Essay Available:
Pages:
1 pages/≈275 words
Sources:
2
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 4.68
Topic:
Management Earnings Manipulation and Small Business Lending Enactment Act Pitfalls
Essay Instructions:
Discussion 1:
Imagine that you have been hired to audit the sales and collections of a medium-to-large merchandising company. Suggest at least two ways that management could manipulate earnings and make specific recommendations for the internal control procedure to prevent or detect the transaction.
Justify your response.
Discussion 2:
From this week's discussion preparation, assess the potential pitfalls of passing the Small Business Lending Enactment Act as discussed in the article. Suggest how these pitfalls can be minimized.
Essay Sample Content Preview:
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Discussion Topics
Discussion 1
There are several ways in which management may manipulate revenue. The first approach that can be employed is recording revenue prematurely. A business might record un-earned revenue even when the mode of recognizing it has not been conceived. This improves the financial statement appearance and lures the next period out of the sale. The second approach that can be applied is recording fictitious revenue. In this technique, the management may record the revenue of the sales that did not occur or record investment incomes as revenue. In order to prevent the detection of the techniques mentioned above, the following control procedures can be applied. Validating the documents can be done electronically or physically. There is a need to maintain a certificate of record comp...
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