Finance News & Insights

Firms making fewest accounting mistakes since ’01: Are you keeping pace?

Despite increased workloads and longer hours, accountants are as accurate as ever.

According to a recent analysis by Audit Analytics, only 630 U.S. companies reported accounting problems serious enough to result in a restatement last year — 674 accounting problems to be exact.

That’s a 24% drop from the number of companies reporting accounting problems in 2008.

More importantly, the number of restatements reported is the lowest its been since 2001 — the year that the Enron scandal opened the floodgates to questions about the corporate accounting process.

The Audit Analytics analysis also found that:

  • The number of businesses with restatements and the number of restatements have decreased every year for the past three years
  • Errors on restatements were covered within 476 days, a 7% drop from when the errors were covered in 2008, and
  • Restatements cut companies’ earnings by $4.6 million on average last year, a huge from $7.2 million in 2008 and $23.5 million in 2006.

What does your firm do to prevent accounting mistakes? Share your tactics with us in the Comments section.

Print Friendly

Subscribe Today

Get the latest and greatest finance news and insights delivered to your inbox.