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chapt 8 financial problems

QuestionAnswer
errors unintentional mistakes that can enter the accounting system
disagreements in judgement differences in opinion about what number should be reported in the financial stmnt
fraud intentional misrepresentations in the financial stmnts
3 basic internal control structures the control environment, the accounting systems, the control procedures
the 5 types of control procedures are segregation of duties, procedures for authorization, documents and records, physical safeguards, independent checks
reasons for earning management pressure to meet internal earnings targets
reasons for earning management pressure to meet external expectations
reasons for earning management smoothing income
reasons for earning management preparing to apply for loan or to offer stock to the public
techniques of earnings management careful timing of transactions
techniques of earnings management changing accounting methods or estimates with full disclosure
techniques of earnings management changing accounting methods or estimates without adequate disclosure
techniques of earnings management non-GAAP accounting
techniques of earnings management fictitious transactions
Created by: nashanta
Popular Accounting sets

 

 



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