An article published in Accounting Horizons describes various techniques that companies use to manage their earnings. Required:
Question:
Required:
In your library or from some other source, locate the article “How Are Earnings Managed? Evidence from Auditors” in Accounting Horizons, 2003 (Supplement) and answer the following questions:
1. What are the four most common revenue-recognition abuses identified by auditors in that article? From the examples provided in the article, briefly explain each abuse.
2. What is the revenue-recognition abuse identified in the article related to the percentage-of-completion method?
3. Did revenue-recognition abuses tend to increase or decrease net income in the year they occurred?
4. Did auditors tend to require their clients to make adjustments that reduced the revenue-recognition abuses they detected?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Question Posted: