Financial statement restatements:
A) are a strong indicator of material weakness in ICFR when they are undertaken for the purpose of correcting an error in previously issued financial statements.
B) may not be considered significant when they are the result of more evidence becoming available after the financial statements have been released.
C) are required to be disclosed in the financial reports, as well as in the financial press.
D) All of the above.

Question

Quizplus · Accepted Answer

All the statements are correct regarding financial statement restatements. A) Restatements due to errors indicate material weaknesses in internal control over financial reporting (ICFR). B) Restatements might not be significant if they result from new evidence that wasn't available when the financial statements were originally issued. C) Disclosure of restatements is required in financial reports and often in the financial press to ensure transparency and inform stakeholders.

Financial Statement Restatements