where they were not traditionally expected. for example, consider the changes we have seen in financial reporting quality of corporations in all industries. in 2005, there were approximately 1, 200 restatements of previously filed financial statements by publicly traded companies - - twice the rate for 2004. the complexity of gaap accounting standards and a more stringent, literal interpretation of the application of those standards by auditors and regulatory bodies, primarily the securities and exchange commission, are two major factors that have led to the restatements. examples of prominent restatements include fas 133 hedge accounting and lease accounting issues. in the area of hedge accounting, the restatements generally resulted from the misapplication of the " short - cut " method. the organizations in question did not satisfy all of the criteria for use of the shortcut method but, nonetheless, utilized hedge accounting treatment allowed by this method. in the area of lease accounting issues, most companies simply failed to apply longstanding accounting standards related to revenue recognition reserves, accruals and contingencies, and equity accounting. most companies believed they were actually reporting correctly prior to the restatements. virtually all of these companies were audited by auditing firms that are now registered with the public company accounting oversight board ( pcaob ). the pcaob's inspection process, which involves close scrutiny of registered firms, may be a factor in the increased number of restatements. section 404 of the sarbanes - oxley act of 2002 requires each annual report of a public company to include a report by management on the company's internal control over financial reporting. looking only at banking organizations, as a result of restatements, the number of material weaknesses in internal control for the 2004 reporting period has been revised up to 52 from the 37 originally reported. this increase implies a significant amount of operational risk associated with the accounting process. generally, examiners review the sarbanes - oxley 404 process to determine whether the organization has a clear understanding of the roles of the audit committee, management, internal audit, and the external auditor and whether the organization has implemented an effective plan to achieve the objectives and requirements of sarbanes - oxley 404. examiners also review the sarbanes - oxley 404 process to determine whether the organization has an effective follow - up strategy for the remediation of significant deficiencies and material weaknesses. examiners are encouraged to utilize the results of the sarbanes - oxley 404

slide 10. treasury yield spread ( 10 year to 2 year ) • slide 11. payroll revisions • slide 12. consumer price index inflation revisions much of what i have shared today comes from an economic outlook speech i gave a few weeks back. if you would like to read the full remarks, you can look for those on the board ’ s website. 2 i hope you do. but even more so, i hope these slides today have helped show that you and your students don ’ t have to wait for a speech from a fed policymaker to get an update on the u. s. economy. you can use fred to access and analyze the data yourselves. i hope that reviewing these data series has been as fun for you as it has been for me or that at least i ’ ve sparked some ideas for how you can use this tool in the classroom. thank you. see christopher j. waller ( 2023 ), “ something ’ s got to give, ” speech delivered at the distinguished speaker seminar, european economics and financial center, london, united kingdom, october 18, https : / / www. federalreserve. gov / newsevents / speech / waller20231018a. htm. using economic data to understand the economy christopher j. waller member board of governors of the federal reserve system beyond the numbers at the federal reserve bank of st. louis november 7, 2023 the views expressed here are my own and do not reflect those of the board of governors or the federal open market committee. 1. real gross domestic product note : dashed line of 2. 1 percent is the average growth rate of real gdp between 2000 : q1 and 2019 : q4. the shaded bars indicate periods of business recession as defined by the national bureau of economic research ( nber ) : march 2001 – november 2001, december 2007 – june 2009, and february 2020 – april 2020. source : federal reserve bank of st. louis ( 2023 ), “ real gross domestic product and average real gross domestic, product, ” fred economic data ( accessed october 27, 2023 ), https : / / fred. stlouisfed. org / graph /? g = 1b1m6 ; u. s. bureau of economic analysis. 2. contributions to real gdp 2022 - present source : federal reserve bank of st. louis ( 2023 ), “ contributions to percent change in real gross domestic product : personal consumption expenditures, gross private domestic investment, net exports of