Accounting Quality of Skechers Inc USA

Due diligence on the accounting quality. Does the accounting look sound? Are certain accounting policies aggressive or overly complicated? Are there frequent changes in estimates? Examine the notes of the firm over time and see how it has changed. Compare the policies to the peers. Read the Accounting Codification. Carefully examine audit opinions, restatements, internal control weaknesses, comment letters, and Non-GAAP. This is the section where you can use all your accounting knowledge and skepticism to examine whether there is some anomalous accounting issues. Also, if you find that there were issues, check if the accounting matter has been remediated (e.g. new auditor, new CFO, better internal control).