In a new report, proxy researcher Glass Lewis & Co. said that U.S.-listed companies filed 1,538 financial restatements in 2006, up 13 percent from what had been a record number in 2005.

The paper, “The Errors of Their Ways,” says that figure is equal to nearly one out of every 10 public companies, and includes 118 restatements from foreign issuers. The firm takes a strong position in favor of the internal control provisions outlined under the Sarbanes-Oxley Act, and suggests that they’re doing their job -- restatements by companies that already have had to comply with Section 404 declined 14 percent in 2006, while restatements rose 40 percent among companies that haven’t yet been required to comply with the act.

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