Question
Members of the financial community often allege that corporate managers manage their companys reported accounting results. To accomplish this, they commonly use discretionary accounting accruals.
Members of the financial community often allege that corporate managers manage their companys reported accounting results. To accomplish this, they commonly use discretionary accounting accruals. Discuss the possible motivations behind this behavior. Could you envision a situation where a manager might manage a companys earnings downward? If so, why?
When a companys management or its independent auditors discover misstatements in financial statements, they are required to evaluate the nature and materiality of misstatements, and make decisions to issue financial restatements. What are the negative implications associated with financial restatements?
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