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- Explain the purpose of providing earnings guidance and the motivation for making false and misleading disclosures. - Explain how an auditor might look for
- Explain the purpose of providing earnings guidance and the motivation for making false and misleading disclosures. - Explain how an auditor might look for red flags that indicate that fraud may exist in the financial statements. - Describe earnings management techniques in SEC enforcement actions. - Describe the scope and purpose of reporting non-GAAP financial measures and the responsibilities management, the board of directors, and external auditors have surrounding their use. - Describe the characteristics of financial statement restatements. - Explain how corporate governance systems influence earnings management. - Describe common-law rulings and auditors' legal liability to clients and third parties. - Describe auditor defenses to negligence, negligent misrepresentation and fraud. - Explain the basis for auditors' statutory legal liability. - Discuss auditors' legal liabilities under SOX
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