As recent corporate scandals prove, corrupt companies can maintain a façade of financial success through manipulation and fraud almost to the day they file for bankruptcy. Fortunately, tools exists to detect aggressive earnings management. This timely book reviews the current environment, explains the tools that can be used to detect a manipulative financial environment, and introduces techniques for recasting financial information to get a truer economic picture. Brief cases reflecting a variety of companies provide a feel for evaluating public data and how earning management potential can be analyzed. In addition, an appendix features a complete earnings management detection checklist that can be used to conduct a thorough analysis of any corporation.
Gary Giroux is Shelton Professor of Accounting at Texas A&M University. He has published in Accounting Review, Journal of Accounting Research, Accounting, Organizations and Society, Journal of Accounting and Public Policy, and numerous other journals. He is the author of five books, including Earnings Magic and the Unbalance Sheet: the Search for Financial Reality. His primary research and teaching interests are in auditing and governmental accounting.
He is co-authoring two books at this time: Primordial Soup and The Dark Side of Capitalism. Please visit www.GaryGiroux.com for more information and to follow Gary's blog.
