(a) What is earnings management? (b) Which earnings benchmarks have been identified by researchers as...

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(a) What is earnings management?

(b) Which earnings benchmarks have been identified by researchers as important targets to achieve?

(c) Assume that you are the CFO of a company listed on the ASX. There are indications that your company will fail to achieve analysts forecasts of earnings per share (EPS). Identify two likely earnings management tools you would consider using in order to achieve the target of forecasted EPS.

(d) Discuss whether your actions outlined in (c) above are illegal.

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