GAO issues report on Financial Statement Restatements.

• Position: Regulatory matters

In response to a request from Senator Sarbanes, the General Accounting Office has issued a report entitled, Financial Statement Restatements: Trends, Market Impact, Regulatory Responses and Remaining Challenges.

Specifically, the report explores the number of, reasons for and other trends in financial statement restatements since 1997; analyzes the impact of restatement announcements on the restating companies' stock market capitalization; identifies available data to determine the impact of financial statement restatements on investors' confidence in the existing U.S. system of financial reporting...