Managing difficult financial reporting situations

Managing difficult financial reporting situations
Download Managing difficult financial reporting situations

By P. Woodbridge Wallace, Marco Carducci, Daniel C. Dipillo


In recent years, financial news has been filled with a litany of misdeeds, including allegations of inappropriate financial asset valuations, insider trading abuses, financial fraud, bribery allegations of government officials, fraud related to mutual funds, stock option backdating and record levels of financial statement restatements. Any one of these events can not only cause a significant disruption to a bank but also lead to difficult financial reporting situations.

In this article, we provide an overview of actions management and audit committees can take to manage these difficult financial reporting situations. We specifically discuss investigating potential accounting errors that may involve misconduct and evaluating materiality when a financial statement error is identified.

This article is reprinted with the publisher's permission from BANK ACCOUNTING & FINANCE, a bi-monthly journal published by CCH INCORPORATED. Copying or distribution without the publisher's permission is prohibited. To subscribe to BANK ACCOUNTING & FINANCE or other CCH Journals please call +1 (800) 449 8114 or visit www.tax.cchgroup.com. All views expressed in the articles and columns are those of the author and not necessarily those of CCH INCORPORATED or any other person.