Finally, a downturn the corporate world can be happy about.

Financial restatements dropped dramatically in 2007, reversing nearly a decade of ever-higher numbers that reached a record in 2006. What’s more, restatements fell both for companies that do need to comply with Section 404 of Sarbanes-Oxley and those that do not—another telling sign that Corporate America’s financial reporting is finally getting better.

According to data from Audit Analytics, 1,109 companies filed 1,237 restatements last year. That’s a drop of 30 percent and 31 percent, respectively, from 2006 restatements.


“Every way you slice it, the number, severity, and effect of financial restatements ...