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Scooters Ltd manufacturers, produces and sells Scooters. Its manufacturing process has a significant amount of fixed costs. For the year ended 30 June 2022, analysts

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Scooters Ltd manufacturers, produces and sells Scooters. Its manufacturing process has a significant amount of fixed costs. For the year ended 30 June 2022, analysts forecast earnings per share of $14.50. When Scooters Ltd announced earnings on 25 August 2022 they reported earnings per share of $14.51. Below is an extract of some account balances: Required Assess if there is any incentive for earnings management. Provide and justify some quantitative evidence "red flags" that may indicate earnings management. Provide an assessment of the quality of the evidence due to alternative explanations. Scooters Ltd manufacturers, produces and sells Scooters. Its manufacturing process has a significant amount of fixed costs. For the year ended 30 June 2022, analysts forecast earnings per share of $14.50. When Scooters Ltd announced earnings on 25 August 2022 they reported earnings per share of $14.51. Below is an extract of some account balances: Required Assess if there is any incentive for earnings management. Provide and justify some quantitative evidence "red flags" that may indicate earnings management. Provide an assessment of the quality of the evidence due to alternative explanations

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