The GAO releases a report, Trends, Market Impacts,
Regulatory Responses, and Remaining Challenges (
www.gao.gov/new.items/d03138.pdf ), which found the number of
times public companies restated their financial results due to
accounting irregularities rose 145% from January of 1997 through June
of 2002. The agency analyzed 919 restatements made by 845 public
companies. About 10% of publicly traded companies made at least one
such adjustment during this period, according to the study. Improper
recognition of revenue was the most frequently cited reason for the
restatements.
Financial Reporting
