True or false? Assess borrowers’ financial restatements

Description

Abstract: Occasionally, business owners or financial officers may determine that the business’s financial statements need to be revised or corrected. This article explains that when borrowers provide a bank with corrected or restated financial statements, the bank needs to be vigilant and double-check the numbers. It may be that the restatements simply correct an honest mistake. Alternatively, there may be fraud involved. The article highlights the importance of investigating the underlying cause of financial restatements to stay ahead of any potential problems.