Tillett also fails to recognize that historical rates were distorted because even C&L concluded that DVOG's bad debt reserve and bad debt expense were understated. In fact, C&L itself had planned to perform the procedure in 1996 but did not, even though applying the AGH reserve rates to DVOG aging buckets caused C&L to believe that DVOG's allowance was understated as of June 30, 1995.
Tillett's view, for C&L7s audit failure because they knew there was trouble and didn't do anything about it.
However, not all of the foregoing matters listed by Mr.
Tillett's conclusion that many of the "restatement" items contained in my expert and supplementary expert reports are simply changes in estimates is erroneous. Other Matters In addition to the conceptual matters discussed above, I disagree with Mr.
Tillett regarding a number of other conclusions set forth in his report.
Tillett stresses the fact that, under GAAP, prior period adjustments "are rare in modern financial accounting."27 As a guiding principle for entities that endeavor to prepare financial statements in conformity with GAAP, I do not disagree with that accounting concept.