Amended filings for financial restatements rose to a record 414 in 2004 from 323 the previous year according to a summary of Huron Consulting Group's 2004 Annual Review of Financial Reporting Matters.
?Financial restatements dramatically increased in 2004. After the leveling off in restatement filings observed in 2003, we had hoped that the upward trend in accounting errors might be over,? says Joseph Floyd, managing director and national practice leader of Huron's Disputes and Investigations practice. ?It seems that the scrutiny placed on company internal controls and other pressures surfaced a large number of reporting problems this past year.?
Huron's report analyzed the leading causes and trends in financial restatements filed in amended filings with the US Securities and Exchange Commission (SEC) for the year ending December 31, 2004. The report tracks whether the error was initially reported in either quarterly or annual financial statements. In addition, the report summary breaks down financial restatements by accounting issue.
Restatements by Year Filed
Amended filings for financial restatements of public companies due to accounting errors totaled 414 in 2004, a dramatic 28% increase compared to the 323 restatement filings identified in 2003.