Numbers Game
Arthur Levitt’s speech, “The Numbers Game,” is available on the SEC’s website at www.sec.gov/
news/speech/speecharchive/1998/spch220.txt . Read the speech, and then answer the following questions.
Required
a. Briefly explain what motivations Levitt discusses for earnings management.
b. What specific techniques for earnings management does Levitt discuss?
c. According to Levitt, why is the issue of earnings management important?
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