Managers are often faced with conditions that may cause earnings to be managed. There is a difference between managing income and manipulating earnings. Excluding the ethical and fraud issues associated with managing earnings:Identify conditions that would lead an analysist to expect that management might attempt to manage earnings upward and, Identify conditions that would lead an analysist to expect that management might attempt to manage earnings downward.

Condition that would lead an analysist to expect that management might attempt to manage earnings…

Answered: Managers are often faced with…

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter2: Audits Of High-risk Accounts

Section2.7: Bankrate, Inc.

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Managers are often faced with conditions that may cause earnings to be managed. There is a difference between managing income and manipulating earnings. Excluding the ethical and fraud issues associated with managing earnings:

Identify conditions that would lead an analysist to expect that management might attempt to manage earnings upward and,

Identify conditions that would lead an analysist to expect that management might attempt to manage earnings downward.

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