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A. Companies would use creative accounting practice to manipulate financial statements, such as changes in recognition timing and accounting policies applied on the line items

A. Companies would use creative accounting practice to manipulate financial statements, such as changes in recognition timing and accounting policies applied on the line items of financial statements would result in different results of above financial ratios. In order to ensure the ethical accounting practice in financial reporting, briefly illustrate THREE possibly efficient techniques for preventing creative accounting with unethical intentions and manipulations. (6 marks)

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