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Using the Europe Accounting Quality Risk database
Who is this article for?
Users who need want to learn about the Europe Accounting Quality Risk database.
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This article provides an overview of the Europe accounting quality risk database and its search features.
The Audit Analytics Europe Accounting Quality Risk Matrix (AQRM) database covers red flags with categories including metrics and events related to auditors and financial reporting.
This database covers reportable events from EEA, Swiss, and UK equity listed companies.
1. Common uses
- Identify indicators of potential earnings management and other accounting quality issues.
- Gain insight into potential governance risks.
- Drill down to assess detailed data surrounding the potential issues.
- Monitor portfolio for reportable events.
- Perform risk analysis and isolate areas to improve a portfolio’s performance using difficult to find and specialized information.
The Europe accounting quality risk database is available online, through WRDS, and as data feeds [Feed90] with the relevant subscription.
Saved search alert: No
Daily summary email: No
2. Collection methodology
The download indicates whether a company has had any of the AQRM red flags in the given year. Each flag is its own column and organized by the following categories:
- Auditors: pertaining to the audit and the company’s auditors.
- Financial reporting: pertaining to the company’s accounting and financial reporting.
Each flag is rated according to our methodology on a scale of 1 to 3:
- 1: Notable (least significant).
- 2: Significant.
- 3: Critical (most significant).
In cases where a company has more than one level of severity for a given flag in each year, the highest severity is selected to display.
3. Searching
The accounting quality risk matrix search page offers the following filters:
| Name | Description | Data dictionary field(s) | Sort by? |
|---|---|---|---|
| Search by entity map key or ticker | Filter results to a specific population | Entity map key, ticker | Yes |
| Market indexes | Filter for market index | Market indexes | No |
| AQRM flags | Select: any of the following, all of the following | N/A | No |
| AQRM flags options | Filter for specific flags | N/A | No |
| Currency | Filter by currency in which the financial figures were originally stated | Reported currency | |
| Market cap (EUR) | Filter by a range of companies’ market caps | Market cap (reported currency), EUR, GBP, USD | Yes |
| Revenue (EUR) | Filter by a range of companies’ revenue | Revenue (reported currency), EUR, GBP, USD | Yes |
| Search industries | Filter by companies’ industry(s) | SIC code, NAICS code | No |
| Company location | Filter by current business address location(s) | State name, region, headquarter city, headquarter county | Yes |
| Flag year | Filter by year of flag | Flag year | Yes |
| Flag severity | Filter by severity of flag | N/A | No |
4. Results
Results can be viewed at the bottom of the page.
- CSV file downloads of the results (all fields defined in the data dictionary)
- Download: market indexes mapping
- AQRM legend
- Europe AQRM data dictionary
- Overview of individual companies’ profile