"The history of accounting is as old as civilization, key to important phases of history, among the most important professions in economics and business, and fascinating. Accountants participated in the development of cities, trade, and the concepts of wealth and numbers. Accountants invented writing, participated in the development of money and banking, invented double entry bookkeeping that fueled the Italian Renaissance, saved many Industrial Revolution inventors and entrepreneurs from bankruptcy, helped develop the confidence in capital markets necessary for western capitalism, and are central to the information revolution that is transforming the global economy."
--Gary Giroux

Detecting Earnings Management book cover image

Detecting Earnings Management

by Gary Giroux

ISBN-13: 978-0471470861

 

Earnings management is one of the most significant areas of accounting given today's scandal-plagued business environment. This focused treatment describes the current environment and provides the details on specific earnings management potential. It demonstrates how aggressive earnings management can be detected using publicly available information.

ESSENTIAL TOOLS AND STRATEGIES FOR DETECTING MANIPULATION.

As recent corporate scandals prove, corrupt companies can maintain a façade of financial success through manipulation and fraud almost to the day they file for bankruptcy. Fortunately, tools exists to detect aggressive earnings management.

This timely book reviews the current environment, explains the tools that can be used to detect a manipulative financial environment, and introduces techniques for recasting financial information to get a truer economic picture. Brief cases reflecting a variety of companies provide a feel for evaluating public data and how earning management potential can be analyzed. In addition, an appendix features a complete earnings management detection checklist that can be used to conduct a thorough analysis of any corporation.

Detecting Earning Management will help readers:

  • Identify the incentive of management to manipulate earning to promote their own short-term interests.
  • Evaluate the effectiveness of corporate governance to limit short-term manipulation and promote long-term success.
  • Consider whether recent regulations, such as Sarbanes-Oxley, will limit future abuse.
  • Review the major fraud techniques used in the recent and not-so-recent scandals.
  • Identify the potential areas of manipulation and other sources of distortion and develop appropriate detection strategies.
  • Understand the challenging areas that can distort financial reality such as acquisitions, derivatives, and special purpose entities.

Gary Giroux's Books

Earning Magic

Wouldn't you like to know as much as you could about a company before you invest in it?
Detecting Earnings Management Essential Tools and Strategies for Detecting Manipulation.
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