In this case, KBR INC (2014), you will research a company(KBR) that filed restatements in recent years to correct one or more misstatements. For general background on restatements, you can refer to the Center on Audit Qualitys review of financial restatements over 2003-2012 authored by Professor Susan Scholz.

Please write in a memo format.

Required:1.

Briefly, explain the nature of the restatement and the underlying accounting issues. Cite the authoritative literature (e.g., the Codification, pre-Codification GAAP, or SEC documents) on the underlying accounting issues. Are the underlying issues new or were they present in prior periods as well? Did the company also restate prior period results?

Required 2:

Who was the auditor? What kind of audit opinion did the company receive on the original financial statements? In the restatement, did the company also receive an adverse audit report on its internal controls? If the company did receive an adverse 404 report, were other material weaknesses identified in addition to those associated with the restatement? What was the role of the auditor in the situation?