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valued and reported so that information is reliable for users.
Provide support for your rationale.
· Assess the ethical requirements as outlined in the Sarbanes-Oxley
Act, indicating whether or not you believe the requirements are
adequate to ensure integrity in financial accounting and reporting
activities. Suggest improvements that may be needed while
providing support for your rationale.
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ACC 573 Week 2 DQ 2
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· In today’s business environment where publicly traded companies
feel pressure to meet short-term earnings expectations, management
may be tempted to “manage earnings”. Assess how a financial
statement user may be able to detect managed earnings when
reviewing the firm’s balance sheet, income statement, and cash-flow
statement. Indicate how a potential investor might interpret these
“red-flags”. Provide support for your rationale.
· Assess how the Sarbanes-Oxley Act addresses the concern of
corporate “managed earnings”, indicating whether or not you
believe the requirements within the Act are sufficient to minimize
these concerns. Provide support for your rationale.
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