An engagement partner distributes a spreadsheet detailing six proposed audit adjustments to the audit committee of Abadon Industries, a publicly traded manufacturer of automotive parts and accessories. The adjustments involve two issues: understated accruals, and accelerated revenue recognition from fourth-quarter channel stuffing achieved by offering deep end-of-quarter discounts to U.S. automobile manufacturers. The partner tells the committee that the adjustments would decrease after-tax earnings by \(\$ 1\) million (one-half cent per share), that management believes the adjustments are immaterial to the financial statements individually and in the aggregate, and that both the partner and the firm's national office agree. Earnings reported in the audited financial statements meet analysts' consensus expectation, both for the fourth quarter and for the year. Abadon has not missed consensus earnings expectations since going public seven years ago.

Required: Has Abadon management overstated net income by waiving the audit adjustments and, therefore, influenced share price?