Audit Analytics has just released its annual report on financial restatement trends. This report, which includes data from the full year 2011, provides detailed analysis over an eleven-year period.

Highlights from the research include:

• In the last three years, the quantity of restatements has leveled off and severity has remained low, but restatements have increased from companies trading on the New York Stock Exchange (NYSE) and Over The Counter (OTC).
• During 2009, 65 NYSE companies disclosed restatements, followed by 90 in 2010, and 108 in 2011.
• The largest financial restatement for each of the last three years was disclosed by a foreign registrant.
• During 2011, Revision Restatements (restatements revealed in a periodic report without a prior 8-K, Item 4.02 disclosure that past financials can no longer be relied upon) represented about 57% of the restatements disclosed by 10-K filers. This percentage represents the highest percentage calculated since the disclosure requirement came into effect August 2004.
• The average number of issues per restatement for 2011 was 1.48.
• The average number of days restated was 485 for 2011.

View the Audit Analytics report: 2011 Financial Restatements An Eleven Year Comparison.