If management wants to pump up earnings for a particular period, it's easy to slow research and development expenses, defer repair and maintenance or even time purchases so bills are incurred a bit later. Who can judge the way management runs its business? Achieving precision in a company's numbers is nearly impossible, but at the same time analysts will focus on a penny-per-share difference between estimates and actual figures. It all contributes to the ability to manipulate results. To a degree, so-called aggressive accounting is an effect of goal commitment since historically, the role of an auditor did not include comment on 'Gray' areas. But one also has to look at the risk-reward effect of aggressive accounting as it relates to auditors.
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