The audit committee plays an important role in navigating a restatement—from investigating errors and their origins to overseeing the restatement process. A mishandled restatement can lead to a prolonged SEC investigation, increased exposure to liability in civil litigation, loss of confidence by lenders, and potential delisting by an exchange.
To survive a restatement, audit committees should avoid the following pitfalls.
via Surviving a Restatement: Ten Pitfalls to Avoid | NACD Directorship Magazine
