Question: Define the phrase earnings management. Under what conditions, if any, is earnings management acceptable? Do auditors responsibilities include actively searching for instances of earnings management

Define the phrase “earnings management.” Under what conditions, if any, is earnings management acceptable? Do auditors’ responsibilities include actively searching for instances of earnings management by clients? Defend your answers.

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As noted in the Suggestions for Use the SEC defines earnings management as a material and intentional misrepresentation of a given entitys reported op... View full answer

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