This is from Sarah Johnson of CFO.com on December 2, 2009:

"In effect, the Audit Analytics report suggests, the restatement rate for nonaccelerated filers is 46% higher than it is for accelerated filers. As it stands now, nonaccelerated filers - companies with market capitalizations under $75 million - have less than a year to get their auditors to weigh in on their internal controls. Only a "handful" of these companies already do, voluntarily, according to Whalen. The smaller companies will have to file these audit opinions with annual reports filed for fiscal years ending after June 15, 2010."

Excellent article that delves right into the heart of the matter; a 46% restatement rate is unreasonably high for the investing public.  Congress should focus on how to make the compliance requirements more affordable rather than looking at ways to make it not applicable.

Find the full article at this link.

Posted by:

Teresa Bockwoldt MBA, MST

CEO & Co-Founder

Vibato®, LLC

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