1 Describe the reasons a nave observer would consider itoverkill to s...

1. Describe the reasons a naïve observer would consider it overkill to scrutinize a company’s financial...

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Accounting

1. Describe the reasons a naïve observer would consider itoverkill to scrutinize a company’s financial statements for signsthat management is presenting anything less than a candidpicture?
2. How does that method of accounting for a merger oracquisition affect the combined companies’ subsequent competitivestrength, ability to generate cash, or reported earnings; and whatare the clues that there may be something amiss in an M&A?
3. a) Explain the tension that exists for the auditing firm? (b)What can be said about the existing provisions for issuingfinancial accounting standards?

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Answer 1 Following reasons can be ruled out There are already present laws and regulations which makes it mandatory for publicly listed companies to disclose all the material events affecting the value of their securities in any manner This makes sure that if theres something which requires the attention of investor will be See Answer

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1. Describe the reasons a naïve observer would consider itoverkill to scrutinize a company’s financial statements for signsthat management is presenting anything less than a candidpicture?2. How does that method of accounting for a merger oracquisition affect the combined companies’ subsequent competitivestrength, ability to generate cash, or reported earnings; and whatare the clues that there may be something amiss in an M&A?3. a) Explain the tension that exists for the auditing firm? (b)What can be said about the existing provisions for issuingfinancial accounting standards?