Q1.)

You have recently been appointed as a researcher for a firm of share analysts. As one of your first roles you are required to prepare a report for your manager to outline common techniques used to manage or manipulate earnings. From your prior accounting knowledge you would have gained an understanding of techniques you can use to examine entity performance and profitability, including trend analysis. Document what strategies you might use as an analyst to detect earnings management using accounting information

Q2.)

Is earnings management always a bad thing or can it really help provide a better view of the company?

Q3.)

Name and provide an example of three advantages and disadvantages of earnings management

Q4.)

Why, and in what circumstances, would a management team consider engaging in big bath accounting?