The pressure on the CFO team to provide accurate reporting to investors just turned up a notch or two. The SEC enforcement actions have been targeting quarterly reporting by public companies. While quarterly reports are not subject to the same accounting oversight as annual reports, it appears the SEC is utilizing more advanced data mining techniques on quarterly reports. We have mentioned many times before the need for accuracy in reporting and transparency of results. Might be time to take another spin through the numbers on the Q's....More to follow.
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Reporting Accuracy - Just Took on a New Meaning
it appears that the targets for these new enforcement initiatives are relatively small manipulations to figures that can have an outsized effect by causing a company to meet analysts’ EPS expectations or attain other quarterly results