The Securities and Exchange Commission has become increasingly concerned with the rising number of restatements to statements of cash flows (SCFs). Regulators and practitioners are generally more focused on the overstatement of operating cash flows, while the understatement of operating cash...

In 2019, the Public Company Accounting Oversight Board (PCAOB) expanded audit reports by requiring auditors to provide a critical audit matters (CAM) disclosure in the independent audit report, based on Auditing Standards (AS) 3101, The Auditor’s Report on an Audit of Financial Statements When...

This study examines how deferred revenue influences the cost of debt. Using credit spreads as a proxy for the cost of debt, we find that deferred revenue increases the cost of debt. However, when we consider the impact that an increase in deferred revenue has on the debt-to-asset ratio, we find...

This study investigates whether accrual quality, earnings persistence and earnings predictive ability are affected by the adequacy rather than the strength of corporate governance. Under the premise that firms that have consistently outperformed their industry counterparts in the past have less...

While SFAS No. 131 is intended to increase the transparency of financial reporting using a "management approach", it may reduce shareholders' ability to interpret segment disclosures relative to the 'industry approach' employed under SFAS No.14. This study investigates whether firm-segment...