Exhibits 2 and 3 present the annual leading restatement
and fraud categories during the analysis period.
First, this research examines management turnover within the context of restatement
associated with fraud and revenue decreased after 2001.
Under the restatement
rule, the SysTrust provider could be liable only to intended identifiable beneficiaries, not an unknown, large group of unidentified users of the SysTrust report.
The number and types of restatements
occurring since SOX's inception--and a comparison to those of the pre-SOX era--are generally acknowledged to be reason able proxies for measuring whether financial statements have become more reliable as a result of the act.
To what extent is Sarbanes-Oxley Section 404 driving restatements
--or, on the flip side--to what extent are restatements
driving reported "material weaknesses in internal control?
One misconception is that restatement
requirements apply to all companies, including private ones.
The court went on, however, to rule as a matter of law that the outer boundaries of what constituted a "limited group" referred to in the Restatement
was a legal determination to be made by the court and not by the jury.
Prior academic studies suggest that the transparency of restatement
information may have legal and regulatory implications.
Szafran provides additional details on the 2004 restatement
Clarification of the requirements for CPAs to report client financial statement restatements
to the CBA.