Tag: Restatements

Company Accounting Error Fixes Return to Pre-SPAC Boom Levels

Corporate financial restatements have plateaued at levels close to those seen before 2021, when they rose to a 15-year high driven by a boom in blank-check companies correcting accounting errors, a new report shows. Companies issued 430 financial statement corrections for accounting mistakes in 2023, according to Ideagen Audit Analytics’ latest annual financial restatements report released Monday. That represents a…

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Companies Fixing More Errors by Revisions Than Restatements

Companies have increasingly corrected accounting mistakes through revisions as the volume of restatements plummeted over the past decade. The informal corrections allow companies to avoid the fanfare of a full restatement with the requisite press releases and SEC filings—possibly masking a broader problem for investors. One study found that almost half of revisions had an arguably material impact on a…

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Number of Restatements Continues to Decline | The D&O Diary

Financial restatements among U.S public companies hit their lowest level in years in 2017, according to the latest annual report from Audit Analytics. The total number of restatements declined in 2017 to a 17-year low and the number of reissuance restatements (those requiring withdrawal and reissuance of previously released financial reports) declined for the eleventh consecutive year. The number of…

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Financial Restatements Continue to Decline for U.S. Reporting Companies | The D&O Diary

Financial restatements among U.S public companies hit their lowest level in years in 2016, according to the updated annual report of Audit Analytics. As a result of heightened standards as well as the decreased numbers of listed companies, the share U.S. companies restating their prior financial statements hit their lowest level since 2010 and the number of companies restating their…

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Surviving a Restatement: Ten Pitfalls to Avoid | NACD Directorship Magazine

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.…

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