Podcast
Questions and Answers
What is the main reason why accountants/auditors consider earnings management as fraud for personal gains?
What is the main reason why accountants/auditors consider earnings management as fraud for personal gains?
When the earnings management is illegal
How can deferring maintenance expenses of long term assets impact a company's financials?
How can deferring maintenance expenses of long term assets impact a company's financials?
Increases the net income of the current period while decreasing the net income of the next period
Give an example of earning smoothing mentioned in the text.
Give an example of earning smoothing mentioned in the text.
Deferring some extraordinary expenses into the next period
What do accountants/auditors consider it when legal reasons are used for earnings management?
What do accountants/auditors consider it when legal reasons are used for earnings management?
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Why do accountants/auditors in Albania often agree with managers' decisions to misrepresent earning figures?
Why do accountants/auditors in Albania often agree with managers' decisions to misrepresent earning figures?
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Explain how deferring repair and maintenance expenses can lead to higher operating costs.
Explain how deferring repair and maintenance expenses can lead to higher operating costs.
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What type of expenses are often deferred into the next period for earning smoothing?
What type of expenses are often deferred into the next period for earning smoothing?
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How do accountants/auditors categorize earning smoothing when it involves deferring expenses?
How do accountants/auditors categorize earning smoothing when it involves deferring expenses?
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What do accountants/auditors consider it when earnings management is used to increase net income in one period?
What do accountants/auditors consider it when earnings management is used to increase net income in one period?
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When might a company report a smaller profit for a period to pay fewer taxes?
When might a company report a smaller profit for a period to pay fewer taxes?
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