While reviewing the results of our recent annual report on financial restatements, we noticed an interesting – although not unexpected – trend. Restatements are most commonly disclosed in the spring. A look through 8-K Item 4.02 Non-Reliance disclosures made between 1/1/11 and 12/31/15 show … Continue reading
Category Archives: Financial Restatements
Review Notes, Volume 2
With filing season pretty much done and dusted, we can all take a deep breath and relax (for a minute or two). One thing we like to do around here is have a bit of a laugh at some of … Continue reading
2015 Financial Restatements Review
The annual Audit Analytics report on financial restatement trends is now available. This report, which includes data from the full year 2015, provides a detailed analysis and comparison of trends in financial restatements over a fifteen-year period. Restatement Trends Continue … Continue reading
Raising the Tone: Lessons from the Past
By now you’ve probably heard of the ongoing saga at Valeant (VRX). The beleaguered pharmaceutical company has seen its stock plummet, questions about its accounting practices, harsh criticisms about its business practices, and turmoil among management and the board. A recent … Continue reading
Is Contract Accounting under the Microscope?
Last week, news came out that the SEC was investigating Boeing Co. for possible irregularities in the company’s long-term contract accounting. (Bloomberg) The U.S. Securities and Exchange Commission is investigating whether Boeing Co. properly accounted for the costs and expected … Continue reading
Reasons for an Amended 10-K: 2015
Form 10-K provides a vast amount of information about a company and its operations. Sections of the form include a description of the business, specific risks faced by the company, material legal proceedings, and executive compensation disclosures. Occasionally, a company … Continue reading
Are Lengthy Audit Report Lags a Warning Signal?
Are Lengthy Audit Report Lags a Warning Signal?, ask authors Alan I. Blankley, David N. Hurtt, and Jason E. MacGregor in their July 2015 paper in Current Issues in Auditing. In this “practitioner summary” of a research paper published last year … Continue reading