The Securities and Exchange Commission is calling on companies to tighten accounting procedures and controls pertaining to statement of cash flows, amid a steady rise in restatements associated with that rather nettlesome financial document.
Kirk Crews, a professional accounting fellow at the SEC, recently said the Office of the Chief Accountant has studied cash flow restatements in recent years and notices, at least in the sample selected for review, “the majority of errors were due to relatively less complex applications” of U.S. Generally Accepted Accounting Principles. Crews was speaking at the annual national conference of the American Institute of Certified Public Accountants.
