I think one of the biggest effects of having errors on a statement is the loss of credibility and integrity of a company. Of course there's financial effects, but those can be resolved over time, good credibility is a bit harder to overcome. Changing errors is time consuming and can lead to higher costs and labor increases. It can also cause reporting income or expenses that do not exist causing profit margins to be distorted. This can be serious, especially for companies who pay dividends or gain sharing bonuses based on profits. Elaborate this statement?