AuditAnalytics (available in WRDS) is a deep, multifaceted database containing data on thousands of auditors and the corporations they audit. Although the file can easily link auditors and the companies they audit, it has many more uses than a simple “Who Audits Whom” database.
Here are two examples of research questions that show off AuditAnalytics’ ability to analyze auditing in depth.
1. Restatements: Identify companies for which the restatement identified fraud.
The SEC can require a company to reissue its financial statements for reasons ranging from clerical errors to fraud. Here’s how to search AuditAnalytics for an answer.
From the list of modules displayed to the left, choose:
Audit and Compliance => Non-Reliance Restatements.
Now choose your search criteria.
Step 1: Enter Date Range (e.g. from 2004 to date)
Step 2: Choose option “Search Entire Database” (Other options here are to search for one or more companies by ticker or CIK number, or to upload a text file of such company identifiers).
Step 3: Choose Variables to display including “Res Fraud” and “Res Fraud Category Title List”
Click on “Manuals and Overviews” from the top of the screen to identify relevant variables and their definitions for each module. Here, “Res Fraud” indicates that a restatement identified fraud, and “Res Fraud Category Title List” describes the nature of the fraud.
Step 4: Select an output format, then click “Submit Query”. Continue reading