Internal Anomaly Detection in the area of employee procurment cards continues to be an issue within many firms, even large multinational corporations. In this case, the authors observed the manual procedures that were being employed by a firm and are creating detailed scripts imitating and...

Auditors must now not only evaluate the accuracy of financial numbers but could soon be required to provide assurance on the information regarding the environmental, social justice, and good governance (ESG) claims made by its clients (SEC 2021; Harrington and Garzon 2022). Double-materiality refers...

Using Reuters data and machine learning, this paper explores the potential role of linguistic features of 972,144 business news headlines in going-concern opinion predictions. This research identifies 26,857 firm-year observations from their headlines from 2004 to 2016. For each observation in...

Absent regulatory requirements, 64% of small private commercial banks voluntarily procured an independent audit in our dataset. Hence, it can be argued that an independent audit may have a perceived value. In our study, we examine whether the decision to procure an audit is systematic. First, we...

The objective of this paper is to examine the relationship between an independent audit and financial reporting conservatism in the small private commercial bank setting. We use the timely recognition of probable losses and the minimal use of discretionary accruals as proxies for conservatism....

The central objective of this paper is to develop a transparent, consistent, self-contained, and stable country risk rating model, closely approximating the country risk ratings provided by Standard and Poor's (Samp;P). The models should be non-recursive, i.e., they should not rely on the...

Capital IQ's Compustat database is commonly used in empirical accounting research. Numbers that appear in Compustat are standardized to ensure "...consistent and comparable data across companies, industries and business cycles..." However, there has been no evidence in the academic literature...

We evaluate the creditworthiness of banks using statistical, as well as combinatorics-, optimization-, and logic-based methodologies. We reverse-engineer the Fitch risk ratings of banks using ordered logistic regression, support vector machine, and Logical Analysis of Data (LAD). The LAD ratings...

Compustat accounting database is frequently used for both research and decision-making. However, the accuracy and value of the information extracted from Compustat depend not only on the methods used to extract that information, but also on the validity of the data provided by Compustat. It has...

This paper explores the possibility of sharing firm-level information within an audit firm in a privacy-preserving manner and demonstrates the benefits of doing this, under the assumption that the same audit firm serves multiple clients competing in the same industry. We observe significant...