Restate and Main: Is Your Company Vulnerable?
This column from CFO Publishing looks at the nitty-gritty behind restatements: exactly how much they have increased and why certain types of companies are more likely to have to go back over their books.
What Triggers Financial Restatements?
The list of common problems that lead to faulty accounting is long. But the bigger issue may have more to do with the evolving job descriptions of finance staff. In recent years, companies have added strategy to the list of their accountants’ responsibilities, leaving less time for traditional number-crunching.
Prepare for the Worst
When a company announces a financial restatement, the fallout can be quick and brutal. This in-depth study lays out the potential consequences, including the collapse of the company’s stock price, class-action lawsuits, management turnover, and lower earnings forecasts.
Uncovering the Culture Behind Fraudulent Financial Reporting
Financial restatements are bad for the credibility of the U.S. financial reporting process. They can undermine public confidence in the markets and be disastrous for the company itself. Despite the risks, certain companies have instituted policies of financial fraud. This article from The CPA Journal identifies what these firms have in common.
Fraud or Error? The Case of MicroStrategy
This study by Loyola Marymount University professor Sudha Krishnan takes a detailed look at the events that led up to software vendor MicroStrategy’s restatements of nearly two years of financial reports.
