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A client whose goal is to maximize reported net income might intentionally

A client whose goal is to maximize reported net income might intentionally
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A customer whose objective is to maximize reported net gain may purposefully include in material misstatement. Material misstatement are such fiscal statememts in which deliberately changes are done with the goal that their result can be modified.

  • Presently to increase reported overall gain he will show increased sales in such statements.
  • To increase the gross profit he may likewise increased closing stock worth.
  • Further, the gross profit are changed over into net gain after deduction of different costs.
  • He may show diminished costs in profit and loss statements which will build the net gains.
  • Diminished devaluation or depreciation costs can likewise be appeared in profit and loss statements to maximize reported net income.
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