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The error detection rate remained below 45percentt until 2014, when it increased to above 60percentt.
The error detection rate was 59.7percentt in 2005, and remained above 55percentt until 2008, when it dropped to 39.9percentt.
Moreover, it is not possible to assess whether the error detection rates I document are too high or too low, because there is no observable benchmark for the socially optimal error detection rate.
For example, in the field GF(2233), we have estimated that the error detection rate for a sequential multiplier is nearly 100% if a comparison is made as per clock cycle.
For the definition of the success rate and the error detection rate, see Eqs. 2 3.
The error detection rate of GIMME is expected to be lower than that of RNMDSO.
Similar(32)
Error detection rates vary over time.
Next, I examine the association between workload and error detection rates.
I also examine how four factors – enforcement intensity, workload, compensation, and individual styles of SEC examiners — affect error detection rates.
Between 2005 and 2014, I document an increase in inflation-adjusted examiner salaries, a negative trend in the error detection rates, and no relation between compensation and error detection.
In my paper, "Examining the Examiners: SEC Effectiveness in Identifying Financial Reporting Errors," I propose a measure of SEC effectiveness based on financial reporting error detection rates.
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