As if having a restatement is not bad enough, you may have a few other issues to worry about. Data recently compiled by Audit Analytics shows a significant correlation between a financial restatement and several data points tracked in the Audit Risk and Quality Matrix (AQRM) database. For those companies that had a restatement in 2023, 30% had a CFO change and 22% had a CEO change in the same year.  

In this article, Audit Analytics further examines how financial restatements can trigger a wave of executive turnover and auditor changes and raise red flags about a company’s health.