Consider the Earnings Management example for Ford and General Motors in the chapter section Auditing Account Balances

Question:

Consider the "Earnings Management" example for Ford and General Motors in the chapter section "Auditing Account Balances Affected by Management's Estimates" as background. Why might it be difficult for auditors to disallow companies' preferences to decrease existing reserves? Explain the role of professional skepticism in the context of evaluating management's explanations for their accounting for reserves in this context.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Auditing A Business Risk Approach

ISBN: 978-0538476232

8th edition

Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg

Question Posted: