Auditors Crack Down on Earnings Manipulation Through Classification Shifting.
Auditors charge higher fees and take more time to audit companies that manipulate their earnings by shifting how they classify their finances. This is because auditors see this as a sign of dishonesty and potential legal trouble. They are more likely to give a warning in their audit report when they find this kind of manipulation. Overall, auditors are more careful and strict when dealing with companies that try to hide their true financial situation through classification shifting.