1 Imagine You Are An Accountant Working On Closing The Books For The Year End Given 2803978
1- Imagine you are an accountant working on closing the books for the year end. Given that many accounting items rely on estimates, construct a scenario in which you would question an estimate as being either too high or too low that would misstate earnings. Support your answer with examples.
2- Imagine that you are on the board of directors for XYZ Company. You have received an anonymous tip that the financial statements were prepared in a fraudulent manner. Your initial reaction is that the threat level is high. Develop a plan of action that you would take to react to this allegation. Support your plan with examples and provide a rationale.