Question: Consider the Earnings Management example for Ford and General Motors in the chapter section Auditing Account Balances Affected by Management's Estimates as background. Why might

Consider the "Earnings Management" example for Ford and General Motors in the chapter section "Auditing Account Balances Affected by Management's Estimates" as background. Why might it be difficult for auditors to disallow companies' preferences to decrease existing reserves? Explain the role of professional skepticism in the context of evaluating management's explanations for their accounting for reserves in this context.

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