CHAPTER 1
INTRODUCTION
Decision relevance of financial statements is a key objective in financial reporting, and
reliability is a prerequisite for rendering information as relevant. As a result, any actions or
events that undermine the reliability of financial statements threaten investors’ and creditors’
confidence in the information. Financial restatements are one of those events as they reduce the
credibility of firms’ financial statements. Revealing the inaccuracy of previously reported
.