topic Re: Common auditor coding in SAS Programming

Common auditor coding

joon1 — Fri, 20 Dec 2024 00:37:20 GMT

Dear Madam/Sir,

I have firm identifier (gvkey), year (cyear) and auditor key (auditor_fkey) and like to define common auditor as a dummy variable. In other words, gvkey 1161 and 1380 share the common auditor in year 2003 and these firm-years are coded as 1. Any coding idea will be greatly appreciated.

Obs cyear gvkey AUDITOR_FKEY1234567891011121314151617181920

2003	1161	2
2004	1161	2
2005	1161	2
2006	1161	2
2002	1380	2
2003	1380	2
2004	1380	2
2005	1380	2
2006	1380	2
2007	1380	2
2008	1380	2
2009	1380	2
2010	1380	2
2011	1380	2
2012	1380	2
2013	1380	2
2000	1913	1
2001	1913	1
2002	1913	1
2003	1913	1

Thanks

Joon1

Re: Common auditor coding

Patrick — Fri, 20 Dec 2024 01:00:00 GMT

I don't really understand what you're asking for. Does below return what you're after?

data have;
    input cyear gvkey AUDITOR_FKEY;
    datalines;
2003 1161 2
2004 1161 2
2005 1161 2
2006 1161 2
2002 1380 2
2003 1380 2
2004 1380 2
2005 1380 2
2006 1380 2
2007 1380 2
2008 1380 2
2009 1380 2
2010 1380 2
2011 1380 2
2012 1380 2
2013 1380 2
2000 1913 1
2001 1913 1
2002 1913 1
2003 1913 1
;
run;

proc sql;
	select 
		l.cyear 
		,l.gvkey
		,l.AUDITOR_FKEY
		,r.n_gvkeys
		,case
			when r.n_gvkeys >1 then 1
			else 0
			end as shared_auditor_flg
	from have l
	
	left join
		(
			select 
				cyear 
				,AUDITOR_FKEY
				,count(*) as n_gvkeys
			from have
			group by 
			cyear,AUDITOR_FKEY
	) r
	on l.cyear=r.cyear and l.auditor_fkey=r.auditor_fkey
	order by l.gvkey, l.cyear
	;
quit;

Re: Common auditor coding

Ksharp — Fri, 20 Dec 2024 02:21:53 GMT

I think you should post the desired output to clarify your question better.

Assuming I understood what you mean.

data have;
    input cyear gvkey AUDITOR_FKEY;
    datalines;
2003 1161 2
2004 1161 2
2005 1161 2
2006 1161 2
2002 1380 2
2003 1380 2
2004 1380 2
2005 1380 2
2006 1380 2
2007 1380 2
2008 1380 2
2009 1380 2
2010 1380 2
2011 1380 2
2012 1380 2
2013 1380 2
2000 1913 1
2001 1913 1
2002 1913 1
2003 1913 1
;
run;
proc sql;
create table want as
select *,count(distinct gvkey) ne 1 as flag
 from have
  group by AUDITOR_FKEY,cyear
   order by gvkey,cyear;
quit;

Re: Common auditor coding

joon1 — Fri, 20 Dec 2024 03:52:54 GMT

Thanks for your kind reply, Ksharp. My desired output is the last column (dummy variable coded 1 for firms (gvkey) with the same auditor (auditor_fkey) in the same year (cyear), otherwise 0). Your suggested code does not work. Your help will be highly appreicated.

2003 1161 2 1 2004 1161 2 1 2005 1161 2 1 2006 1161 2 1 2002 1380 2 0 2003 1380 2 1 2004 1380 2 1 2005 1380 2 1 2006 1380 2 1 2007 1380 2 0 2008 1380 2 0 2009 1380 2 0 2010 1380 2 0 2011 1380 2 0 2012 1380 2 0 2013 1380 2 0 2000 1913 1 0 2001 1913 1 0 2002 1913 1 0 2003 1913 1 0

output

Re: Common auditor coding

Ksharp — Fri, 20 Dec 2024 06:06:02 GMT

Then tell me where is different between mine and yours ? Here is my output.

Re: Common auditor coding

joon1 — Fri, 20 Dec 2024 17:00:31 GMT

I am sorry, Ksharp. Your code assigned all 1s for 'flag'. Your help will be highly appreciated.

proc sql;
create table cc2 as
select *,count(distinct gvkey) ne 1 as flag
from cc1
group by AUDITOR_FKEY,cyear
order by gvkey,cyear;
quit;

Obs cyear gvkey AUDITOR_FKEY flag1234567891011121314151617181920

2003	1161	2	1
2004	1161	2	1
2005	1161	2	1
2006	1161	2	1
2002	1380	2	1
2003	1380	2	1
2004	1380	2	1
2005	1380	2	1
2006	1380	2	1
2007	1380	2	1
2008	1380	2	1
2009	1380	2	1
2010	1380	2	1
2011	1380	2	1
2012	1380	2	1
2013	1380	2	1
2000	1913	1	1
2001	1913	1	1
2002	1913	1	1
2003	1913	1	1

Re: Common auditor coding

ballardw — Fri, 20 Dec 2024 17:13:37 GMT

Since I run the example data set and get the same result as @Ksharp

                  AUDITOR_
cyear    gvkey      FKEY      flag

 2003     1161        2         1
 2004     1161        2         1
 2005     1161        2         1
 2006     1161        2         1
 2002     1380        2         0
 2003     1380        2         1
 2004     1380        2         1
 2005     1380        2         1
 2006     1380        2         1
 2007     1380        2         0
 2008     1380        2         0
 2009     1380        2         0
 2010     1380        2         0
 2011     1380        2         0
 2012     1380        2         0
 2013     1380        2         0
 2000     1913        1         0
 2001     1913        1         0
 2002     1913        1         0
 2003     1913        1         0

Then one suspects something different about YOUR CC1 data set that we cannot distinguish because you are not providing example data as a working data step.

Instructions here: https://communities.sas.com/t5/SAS-Communities-Library/How-to-create-a-data-step-version-of-your-data-AKA-generate/ta-p/258712 will show how to turn an existing SAS data set into data step code that can be pasted into a forum code box using the </> icon or attached as text to show exactly what you have and that we can test code against.

Re: Common auditor coding

Tom — Fri, 20 Dec 2024 18:27:39 GMT

Perhaps it would be easier to understand if you used normal SAS code instead of SQL logic?

Sort the data by YEAR and AUDITOR (which way you nest them does not really matter) and FIRM. Then in a data step you can use two DO loops to read through the year X auditor groups of records twice. Once to count how many distinct firms are listed. And the second time to re-read the data so the detailed observations can be written out.

proc sort data=have;
  by cyear AUDITOR_FKEY gvkey ;
run;

data want;
  do _n_=1 by 1 until(last.AUDITOR_FKEY);
    set have;
    by cyear AUDITOR_FKEY gvkey;
    n_firms = sum(n_firms,first.gvkey);
  end;
  flag = n_firms > 1 ;
  do _n_=1 to _n_ ;
    set have;
    output;
  end;
run;

                         AUDITOR_
Obs    cyear    gvkey      FKEY      n_firms    flag

  1     2000     1913        1          1         0
  2     2001     1913        1          1         0
  3     2002     1913        1          1         0
  4     2002     1380        2          1         0
  5     2003     1913        1          1         0
  6     2003     1161        2          2         1
  7     2003     1380        2          2         1
  8     2004     1161        2          2         1
  9     2004     1380        2          2         1
 10     2005     1161        2          2         1
 11     2005     1380        2          2         1
 12     2006     1161        2          2         1
 13     2006     1380        2          2         1
 14     2007     1380        2          1         0
 15     2008     1380        2          1         0
 16     2009     1380        2          1         0
 17     2010     1380        2          1         0
 18     2011     1380        2          1         0
 19     2012     1380        2          1         0
 20     2013     1380        2          1         0

Re: Common auditor coding

joon1 — Fri, 20 Dec 2024 18:32:36 GMT

Thanks, Balladw and Ksharp. The working file is just 394 observations, so I display my working dataset (Actually, I don't understand the link you sent). Flags are assigned 1 using your suggested code. Your help will be greatly appreciated.

cyear	gvkey	AUDITOR_FKEY
2003	1161	2
2004	1161	2
2005	1161	2
2006	1161	2
2002	1380	2
2003	1380	2
2004	1380	2
2005	1380	2
2006	1380	2
2007	1380	2
2008	1380	2
2009	1380	2
2010	1380	2
2011	1380	2
2012	1380	2
2013	1380	2
2000	1913	1
2001	1913	1
2002	1913	1
2003	1913	1
2001	2230	1
2002	2230	2
2003	2230	2
2004	2230	2
2005	2230	2
2001	2593	1
2002	2593	1
2000	2812	5
2001	2812	5
2002	2812	3
2012	3226	3
2013	3226	3
2014	3226	3
2015	3226	3
2000	3278	3
2002	3278	3
2004	3278	3
2007	3278	3
2008	3278	3
2009	3278	3
2010	3278	3
2011	3278	3
2012	3278	3
2000	3439	5
2001	3439	5
2002	3439	2
2003	3439	2
2004	3439	2
2001	3813	2
2002	3813	2
2003	3813	2
2001	3964	3
2002	3964	3
2003	3964	3
2001	4611	4
2002	4611	4
2003	4611	4
2000	5046	5
2001	5046	5
2002	5046	4
2003	5046	4
2004	5046	4
2005	5046	4
2006	5046	4
2007	5046	4
2008	5046	4
2009	5046	4
2010	5046	4
2011	5046	4
2000	5439	5
2001	5439	5
2002	5439	4
2003	5439	4
2004	5439	4
2002	5597	4
2003	5597	4
2004	5597	4
2005	5597	4
2006	5597	4
2007	5597	4
2004	5723	2
2005	5723	2
2006	5723	2
2007	5723	2
2008	5723	2
2009	5723	2
2010	5723	2
2011	5723	2
2012	5723	2
2003	5791	3
2004	5791	3
2005	5791	3
2006	5791	3
2007	5791	3
2008	5791	3
2009	5791	3
2010	5791	3
2011	5791	3
2012	5791	3
2013	5791	3
2014	5791	3
2015	5791	3
2004	5860	3
2005	5860	3
2006	5860	3
2007	5860	3
2008	5860	3
2009	5860	3
2010	5878	3
2011	5878	3
2012	5878	3
2013	5878	3
2014	5878	3
2015	5878	3
2016	5878	3
2002	6821	3
2003	6821	3
2004	6821	3
2005	6821	3
2006	6821	3
2007	6821	3
2011	6845	1
2001	7127	5
2002	7127	5
2003	7127	3
2008	7163	2
2009	7163	2
2010	7163	2
2011	7163	2
2012	7163	2
2013	7163	2
2003	7585	4
2004	7585	4
2005	7585	4
2006	7585	4
2001	7922	3
2002	7922	3
2003	7922	3
2001	8358	1
2002	8358	1
2003	8358	1
2004	8358	1
2005	8358	1
2006	8358	1
2007	8358	1
2007	9372	2
2008	9372	2
2009	9372	2
2010	9372	2
2011	9372	2
2012	9372	2
2013	9372	2
2014	9372	2
2015	9372	2
2000	9667	2
2011	9882	2
2012	9882	2
2013	9882	2
2014	9882	2
2015	9882	2
2000	10386	346
2001	10386	346
2002	10386	346
2003	10386	1
2004	10386	1
2005	10386	1
2006	10386	1
2007	10386	6
2008	10386	6
2004	10581	2
2005	10581	2
2006	10581	2
2007	10581	2
2008	10581	2
2009	10581	2
2010	10581	2
2011	10581	2
2001	10639	2
2002	10639	2
2003	10639	2
2004	10639	2
2005	10639	2
2008	10793	2
2009	10793	2
2011	10801	1
2012	10801	1
2013	10801	1
2014	10801	1
2015	11264	3
2000	11300	1
2001	11300	1
2002	11300	1
2003	11300	1
2004	11300	1
2005	11300	1
2006	11300	1
2001	12122	3
2002	12122	3
2003	12122	3
2006	12141	3
2007	12141	3
2008	12141	3
2009	12141	3
2010	12141	3
2011	12141	3
2000	12215	1
2001	12215	1
2002	12215	1
2003	12215	1
2004	12215	1
2005	12215	1
2000	12757	1
2001	12757	1
2002	12757	1
2003	12757	1
2004	12757	1
2005	12757	1
2006	12757	1
2008	12785	2
2009	12785	2
2000	13407	2
2001	13407	2
2013	14304	2
2014	14304	4
2000	14412	3
2005	15247	4
2006	15247	4
2007	15247	4
2013	16101	2
2014	16101	2
2015	16101	2
2016	16101	2
2017	16101	2
2008	21186	2
2009	21186	2
2010	21186	2
2011	21186	2
2003	23767	1
2004	23767	1
2005	23767	1
2005	23978	1
2006	23978	1
2007	23978	1
2008	23978	1
2009	23978	1
2010	23978	1
2011	23978	1
2012	23978	1
2013	23978	1
2014	23978	1
2001	24783	3
2002	24783	3
2003	24783	3
2004	24783	1
2005	24783	1
2006	24783	1
2007	24783	1
2008	24783	1
2009	24783	1
2013	25110	3
2014	25110	3
2015	25110	3
2016	25110	3
2000	25119	4
2001	25119	4
2002	25119	4
2003	25119	4
2004	25119	4
2005	25119	4
2006	25119	4
2007	25119	4
2008	25119	4
2009	25119	4
2010	25119	4
2007	25279	2
2008	25279	2
2009	25279	2
2010	25279	2
2011	25279	2
2012	25279	2
2013	25279	2
2014	25279	2
2015	25279	2
2011	25880	2
2012	25880	2
2013	25880	2
2014	25880	2
2015	25880	2
2003	28742	3
2004	28742	3
2005	28742	3
2006	28742	3
2007	28742	3
2008	28742	3
2009	28742	1
2010	28742	1
2011	28742	1
2012	28742	1
2013	28742	1
2014	28742	1
2015	28742	1
2016	28742	1
2004	28930	2
2005	28930	2
2006	28930	2
2007	28930	2
2008	28930	2
2009	28930	2
2010	28930	2
2005	29968	3
2006	29968	3
2007	29968	3
2008	29968	3
2009	29968	3
2010	29968	3
2011	29968	3
2012	30032	2
2013	30032	2
2001	31488	2
2002	31488	2
2003	31488	2
2004	31488	2
2005	31488	2
2001	61155	5
2005	61155	2
2006	61155	2
2002	63051	5
2003	63051	2
2003	117768	4
2004	117768	4
2005	117768	4
2006	117768	1
2002	126554	1
2003	126554	1
2004	126554	1
2005	126554	1
2006	126554	1
2007	126554	1
2008	126554	1
2009	126554	1
2010	126554	1
2011	126554	1
2012	126554	1
2004	128978	2
2005	128978	2
2006	128978	2
2007	128978	2
2008	128978	2
2009	128978	2
2010	128978	2
2008	141720	2
2009	141720	2
2010	141720	2
2011	141720	2
2012	141720	2
2013	141720	6
2014	141720	6
2001	144559	1
2002	144559	1
2003	144559	1
2004	144559	1
2005	144559	1
2007	147988	2
2008	147988	2
2009	147988	2
2004	157354	1
2005	157354	1
2006	157354	1
2007	157354	1
2008	157354	1
2009	157354	1
2010	157354	1
2011	157354	1
2012	157354	1
2013	157354	1
2007	176899	1
2008	176899	1
2010	176899	1
2011	176899	1
2012	176899	1
2007	177925	2
2008	177925	2
2009	177925	2
2010	177925	2
2011	177925	2
2012	177925	2
2013	177925	2
2014	177925	2
2015	177925	2
2016	177925	2
2009	183366	3
2010	183366	3
2011	183366	3
2012	183366	3

Re: Common auditor coding

Tom — Fri, 20 Dec 2024 18:38:04 GMT

Most of those should be flagged based on your explanation of the logic.

Of the 394 observations there are only 13 where the auditor only audited one firm in that year.

                          AUDITOR_
Obs    cyear     gvkey      FKEY      n_firms    flag

  9     2000     25119         4         1         0
 14     2000     10386       346         1         0
 39     2001     10386       346         1         0
 68     2002     10386       346         1         0
217     2007     10386         6         1         0
245     2008     10386         6         1         0
321     2011      5046         4         1         0
361     2013    141720         6         1         0
375     2014     14304         4         1         0
376     2014    141720         6         1         0
377     2015     28742         1         1         0
389     2016     28742         1         1         0
394     2017     16101         2         1         0

PS: Notice how much easier it is to share plain text instead of tables? Not only can it be copied into code directly it display using much less screen space on this forum.

Re: Common auditor coding

joon1 — Fri, 20 Dec 2024 18:45:39 GMT

I am sorry, Tom. Your code also produces almost 1 for 'flag'. I just posted
the whole dataset in another posting. Thanks.

Re: Common auditor coding

Tom — Fri, 20 Dec 2024 18:50:51 GMT

@joon1 wrote:
I am sorry, Tom. Your code also produces almost 1 for 'flag'. I just posted
the whole dataset in another posting. Thanks.

Show exactly what observations have the wrong FLAG setting. And explain why. Your new data has only 13/394 observations where the auditor only audited one firm in that year. If that is NOT the situation you are trying to detect then please explain (with concrete examples) what you do want to flag.

Re: Common auditor coding

joon1 — Fri, 20 Dec 2024 18:58:14 GMT

Thanks a lot, Ksharp. Actually, your code works. I sincerely apologize for your confusion.

Re: Common auditor coding

joon1 — Fri, 20 Dec 2024 18:59:19 GMT

Thanks for your help, Balladw. I was not clear on my question. Ksharp's code works.

Re: Common auditor coding

joon1 — Fri, 20 Dec 2024 19:00:13 GMT

Thanks for your help, Tom. Your code works. I was not clear about my question. Have a great day.