The total number of restatements and individual companies disclosing restatements in 2021 rose to their highest levels since 2006, according to Audit Analytics’ latest annual review. However, excluding special purpose acquisition company (SPAC) restatements, total 2021 restatements declined by 10 percent from the prior year.
The review, published last week, examined public company restatement trends from 2001 through 2021. Including SPACs, 1,470 companies filed restatements in 2021, a 289 percent increase from 2020. The report found 12.7 percent of public companies restated their financial statements in 2021, compared to 4.8 percent in 2020 and 13.6 percent at the highest point in 2006.
