Speaking to a group of financial executives, a Securities and Exchange Commission accountant said research from his office has revealed that most restatements are due to basic accounting mistakes.Speaking at the annual conference of Financial Executives International, SEC deputy chief accountants Scott Taub said that about 55 percent of recent company restatements were due to the misapplication of basic accounting rules or to problems with the actual data used in the original calculation.
In 2005, there were 1,195 restatements by U.S. companies compared with 270 in 2001, according to research firm Glass Lewis & Co. Through Sept. 30, 1,070 restatements have already been issued by U.S. companies this year.
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