Item 4.02 – Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review | 8-K Explained

This item requires disclosure if the company believes that previously issued financial statements should not be relied upon because of an error in the statements. Disclosure is also required if the auditor believes that its previously issued audit reports or interim reviews on financial statements should not be relied upon. In both cases, the company also must disclose whether its audit committee, full board or authorized executive officers have discussed these matters with its auditor.

Investors should pay attention to these disclosures, which could affect the company’s previously reported earnings. Companies generally restate their financial statements after the 8-K disclosure. The restatement could come at a much later date.

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