Here is the synopsis of our sample research paper on WHERE AUDITORS FEAR TO TREAD: AN ARTICLE ANALYSIS. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 3-page paper reviews Paul Clikeman's article "Where Auditors Fear to Tread," which was published in the August, 2003 edition of The Internal Auditor. Clikeman's assertion is that, even in this auditing atmosphere of transparency and rules, manipulation of earnings statements can still get companies in trouble. He offers solutions for auditors to get out of such trouble. Bibliography lists 2 sources.
Page Count:
3 pages (~225 words per page)
File: D0_MTaudart.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
the outcry has been strong to overhaul the auditing profession. The public outcry has led to some changes - companies are doing a better job of self-policing the auditing process,
and the Sarbanes-Oxley Act has placed the government stamp of approval on attempts to prevent fraudulent accounting and auditing. However, Paul Clikeman,
in his article "Where Auditors Fear to Tread" notes that in the concern over fraudulent financial reporting, earnings management information is often overlooked, and this is where problems can occur
for most auditors. The article, published in the August, 2003 issue of The Internal Auditor, thoroughly discusses the pressures that motivate managers and auditors to manipulate the companies reported earnings
- even in this post-Enron world. Why are earnings management such a concern? Basically, manipulation of earnings management doesnt involve what Clikeman
calls "obvious violation of explicit accounting rules" (Clikeman, 2003, p. 75). As a result, manipulated earnings management can be a difficult practice to prove, but as well see later on,
it can lead to a whole host of problems if left unchecked. Although manipulation of reported earnings was widely accepted (and even tacitly encouraged) during the boom times of the
1990s, Clikeman notes that in the current environment, manipulated earnings management can cause long-term harm to a corporation. But why would auditors
even condone manipulation of earnings, especially when transparency seems to be a huge issue? Clikeman notes that although transparency is an issue, there are even larger issues and pressure motivating
managers to fool with a companys earnings. Such issues, he goes on to say include market expectations, income smoothing and even contractual motives. This can be accomplished, he notes, through
...