The Widening Shortage of Accountants Has Begun Showing up in Financial Statements.

US-listed companies such as car-parts provider Advance Auto Parts, electric-air-taxi firm Joby Aviation and German biotech company Evotec in recent months have disclosed efforts to address material weaknesses due at least in part to a lack of accounting staff.

Companies must disclose a material weakness in their internal control over financial reporting, or ICFR, if there is a reasonable possibility that a material misstatement could occur and couldn't be prevented or detected by them on a timely basis. Such flaws are one of the key predictors of restatements, both major and minor, and generally lead companies to address the problems and...