Live Webinar | What Lawyers Need to Know About Accounting Judgments
The pressure on corporations to demonstrate positive financial performance has never been higher. Economic uncertainty and the scrutiny of hyper-vigilant investors can have a real impact on the internal teams responsible for producing a company’s financial reports. Aside from the possible consequences of a pure accounting error, there are serious legal, financial and reputational risks that could arise if judgment calls based on creative accounting are found to be deliberate or fraudulent.
In this period when many companies are finalising or publishing their annual reports, it will be top of mind for companies and legal teams that financial statements could be challenged by shareholders, investors, regulators, among others. Whistleblowers could trigger internal investigations around suspicious accounting, or disagreements with auditors could result in major unresolved issues that require defensible, independent investigation before they reach the public eye. The collapse of Carillion, which is not an isolated incident, serves as a clear reminder of devastating consequences that can stem from missteps in financial reporting. Should these challenges reach a court of law, the need for authoritative expertise on defensible accounting practices will be even more critical.
With so much at stake, what red flags should lawyers be aware of, and what recourse is there when judgments do not seem to add up?
LEARNING POINTS
- How do the current economic climate, the heightened risks of misstatements, and the judgmental components of accounting relate?
- Which areas of financial reporting are most exposed to the risks of judgment-based accounting?
- What are some examples of accounting misstatements arising from judgment calls have spelt disaster for companies?
- What can companies do to mitigate the risk of misstatements?
Watch our 45-minute webinar here.
