Corrections of Errors - over 1,300 companies (10 percent of...

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Corrections of Errors Errors occur as a result of mathematical mistakes, mistakes in the application of accounting principles, or oversight or misuse of facts that existed at the time financial statements were prepared. In recent years, many companies have corrected for errors in their financial statements. For example, one consulting group noted that
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Unformatted text preview: over 1,300 companies (10 percent of U.S. public companies) reported error-driven restatements in 2007. The errors involved such items as improper reporting of revenue, accounting for stock options, allowances for receivables, inventories, and loss contingencies....
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