Question: Locate and read the article listed below and answer the following questions. Moehrle, S. R. 2002. Do Firms Use Restructuring Charge Reversals to Meet Earnings

Locate and read the article listed below and answer the following questions.

Moehrle, S. R. 2002. Do Firms Use Restructuring Charge Reversals to Meet Earnings Targets? The Accounting Review 77 (2): 397–413.

a. What is the issue being addressed in the paper?

b. What are the findings of the paper?

c. Why is this paper important to auditors, and what are the implications of this paper for the auditing profession?

d. Describe the research methodology used as a basis for the conclusions.

e. Describe any limitations of the research.

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a The issue being addressed is whether companies use restructuring charge reversals as a means of earnings management in an attempt to meet analysts forecasts or avoid earnings declines relative to pr... View full answer

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