Considering the Debenhams Annual Report for 2018 as a whole and what you have seen relating to its cash flows, its income, and its balance sheet over the period 2014-2018, critically assess

(i) whether Debenhams has been engaged in earnings management or income smoothing during that period; and

(ii) whether Debenhams should be considered a “going concern” at 1^st September 2018.

You should compare your views on (ii) with those of the auditors that are presented in the Annual Report.

Answer rating: 100% (QA)

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