financial misstatements

USAGE SUMMARY

The phrase "financial misstatements" is correct and usable in written English.
It can be used in contexts related to accounting, auditing, or financial reporting to refer to inaccuracies or errors in financial statements. Example: "The audit revealed several financial misstatements that could impact the company's credibility."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

17 human-written examples

We examine whether executive loans are associated with financial misstatements.

Journal of Accounting and Public Policy

We find a significant association between executive loans and financial misstatements.

Journal of Accounting and Public Policy

Within two months, WorldCom increased its estimate of the financial misstatements to about $7.2 billion.

The New York Times

WorldCom, which is now operating under bankruptcy protection, had previously disclosed $7.2 billion in financial misstatements.

The New York Times

* Dycom Industries, which supplies equipment to power utilities and is being examined for "possible financial misstatements," according to company documents.

The New York Times

The S.E.C. sued WorldCom on fraud accusations in June, one day after the company first disclosed its financial misstatements.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

43 human-written examples

It also applies only in the circumstances of a financial misstatement.

The New York Times

We further find that perceived effectiveness of remediation, financial misstatement risk attributed to the unresolved internal control weakness, and management credibility fully mediate the relation between company remediation strategies and investing judgments.

International Journal of Accounting Information Systems

This study used data from a laboratory experiment to examine whether (1) being trained to use either SSA or TFA and (2) analyzing information organized in an SSA or TFA format influence the extent to which auditors integrate knowledge of business risk into their judgment about the likelihood of financial misstatement.

Accounting, Organizations and Society

Mr. Cuomo wrote that as New York's attorney general, he had a duty to investigate "financial fraud and material misstatements".

The New York Times

/7/ If the financial statements contain material misstatements, AS 3101, Reports on Audited Financial Statements, indicates that the auditor should issue a qualified or an adverse opinion on the financial statements.

Harvard University

Expert writing Tips

Best practice

When discussing "financial misstatements", be specific about the nature and impact of the misstatement, providing context and quantification where possible.

Common error

Avoid using "financial misstatements" as a catch-all term. Instead, identify the specific type of misstatement (e.g., revenue recognition issues, expense misclassifications) to provide clarity.

Linguistic Context

The phrase "financial misstatements" functions primarily as a noun phrase. Ludwig indicates it is grammatically correct and is used to identify inaccuracies or errors in a company's financial reporting. Examples show its role in describing audit findings, legal proceedings, and the impact on shareholders.

Expression frequency: Common

Frequent in

News & Media

50%

Science

31%

Formal & Business

13%

Less common in

Academia

6%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

The term "financial misstatements" is a grammatically sound noun phrase commonly used to describe inaccuracies in financial reporting. Ludwig AI confirms its correctness and usability across various contexts. While frequent in news, scientific, and formal business domains, its usage implies the need for specificity regarding the type and impact of the misstatement. Related phrases include "accounting irregularities" and "inaccurate financial reporting". When writing about this topic, avoid overgeneralization and be precise to ensure clarity.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

inaccurate financial reporting

Emphasizes the lack of accuracy in the overall financial reporting process.

misleading financial information

Highlights the potential for deception due to the inaccurate information.

financial statement errors

Specifically points to errors within the financial statements themselves.

erroneous financial data

Focuses on the data itself being incorrect or misleading.

accounting irregularities

Refers to deviations from standard accounting practices, implying a potential problem.

accounting discrepancies

Suggests inconsistencies in the accounting records that need to be resolved.

reporting errors

A general term for mistakes in financial reports, less accusatory than "misstatements".

falsified financial records

Suggests deliberate alteration of financial records, implying fraud.

fraudulent financial reporting

Directly accuses the reporting of being intentionally deceitful.

cooked books

An informal term suggesting that financial records have been manipulated dishonestly.

FAQs

How are "financial misstatements" usually discovered?

Financial misstatements are often discovered through audits, either internal or external, by regulatory bodies like the SEC, or through whistleblower reports. The discovery process usually involves a thorough review of financial records and internal controls.

What's the potential impact of "financial misstatements" on a company?

The impact can range from restatement of financials and damage to reputation to legal penalties, including fines and even criminal charges for individuals involved. Shareholder value can also be significantly affected.

What are some alternatives to using "financial misstatements" in formal writing?

Depending on the context, you could use alternatives such as "accounting irregularities", "reporting errors", or "inaccurate financial reporting" to convey similar meanings with slightly different nuances.

What's the difference between "financial misstatements" and fraud?

"Financial misstatements" can occur due to errors or unintentional mistakes, while fraud involves intentional deception to manipulate financial results. Fraudulent activities are a subset of financial misstatements with a deliberate intent to deceive.