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Understanding the Accounting Quality Risk database
Who is this article for?
Users who want to learn about the Accounting Quality Risk database.
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The Cybersecurity database from Audit Analytics tracks disclosures and impacts of data breaches affecting public companies, including both domestic and foreign SEC registrants.
1. Overview
- Provides timely access to reportable events from SEC filings
- Includes red flags for all SEC registrants from 2000 to present
- Covers all '34 Act filers as required by the SEC
2. Common uses
- Identify indicators of potential earnings management and accounting quality issues
- Gain insight into governance and control risks
- Drill down into detailed data surrounding potential concerns
- Monitor portfolios for reportable events
- Perform risk analysis to improve portfolio performance using specialized data
The Accounting Quality Risk database is available online and via data feeds (Feed74) with a valid subscription.
- Saved Search Alerts: Yes
- Daily Summary Emails: No
3. Collection methodology
- Each company is evaluated annually for AQRM red flags
- Flags are categorized as follows:
- Auditors: Audit-related issues
- Financial Reporting: Accounting and reporting concerns
- Controls: Internal control environment
- Stakeholders: Litigation, regulatory, and shareholder actions
- Insiders: CEO and CFO-related issues
- Each flag is rated on a scale:
- 1: Notable (least significant)
- 2: Significant
- 3: Critical (most significant)
- If multiple severity levels exist for a flag in a given year, the highest level is displayed
4. Search filters
The AQRM search page includes the following filters:
| Name | Description | Data Dictionary Field(s) | Sortable |
|---|---|---|---|
| Search by Ticker or CIK Code | Filter results to a specific company | CIK Code, Ticker | Yes |
| Market Index | Filter by market index | N/A | No |
| AQRM Flags | Select any or all flags | N/A | No |
| AQRM Flags Options | Filter for specific flags | N/A | No |
| Market Cap | Filter by company market capitalization | Market Cap ($) | Yes |
| Revenues | Filter by company revenue | Revenue ($) | Yes |
| Flag Year | Filter by year of flag | Flag Year | Yes |
| Flag Severity | Filter by severity level | Flag Severity | No |
| Company Location | Filter by business address | State Name, Region, County | Yes |
| Search Industries | Filter by industry | SIC Code, NAICS Code | No |
5. Viewing results
- Search results are displayed at the bottom of the page
- Available downloads and links include:
- AQRM Data Dictionary
- AQRM Legend
- CSV downloads of search results
- All fields in the CSV are defined in the Data Dictionary
- Company profile overviews