New article
Recently updated
Understanding Disclosure Controls
Who is this article for?Users who want to learn more about the Disclosure controls dataset.
No elevated permissions are required.
1. General overview
- The Audit Analytics Disclosure Controls dataset includes all SEC registrants disclosing management's assessment of disclosure controls since September 2002.
- Each row details the management’s assessment.
- This encompasses all ’33 & ’34 Act filers as per SEC requirements.
2. Common uses
-
- Use DCs to assess financial reporting quality
- Track accounting failures that lead to poor disclosure controls
- Identify companies with financial reporting issues for potential business
- Look for material weaknesses in a registrant's disclosure and internal control assessments
The Disclosure Controls database is accessible online via WRDS and data feeds [Feed10] with a subscription.
- Saved Search Alert: Yes
- Daily Summary Email: No
3. Collection methodology
- The disclosure controls dataset includes all SEC registrants, both foreign and domestic.
- Methodology involves gathering data on company status and disclosure text, along with selecting the right taxonomy.
- Data is sourced from forms: 10-K, 10-Q, 20-F, and 40-F.
- Historical coverage includes forms 10KSB/10QSB.
- Data is sourced from forms: 10-K, 10-Q, 20-F, and 40-F.
- Each row details the management's assessment of disclosure controls.
- Disclosure controls and procedures ensure that required information is recorded, processed, summarised, and reported as per the Commission's rules.
4. Searching
- The Disclosure Controls search page offers the following filters:
| Name | Description | Data Dictionary Field(s) | Sort By? |
|---|---|---|---|
| Search by Ticker or CIK Code | Filter results to a specific population |
CIK Code Ticker |
Yes |
| Search by Keyword | Search for text containing keyword | N/A | No |
| Management - disclosure controls are effective | Filter for whether disclosure controls are effective | Effective – Disclosure Controls | No |
| Material Weakness (MW) | Select to show flags whenever the phrase “Material Weakness” is used in describing a registrant's assessment | Material Weakness | No |
| Other Notable Deficiencies / Disclosures (OD) | Select to filter by other notable deficiencies or disclosures | Other Deficiencies / Disclosures | No |
| Market Index | Filter by principal exchange | Market | No |
| Disclosure Control Taxonomies |
Select any or all disclosure controls taxonomies to include:
|
Refer to “Taxonomy of Issues” tab | No |
| Filings | Filter by any specific form type | Source | No |
| Market Cap | Filter by a range of market capitalization as of stock price date | Market Cap ($) | Yes |
| Revenues | Filter by a range of past year’s total revenue | Revenue ($) | Yes |
| Search Industries | Filter by companies’ industry(s) |
SIC Code NAICS Code |
No |
| Company Location | Filter by current business address location(s) |
State Code State Name State Region County City |
Yes |
| Period Ended | Filter by a range of dates to return on management’s assessment of disclosure controls | Period Ended | Yes |
| File Date | Filter by a range of dates of when the filing was submitted to SEC | Source Date | Yes |
5. Results
- Results can be viewed at the bottom of the page.
- The following are accessible through clicking the respective hyperlinks:
- Disclosure Controls Data Dictionary download
- CSV file downloads of the results
- All fields available in the CSV are defined in the Data Dictionary
- Overview of individual companies’ profile
- Filing type (opens the disclosure text for a given entry)
- All records of a given company are available for viewing on the company’s overview profile.
6. Additional information
- If disclosure controls are ineffective without a material weakness, both Accounting and Disclosure Control taxonomies are collected.
- If disclosure controls are effective but lack a material weakness or remediation, only Disclosure Control taxonomies are collected, not Accounting taxonomies .
- Disclosure controls also identify deficiencies below the material weakness threshold, like significant deficiencies.
- They also note changes in internal control, including acquisitions, new accounting standards, and ERP/software adoptions.
- Remediation:
- Remediations of past material weaknesses can be reviewed.
- Multiple taxonomies can apply for effective disclosure controls; they are not used with effective internal controls (except Exemption taxonomies).