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i)How many types of earnings management ? Can you please describe each of them and how they differ from each other? ii)Can you please delineate

i)How many types of earnings management ? Can you please describe each of them and how they differ from each other?

ii)Can you please delineate the costs and benefits of each type of earnings management? Try to be as detailed as possible.

iii)Imagine if you are managing a firm, and the year-end earnings just fall short of the analyst forecasts by a small margin. You might consider to manage earnings in order to meet or beat the forecasts. Please provide the type of earnings management you will consider under each of the following scenario:

a.Your company is experiencing financial difficulty such as underperforming industry peers.

b.Your company hired a high quality audit firm with industry expertise as the auditor.

c.Your company's stocks are owned by a higher percentage of institutional shareholders.

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