place as a center of global finance and industry, there is little doubt that Brexit will have a substantial impact on the companies based in the UK and listed on the London Stock Exchange. These concerns, however,…
post ARC

On receiving the 2019 EAA Anthony G. Hopwood Award for Academic Leadership in Accounting

I sincerely thank the EAA and its Awards and Management Committees for honouring me with this award. The motivation in the ARC announcement for giving me the Award, mentions my contributions to the advancement of accountancy (accounting) research in Europe. These contributions did not happen in isolation. So I need to thank many people and 2 institutions, and explain why I thank them. I like to use accountancy, and not accounting, to refer to Financial…
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Recent reviews of the UK audit services: a commentary

The collapse of Enron led to a transformation in the way American companies are held to account for their accounts. The Sarbanes-Oxley Act introduced new legal responsibilities on company directors and created a legislatively backed regulator with teeth. In contrast, the UK persisted with a form of self regulation. Until now. The recent reviews of the audit system by the UK Competition and Markets Authority (CMA), the Kingman Review of the Financial Reporting Council and…
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EAA PhD Forum 2019: The Presentations

The EAA PhD Forum, launched in 2013, is an initiative of the EAA to help and promote PhD students in accounting and is part of the EAA Annual Congress. Here are the contents discussed during the EAA PhD Forum 2019: Update on EAA Doctoral Activities EAA Talent Workshop and PhD Mobility (more information) - Nieves Carrera (IE Business School Madrid) The Race for Talents (more information) - Antonio De Vito (IE Business School Madrid) Plenary What…
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Market Concentration of PIEs – An Analysis of Transparency Report Data

This analysis was originally posted by Audit Analytics. Audit Analytics collects all EEA and member-state defined Public Interest Entities (“PIEs”) disclosed by audit firms in annual transparency reports.  Public Interest Entities are: Entities traded on a regulated market of an EU Member State; Credit institutions; Insurance undertakings; or Entities designated by Member States as public-interest entities (The EU Commission has called these “National PIEs.”) In this post, we look at PIEs disclosed in auditor transparency…
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Getting ready for the European Accounting Job Market

This blog is coauthored by Cristina Grande Herrera & Antonio B. Vazquez   When does the job market begin? Are you ready for the market? How does the process work? In this post we try to answer these questions and some others with our own job market experiences. The accounting job market starts when you need to prepare your package for the job market conference(s). This package normally comprises your job market paper and CV.…
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When Cash is “Key”

This analysis was originally posted by Audit Analytics. Cash may be king, but when it comes to auditing, cash is not usually considered a high risk area. The audit procedures around cash usually begin and end with confirming the balance on hand with the company’s banks, and there is very little estimation involved in the balance. Despite the relative ease of auditing cash, we found a handful of cases where audit firms identified cash or…
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Auditor Changes in the FTSE 100

This analysis was originally posted by Audit Analytics. An average of 11% of FTSE 100 companies have changed their auditor every year since 2014. Looking at the engaged effective date of the auditor changes, we found a consistent trend in the number of changes per year: In the United Kingdom, due to mandatory firm rotation, the maximum initial audit engagement period is ten years. However, the engagement can be extended another ten years following a…
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Overview of European Key Audit Matter (KAM) Disclosures

This analysis was originally posted by Audit Analytics. The disclosure of Key Audit Matters (KAMs) has been required for over a year now, and there is a lot of data available to be analyzed. In this post, we look at the KAM disclosures of more than 1,200 companies over the past three years and discuss some interesting trends that we see in the data. KAMs are required under ISA 701 for fiscal years ending on or after…
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Auditor Changes and Audit Fees in Italy

This analysis was originally posted by Audit Analytics. Eleven out of the 100 companies listed on the FTSE MIB and the FTSE Italia Midcap changed their auditors from 2016 to 2017, and seven of those companies saw their audit fees decrease. The transposition of the European Audit Reform was finalized in Italy with the adoption of the Legislative Decree n. 135 of July 17, 2016 with the new rules effective on August 5, 2016. Mandatory firm…