Detail Earnings Management and The Abuse of Materiality   Oleh:  Grant, C. Terry ; Pree, Chauncey M. de (Jr.) Jenis: Article from Bulletin/Magazine Dalam koleksi: Journal of Accountancy vol. 190 no. 3 (2000), page 41-46. Topik: earnings; earnings management; abuse of materiality Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ85.11 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel Take your pick of fraudulent financial reporting schemes. One of these gimmicks, manipulating reported income through "earnings management” techniques, draws its share of attention in the financial press. A company can effect earnings management practices in a variety of ways. One of the most popular vehicles for earnings management, however, stems from a misuse or misunderstanding of the proper application of materiality, a concept central to the preparation and audit of all financial statements. SEC Staff Accounting Bulletin (SAB) no. 99, Materiality, provides guidance for preparers and independent auditors on evaluating the materiality of misstatements in the financial reporting and auditing processes by summarizing and putting in perspective certain GAAP and the federal securities laws as they relate to materiality. Armed with the guidelines of SAB no. 99 and skepticism about management’s motivation for meeting revenue expectations through aggressive reporting, the auditor can be alert to possible signs of fraud. It’s no secret that battling financial fraud is a priority for the SEC. At the New York University Center of Law and Business on September 28, 1998, SEC Chairman Arthur Levitt put the accounting profession on notice that those who operate in the gray area between legitimacy and outright fraud are poisoning the reporting process. (See "Arthur Levitt Addresses ‘Illusions,’” JofA, Dec.98, page 12.) One of these illusions is earnings management, where, for example, financial reports reflect the desires of management - rather than the company’s underlying financial performance - in order to meet Wall Street’s earnings projections. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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