NO.PZ2019120301000293
问题如下：
Question Which of the following approaches will most likely reveal manipulation of financial reporting?选项：
A.Using EBITDA to adjust for non-recurring items B.Evaluating potential warning signals in isolation C.Comparing a company’s methods and policies to those of its peers解释：
SolutionC is correct. An investor should compare a company’s policies with those of its peers to determine whether its approaches match or differ from industry norms; if a company is the only one in its industry following a particular approach, a red flag is raised.
A is incorrect because companies may construct or report their own version of EBITDA. Thus, adjusting EBITDA for a non-recurring item, in and of itself, does not reflect or reveal manipulation or financial reporting.
B is incorrect because investors need to evaluate warning signals cohesively, not on an isolated basis.
RT
