Restatement of annual reports by public companies rose this year according to an article in the New York Times.  I find that more than a little disturbing since the number of companies that file with the SEC has actually decreased over the last year.  This means that on a percentage basis, accounting restatements of annual financials (which must be audited) has risen.

Total restatements, a combination of annual and quarterly reports (which do not need to be audited), have fallen.  Still, since quarterly reports do not need to be audited malicious managements are more likely to sweep things under the rug on a quarterly basis.  Ethical, but lazy management is inclined to do the same but for different reasons.

10:03:59 AM  #