1. What is the role of management accounting, financial accounting, internal auditing, and external auditing?
2. What has weakened the ability of external auditors to conduct objective audits?
3. Give examples of how firms can manipulate earnings. Give examples of how firms commit accounting fraud.
4. Smoothing accounting earnings, from year to year, could make the stock price less volatile (i.e, less risky). So, is smoothing or managing earnings good or bad for shareholders? Compare and contrast the advantages and disadvantages of smoothing earning.