August 19, 2018

Restatements

Financial Restatements On the Decline—Again

There has been a trend in recent years of financial restatements for public companies decreasing, and 2017 was no exception. A new report by Audit Analytics revealed that the total number of restatements fell for the fifth consecutive year—from 873 in 2013 to 553 in 2017, according to Tammy Whitehouse of Compliance Week. She also […]

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Analyst Rightly Grew Suspicious of Gorgeous Woman Who Laughed at His Accounting Jokes

“And then I said, ‘It’s accrual world!’” Earlier this year, we discussed a tradecrafty story out of The Wall Street Journal of a BDO auditor who “casually wandered around the accounting firm’s New York offices, striking up conversations with colleagues.” Little did anyone know, the auditor recorded those conversations for the Federal Bureau of Investigation […]

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Big 4 Audit Quality Hiding in Plain Sight: Restatement Mentions in PCAOB Reports

For the last several years, one very interesting audit quality metric has not been widely reported in the media, and the largest audit firms barely mention it. It has been hiding in plain sight and could be a useful data point to audit committees or investors that are trying to understand the quality of audits. […]

Weatherford International Gets in Trouble for Letting Execs Choose Their Own Numbers

Going Concern history buffs will recall a period in 2011-2012 when oil services company Weatherford International had some chronic problems with its tax accounting. Manipulations by two of its former accounting executives — James Hudgins and Daryl Kitay — resulted in a $500 million restatement in 2011. This was followed by two more restatements in […]

Valeant Pretty Sure They Got This Now

Valeant, a pharmaceutical company better known for impressive feats of corporate chicanery that are in no way related to developing drugs, says that its ad-hoc review committee checked out its accounting and determined that everything's a-okay. Valeant Pharmaceuticals International, Inc. (NYSE: VRX and TSX: VRX) today announced that the ad hoc committee of the board […]

Toshiba Restating, Concedes That Restatement Could Be Restated

A "special task force" assigned by Toshiba Corp to look into accounting irregularities found that the company underestimated the costs of three infrastructure projects by ¥50 billion ($419 million). The company also said that "the review was continuing and the ¥50 billion figure could be revised later," allowing for the possibility that this could reach VA […]

Hertz Can’t Promise That Its Accounting Troubles Won’t Get Worse

UPDATE: I relied on that figure provided by The Journal that incorrectly stated that the cost of the accounting error was $180 million. The correction states it hit profits by $153 million. Sorry for the error.      Hertz, a car-rental company once endorsed by O.J. Simpson, disclosed that its shoddy accounting have cost the company $180 $153 […]

CAQ-Commissioned Study Finds Reasonable Assurance Somewhat More Reasonable These Days

We're sharing the following with you not because we think it is a sign that both clients and their auditors have cleaned up their acts but it is a perfect example of how dangerous data can be in the wrong hands. Let's take a look at the results of the work done by Susan Scholz, […]

According to This, Suing Auditors Is Trendy Now

According to a Cornerstone Research report that you should absolutely read in its entirety if you are into this sort of stuff, lawyers are suing auditors more: Overall, auditor participation in class action settlements in the last several years has been lower than in the early years following passage of the Private Securities Litigation Reform […]

Public Companies Filing Restatements Totally Aware That Many People Blow Friday Off

Audit Analytics has a great post today about Friday filing dumps, something that Footnoted has been calling attention to for years. Any time a company has to disclose bad news, the theory goes, they will most likely file it late in the day on Friday to soften the effect of an auditor resignation/restatement/announcement of massive […]