PracticeAuditUS to investigate flood of restatements

US to investigate flood of restatements

US Treasury secretary says commission will be set up to probe restatement flurry

Henry
Paulson
, the US
Treasury
secretary, has said that he intends to commission an
investigation into why US stock markets have suffered such a raft of
restatements.

The introduction of Sarbanes-Oxley and very strict accounting rules have
meant that several companies have been forced into restatements because of minor
accounting errors.

Writing in the FT
Paulson said: ‘The volume of restatements reflects, in part, the
complexity of our financial reporting system. The (US) Treasury intends to
commission a rigorous analysis of factors driving financial restatements, and
their impact on investors and the capital markets.’

Further reading:

Republican attempt to limit Sarbox felled

Compliance stifles outsourcing

SEC worries over abuse of accounting rules

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