Huron Consulting Group analyzed the timing between the filing of Form 8-K and the filing of restated financial statements by public companies with the Securities and Exchange Commission. The study examined, by accounting issue, company size, and industry, approximately 1,900 restatements announced between August 2004 and December 2006.

Approximately one out of every six restatements analyzed was filed within one day of a registrant filing the Form 8-K, while approximately one-third of the restatements were filed within two weeks of the initial Form 8-K filing. Some of the shorter time frames may be due to companies having already spent time undergoing an investigation and review, while simultaneously beginning to prepare for a possible restatement if the conclusion was reached that a material error had been reported in their financial statements.

The study also found that approximately 20 percent of the companies reviewed took more than four months to complete the process. Such a delay generally resulted in the registrant missing at least one timely filing of a Form 10-K or Form 10-Q.

"We were surprised to find how quickly some companies were able to file their restated financials after first reporting the existence of a material accounting error. In some instances, registrants filed their restatement almost immediately after the initial disclosure that an accounting error was discovered,"  said Joseph J. Floyd, vice president and practice leader for Huron Consulting Group's Financial Consulting practice.

The most prevalent accounting issues encountered by registrants who filed restated financial statements were: equity and debt; capitalization and expense of assets; reserves/accruals/contingencies; revenue recognition; and taxes. These five issues were consistently the most common, regardless of the length of time between the filing of the Form 8-K and the restated financial statements.

Huron's study -- "The Restatement Process: How Long Will it Take, What to Do, and What to Avoid" -- provides a best practices section with ways to manage the restatement process. Visit www.huronconsultinggroup.com to request  the study.