Understanding the Restatement Process

There has been much research on investors’ reactions to restatements and the effects of restatements on share prices; however, there has been little research on the processes involved in restating financial restatements. In this study, we investigated the process of issuing a restatement. We specifically focused on the interactions that took place between the parties involved (eg, CFO, the board, audit committee, audit partner, and regulators) …