Describe the statement given by Person L and the role of financial analysts play in the earnings quality.
Explanation of Solution
The auditors are expected to perform the audit independently. When the management and auditors collide to decisive the public, the fraud may be very hard to decipher. This may in turn adversely affect the quality of earnings and the compromise the faithful representation of the financial data.
The financial analysts tend to predict the earnings expectations of the firm, which in turn motivate the investors to purchase the shares. If these
Want to see more full solutions like this?
Chapter 7 Solutions
EBK ETHICAL OBLIGATIONS AND DECISION-MA
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education