feature Focus on Fraud: CommonYou are auditing Pell grants provided to students at six state universities. The Pell grant program is a federal financial aid program for college students. The maximum grant a student can receive during a school year is $3,125, with a maximum of $1,041.67 per semester and summer session. The amount of a grant depends on financial need (need) and the number of credits taken (status). Students cannot receive a grant at two different schools during the same school term. You have obtained a file of grants for the current school year (downloaded from the Internet, labeled pellA.XLS) that conta Types of Earnings Management Techniques Involving Accounting Estimates. 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