Changing the aging account receivable to a fixed rate at the end of the fiscal year looks good for the shareholders, but what do you think it says to the auditors? Would the change in policy be flagged by the auditors?

Changing the aging account receivable to a fixed rate at the end of the fiscal year looks good for the shareholders, but what do you think it says to the auditors? Would the change in policy be flagged by the auditors?

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter1: Comprehensive Cases

Section1.11: New Century Financial Corporation

Problem 4Q

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Changing the aging account receivable to a
fixed rate at the end of the fiscal year looks
good for the shareholders, but what do you
think it says to the auditors? Would the
change in policy be flagged by the auditors?

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