Question

Over the past 10 years it has become quite common for an accounting firm to withdraw its opinion on a set of previously issued financial statements. Search the Internet to find a recent example of a company that has had to restate its financials and whose public accounting firm has withdrawn its opinion.

Write a brief description of the reason for which the entity’s financial statements were restated, and write down the wording that the accounting firm used to indicate that its audit opinion was withdrawn.

Answer 1

Companies can restate their Financials for “mundane” reasons. Management might have misinterpreted the accounting standards, requiring them to adjust numbers or simply they may have made minor mistakes and need to correct them.

Tangoe Inc. a leading provider of IT expense management software & related services, announced in March 2016, that it will restate its financial statements for the year 2013 and 2014 all quarters therein, and first three quarters of 2015.

The Company’s Independent registered public accountant firm BDO USA, LLP will be withdrawn and investors should no longer rely on the reports given by the firm including internal controls over financial reporting.