Wall Street Journal Quotes Accounting Professor in Financial Reporting Reliability Article

Preeti Choudhary, associate professor of accounting in the Eller College of Management at the University of Arizona, was quoted in a December 5 Wall Street Journal article about the implications of company errors in accounting and finances.

The article explores the current phenomenon of businesses revising accounting inaccuracies without reissuing financial statements, referencing Choudhary’s working paper, “The Last Chance to Improve Financial Reporting Reliability: Evidence from Recorded and Waived Audit Adjustments” (subscription required) co-authored with Kenneth Merkley (Indiana University) and Katherine Schipper (Duke University) and published in The Journal of Accounting Research.

“[Financial] revisions carried out to correct potentially serious misstatements–impacts of more than 5% of pretax income or multiple problems–were associated with share price falls,” Choudhary’s study found. “Significant share price movement suggests that managers and investors disagree about the importance of errors,” says Choudhary.

Choudhary joined the Eller College of Management as associate professor in 2017. Prior to academia, she worked as an internal auditor for the Washington Post and in enterprise risk services with Deloitte. Her research focuses on capital markets financial accounting, financial reporting for taxes, recognition versus disclosure and financial reporting reliability. She earned her PhD in Accounting from Duke University in 2008.