Why do companies restate financial results?

Why do companies restate financial results?

Every year, research firm Audit Analytics publishes a study about financial restatement trends. In 2018, the number of public companies that amended their annual reports increased by 18%. Many of these amendments were due to minor technical issues, however. Of the 400...
Private companies: Beware of SEC scrutiny

Private companies: Beware of SEC scrutiny

The Securities and Exchange Commission (SEC) doesn’t monitor just publicly traded companies. It also looks at the dealings of some private companies, often to the surprise of their owners and executives. Reasons for SEC scrutiny The SEC’s mission is to protect the...
The pros and cons of interim reporting

The pros and cons of interim reporting

The Securities and Exchange Commission (SEC) requires certain public companies to publish quarterly financial statements to give investors insight into midyear performance. Though interim reporting generally isn’t required for private companies, stakeholders in...
In pursuit of global tax transparency

In pursuit of global tax transparency

In today’s global economy, multinational corporations engage in numerous cross-border transactions. But how they report those transactions is often vague. To help minimize stakeholders’ exposure to potential hidden risks, the Financial Accountability & Corporate...
How auditors use nonfinancial information

How auditors use nonfinancial information

Every financial transaction your company records generates nonfinancial data that doesn’t have a dollar value assigned to it. Though auditors may spend most of their time analyzing financial records, nonfinancial data can also help them analyze your business from...