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What is Quality of Earnings?

CFO Share

MARCH 14, 2022

Audited financial statements focus on compliance with GAAP accounting standards, whereas Quality of Earnings reports focus on the company’s earnings history and potential. Sales concentrations and/or backlog risk. Analysis of inventory reserves and allowances. Changes in accounting practices or procedures.

Auditing 52
Auditing GAAP Accounting Principles Profit and Loss 52
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