Safety-Kleen issued a major financial restatement in 2001. The next year, the company restated (reduced) previously reported

Question:

Safety-Kleen issued a major financial restatement in 2001. The next year, the company restated (reduced) previously reported net income by $534 million for the period 1997-1999. PwC withdrew its financial statement audit reports for those years. Do you believe that financial restatements and withdrawing an are primafacie indicators that a failed audit has occurred? Explain.
Audit Report
The audit report is issued by a certified public accountant who is appointed by the shareholders to provide assurance upon the truth and fairness of the financial statements prepared by the managers of the company. Audit report contains the...