Free Pricing | JCPenney Coupons | Pizza Hut Coupons | Home Depot Coupons
More Restatements in 2006 for Smaller Accounting Firms

More Restatements in 2006 for Smaller Accounting Firms

by Rick Turoczy on October 16, 2006

With Sarbanes-Oxley (SOX) requiring the Public Company Accounting Oversight Board (PCAOB) to inspect every firm that audits companies registered with the Securities and Exchange Commission (SEC), at least every three years, smaller firms may be preparing the restatements in anticipation of SOX 404 audits, the Times report suggests.

“The auditors are being audited by the PCAOB and that is forcing them to pay more attention to the details,” said Mark Cheffers, the chief executive of AuditAnalytics. The prospect of audits of internal controls “has been forcing smaller registrants to assure their statements pass muster,” Cheffers said.

One smaller accounting firm, Beckstead & Watts of Las Vegas, Nevada, is suing the PCAOB because the oversight board forced two Beckstead clients to restate financial statements because of errors.

More Restatements in 2006 for Smaller Accounting Firms

Leave a Comment

Previous post:

Next post: