Title: business

Essay Details

Subject: Business
Author: Jan W
Date: May 8, 2017
Grade: A
Length: 1 / 252
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

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...

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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...

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