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business
Essay specific features
Written by:
Agnes B
Date added:
April 23, 2016
Level:
University
Grade:
A
No of pages / words:
1 / 252
Was viewed:
8008 times
Rating of current essay:
Essay content:
Why do managers want to show good-looking balance sheet?
Because of lenders judge businesses by the company's balance sheet, managers are easily led astray to dress up their balance sheet. The more the balance sheet looks good, the easier managers can borrow the money from bank and other invester.
Some small business managers try to minimize profits for decreasing income tax...
displayed 300 characters
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It is another way to dress up the balance sheet.
3. How can an independent auditor decreases such behaviors of managers?
The independent auditor should be especially aware of the potential for dressing up the balance sheet and watch carefully those balance sheet.
The auditor can advise managers about bad effect of window dressing because window dressing just have the company looks good for a short period...
displayed 300 characters
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