Bys to SEC rules, a financial statement restatements life the company or its<br>Auditors conclude that "the company's saly issued financial statements . . . . No<br>Longer saued ei leed upon bee because an error in this financial statements. . . . The The<br>Rule and rand s it companies data sit a restatement on Form 8-k, and it<br>Created Item 4.02 specifically for the disclosure of these restatements. Because the<br>pre statements are lycele, a company file corrected reports on Form 10-K/A<br>and/or Form 10-Q/A.2<br>In April 2015, Audit Analytics reported that, for the sixth year, "revision<br>restatements, "or those that do not saun saerresons on past financials, rose to 76<br>percent of all restatements reported. On the other hand, "reissuance restatements,"<br>What requir information in Item 4.02 of an 8-K and are more likely to have a negative<br>market reaction, ded. With the trend of the and the severity of the<br>restatements remained dyslened: (1) with a negative impact on net income;<br>(2) the lye cumulative impact on net income per restatement; (3) The si<br>restatements with no impact on income statements; (4) the number of days<br>restated; and (5) the average number of issues yn restatements.3<br>Corporate governance failures, internal control sauies, risk assessment issues,<br>And the sn'ei cess systems-all may be a factor that creates the s<br>likej of financial statement restatements. Auditors look for the red flags that<br>the shofs o ei lie. Challenges to ethical standards and<br>Professional judgment of CPAs often come about because of financial<br>transactions and pressures imposed by an employer, client, and/or members of top of<br>management. Auditors exercise the oed drated of care and develop a<br>The shod it's thin-shod shoith professionalism in order to meet their professional and<br>legal obligations.<br>DeZoort points to seven s cause s and effects of restatements: (1) complexity of the<br>accounting standards and/or transactions; (2) weak financial governance and controls;<br>(3) anaidh and an audit committee a. i.e., anad ad regulation,<br>legal exposure for auditors, and audit committee responsibilities; (4) Broad application
正在翻譯中..