- 8 Marks
FR – Nov 2023 – L2 – Q6a – Ethical Issues in Financial Reporting
Identify and discuss techniques for manipulating financial statements under ethical compliance.
Question
The management of an entity experiencing a decline in profits or poor cash flows may use various forms of creative accounting techniques to manipulate the views shown by the financial statements while complying with all applicable accounting standards and regulations.
Required:
Identify and discuss FOUR techniques of creative accounting. (8 Marks)
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