MGT 6028
Financial Reporting and Analysis of Technology Firms
Fall Semester, 2002
Instructor:
Phone:
Email:
Charles W. Mulford
404-894-4395
charles.mulford@mgt.gatech.edu
Office:
DCOM 406
Course Materials:
Course Textbook: The Financial Numbers Game: Detecting Creative Accounting Practices, by
C. Mulford and E. Comiskey
Course Notebook: Financial Reporting and Analysis of Technology Firms, by Prof. C. Mulford.
Consists of the following parts:
Course Lecture Notes:
 Course Description
 Identifying Technology Firms
 Issues of Accounting and Financial Reporting for Technology Firms
 Cash Flow Construction and Analysis of Technology Firms
 Share Valuation
 Financial Warnings Introduction
 Premature or Fictitious Revenue
 Aggressive Cost Capitalization and Extended Amortization Periods
 Misreported Assets and Liabilities
 Managing Earnings Perceptions
 Using Operating Cash Flow to Detect Creative Accounting Practices
Course Supplemental Materials:
 Prior year exam with answer key
 Case Assignments
 Course Readings
Technology Firms: 2
Course Description
Financial Reporting and Analysis of Technology Firms focuses on financial reporting and
analysis issues facing firms from a broad range of industries whose common bond is research and
development of new technology, including the application of technology to new or enhanced
products and services. The course is presented in three interrelated parts, each part seeks to
fulfill one of three overall course objectives.
Part 1 clarifies the accounting and reporting standards that are particularly troublesome for
technology firms. Standards that guide the reporting of activities of technology firms are
sometimes arbitrary and are often misunderstood. For example, research and development is
expensed as incurred unless aimed at the development of new software. Also, development stage
enterprises are offered no special accounting guidelines from operating firms, though they do
have special reporting requirements. Readers of the financial statements of technology firms
must be aware of standards such as these to effectively understand the firms' underlying financial
performance and position.
Part 2 is devoted to cash flow analysis. Technology firms in general are fast-growth entities.
Many of these companies require external sources of cash to maintain their growth. Other firms,
however, that are growing just as fast, are generators of cash and accumulate large amounts that
can be used for new investment. Investment analysis is ultimately focused on a firm’s ability to
generate cash. This section is attentive to analyzing the traits of companies that permit some to
generate cash while others consume it. The objective is to determine if and when companies that
consume cash will begin to generate surpluses, and whether companies that generate cash
currently will continue to do so.
In Part 3 attention turns to identifying financial warnings, available in the financial statements
and notes, that can be useful in anticipating future declines in corporate earnings and cash flow.
Such earnings declines might be caused by operational difficulties or by the application of
creative accounting practices. The circumstances surrounding these performance declines have
many names, such as "Asset write-offs", "unrecorded liabilities", "restructuring charges",
"accounting irregularities", "inflated profits", and "earnings restatements". Each of these
circumstances is often unanticipated. The objective of this section is to prepare the financialstatement reader to better anticipate and avoid them.
Course Procedure
A blending of lecture and discussion will typify the class sessions. A consistently high level of
preparation for class sessions will be essential in order to derive maximum benefit from the
course.
Technology Firms: 3
Grade Determination
Test 1: Accounting for technology firms
Test 2: Cash flow construction and analysis
Test 3 (final exam): Financial Warnings
Group case 1 - company analysis, due Oct. 28
Group case 2 - financial warnings using CFI, due Dec. 4
Classroom participation
15%
25%
35%
10%
10%
5%
At the start of the semester, the class will be divided into groups of four to five persons. These
groups will work together on two group cases. The first group case entails an analysis of an
individual company’s earnings and cash flow potential. Firms selected for analysis by each
group must be from a chosen technology industry. Firms should be small (revenues of under
$100 million), profitable, and expected to grow at a minimum of 15% compounded over the next
five years.
Technology industries from which individual companies may be chosen are listed below. No
more than two groups may select the same industry.
Aerospace
Biotechnology
Computers and peripherals
Computer Software and Services
Drug
Electronics
Medical Supplies
Precision Instrument
Semiconductor
Semiconductor Capital Equipment
Telecommunications Equipment
The second group case entails a search for warnings of creative accounting practices and
impending operational difficulties using the CFI ratio from among five chosen companies within
the selected industry.
Technology Firms: 4
Consistent with the college's honor code, students must do their own work on the exam. Group
work should be done without the help of others outside the group.
For students with disabilities: to request classroom accommodations, contact the ADAPTS
office: Assistant Dean/Coordinator for Students with Disabilities, Smithgall Student Serices
Building, Suite 221, (404) 894-2564.
Technology Firms: 5
Financial Reporting and Analysis of Technology Firms
Course Outline
Session
Notebook page
Mon. Aug. 19
Course Introduction
Identifying Technology Firms
Tech Firm Intro pp. 1-10
 Use of technology in providing goods and services
 Not a good indicator
 Using financial statement characteristics to identify technology firms
 Percentage of assets that are technology-based
 High level of research and development activity, patents are a minor portion of
total assets - Biogen
 Capitalized software development costs - Astea International, Inc.
 Portion of employees engaged in scientific research activities
 Personnel mix - Groundwater Technology
 Research and development expenditures as a percentage of revenues
 A workable approach for identifying technology firms
 Research and development expense as a percentage of revenues for eight
industry groups
 Three industries that do not meet this technology firm definition
 Broadcasting, including cable television
 Environmental
 Telecommunications services, including cellular phones
 Technology 80 - share valuation case assigned
Wed. Aug. 21
Pre-class readings:
Readings section, back of notebook
 FAS 7:
"Accounting and Reporting by Development Stage Enterprises"
 FAS 2:
"Accounting for Research and Development Costs"
 FAS 68: "Research and Development Arrangements"
 Exp. Draft: Proposed Statement of Financial Accounting Standards: "Business
Combinations and Intangible Assets - Accounting for Goodwill"
Written assignment: R&D or What?
Group assignments made.
26
Technology Firms: 6
Session
Notebook page
Issues of Accounting and Financial Reporting
 Development stage enterprises
Financial Reporting, pp. 1-10
 Definition
 Accounting and reporting requirements
 A Development stage enterprise - Waverider Communications, Inc.

Accounting for research and development costs
Financial Reporting, pp. 11-23
 Definition
 Examples
 Reporting guidelines
 Costs incurred internally
 Purchased from others
 Research and development arrangements
 What is research and development? - St. Jude Medical
 Purchased research and development
 Cisco Systems, Inc.
 MCIWorldCom
 Research and development arrangements
 Hi-Tech Pharmacol Co., Inc.
 In-class exercise - R&D or what?
Mon. Aug. 26
Issues of Accounting and Financial Reporting (cont’d)
Pre-class assignment: Technology 80.
Case section, back of notebook
In-class:


Technology 80 - what’s it worth?
Discuss collecting industry data and provide guidance for group case.
 Students should consider industries of interest and group membership
Wed. Aug 28
Issues of Accounting and Financial Reporting (cont’d)
Pre-class readings:
Readings section, back of notebook
 SOP 98-1: “Internally Developed Software”
 FAS 86:
"Accounting for the Cost of Computer Software to be Sold, Leased, or
Otherwise Marketed"
 SOP 97-2: "Software Revenue Recognition"
 Article:
"The Boundaries of Financial Reporting and How to Extend Them" by
Lev and Zarowin. Be prepared to discuss findings and implications.
Technology Firms: 7
Session


Notebook page
Accounting for computer software costs
Financial Reporting, pp. 24-37
 Key issue - sufficiently similar to research and development?
 Software purchased or created for internal use
 Software purchased or created for sale or lease
 The life cycle of software development
 Accounting for software development costs
 Importance of technological feasibility
 Accounting and disclosure requirements
 Capitalized software development costs
 Astea International, Inc.
 American Software, Inc.
Accounting for software revenue recognition
Financial Reporting, pp. 38-50
 Statement of Position 97-2
 Basic Principles
 Computer Associates International
 Four requirements for recognition
 Evidence of an arrangement
 Delivery
 Fixed or determinable fees
 Collectibility
 Special situations
 Multiple elements
 PCS
 Services
 Contract accounting for software
 Example policies
 Microsoft Corp.
 IBM Corp.
 Mustang Software
 American Software
Mon. Sept 2
Holiday
Wed. Sept 4
Issues of Accounting and Financial Reporting (cont’d)
Pre-class readings:
Readings section, back of notebook
FAS 123: “Accounting for Stock-Based Compensation”
APB 25: "Accounting for Stock Issued to Employees"
FIN 28: "Accounting for Stock Appreciation Rights and Other Variable Stock
Option or Award Plans"
Complete:





H&R Block
Teradyne, Inc.
83
85
Technology Firms: 8
Session
Notebook page
In-class:
Compensation of Personnel
Financial Reporting, pp. 57-94
Characteristics of technology firms often limit cash compensation
Alternatives employed
 Stock options
 Stock appreciation rights
 Performance - type plans
Reporting guidelines for stock-based compensation plans
 Stock compensation plans
 Qualified vs. nonqualified stock option plans
 Qualified and nonqualified plans - Autodesk
 Tax benefits from stock options
 Microsoft
 Quigley Corp.
 I2 Technologies
 In-class exercise - H&R Block
 In-class exercise - Teradyne, Inc.
 Stock appreciation rights
SFAS 123 - Accounting for stock-based compensation
 Pro-forma disclosures - Autodesk





Wed. Sept. 9 Test 1: Accounting and reporting for technology firms
Mon. Sept. 11 Review Test 1 results
Share Valuation
 Share valuation lecture and discussion of case assignments
Valuation notes
Wed. Sept. 16
Cash Flow Construction
Cash Flow Construction, pp. 1-51
 Partitioning cash flows
 Arch Therapeutics:
 Change in cash
 Balance sheet changes
 Indirect method
 Direct method
 Storefront Furniture, Inc.
 Indirect and direct methods contrasted
Technology Firms: 9
Session
Notebook page
The UCA format cash flow statement
 Barton Industries, Inc. - calculating net cash after operations
 Problem: Forders, Inc. - calculating net cash after operations
 The UCA format cash flow statement
 A statement format for cash flow analysis
 Column Casts - bank format cash flow
 Highlighting differences among the indirect method, direct method and bank
format statements of cash flow
 Cash flow construction: A closer look at deriving the UCA format cash flow
statement
 Cash flow construction: A three step process

Mon. Sept. 18
Cash Flow Analysis
Cash Flow Analysis, pp. 1-53
Pre-class assignment:
Problem: Hamilton Farms, Inc. - preparing a UCA format cash flow statement - cont’d.
In-class:


Review Hamilton Farms, Inc. solution
Using the analysis cash flow format to analyze cash flows
 Five cases - same revenues, same net income, same net cash flow, very different
conclusions
 Some comments on the cash flow cases
 A sixth case
Cash Flow Analysis (cont’d)

Using ratios to analyze cash flows
 Growth
 Profitability
 Cost of goods sold percentage
 Selling, general and administrative expense percentage
 Operating efficiency
 Days receivables
 Days inventory
 Days payables
Technology Firms: 10
Session
Notebook page
Wed. Sept. 23
Cash Flow Analysis (cont’d)
Pre-class assignment:
Problem: Jewel’s Jewelers. - preparing a UCA format cash flow statement (time permitting)
In-class:
Using ratios to analyze cash flows (cont’d)
Review Jewel’s Jewelers solution (time permitted)
Industrial Services (exclude tax accounts)



Mon. Sept. 25
Cash Flow Analysis (cont’d)
Pre-class assignment:
Problem: Environmental Services (excluding tax accounts)
In-class:
Complete review of Industrial Services
Review Environmental Services


Wed. Sept. 30
Cash Flow Analysis (cont’d)
Pre-class assignment:
Problem:
Liuski Corp - computer generated
cash flow statement
Case section, back of notebook
Read: Share valuation lecture notes
Valuation notes
In-class:


Complete review of Environmental Services
Review Liuski Corp.
Share Valuation
 Share valuation lecture and discussion of case assignments
Valuation notes
Wed. Oct. 2
Share Valuation
Pre-class Read share valuation lecture notes

Share valuation lecture and discussion of case assignments
Valuation notes
Technology Firms: 11
Session
Notebook page
Mon. Oct. 7
Share Valuation
Pre-class Read share valuation lecture notes

Share valuation lecture and discussion of case assignments
Valuation notes
Wed. Oct. 9
Share Valuation
Pre-class:Read share valuation lecture notes

Share valuation lecture and discussion of case assignments
Valuation notes
Mon. Oct. 14 Fall Recess, No Class
Mon. Oct. 16 Test 2: Cash flow analysis and share valuation
Wed. Oct. 21 Review Test 2 results
Oct. 23
Introduction to Financial Warnings
Pre-class Read chapters 1 and 2, The Financial Numbers Game
Complete: A Survey of Lenders - anticipating earnings surprises
12

What's an earnings surprise?
 The Topps Co. - Provision for obsolescence and returns
 MiniScribe - A massive fraud
 Chambers Development - Abandoning unorthodox accounting
 Home Nutritional Services - Changes in reimbursement patterns
 Crown Crafts - Inventory theft loss
 Presidential Life - Loss on investments
 Lucent Technologies - Premature revenue recognition
 Sunbeam Corp. - Premature revenue recognition
 California Micro Devices - Fictitious revenue
 Cascade International - Where's Our Chairman?
2



How do earnings surprises impact future cash flows?
Course agenda
Causative Factors for Earnings Surprises - Economic Fundamentals
10
16
17
Technology Firms: 12
Session
Notebook page
Oct. 28
Introduction (cont'd)
Pre-class Read chapters 4 and 5, The Financial Numbers Game
Complete: Financial Numbers Game Questionnaire


Causative Factors for Earnings Surprises - Economic Fundamentals (cont'd)
Flexibility in Financial Reporting
27
17
27
Group Case Assignment 1 is due.
Oct. 30
Premature or Fictitious Revenue
Pre-class Read chapter 6, The Financial Numbers Game
Complete: Trading Cards, Inc (Topps).
13

When should revenue be recognized?
 Autodesk - Sales to distributors
 BMC Software - Licensing of software
 Computer Associates - Product license fees
 Group 1 Software - Licenses of software
2

Guidelines for revenue recognition
 SEC requirements for revenue recognition
3
4

Persuasive evidence of an arrangement
 Perceptive BioSystems - Consignments
 Digital Lightwave - No P.O.
4

Delivery has occurred
 American Software - Shipment of user msanuals
 Cylink - Shipments to a warehouse
 Informix - Side letters
4
6
7
8

Fixed or determinable fee
 Informix - Extended payment terms`
9
9

Collectibility is probable
 Informix - Disregarding customer creditworthiness
10
10

Change in revenue recognition practice to conform to new guidelines
 American Software - Recognition awaits shipment
11
11
4
5
Technology Firms: 13
Session

Notebook page
Using accounts receivable to detect premature or fictitious revenue
 Knowledgeware - Buildup in accounts receivable
12
12
Nov. 4
Premature or Fictitious Revenue (cont'd)
Pre-class: Complete: Disk Drive Corp (Miniscribe).
Global Resources
26
30

Revenue recognition - premature or fictitious?
 Boston Scientific - Sales to nonexistent customers
 California Micro Devices - "What's Wevenue?"
 Mercury Finance - Revenues with the stroke of a pen
 Flight Transportation - Insufficient capacity
18
20
21
22
23

Revenue recognition cover-up activities
25

Special terminology - Premature or fictitious revenue
 Sunbeam - Bill and hold
 Bausch & Lomb - Channel stuffing
 Knowledgeware and others - Side letters
34
34
35
36

Financial warnings checklist
37
Nov. 6
Aggressive Cost Capitalization
Pre-class Read chapter 7, The Financial Numbers Game
Complete: Capitalized costs
Complete: Cendant / CUC International - capitalized costs
Complete: American Software - capitalizing software
development costs
11
13
27

Expense or Capitalize?
 The Good Guys - Store preopening costs
 Sun Television & Appliances - Store preopening costs
 Lechters - Store preopening costs
 Value Merchants - A company changes its policies
2

Guidelines for expense recognition
 O.I. Corporation - Warranty expense
 Top Air Manufacturing - Amortization of patents
 Dynatech - Improvements and R & D
4
4
5
6
Technology Firms: 14
Session

Notebook page
Advertising expenditures - Can it be capitalized?
 CPI Corp. - Direct response advertising
 AOL - Direct response advertising
What is aggressive cost capitalization?
7
7
8
12

How do I recognize aggressive cost capitalization?
 Pre-Paid Legal, Inc. - Capitalized sales commissions
 Medical Disposal Technologies - A host of capitalized costs
 Chambers Development - In hindsight, capitalization was a mistake
18
19
21
22

Computer software development costs - a special form of R & D
24

Capitalizing software development costs
 Microsoft - No capitalization
 System Software - capitalizing software development costs
25
25
26

Nov. 11
Extended Amortization Periods
Pre-class Complete: Micron Technology - Average amortization period
Complete: American Software - Software amortization period
43
44

Guidelines for choosing an amortization period
 Bausch & Lomb - Depreciation policy
 Cordis Corp. - Depreciation policy
 U.S. Surgical - Depreciation policy
30
31
31
31

Impact of amortization periods on pretax results
 U.S. Surgical - amortization periods
32
32

Differences in the selection of amortization periods - capitalized software
development costs
 Bolt Beranek and Newman - Amortization period for software costs
 Autodesk - Amortization period for software costs
 BMC Software - Amortization period for software costs
33
33
33
33

Brazen steps taken to boost earnings through extended amortization
Livent - Amortizing capitalized preproduction costs
34
34

What's an extended amortization period?
 Waste Management - Underdepreciation of fixed assets
 Snax, Inc. - Writedown of overvalued assets
35
37
39
Technology Firms: 15
Session
Notebook page

Calculating the average amortization period for property, plant and equipment
 National Semiconductor - Average amortization period
41
41

What's an appropriate amortization period for technology?
43

New rules for goodwill
 American Standard Co. - Evaluating goodwill for impairment
45
45

Financial warnings checklist
46
Nov. 13
Using Operating Cash Flow to Detect Creative Accounting Practices
Pre-class: Read chapter 11, The Financial Numbers Game
Complete: Men's Wearhouse: Adjusting operating cash flow
Complete: Helen of Troy: Adjusting operating cash flow
13
16
Note: Group Case Assignment 2 is due Dec. 4.
Using operating cash flow
 Adjusted cash flow to income ratio (CFI)
2
3

Creative cash flow reporting
5

Purchases and sales of trading securities
 WHX Corp. - Trading securities
5
6

Reclassifying outstanding checks as accounts payable
 Aviall - Reclassifying outstanding checks
8
8

Operating cash flow from discontinued operations
 Cytrx Corp. - Discontinued operations
9
10

Adjusting operating cash flow for nonrecurring and nonoperating items
 Microsoft Corp. - tax benefits of stock options
12
18
Nov. 18
Using Operating Cash Flow to Detect Creative Accounting Practices (cont'd)
Pre-class Complete: Tyco International: Acquired operating cash flow
Complete: Men's Wearhouse: Adjusting income
Complete: Sunbeam Corp.: Using the CFI
19
23
29
Technology Firms: 16
Session
Notebook page

Using the CFI Ratio
 Xerox Corp.: Using the CFI
 Enron Corp. - Using the CFI
24
26
28

Financial Warnings Checklist
32
Nov. 20
Misreported Assets and Liabilities
Pre-class: Read chapter 8, The Financial Numbers Game
Complete: Comptronix - a complex fraud
27
Excessive Asset Valuation
 When are assets overvalued?
2
2

Accounts receivable - NRV represents amounts expected to be collected
 Carco - Keep an eye on economic conditions
 Earthgrains - a bankrupt customer
 Home Nutritional Services - Comparing receivables in days with a competitor's
4
4
6
8

Inventory - a convenient fiction
 Perry Drug Stores, Inc. - Inventory issues
 Leslie Fay - Inconsistencies between corporate performance and published
results
10
14
On the wild side - inventory reporting violations
 Bre-X Minerals - "salted" gold samples
 Centennial Technologies - fake inventory
 International Nesmot Industrial - brass bars painted to look like gold
23
23
24
26

17
Nov. 25
Misreported Assets and Liabilities (cont'd)
Pre-class Complete: Babson Tool Works - Lifo
34

The Lifo Reserve
 John Wiley & Sons - Life reserve
 R.R. Donnelley - Lifo and the fourth quarter earnings surprise
 Winn Dixie Stores - The fourth quarter lifo reserve adjustment
 Compiled statements and the fourth quarter lifo adjustment
30
30
31
32
33

Lifo liquidations - a temporary earnings boost
 Cross Co. - lifo liquidations
39
39
Technology Firms: 17
Session
Notebook page

Other inventory issues
41
 Topton Manufacturing - Changing inventory mix, a precursor of falling sales? 41
 Crown Crafts - Inventory theft and the unexpected inventory writedown
42

Investments - available for sale, trading and held to maturity
 SunTrust Banks - A major balance sheet boost to assets and equity
 Presidential Life - What are debt securities worth?
 Johnson Scientific - Equity method accounting can postpone recognition
of market value declines
 Bion Environmental - Overvaluation of notes received for stock issued
Nov. 27
44
46
48
49
50
Work on group projects
Dec. 2
Misreported Assets and Liabilities (cont'd)
Pre-class: Complete: Haven's Building Supplies
61
Undervaluation of Liabilities
 When are liabilities undervalued?
 Accounts payable and accrued liabilities
 Collins Industries - Understating accounts payable, overstating net income
 Disk Drive Corp. - underaccrued warranty liability
51
51
52
54
57

Low effective tax rate
 Resource Engineering - net operating loss carryforwards
58
58

Contingent liabilities
 Lee Pharmaceuticals - failure to accrue for environmental damage
60
60

Hidden obligations
 Personal Diagnostics - open futures positions
 Bay Tact Corp. - stocks on margin
65
65
65

Off balance sheet liabilities - commitments
 Marriott - Loan guarantees
67
68

Off balance sheet liabilities - Special Purpose Entities (SPEs)
 Enron Corp. - SPEs and the company's restatement
69
75

Off balance sheet liabilities - Synthetic leases
 Lexicon Graphics - Synthetic leases and restricted cash
 Cisco Systems - Synthetic leases and restricted cash
Financial warnings checklist

82
85
86
135
Technology Firms: 18
Session
Notebook page
Dec. 4
Managing Earnings Perceptions and Management Fraud
Pre-class Read chapters 9 and 10, The Financial Numbers Game
Complete: Basic Industries: Change in accounting principle
(Managing Earnings Perceptions section)
Complete: Elite Tennis, Inc. - using the checklist (Management Fraud section)
40
17
Group Case Assignment 2 is due.
Creative Statement Structure
 Basic income statement structure
3
 Key elements of the income statement
4
 Employing creativity in structuring the income statement
6
 Advanced Environmental Recycling - fire gains
8
 Advanced Lighting Technologies - Extraordinary item, early retirement of debt 9
 Exxon Corp. - Material nonextraordinary item
12
 Herman Miller - Material charge for litigation and restructuring
is not extraordinary
13

Problematic classification of extraordinary items
 Bio-Rad Laboratories - extraordinary item
 Norwest bank - Treatment of fire-related gain, not extraordinary
 Differing treatments for extraordinary items
14
14
15
16

Additional examples of income statement creativity
 IBM - Netting gains against operating expenses
 Sherwin-Williams Co. - Netting other income and expense
 Archer Daniels Midland - Netting other income and expense
 Coca-Cola - Gains on sales of bottlers
 Positive labels for not-so-positive events
 W.R. Grace - Including operating expenses in a restructuring charge
 Scientific Atlanta - New disclosure rules for restructuring charges
 Use of materiality
19
19
22
23
24
25
27
28
29
Accounting Changes
 Changes in accounting principle
 Ameridiscs - adoption of new accounting principle
 Changes in accounting estimate
 Blowout Entertainment - Changing the estimated useful lives of
videocassette tapes
31
31
32
34
35
Technology Firms: 19
Session

Notebook page
What are discretionary accounting changes?
Smoothed Income
36
43

What is income smoothing?
 Allied Bancshares - a quote from the treasurer
 Daimler-Benz (Germany) - Storing significant earnings for future years
43
43

What's wrong with income smoothing?
46

Identifying income smoothing
 GE - Unsustainable boost to earnings
47
48

The big bath
49

Financial Warnings Checklist
51
Management Fraud

Assessing the risk of management fraud
 Survey of audit partners
 Management fraud by industry
 Management fraud by deceptive action
 Level of client personnel involved in fraud
2
5
6
7

Financial Warnings Checklist
8

Three necessary ingredients for fraud
 Conducive conditions
 Motivation
 Attitude
8
8
10
12

Motivation - A closer look at the incentives
14

Using the Financial Warnings Checklist
 QZ Corp. - Example indicators
 Puritan Technologies - Example indicators
14
15
21

The Auditor's Role in Fraud Detection
22

The auditor's responsibility to detect and report errors and irregularities
25

Implications for lenders and investors
26
Final Exam Date – Test 3 Financial Warnings