Friday, March 22, 2019
Our New Master Class Video

Thursday, March 21, 2019
Tech Data’s Goodwill Adjustment

Tuesday, March 19, 2019
There’s Taxes, and There’s Taxes

Saturday, March 16, 2019
Adventures in Tax Cuts and Net Income

Monday, March 11, 2019
Big Moves in Goodwill, Intangible Value

Friday, March 8, 2019
CVS, Goodwill, and Enterprise Value

Thursday, February 28, 2019
Summary of Our Goodwill Research/ How-To

Wednesday, February 27, 2019
What Does ‘Other’ Mean? An Example

Thursday, February 21, 2019
Another Tale, Buried in the Footnotes

Wednesday, February 13, 2019
Low Latency Calcbench

Monday, February 11, 2019
Now Streaming on Hulu: Red Ink

Thursday, February 7, 2019
Early Look at 2018 Tax Decline

Wednesday, February 6, 2019
You Revised WHAT, Netflix?

Thursday, January 31, 2019
Talking About Huawei Exposure

Wednesday, January 30, 2019
Another Discrepancy in Reported Numbers

Wednesday, January 30, 2019
Finding Revised Facts: Hertz Edition

Wednesday, January 23, 2019
GE Commercial Aviation Services: Bringing Numbers to Light

Monday, January 21, 2019
Differences in Earnings Releases and 10-Ks

Wednesday, January 16, 2019
The Importance of Textual Analysis

Tuesday, January 8, 2019
A Look at Climate Change Disclosures

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Each 10-K a company files includes an Auditor’s Report. In that letter, addressed to the shareholders of the company, the auditors give their opinion on the attached financial statements. The auditors also opine on the companies’ internal controls over the financial reporting. In writing the report, auditors typically follow a standard format.

You can easily use Calcbench’s disclosure query to search the auditor’s reports and identify companies for which the auditor found some issues. For example, choosing the S&P 500 companies in 2016, and searching for the text “did not maintain” would identify 5 companies (ALXN, BLL, CTSH, EBAY, ZBH) in which auditors that found the firm ‘did not maintain’ appropriate controls over the financial reporting.

Some auditors use different text, so you may want to look at “expressed an adverse opinion” or “adverse opinion”. This would produce some more companies (see below).

The auditor’s report includes a treasure trove of information. At Calcbench, we extract some information out of it and offer it to our users. For example, you can use the multi-company viewer to uncover the auditor (variable name: auditor_name) for companies you are interested in. And new this year, you can see how long they have been auditing the company, also known as the auditor tenure (variable name: auditor_since_year).

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