Auditor tenure:
It
is obvious that (internal/ external) auditors are supposed to be
independent, otherwise the need to report after discovering accounting
errors and such could be biased.
Therefore
it is healthy to rotate auditors, lest they don' t get (financially
involved in the company they are auditing) Independence stimulates
integrity and objectivity.
SEC has formulated Requirements Regarding Auditor Independence.
The rest of the world should follow suit shortly.
Restatements happen when things in the statement are found incorrect.
The cause could be anything from accounting errors, noncompliance with accounting principles, misinterpretations, fraudulent activities or other.
Restatements can be positive or negative. No need to say that a negative restatement can influence stock trade and or company performance. ( source Investopedia)
Needed extra statements:
8-K
10-Q
10-K
Recommendations and regulations
. auditor and consultants shouldn't come from same company
. auditing companies shouldn't have a large stake in he client's company
. reviews of the auditing by a peer auditor on 3 annual basis (USA)
. formation of audit committees
. rotation of auditors to insure independence
> objection is lack of insight in the company when high rotation occurs (discussion on rotation frequency)
> in fact one might expect, like in any work situation, that efficiency improves over time until it peaks and after that declines
Databases dealing with mentioned subjects
Amadeus
XXXX
Wharton
Auditor tenure as WRDS explains it.
LAST REPORTED AUDITOR FKEY
LAST REPORTED AUDITOR NAME
LAST REPORTED AUDITOR SINCE EVENT DATE
LAST REPORTED AUDITOR SINCE EVENT TYPE
Audit Analytics (North America)
Auditor changes
For instance looking for accounting errors or fraude.
Results list
(the output can be exported to Excel)
Also see this post:
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