For only one firm was there no link between client size and the frequency of restatements: Andersen.From all this, it is hard to see what auditors achieve, besides allowing clients to comply with the Securities and Exchange Commission's rules on financial statements.
The Dutch market regulator admitted this week that it had no powers of discipline over faulty auditing.In this section The Iraq endgame Ahold out Muddleheart Koizumi Bend it, break it Museveni's conversion Reprints Related items Ahold: Europe's EnronFeb 27th 2003 Wall Street: No restFeb 27th 2003What about the relative numbers of restatements?
Restatements can occur for many reasons, such as changes in rules, but the authors consider only those caused by errors.
Only 2.8% of its clients restated, compared with 5.6% for Deloitte & Touche.For all five firms covered, the frequency of restatements rose steadily between the first year of the study and the last.
If the 10-K is not filed and there must be doubts, given the continuing discoveries by regulators and its own internal inquiries AIG must provide an update on areas of concern and note possible reasons for further restatements of earnings.
Revenue recognition has been the main reason for restatements of accounts by American companies in recent years.
Yet America's run of earnings restatements has also impressed on people that accounts and accountants matter.
It looks at "restatements"—corrections to accounts by the largest audit clients of the top accounting firms.
Since the board's creation, restatements have declined significantly.
Because of statistical lags, uncertainty about exact dates and accounting restatements by firms as they try to record their backdated option grants, "value impacts are often a little ambiguous", says Mr Graves.This is underscored by the different ways in which markets have reacted to the various executive departures.
As WorldCom's accounting restatements grow, this claim looks increasingly suspect.
