December 18, 2006-- According to data collected by AuditAnalytics, the number of small accounting firm restatements doubled in the first half of 2006 than from the same time period the previous year.

According to accountingweb.com, this increase is due to Sarbanes-Oxley’s requirement for the Public Company Oversight Board (PCAOB) to inspect firms that perform audits for companies registered with the Securities and Exchange Commission ( SEC ). In anticipation of SOX 404 audits, which occur at least every three years, smaller firms are preparing restatements.  In doing so, they are ensuring the information presented in the financial statements is accurate and make the grade come audit time.

For more information, contact Joseph Beach at 215-564-1900.

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