The number of companies who had to withdraw financial results of companies is up from 122 in the same period last year and more than double the figure four years ago
The number of US companies that withdrew financial statements due to accounting errors has surged to a nine-year high as 140 companies had to reissue accounts in the first 10 months of the year, the FT has revealed.
According to data from Ideagen Audit Analytics, the number of companies who had to withdraw financial results of companies is up from 122 in the same period last year and more than double the figure four years ago.
A number of “high-profile” companies were among those who admitted to doing so, including retailer Macy’s, the agricultural commodities merchant Archer Daniels Midland, and Symbiotic, a warehouse software group backed by SoftBank and Walmart.
The Public Company Accounting Oversight Board (PCAOB) reported an increase in deficiencies in its post-pandemic inspections of audit work and has imposed stricter penalties for the most serious violations of audit standards.
PCAOB said to the FT: “Our most recent inspections have seen significant improvement in the aggregate deficiency rates at the largest firms, which we expect to see reflected when the results are finalised next year.”
Writes Accountancy Today